NXG - Sector: Basic Materials---Industry: Gold & Silver

[calven]

NXG plugging along again - wish i wouldnt have sold but made a nice profit 

[tokyopua]

I am in NXG now and hoping for a break above $4.  With the way gold is going, seems like just a matter of time now. Also holding AUY and SLV.

[nica33]

I have this one since may last year.  Bought almost in the top    I really hope break soon above 4. 

[tokyopua]

The weekly chart since last October forms a  cup and handle pattern, the only thing missisng is some strong volume in the walls of the cup.  Anyway, looks like we all agree that a break of 4 is significant, its not far away and gold doesnt seem to be slowing down at all 

[nica33]

Interesting action today with volume  greater than average.  Keep an eye if it crosses the resistance. Testing my patience.

[ScottishTrader]

NXG finally made its breakout!!! closed at 3.97 on very solid volume, currently trading pre-market above $4.

Looks like NXG wants to clear that resistance level and we could see some solid upside here.  I'm looking to buy this morning...

[thai626]

I'm in........Breakout looking to happen soon I hope.  

[thai626]

Just couldn't leave the second gap unclosed   

I should have known.   

[setravis]

The value on NXG seems to be great, almost no debt, profitable and low price to book and low price to sales.

Jewelry companies do not buy Silver and Gold the first and second quarter of the year. Jewelry companies buy lots of gold and silver the third quarter in preparation for Christmas sales.

It is usually best to wait till June before getting into Silver and Gold mining but with the value of nxg, it could bounce off the 50-day MA.

With their new two mines just picking up production, this stock should rise to 5 to 7 based on value alone.

So wait for a MACD buy signal and you can't go wrong on the timing of the entry point.


52wk Range: 0.55 - 2.96
Volume: 2,813,021
Avg Vol (3m): 2,505,660
Market Cap: 514.27M
P/E (ttm): 41.02
EPS (ttm): 0.05

Technicals
Close Below the 50-day MA
Percentage Gainer

Last Price Quote is:
-4.05%below 13-day MA
5.72%above 50-day MA
RS Rating: 73 

Fundamentals
Key Data:
Market Cap (M): $286.66 
P/E Ratio: 9.17 
PEG Ratio: N/A 
Next Earnings: 08/10/2009
Last Analyst Rating: Sector Perform

[setravis]

Strong bounce off the 50-day MA...

NXG has been acquiring operating mines and refurbishing its existing mines to increase production and extend mine life. They have also discovered new extensions of veins running off their existing mines and have been increasing their stated reserves available for future development.

Their cost of gold production was about $421 in 2008 and is expected to be about $461 in 2009. They are forcasting an 11% increase in gold production, to almost 400,000 ounces. In addition, they will produce some 54M pounds of copper. Cost reductions from new equipment, mining higher grades of ore, and lower energy and other prices are benefitting the bottom line.

With small miners, you get higher leverage. A small rise in the price of gold results in a big increase in their marginal profits. NXG estimated that an increase of $25 in the price of gold would result in about $10M additional free cash flow. Since gold has recently risen over $100, that should translate into at least $40M extra profit above what they estimated at the end of 2008.

The stock is up big this year already, but it's got lots of room to run higher.

52wk Range: 0.55 - 2.89
Volume: 3,116,337
Avg Vol (3m): 2,537,780
Market Cap: 608.93M
P/E (ttm): 48.57
EPS (ttm): 0.05
Div & Yield: N/A (N/A)

Technicals
Percentage Gainer

Last Price Quote is:
12.01%above 13-day MA
24.09%above 50-day MA
RS Rating: 86 

Fundamentals
Key Data:
Market Cap (M): $286.66 
P/E Ratio: 9.17 
PEG Ratio: N/A 
Next Earnings: 08/10/2009
Last Analyst Rating: Sector Perform

[setravis]

The Greatest Gold Stock in the World
By Christopher Barker
July 14, 2011

I just put together my Top 10 Gold Stocks for New Money Now series, and already two of my very favorite picks in the sector are joining forces to build the newest dominant prospect among the mid-tier miners of gold.

On Wednesday, Northgate Minerals (AMEX: NXG) dove into its proverbial pot of gold with an all-stock offer to acquire Primero Mining (OTC: MNOCF). Primero shareholders will receive 1.5 Northgate shares for each Primero share and hold 31% of the pro forma Northgate. Goldcorp (NYSE: GG) , with a 35.5% stake in Primero, will hold 11% of pro forma Northgate after voting its shares in favor of the deal. This is the most exciting gold deal I've seen since Primero's founding transaction about a year ago, so let me try to explain what I like so much.

Northgate Minerals had been temporarily stymied by a brief gap in its development pipeline, and it was staring down some slim production volumes at substantially elevated costs from its two Australian mines over the next several months. In the meantime, forward-looking Fools capitalized on the opportunity to position themselves for years of profitable mining from the Young-Davidson mine beginning early next year. As soon as the ink dries on this deal, Northgate will have filled its near-term production gap in one fell swoop -- and filled it in style with comfortably profitable gold and silver production from one of Mexico's truly legendary mines. With Primero's annual threshold of 3.5 million ounces of silver already delivered to stream-holder Silver Wheaton (NYSE: SLW) for 2011, Northgate will now enjoy lucrative spot-price exposure for 50% of silver produced through the remainder of the year.

Primero Mining had remained underappreciated, deeply undervalued, and even unknown to many U.S. investors since the company leapt onto the scene last year by acquiring Goldcorp's San Dimas mine. Since U.S. investors typically had to venture onto the Pink Sheets to access Primero's shares, I eagerly awaited a U.S. listing to enhance the stock's visibility. This deal accomplishes that feat in dramatic fashion! At the same time, Primero's president and CEO, Joe Conway -- revered within the industry for his leadership in building IAMGOLD (NYSE: IAG) into a mid-tier powerhouse -- will now lead Northgate Minerals as its new CEO through a targeted 72% pro forma production expansion within just two years! With increased capacity at San Dimas and Young-Davidson ramping up toward full production during 2012, Northgate expects to catapult from 320,000 pro forma ounces of gold in 2011 to 550,000 ounces in 2013.

Just this week I wrote the 7 Secrets to Profitable Gold Investing, where (here in Part 3 of the series) I discussed Primero's unrivaled outlook for exploration upside as a key factor behind the stock's No. 2 ranking within my most recent gold recommendations. Strangely enough, Northgate had previously earned the No. 2 spot within my Top 10 Gold Stocks for 2011 last December.

So what do you get when you combine my former No. 2 gold stock recommendation with my current No. 2 pick? Simply stated, and hands down, you get the premier investment vehicle for growth-hungry gold investors. That's right, this perfect pairing forces me to adjust my rankings once more, and place Northgate Minerals -- ahead of even the venerable Brigus Gold (AMEX: BRD) -- as my new No. 1 pick in the sector. Moreover, for a beautifully balanced arrangement of exposure to gold assets primarily located in the mining-friendly jurisdictions of Canada and Mexico, a Foolish trio of top-three gold stocks -- Northgate Minerals, Brigus Gold, and AuRico Gold (NYSE: AUQ) -- could collectively offer a perfect pairing.

•Add Northgate Minerals to My Watchlist
•Add Brigus Gold to My Watchlist
•Add IAMGOLD to My Watchlist
•Add Goldcorp to My Watchlist
•Add Silver Wheaton to My Watchlist

[setravis]

Uptick in Gold Demand Benefits Brigus Gold and Northgate Minerals
13-day MA crossover the 50-day MA
Day's Range: 2.99 - 3.19
52wk Range: 2.41 - 3.54
Volume: 6,834,768
Avg Vol (3m): 2,126,920
Market Cap: 916.68M

Technicals
Most Actives
Percentage Gainer

Last Price Quote is:
10.67%above 13-day EMA
13.42%above 50-day EMA
RS Rating: 88