New Board for NRDS ?

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There is an up and coming copper mining company based in Arizona called Nord Resources (NRDS).

Company is seeking financing and it's business model is to become a 100 million pound per year producer of copper. It's currently traded as a penny stock, but will be seeking listing on the AMEX after funding comes through and they update their SEC documents.

It can be researched @ nordresources.com and there also seems to be a lot of good talk on the message board called Stockhouse.com

I'd recommend going to that site to pull some background(great posts started in Jan 04)

I noticed that the majority of stocks with message boards here are related to Arizona or the Southwest and I think it would be great for some conversation to start on Nord.

There is a great story starting with this company and it's great to be involved at the ground level.

[Admin]

I am constantly researching new companies. With so many companies and so little time, can you give us a little more background before I dig in?

After your next post I will do some "DD" and consider creating a board here for NRDS if it looks promising.

Remember, the final determination for me if a company is worth following and recommending is, am I willing to buy stock from my own pocket.

In short, the day you see the board, is the day I bought the stock.
Blessings
CT

[paperwhite]

Company Overview by Voltimier

Disclaimer: I provide the following information as preliminary
research tool and do not warranty this information as being 100%
accurate. By providing this information, I am not providing a recommendation for purchase of shares of this company or sale of shares. I strongly recommend that you do your own supportive research and due diligence. I do own shares of this company.



Company Name: Nord Resources Inc.
Trading Symbol: NRDS.PK (www.pinksheets.com)
Exchange: PinkSheets
Shares Outstanding: 21.5 million (2/2/04 equity financing planned).
Float: 10.5 million (estimate)
Shares Issued for
Assetts: 1.6 million (Johnson Camp Copper Mine)
Shares Issued for
Equity financing: 5.0 million (since 1999)

EPS: n/a
Industry PE: 10 - 15 (estimate for a Intermediate Basic metals company).
Website www.nordresources.com



Industry Category: Base Metals Exploration Company (soon to be miner - next 6 months) Copper deposits; Gold via Minor Shareholder; Rutile carry interest


Note: On Feb. 2 2004, Nord announced intentions of seeking 20 million in financing with the intent of bringing along the Johnson Camp Copper Mine as self managed mine project. This would effectively reclassify the company as a miner with continuing exploration efforts. Miners carry a different Price Per Earning ratio than exploration company's.

Brief History - Nord Resources used to be a major NYSE 100 pound gorilla mining company in the 80's/90's. Nord Resources was delisted off the New York Stock Exchange (going to OTC:BB) after rebels sank the dredges in Sierra Leone used for mining Rutile. This occurred sometime in 1995 timeframe.

Nord filed for bankruptcy but came out of it in good standing. They were on the winning side of some court cases that awarded Nord a settlement. They are now under new managment and trading on the pinksheets. Per Nord's President, his intention is to list the company on the Toronto Venture Exchange initially, then a dual listing on the TSE/AMEX.

Management-

* Ronald Hirsch (Director, Chairman & CEO) [phone]
* Erland Anderson (Director, President & COO) [phone]
* Stephen Seymour (Director)
* Clive R.G . Bailey (Exploration Manager)
* Mike Attaway (Vic President and GM - Johnson Camp Mine.

Employees:

* Ultimate plans are for 60.


Major Shareholders

* Constellation Copper Corporation (renamed from Summo Minerals) - 1.6 million shares (as of 1st Qtr 2000).
* Mr. Champagne + 3.0 million; (2,792,500 common shares via private placement Feb. 19 2001, American Metal Market).
* Ronald A. Hirsch 625,000 common share (via private placement Feb 19 2001, American Metal Market).
* Both Hirsch and Champagne recieved 1/2 warrants per share with an expiration date of June 30, 2003

Note: Technically the warrants have expired, but an extension is not out of the question.


Core Assets/Resources (for generating Income)
1. Johnson Camp Copper mine (35 m tons @ .417% Cu ore content, open pit, Leach-SX-EW)
2. 2.5% carry interest in Sierra Rutile Limited, Sierra Leone, Africa
3. Significant Stockholder of Nord Pacific common shares (NORPF.PK)
4. Exploration Database - 20 years. (This is under-estimated by the popular shareholder)
5. Option (5 years) to earn 100% of Coyote Springs Copper Property in Arizona (per news release of Jan 29, 2003)
6. Landscape Rock Subsidiary
7. Significant Tax Carry Forward Credits.


***************************************************************

RESOURCE DETAILS

1) JOHNSON CAMP Copper Mine.
* The Johnson Camp property totals 2,743 acres. The existing facilities include a 4,000 gpm solvent extraction plant, a tank farm, a 52,000 pound per day capacity electrowinning plant with 74 electrowinning cells, four solution storage ponds with a capacity of eighteen million gallons, a truck ship, core storage building, administrative and engineering office and warehouse, laboratory, plant mechanical shop, a crusher station dump pocket and adjacent fuel storage tanks, and various other equipment.

* Mine initial production was in 1975 producing over 150 million lbs of Cathode Cu for its operators.
* In 1997 mining was ceased.
* June 9, 1999 Nord Announced acquisition of Johnson Camp Copper mine acquired a fully engineered and permitted Sx-EW coppper mine.
* Purchase from Arimetco via a option from Constellation Copper Corp. (Summo). Constellation had financial problems and released the option to Nord.
* Purchase price was $1.86 million - paid 1.6 million shares, $330,000 cash, and a debit note for remainder payable in annual installments over 3 years.
* Retained Constellation Copper Corps' (Summo's) Feasibility Study and Development Plan.
* June of 1999, Nord Resources operated the leaching facility and SX-EW running the remaining contents of the ponds and sold the copper cathode.
* Leach operation ceased in 1999 when the entire facility was put on Care & Maintenance status at the end of 1999.
* Nord has never operated the mining side of the operation.
* Proven Ore is 32 mm tons graded @ .417% of Copper Oxide (Burro Pit, Copper Chief)
* The Burro Pit and the Copper Chief are/will be Open pit mining configurations.
* Full capacity life expectancy - 10 years +
* Ore production estimated to be 3.2 mt/yr
* Copper Cathode Annual forecasted production - 18 - 20 million lds.
* No byproducts credits are to be expected
* Potential to significantly expand oxide reserves by conversion of current drilled-indicated resources into reserves. (see PR Jan 04 Note: while doing an Water Test hole off of the proven reserves, hit additional copper ore. Potential to vastly increase proven ore appears likely.)
* Potential for low cost expansion of existing facility to produce over 40 million lbs of Cathode copper.
* Strip ratio for production ?
* In addition, upside potential for discovery of a major porphyry Copper Sulphide deposit underlying the oxide mineralization.

CON'T

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....CON'T

* Heap leaching and the solvent extraction-electrowinning (SX-EW) process of oxide ores. Sx-EW is now regarded as a mature, low technical risk technology by the copper industry. The copper leach method is the variant that will keep cost of mining down (compared to processing Cu Sulfide deposits). Also capitalization to build out facilities of oxide process is less than a Cu Sulfide processing facility.
* This is a zero discharge configuration.

* Approximately 32 million Tons of Ore currently on the Leach pads.
* From the Restart of Operations (applying acid to the heaps) - they will be producing Cathode Copper in 3 months.
* In 8 months they will be running at full 'Mine' rate processing 9,000 tons a day.
* In 12 months they will be running at full capacity (somewhere in-between they could exercise an option to forward sell).


* The company spent $1.5 mm + to resolve all the environmental issues. So all the environmental work is done.

Note: Because this was an active Leach/SX-EW facility, this mine has low technical risk. Since the infrastructure is already in place, capitalization cost for start up will be minimized. Secondly, a substantial amount of Ore is already sitting on the leach pads (standing ready for leaching); the ability of the Ore to leach is proven (about 3 months); Copper extraction rates and yields numbers are dependable because this ore has already been processed; The mines management/Crew are well known in the industry and can produce. They have identified improvements to existing process that will improve the copper extraction percentages and the capacity thru-put (ie. 3 additional leach ponds are scheduled to built (2 exist).


2) 2.5% carry Interest in Sierra Rutile Limited (SRL), Sierra Leone, West Africa

* Sierra Rutile Limited commenced production in 1967.
* In 1976, bethlehem Steel Copr, and Nord formed a joint venture company, Sierra Rutile Limited (SRL). Through a series of transactions, Bethlehem sold its interest, and Nord utimately retained fifty percent interest. The other 50% interest was with Consolidated Rutile Ltd (an australian Company). Between 1990-1995 annual output was close to 150,000 tons ilmenite, 60,000 tons of Rutile. At its peak production it was turning out a third of the worlds Titanium Oxide (TiO2). Revenues when it was going were in excess of $350 mm./year
* 1995 Mining ceased because of civil war.
* Feb, 10 , 1998 Nord completes claim with OPIC.
* Jul 1998, MIL Investments (an unlisted luxembourg company owned by Jean-Raymond Boulle) makes market purchase of 7 million shares of Nord.
* Dec 1998, MIL Investments commences a legal action on behalf of Nord against Nord Pacific Limited. It was a derivative action.
* July 1999, Boulle transferrs his controlling interest in SRL to MIL.
* Oct 1999, Nord Resources sells interest to SRL to MIL Investments
* Sale price $1.25 million in cash; Cancellation of $6 m in SRL debit; Return to Nord's treasury of 7.0 million shares.
* Nord also retains 5% carried interest in SRL.
* Sometime after Nord gives up 2.5%. Have not found reference or verified details.
* SRL has Knight Piesold Consulting (www.knightpiesold.com) fast tracked the "Envirnomental and Social Assessment"
* Oct 2002, Boulle to open a mineral sampling laboratory in Freetown.
* March 2003: US Overseas Private Investment Coropration (OPIC) provides $25 million financing for SRL to reopen Mine.
* It was expected that production would come on line 12 months after loan approval (March 2004)
* April 2003: Asst. Sec. W.H.Kansteiner tours Sierra Rutile Ltd. in anitcipation of reopening (www.state.gov/r/pa/ei/pix/events/b/af/19453pf.htm)
* Sept. 22, 2003 - Dr. Sam Esson Jonah, KBE Elected Chairman of the Board.
* Jan 15 2004, Walter Kansteiner joins company as a director.
* SRL expects to have dredges refloated and be producing by end of 2004.


Note: Nord Resources carried interest in SRL effectively took all the risk out of Sierra Leone for the company, leaving the upside without having to spend any capital or place money at risk. In 1996, Jean Raymond Boulle - the mining entrepreneur and diamond trader who had financially assisted the late Laurent Kabila in his assault upon Mobutu’s corrupt regime in Zaire - bought a substantial US$10 million worth of Nord - through his Luxembourg-based MIL investments [Mining Journal, London, April 19 1996]. Two years later there was speculation that he would merge Nord with his diamond company American Mineral Fields Nord [MJ July 1998]. This would have put Boulle, a funder of mercenaries, in alliance with a supposed sponsor of humanitarian aid - a demonstration if one were needed - that, when one sups with the devil, one should have an extremely long spoon... ["Mercenaries: an African Security Dilemma" (eds.) Abdel-Fatau Musah and J Kayode Fayemi, Pluto Press, London 2000].


3) Major Shareholder of Nord Pacific (NORPF.PK)
* Nord Resources owns 3,697,561 common stock of Nord Pacific
* An additional option to convert debit ($280,000) to equity (1.4 millions share) exist.
* Ronald A. Hirsch owns 194,000 of common stock of Nord Pacific.
* Cominco Ltd. owns 1,230,921 common stock (June 4, 2001)
* Nord Pacific is involved in the Simberi Gold Joint Venture located in Papua New Guinea.
* The Joint Venture Partner (JV) is PGM (through the Simberi Mining and Tabar Exploration Joint Venture Agreement signed on November 29th, 2002).
* PGM will be the initial operator of the Joint Venture. A feasibility study was completed on the Simberi property in the 3rd Qtr. of 2003 and PGM expects to complete financing package required to place the mine into production.
* Initial output of around 40,000 oz of Gold is now expected to commence during the second quarter of 2005.

Note: A recent agreement for a merger between Allied Gold Limited and Nord Pacific is being highly contested by PGM Ventures.


5) Coyote Springs Copper Property in Arizona
* "Elephant Country" type property.
* Northwest fault runs right through Nords Property.
* See press release for details
* The significance of optioning this property above all other suitors should not be discounted.

6) Landscape Rock Subsid.
* Expected to generate 1 - to 1.5 million in revenues/year
* Located on Johnson Camp site and leased with a 30 day option.

7) Significant Tax Carry Forward Credits to off set future income taxes.
* This number is not none for certain, as management at this time could not say, but I would expect it to be in the 5+ million range.
* My understanding is that these credits expire over time and have a must use by date of 9 years.
* Additional note: Consolidated Rutile Limited (CRL) undertook a capital reduction of 86.01 million via section 258F (capital no longer represented by available assetts).

[Admin]

After conducting my own due dilligence which revealed many factors including the comapnies non-reporting status for 4 years, at this time I am not comfortable with this investment.

I will be keeping a close eye on it as I see it's greatest potential at the moment as a take-over target. Please keep me apprised of any new developments that take place or any pertinent information I may have missed.

Blessings
CT

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Reason they have been "non-reporting" is because when the filled for Ch. 11 the courts took over ALL financials and part of that included stopping the reporting. Basically the courts called all the shots in terms what got paid, etc.

Nord management has stated that after they raise funds, they will get the SEC docs current and are currently preparing.

Though Azco has had a few items filed with the SEC, they haven't filled financials in some time either - and that's a good thing as it's quite expensive. They are waiting on funding before they bring all their reporting current as well.

Part of the reason Nord & Azco's stock is low is that they haven't filed financials.

But do note that Nord has little debt after winning the $4M(after fees, etc) settlement a few years ago and escaping Ch 11.

[Admin]

Point well taken, I will continue to look into this one.
Blessings
CT

[paperwhite]

Looks like some buyers are entering the stock in the low 30's early this morning.

[Admin]

Thanks for the heads up. How's volume? Any news or "stuff" you're hearing?
Blessings
CT

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News is out today:

Retained Investment Relations Firm.

Acquired large copper property in New Mexico.

PS - Current market cap as of this morning is around 7 Million. Do some quick due diligence on their assets and royalties and see if that market cap remotely makes sense? And many of us are touting CMKX with a $200M market cap, with the hopes they find something. Nord has actual proven reserves.

[paperwhite]

Breakout alert.....breaking through recent history highs and higher than normal volume.

No news except for the ones that came out earlier this month.

A lot is going on behind the scenes and best of all - they have proven reserves.

Still just a 10 Million dollar market cap? And so many people are hoping for huge things in CMKX with a market cap that is already MUCH MUCH more.

Don't buy on my words - but do some research and look into it.