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HTML <html> <head> <title>Stock Tips: Northern Orion Reprots Record Quarter</title> </head> <body> <h1>Stock Tips: Northern Orion Reprots Record Quarter</h1> <div class="info">Author: <a href="author_1_82219.html">James West</a></div><div class="body">Northern Orion Reports Record Earnings<br /> <br /> By James West<br /> <br /> Northern Orion (TSX:NNO, AMEX: NTO) is "ridiculously undervalued", according to company president and CEO David Cohen. This statement was made during an interview two weeks prior to the release of first quarter results yesterday. Today's results would certainly appear to confirm that sentiment.<br /> <br /> The company reported net earnings of $21,469,000 ($0.14 per share) for the first quarter of 2006 ("Q1 2006"), compared with net earnings of $8,938,000 ($0.07 per share) for the same period in 2005 ("Q1 2005").<br /> <br /> Other highlights include:<br /> • The Company's share of operating cash flow before interest, depletion, depreciation, amortization and tax ("EBITDA") from its 12.5% interest in the Alumbrera mine was $32,655,000 ($0.22 per share) in Q1 2006, compared to $13,825,000 ($0.11 per share) in Q1 2005.<br /> <br /> • Equity in earnings from Alumbrera were $21,409,000 ($0.14 per share) in Q1 2006, compared to $8,256,000 ($0.06 per share) for Q1 2005.<br /> <br /> • Average realized copper price was $3.25 per pound and average realized gold price was $577 per ounce in Q1 2006. The Company's share of Alumbrera sales during the quarter was 11,160,000 pounds of copper and 17,170 ounces of gold. For the comparative period in 2005, the average realized prices for copper and gold were $1.62 per pound and $417 per ounce respectively, and the Company's share of Alumbrera sales was 10,000,000 pounds of copper and 16,741 ounces of gold.<br /> <br /> • During the quarter, the Company continued to make significant progress on a detailed update to the feasibility study for the development of its Agua Rica project. The update is expected to be completed by mid 2006, and discussions for the financing of the project are also well under way.<br /> <br /> • At March 31, 2006, the Company had a cash position (including temporary investments) of $163,447,000.<br /> <br /> "With current metal prices, we believe that 2006 will be another solid year of earnings and cash flow for the Company as we complete the detailed update to the Agua Rica feasibility study, advance our commercial negotiations for its project financing and concentrate off-take in order to commence mine construction," said David Cohen, President and CEO of Northern Orion.<br /> "We're roughly two months away from being able to release our 43-101-compliant bankable feasibility study," he said.<br /> <br /> Northern Orion is already a participant in one of the world's lowest cost copper and gold producers through its 12.5% interest in the Alumbrera mine, which produces 50 million pounds of copper and 75,000 ounces of gold per year.<br /> <br /> The cash flow from Alumbrera has allowed the company to advance exploration on Agua Rica without diluting its shareholders excessively.<br /> <br /> With the Bankable Feasibility Study in hand, the company hopes to see production from Agua Rica commence in as little as four years, the exact date will not be determined until the release of the study. <br /> <br /> The Agua Rica deposit is located about 34 km (20 miles) from Northern Orion's Alumbrera mine in northwest Argentina, where the climate in generally mild and dry. There is road access to the Agua Rica site from the town of Andalgala (pop. 11,000) about 20 km (12 miles) away. From 1994 to 2002, Northern Orion and the original development partner, BHP Billiton advanced the project to the point where the Company now believes it could bring Agua Rica into production within four years for significantly less than any comparable development. The project's large metal inventory sits on the surface and is close to required infrastructure at Alumbrera that has the potential to dramatically reduce development costs. Northern Orion is currently investigating the construction of a 70,000 tonne-per-day mine and processing facility that would produce approximately 150,000 tonnes of copper annually, with associated gold and molybdenum by-products.<br /> <br /> Agua Rica has a drill defined inventory of 21.8 billion pounds of copper, 13.3 million ounces of gold, and 1.7 billion pounds of molybdenum.<br /> <br /> During a conference call with investors and analysts today, Mr. Cohen stipulated that the presumed copper price in the upcoming feasibility study would be US$1.20 per pound – a very conservative number.<br /> <br /> <br /> <br /> <br /> <br /> </div> <div class="source">Article Source: <a href="http://www.articlealley.com/article_55578_19.html">http://www.articlealley.com/article_55578_19.html</a></div> <div class="author"> <div class="authorOccupation"><strong>Occupation:</strong> Writer, Editor, Investor</div> <div class="authorBio">James West is an investor and writer who seeks out the best emerging publicly traded companies in the resource and energy sectors. He has contacts with senior management of the strongest oil and gas and mining companies on the TSX and TSX Venture.<br /> <br /> He also publishes a newsletter at http://www.ResourcexInvestor.com</div> <div class="authorUrl"><a href="http://www.resourcex.com" target="_blank">http://www.resourcex.com</a></div></author> </body> </html>
Text Stock Tips: Northern Orion Reprots Record Quarter Author: James West Northern Orion Reports Record Earnings By James West Northern Orion (TSX:NNO, AMEX: NTO) is "ridiculously undervalued", according to company president and CEO David Cohen. This statement was made during an interview two weeks prior to the release of first quarter results yesterday. Today's results would certainly appear to confirm that sentiment. The company reported net earnings of $21,469,000 ($0.14 per share) for the first quarter of 2006 ("Q1 2006"), compared with net earnings of $8,938,000 ($0.07 per share) for the same period in 2005 ("Q1 2005"). Other highlights include: • The Company's share of operating cash flow before interest, depletion, depreciation, amortization and tax ("EBITDA") from its 12.5% interest in the Alumbrera mine was $32,655,000 ($0.22 per share) in Q1 2006, compared to $13,825,000 ($0.11 per share) in Q1 2005. • Equity in earnings from Alumbrera were $21,409,000 ($0.14 per share) in Q1 2006, compared to $8,256,000 ($0.06 per share) for Q1 2005. • Average realized copper price was $3.25 per pound and average realized gold price was $577 per ounce in Q1 2006. The Company's share of Alumbrera sales during the quarter was 11,160,000 pounds of copper and 17,170 ounces of gold. For the comparative period in 2005, the average realized prices for copper and gold were $1.62 per pound and $417 per ounce respectively, and the Company's share of Alumbrera sales was 10,000,000 pounds of copper and 16,741 ounces of gold. • During the quarter, the Company continued to make significant progress on a detailed update to the feasibility study for the development of its Agua Rica project. The update is expected to be completed by mid 2006, and discussions for the financing of the project are also well under way. • At March 31, 2006, the Company had a cash position (including temporary investments) of $163,447,000. "With current metal prices, we believe that 2006 will be another solid year of earnings and cash flow for the Company as we complete the detailed update to the Agua Rica feasibility study, advance our commercial negotiations for its project financing and concentrate off-take in order to commence mine construction," said David Cohen, President and CEO of Northern Orion. "We're roughly two months away from being able to release our 43-101-compliant bankable feasibility study," he said. Northern Orion is already a participant in one of the world's lowest cost copper and gold producers through its 12.5% interest in the Alumbrera mine, which produces 50 million pounds of copper and 75,000 ounces of gold per year. The cash flow from Alumbrera has allowed the company to advance exploration on Agua Rica without diluting its shareholders excessively. With the Bankable Feasibility Study in hand, the company hopes to see production from Agua Rica commence in as little as four years, the exact date will not be determined until the release of the study. The Agua Rica deposit is located about 34 km (20 miles) from Northern Orion's Alumbrera mine in northwest Argentina, where the climate in generally mild and dry. There is road access to the Agua Rica site from the town of Andalgala (pop. 11,000) about 20 km (12 miles) away. From 1994 to 2002, Northern Orion and the original development partner, BHP Billiton advanced the project to the point where the Company now believes it could bring Agua Rica into production within four years for significantly less than any comparable development. The project's large metal inventory sits on the surface and is close to required infrastructure at Alumbrera that has the potential to dramatically reduce development costs. Northern Orion is currently investigating the construction of a 70,000 tonne-per-day mine and processing facility that would produce approximately 150,000 tonnes of copper annually, with associated gold and molybdenum by-products. Agua Rica has a drill defined inventory of 21.8 billion pounds of copper, 13.3 million ounces of gold, and 1.7 billion pounds of molybdenum. During a conference call with investors and analysts today, Mr. Cohen stipulated that the presumed copper price in the upcoming feasibility study would be US$1.20 per pound – a very conservative number. Article Source: http://www.articlealley.com/article_55578_19.html About the Author: James West is an investor and writer who seeks out the best emerging publicly traded companies in the resource and energy sectors. He has contacts with senior management of the strongest oil and gas and mining companies on the TSX and TSX Venture.<br /> <br /> He also publishes a newsletter at http://www.ResourcexInvestor.com http://www.resourcex.com
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