My Personal Skunkworks : Nordic Mining

Nordic Mining

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Among my other companies that I follow or have invested in I have one company in my portfolio that is still truly a stat-up company. Situation is that NOM is currently waiting for final permissions from the government to start its operation. Sadly the government has been typically slow on this matter. Norway is expected to anytime now to publish their new mineral strategy, it is expected that by that time NOM will get its final permits to start operation in Engebø and it will be included in the plans in some way being strategically an important company.

Source: http://www.nrk.no/nyheter/distrikt/nrk_sogn_og_fjordane/1.10901249

This mineral strategy was already supposed to be published a few weeks ago, but for unknown reasons it was still pulled back. Problem this delay is causing is that NOM will soon need more financing but as uncertainty about the permits is still strong the stock price stays in low levels. So getting more money now by releasing stocks isn't a great option for them. If the permits come in before that, the price of the stock could be much better for them. This waiting and uncertainty has kept stock price in low levels and lately trading has been very quiet as well.

Personally I have a strong belief that in the end the permits do come and NOM will be seen as a prosperous company in the future. For now seeing the time scale of this is difficult as it is up to the government.

Nordic Mining ASA is a Norway-based mining company engaged in the exploration and production of industrial minerals and metals. The Company carries out project development activities related to anorthosite in Gudvangen in the Sogn og Fjordane region, Norway, as well as in Engebofjellet in Sogn og Fjordane, where it also has rights to deposits of rutile and garnet. Nordic Mining ASA has established cooperation with the Department of Geology and Mineral Resources Engineering at the Norwegian University of Science and Technology in Trondheim (NTNU) and the Norwegian Geological Survey (NGU). The agreement enables the Company to carry out mapping and prospecting activities for mineral and metal deposits in Norway. The Company is operational mainly in the Nordic region, through a number of subsidiaries, which include Keliber Oy, Nordic Mining America, Inc., Gudvangen Stein AS and Nordic Rutile AS.

HERE is an 8 months old report on the expectations and situation of Nordic Mining, provided by Carnegie.