solid stock

I’m just having a look at the capital structure of NRR and it looks really tight even post the recent placement and rights issue. Currently NRR has fully diluted shares on issue of 137,930,495 shares on issue at the current price of 5c equals $6,896,524 Mkt Cap. With $4.4m in cash that leaves $2.49m in EV. If NRR was an outright shell then it’s considered cheap as a shell, but NRR has some assets next door to RNI’s Horseshoe and Cassidy Pits, which should carry some value for shareholders. So at this EV its cheap in my opinion.

The recent placement that has brought it a new substantial shareholder Fleming SG Capital Special Opportunities Fund which according to the activities report is essentially backed by Fleming Asset Management that has over a $1billion in funds under management. So NRR now has a considerable heavy weight fund as a big support, which is very positive news.

Also something that really encouraging as announced in the Appendix 3x is two of the new directors have considerable interests personally. Christian Cordier has 8,285,714 and Gavin Wates has 1,678,176 shares and 1,574,676 options. And we all know that nothing motivates you more than having your own cash on the line, so I’d say these guys are going to be an asset all shareholders by virtue of being large shareholders themselves.

So I thing given that NRR has a new balance sheet of $4.4m cash, very low EV, a tight share register, the backing of a large fund and a new very capable board with a proven track record of originating quality projects. So if the rumours are true and the new board is looking at new projects overseas I’m sure given their substantial personal holdings they will be inclined to find the very best project they can.
dyor