Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
6/29/09
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Nevada Gold Holdings Inc. 1265 Mesa Drive Fernley NV 89408 Phone: +1775.8356177 Fax: 516.482.6099 E-mail:dmathewson@nevadagoldholdings.com Website: www.nevadagoldholdings.com MARKET DATA
Symbol Exchanges Current Price Price Target Rating Outstanding Shares Market Cap. Average 3M Volume
NGHI OTCBB $0.29 $1.00 Speculative Buy 72.85 Million $21.13 Million NA
Source: Yahoo Finance, Analyst Estimates
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Company Overview Nevada Gold Holdings Inc. (NGHI) acquires, explores and develops high-grade gold properties in productive gold mining regions of Nevada. In 2008, NGHI acquired a lease on one property, the Tempo prospect, located approximately 20 miles north of Austin, Nevada, in and around the Carlin, Cortez and Rabbit Creek Trends, home to Nevada’s largest gold discoveries. The Tempo prospect consists of 146 contiguous, unpatented lode claims totaling 2,920 acres. NGHI has already identified four to six individual targets at Tempo that are ready to be drilled. The Company expects to have more targets ready for drilling by the time it completes identification of all targets and commences drilling. Dave Mathewson, NGHI’s CEO, president and chief geologist, has spent his entire 35-year career prospecting, exploring and developing world-class gold deposits in Nevada. Most of his exploration experience has focused within gold regions of NorthCentral Nevada. Mathewson has personally identified several gold deposits, together containing more than 5 million ounces, and managed Newmont Mining’s Great Basin and Carlin Trend exploration programs, where he was responsible for discovering and significantly expanding several additional gold deposits. Overall, directly and indirectly, Mathewson has been responsible for the discovery of almost 25 million ounces of gold in Nevada. In addition, he formed and led two successful junior exploration companies: Athena Gold Corp., which was taken over by Miramar Mining Corp. in 1997, and grew market capitalization from $2 million to $30 million; and Tone Resources Limited, which was taken over by US Gold Corp. in 2007, and grew market capitalization from $4 million to almost $30 million. 1
Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
The Company’s favorable prospects are underscored by successful finds by neighbors in the area, including Barrick, Newmont Mining, AngloGold, Echo Bay, Kennecott Minerals, Kinross and Placer Dome U.S. Inc., whose operating histories are world renown and inspire confidence in the Company’s exploration endeavors.
Investment Highlights Market opportunity According to World Gold Council’s Gold Demand Trends, identifiable gold demand in tonnage terms rose 4% last year to 3,659 tons. Moreover, during the third quarter of 2008, world gold demand surpassed supply by 10.5 million ounces. This deficit was worth $8.5 billion and was the largest supply/demand deficit since the gold bull market of the 1970s. Demand continues to escalate from China, India and Latin America. As a result, gold mine production this year is expected to increase by 20-30 tons. Prices for gold reached record or near record highs in 2008. Gold is seen as a safe haven against inflation and the economic environment and GDP outlook play a major role in determining gold prices. In addition, a weaker U.S. dollar makes gold cheaper for holders of other currencies, raising both demand and gold prices. In March 2008, gold prices hit a record high of $1,009 an ounce, and analysts expect that a continuing surge in investment demand could push gold prices as high as $1,300 in 2009. As gold prices rise, profits for gold miners rise as well. Attractive gold mining properties NGHI identifies, explores and develops promising gold and other precious metal mining prospects mainly in Nevada. In 2008 NGHI acquired the Tempo prospect, located approximately 20 miles north of Austin, Nevada, and near the Carlin, Cortez and Rabbit Creek Trends, home to Nevada’s largest gold discoveries. The Tempo prospect consists of 146 contiguous unpatented lode claims, totaling 2,920 acres, located on the southern portion of the north-south trending Rabbit Creek Gold Trend, a prolific gold belt containing at least 80 million known ounces of gold. Tempo’s land position effectively controls an entire district-scale exploration opportunity and, according to management, has all the ingredients that may indicate several large, one million plus ounce deposit discoveries. Focus on regions with proven gold reserves NGHI explores for gold in Nevada, home to some of the earth’s largest known gold deposits, where more than 80% of U.S. gold is produced. Nevada has the world’s second-largest gold reserves and has produced more than 146.7 million ounces of gold since 1907 worth more than $135 billion. The Company has properties adjacent to the prolific gold mining districts of the Carlin, Cortez and Rabbit Creek Trends. The Carlin Trend in north central Nevada is the world’s second richest gold district. The entire Carlin Trend hosts more than 200 million ounces of gold and has produced Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
approximately 60 million ounces since the mid-1960s worth about $50 billion at today’s prices. The Cortez Trend comprises the southern “hot play” portion of what has been long known as the Battle MountainEureka Trend in north central Nevada. The Battle Mountain-Eureka trend has already produced 23 million ounces more than 30 years, making it the second most productive belt in Nevada after the Carlin Trend. Solid mining infrastructure Major gold producers like Newmont Mining or Barrick Gold Corp. have invested billions of dollars in Nevada to establish the infrastructure for gold recovery. These companies need discoveries to supply the ore for their infrastructure. As a result, junior exploration companies like NGHI have the opportunity to enter the gold mining business and carry out exploration activities. In the event of a sizable discovery, the junior mining companies could sell their deposits at prices ranging around $150 per ounce of gold. Established infrastructure makes Nevada an ideal place for exploration start-ups, where junior exploration companies can benefit from premium prices for the gold they discover. Experienced management Dave Mathewson, NGHI’s president and chief geologist has built his entire career on prospecting, exploring and developing world class gold deposits in Nevada. Mathewson has personally identified several gold deposits together containing more than 5 million ounces and managed Newmont Mining’s Great Basin and Carlin Trend exploration programs. Mathewson believes the Company’s property could contain a world class deposit in the range of 5 million ounce of gold. Drilling program to identify key target areas and reserve categories With a strong portfolio of properties in place, the Company intends to start a significant drilling campaign this year. The Company’s exploration program is two-phase, consisting of 10 to 15 holes drilled to depths from 1,000 to 1,500 feet at a total cost of about $1.5 million. NGHI has already identified four to six individual targets at Tempo that are ready to be drilled.
Business Model NGHI’s business model focuses on identifying and exploring mining projects expected to have commercially viable gold deposits. The Company is looking for acquisition and exploration properties that have been the subject of some historical exploration and offering some certainty regarding the presence of unmined gold reserves. The Company intends to concentrate on exploration and, as large scale deposits are identified, form joint ventures with mining companies or sell the property. This exploration focus is supported by historical data indicated that most value created in gold mining happens when junior exploration companies successfully discover new deposits. NGHI acquired its exploration rights to Tempo Mineral Prospect pursuant to a lease with Gold Standard Royalty Corp., a subsidiary of Golden Predator Mine. An agreement favorable to an operating company and stating a 2%4% NSR (net smelt return) was negotiated by NGHI’s CEO in 2007. This prospect is now fully controlled by the Company. Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Four significant gold targets have been identified at Tempo and the Company expects more targets to emerge as it begins to drill. NGHI plans to minimize exploration costs through the use of advanced geology, geochemical and geophysical technologies. It also plans to hire independent engineers, contractors and consultants on an as-needed basis. The Company’s exploration program is two-phased and consists of 10 to 15 holes drilled to depths from 1,000 to 1,500 feet. Reverse calculations will be utilized to optimize both the number and quality of the holes drilled. Phase two of drilling program will be of similar scale and may include some core drilling in order to optimize the interpretation of geological information. Each phase will cost between $600,000 and $700,000 for a total combined program cost of about $1.5 million. Upon completion of the Tempo exploration program, NGHI expects to focus on two to three of the exploration targets brought to the forefront of the discovery process with favorable results. In addition to developing these assets, the Company intends to acquire other proprieties in strategically important areas, which can complement its existing prospect portfolio. Corporate strategy The Company’s current plan is to explore for gold at Tempo and to selectively add high quality exploration properties to its portfolio. NGHI aims to acquire properties that are thought to contain economic quantities of gold and have been explored to some extent but not yet mined and that can be quickly developed. Pursuing its strategy, the Company intends to: • • • • • • • • • •
Continue geological analysis, including mapping and identification of drill targets; Commence a substantial drilling campaign on Tempo Property; Explore for gold on properties which have been explored in the past and showed promise of mineral reserves; Continue to build a project portfolio by acquiring and/or staking claims; Utilize modern seismic, drilling and production technologies and eco-friendly technologies; Control the costs and timing of Company exploration and development activities; Finance growth through project-backed financings, joint ventures and/or equity markets; Optimize capital investment by maintaining a low-cost structure; and Establish and leverage strong relationships with business partners.
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Gold Mining in Nevada The Nevada gold mines date back to the year 1849 when placer gold was discovered in a stream flowing into the Carson River near the town of Dayton. Although Nevada was known much more for silver in the 1800s, many of the early silver-mining districts also produced considerable quantities of gold. The Comstock Lode, for instance, produced 8.6 million troy ounces (267 tons) of gold through 1959, while the Eureka district produced 1.2 million troy ounces (37.3 tons). Nevada gold mines account for about 80% of the gold production in the United States, and 9% of world gold. In fact, Nevada is the world’s third largest gold producer. It produced 6 million ounces of gold in 2007 and 5.7 million ounces in 2008. Over the past two decades, the development and expansion of mines such as Goldstrike/Betze-Post, Meikle, Pipeline, Round Mountain, Twin Creeks and Gold Quarry have solidified Nevada’s position as a key global gold producer. Between 1985 and 1991, eight of the world’s largest gold deposits totaling approximately 87 million ounces were discovered in Nevada. The infrastructure for gold recovery in Nevada has dramatically improved due to increased capital investment by major mining companies and global investors. A number of major mining companies (Newmont Mining Placer Dome, Kennecott (Rio Tinto), Teck Cominco, Goldfields, and Goldcorp) operate gold mines in the state. NGHI has properties adjacent to the prolific gold mining districts of the Carlin, Cortez and Rabbit Creek Trends. The Carlin Trend is the richest gold real estate in the western hemisphere and the second richest gold district in the world. It has produced more 1+ million, 10+ million, and 20+ million-ounce gold deposits than all of Russia and China’s mines combined. The Carlin Trend hosts more than 200 million ounces of gold and has produced approximately 60 million ounces since the mid-1960s worth about $50 billion at today’s prices. Mines along the trend pioneered the method of open-pit mining with cyanide heap leach recovery that is used today at large lowgrade gold mines worldwide. The Cortez Trend comprises the southern “hot play” portion of what is known as the Battle Mountain-Eureka Trend in north central Nevada. In the last two decades, some 20 mines have produced gold from around the Battle Mountain-Eureka area. This trend has produced 23 million ounces over the last 30 years, making it the second most productive belt in Nevada after the Carlin Trend. Between 1991 and 2004, Placer Dome mined 8.3 million gold ounces from its Cortez Joint Venture, and noted total resources of 36.9 million ounces. The Rabbit Creek Gold Trend is another prolific Nevada gold belt, containing at least 80 million ounces of gold. The property was originally identified and staked in 1968, and a mineral lease was assigned to Nevada Gold Holdings in December 2008. The property consists of 146 contiguous unpatented lode claims covering approximately 2,920 acres.
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Properties The Tempo Prospect is located on the southern extension of the north-south trending Rabbit Creek Gold Trend. The property contains 146 contiguous unpatented lode claims and covers 2,920 acres. Approximately 160 holes have been drilled on the Tempo property. Most were very shallow and tested only for near surface expressions of gold and pathfinder metal anomalies. The geology, geochemistry and alteration are “typical” of Carlin style gold deposits. A structural, intrusive-centered dome exposes windows of Cambrian through Silurian permissive rock units. A large hornfels and skarn zone surrounds the intrusive. Tempo has abundant geological data generated by several previous exploration efforts, including geologic maps, rock and soil geochemistry and drill hole logs and assays. A detailed gravity survey, which identified multiple new drill targets, was completed in 2007. Approximately 70% of the holes drilled were 300 feet or less. Some 65% of the holes intersected significant gold i.e. greater than 100 parts per billon to 0.32ozAu/st. Source: Company presentation
The Company has identified four distinct targets on the Tempo property: • NORTHERN TARGET: Located on the northern one-third of property, this target includes numerous exposures of permissive lower-plate carbonate rocks within a larger expanse of overlying non-permissive upper-plate Valmy Fm. Zones of decarbonatized limestone and jasperoids are common and contain anomalous to very anomalous gold and arsenic values. • SKARN TARGET: This target is located on the central portion of property and covers about one square mile of lower plate carbonate rock intruded by Laramide diorites with associated gold-bearing skarn. • CENTRAL TARGET: This target, defined by gold and arsenic soil anomalies, is north of and parallel to the Southern target. Both upper-plate and permissive lower-plate rocks are present; highs of 20 g/t gold and 300 g/t silver have been found in rock samples. • SOUTHERN TARGET: This target is a known mineralization in non-permissive upper-plate siliciclastic rocks potentially overlying permissive rock units. The zone of gold mineralization is approximately 5,000 feet long by 500 to 1,000 feet wide; soil anomalies of 100 to 500 ppb gold with strong arsenic have been found. Nevada Gold Holdings Inc. (OTCBB: NGHI)
Source: Company presentation
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Industry Overview Gold Supply Gold mine production felt to a 12-year low in 2008. Indonesia’s production decreased by 35% and South African and Australian output dropped by 14% and 13%, respectively. Gold mine production in 2009 is expected to increase by 20-30 tons. Increased output from Asia, Australia and West Africa will supply the growth. Output in the first half of 2009 is forecast to grow slightly, although that is in comparison to a weak first half in 2008. Producers’ total costs rose 22% last year and averaged more than $470/oz. World Mine Gold Production, metric tons 1995 United States Australia Canada China Indonesia Peru Russia South Africa Other countries World Total
320 250 80 145 n/a n/a 147 580 678 2200
2002 298 273 149 190 135 138 170 399 798 2,550
2003 277 282 141 202 140 172 170 373 830 2,590
2004 258 259 129 215 93 173 169 341 794 2,430
2005
2006
256 262 119 225 140 208 169 295 793 2,470
260 260 120 240 145 210 162 270 840 2,500
2007
2008
238 246 101 275 118 170 157 252 735 2,380
230 225 100 295 90 175 165 250 783 2,330
Source: British Geological Survey 2007; the US Geological Survey 2009.
The United States remained the world’s third ranked gold producer, behind South Africa and Australia. In 2008, gold was produced at about 50 lode mines, a few large placer mines (all in Alaska), and numerous smaller placer mines (mostly in Alaska and in the Western states). In addition, a small amount of domestic gold was recovered as a byproduct of processing base metals. Thirty operations yielded more than 99% of the gold produced in the United States and the value of mine production was about $6.7 billion. U.S. Gold Market, metric tons
Production: - mine - refinery: - primary - secondary Imports Exports Consumption Stocks, yearend, Treasury
2002
2003
2004
2005
2006
2007
2008
298
277
258
256
260
238
230
196 78 217 257 163 7,600
194 89 249 352 183 7,300
222 92 283 257 185 7,550
163 76 341 324 183 7,910
180 80 285 340 185 8,350
176 135 170 519 180 9,130
170 120 230 595 180 9,200
Source: The US Geological Survey 2009, Department of Labor.
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Worldwide supply surged 34% year-over-year to 1,144 tons in Q1 2009. The primary source of the increase was scrap gold coming back into the market as high prices and difficult economic conditions encouraged record levels of recycling. Gold Demand According to World Gold Council’s Gold Demand Trends, identifiable gold demand in tonnage terms rose 4% last year to 3,659 tons. Investor demand helped push gold revenues to $102 billion, up 29% increase from one year earlier. The global economic and financial crisis created demand for gold as a safe haven for investors. Gold demand, tons
Source: World Gold Council
According to the World Gold Council, tonnage gold demand in Q1 2009 was up 38% from one year earlier. In dollar terms, this represented a 36% increase to $29.7 billion. Most of the growth came from demand for gold as an investment. Identifiable investment demand rose to 595.9 tons in Q1 2009, up 248% from 171.3 tons in Q1 2008. Taking into account inferred investment, which in the first quarter largely reflected investor flows into bullion accounts, total demand rose 173% to 711.2 tons1. Q1 2009 demand for gold in the U.S. was 15% higher at 55.2 tons as retail investment demand rose 216% to 27.4 tons. Difficult economic conditions continued to weigh heavily on jewelry demand, which fell 30% to 27.8 tons2. Gold prices Since August 2007, gold prices have climbed steadily to reach new records. In March 2008, gold prices hit $1,009 per ounce on the New York Mercantile Exchange before slipping back. After mid-July, the gold market experienced a massive sell-off, driven primarily by a major rebound in the dollar and liquidation of commodities such as crude oil. 1. www.research.gold.org/supply_demand/ 2. www.gold.org/assets/file/pr_archive/pdf/GDT_Q1_09_pr.pdf
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Turmoil in the financial markets is creating enormous confusion, and demand for dollars is rising as investors head for cash. Since September 2008, a huge “deleveraging” by funds in the futures and OTC markets has taken place. In contrast, purchases of gold have grown strongly. The financial bailouts have created inflation fears and investors have flocked to gold as a safe haven. Experts think gold prices will climb back above $1,000 per ounce this year. Overall, analysts expect the bulk of trading in 2009 to be within the $800/oz to $1,300/oz range.
Source: www.goldprices.com, price in $ per oz
Financial Analysis Income statement NGHI is an exploration stage company and has not yet generated any revenues from operations. During the three months ended March 31, 2009, NGHI incurred general and administrative expenses of $158,283. From its inception in October 2008 through March 31, 2009, the Company incurred general and administrative expenses of $248,565. The expenses were primarily legal, accounting and other professional fees incurred in connection with the merger with Nevada Gold Enterprises Inc. and the related public filings. Net losses of $248,565 also include $112,500 for the value of the convertible feature attached to NGHI’s convertible debt. Income Statement, $ From Inception on October 2, 2008 through December 31, 2008 Revenues Operating expenses General and administrative Loss before income and taxes Income tax expense Net income (loss) EPS
90,282 90,282 (90,282) (90,282) (0.01)
Q1 2009 158,283 158,283 (158,283) (158,283) (0.00)
Source: SEC Filings
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
In the event that NGHI produces gold or other minerals from Tempo, its lease payments will be the greater of • the advance minimum royalty payments according to the table below, or • a production royalty equal to 4% of the gross sales price of any gold, silver, platinum or palladium that the Company recovers, plus 2% of the gross sales price of any other minerals that it recovers. Due Date of Advance Minimum Royalty Payment
Amount of Advance 10,000 Minimum Royalty Payment
January 15, 2008 (paid) January 15, 2009 (paid) January 15, 2010 January 15, 2011 January 15, 2012 and annually thereafter during the term of the lease
15,000 30,000 45,000 The greater of $60,000 or the dollar equivalent of 90 ounces of gold
Source: SEC Filings
Liquidity and capital resources At March 31, 2009, NGHI had cash of $940 and liabilities, consisting of accounts payable and related party payables, totaling $243,529. Balance Sheet, $ 31-Dec-08
31-Mar-09
Cash Cash held in trust Current Assets Mining claims Total Assets
253,440 253,440 20,465 273,905
940 940 34,465 36,405
Total Current Liabilities Total Stockholders’ Equity (Deficit)
363,996 (90,091)
243,529 (207,124)
Source: SEC Filings
The Company plans to spend $500,000 over the next 12 months on exploration activities at the Tempo property. As phase two of the exploration process begins in 2010, the Company expects total expenses to increase to $700,000. NGHI must obtain external financing to continue as a going concern. The Company’s primary source of funding to date has been equity sales. Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Outlook and Valuation Our valuation case is built on the following assumptions: 1. Considering the historical discoveries and basins characteristics, as well as management’s expertise, we believe the Company has a good chance of reporting several major discoveries and gold reserves of approximately 4 million ounces by 2012. 2. We assume a 30% chance that the exploration program will be successful. 3. We assume the Company receives approximately $120 per ounce of gold, net of royalty and other payments, for a discovery. 4. The Company’s weighted average cost of capital (WACC) will range around 15%. Our assumptions we make are a $110 million reserve value by 2012. Discounting the future value of reserves at a 15% WACC and assuming 30% dilution, we derive a $1.00 price target for NGHI shares. As a result, we are initiating coverage of Nevada Gold Holdings Inc. with a Speculative Buy rating and $1.00 price target. However, we strongly advise investors to consider the risk factors mentioned below, since a Company at this early development stage faces many challenges in attaining its revenue goals.
Risk Factors Limited operating history The Company is in an early stage of development and has not generated any revenues from mining operations. Its main activities to-date have been limited to the acquisition and consolidation of properties. Because of its limited operating history, it is difficult to assess the Company’s future prospects. Mineral resources estimates and mining risks NGHI’s success depends on locating prospects with commercially viable mineral deposits. Despite encouraging initial findings concerning mineralization of the Tempo Project, subsequent exploration may determine some or all of these prospects are not commercially viable. At any stage in the exploration and development process, the Company may determine further development is not commercially viable and cease mining activities. In addition, the mining industry generally involves a high degree of risk and is subject to conditions or events beyond the Company’s control. External financing to support operations NGHI is an early-development stage company and requires large amounts of working capital to fund its exploration and acquisition activities. The Company must raise additional capital to support its 2009-2010 drilling program but there is no guarantee it will be able to raise funding on acceptable terms, if at all. Technical difficulties may delay exploration and production, further increasing the Company’s capital requirements and overall expenditures. Gold prices could fall NGHI’s profits will be determined by gold prices. These prices fluctuate and are affected by numerous factors beyond the Company’s control. If gold prices fall substantially, NGHI’s development activities may become uneconomic. In that event, the Company will likely cease operations. Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
Management Team Dave Mathewson CEO, President and Chief Geologist
Mr. Dave Mathewson has been an exploration geologist for 35 years and has been his entire career prospecting, exploring and developing world class gold deposits in Nevada. During his 12-year tenure with Newmont, Mathewson and his team was directly responsible for the discovery of more than 25 million ounces of gold. He also discovered approximately five million ounces of gold in the Rain district of Nevada across four separate deposits. In addition, Mathewson led Newmont’s Great Basin exploration team, which was responsible for the discovery of a three to five million ounce Peninsula gold-bearing gravel deposit south of Battle Mountain. As Manager of Exploration for Newmont on the Carlin Trend, his exploration team discovered significant extensions of gold mineralization at Newmont’s Gold Quarry mine and Mike deposit, comprising an additional probable 10 to 15 million ounces. From 2006 and 2008, Mathewson served as president, chief geologist and a director of Gold Run Inc., a public company. Between June 2002 and June 2006, Mathewson was the vice president of Exploration for Tone Resources Ltd., which traded on the Toronto Venture Exchange and was acquired by U.S. Gold in 2007. Between 2001 and 2002, Mathewson staked claims and evaluated business opportunities both as an individual and through his 50%-owned company, KM Exploration. In addition, he founded and led Athena Gold Corp., a publicly traded junior gold exploration company, which was acquired by Miramar Mining Corp. in 1997.
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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Analyst: Victor Sula, Ph.D. Initial Report June 29th, 2009
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We currently do not hold a position in ALNS. Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements. We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www. finra.org. All decisions are made solely by the analyst and independent of outside parties or influence. I, Victor Sula, Ph.D, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report. Victor Sula, Ph.D. - Senior Analyst Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant positions within the World Bank sponsored Agency for Restructuring and Enterprise Assistance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D. degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.
Nevada Gold Holdings Inc. (OTCBB: NGHI)
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