Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Penny-Cap Stock on Watch: North Spring Resources Corp. (NSRS)
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    Stock Alert for North Springs Resources Corp. (NSRS)

    North Springs Resources Corp. (NSRS) is focused on the evaluation, acquisition, exploration, and development of mineral resource properties. The Company, currently in the evaluation and acquisition phase of operations, is led by a skilled and experienced management team and independent consulting geologists with many years of experience. NSRS is committed to creating value for its shareholders by advancing its current holdings and by acquiring new properties with significant potential.

    Share Statistics (03-Feb-12)
    Symbol NSRS
    Current price $1.15
    52wk Range: $0.01-$1.20
    Avg Vol (1m): 17.67M
    Market Cap. 800.40M
    Shares Outstanding 696.00M

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    North Springs Resources Corp. (NSRS) climbed as high as $1.20 Friday, a fresh 52-week high, following the release of the third in a series of four anticipated videos detailing exploration and drilling at the Company’s 20% owned Goldstar property in Arizona.

    Shares of NSRS have risen 63.1% in the last five days; 138.6% in the last month; and 11,400.0% for the six months to date.

    The new footage of the current exploration program includes extended views of drilling rig operation, the pulling of diamond core drill samples, and initial sample preparation for independent third-party testing. The video also contains an interview conducted at the Goldstar site discussing the measurements of gold bearing quartz veins at surface, interpretation of local geology, and the potential for the quartz veins to continue at depths well below previously expected levels.

    “The detailed description and interpretation goes a long way to justify our increasing excitement over the potential of the Goldstar Property,” said Harry Lappa, president of NSRS. “Most notable were positive comments made during the interview that at least one local producing gold mine encountered this type of gold bearing quartz veinsdown to the 6000 foot level – triple the maximum depth used to figure the previous and updated Goldstar Property potential.”

    The new video is available at NRSR’s Web site: www.northspringsresources.com

    The Company on Thursday announced that it has positively re-analyzed the potential reserve estimates for Goldstar made by previous operators. Surface observations and new data collected from the ongoing drill program at Goldstar, along with historic references to the property, comparable mines in the surrounding area, previously available sampling and exploration data pertinent to the Goldstar site, and based on industry standards, indicate that the possible reserve estimate for the property could be as high as 2.77 million tons grading 0.7 oz. gold/ton, or about 1.94 million ounces of gold, the company reported.

    Investors boosted shares in the Nevada-based company last month after it announced the Arizona project. Lappa commented that the Company is confident that the planned exploration work in Goldstar could put NSRS on track to build the next great high-grade gold mine in Arizona.

    In January, the Company also provided an update on its letter of intent to acquire an interest in the Edum Banso Gold Project in Ghana’s $150 billion Ashanti Gold Belt District. NSRS shares set a new 52-week high following the news.

    NSRS closed Friday’s session at $1.15, a gain of $0.19 or 19.8% on the day, with strong volume of 24.04 million shares.

    Source:

    http://www.northspringsresources.com/news.htm

    Financial Summary

    NSRS has not generated any revenue since its inception in 2009.

    The Company incurred operating expenses of $55.93K during the three months ended October 31, 2011, compared with $6.09K in the comparable quarter of the prior year. NSRS attributed the increase to an increase in professional fees of $10.50K relating to legal expenses incurred with respect to changes in management and due diligence with respect to acquisition of mineral properties and $4K for accounting and auditing fees. The Company also incurred salaries of $30.00K to the president and director of the Company, incurred $2.89K in transfer agent and filing fees relating to the stock splits and issuance of shares for the mineral property option and had an increase of $5.04K in general and administrative expense.

    NSRS realized a net loss of $56.84K for the quarter, up from a net loss of $6.09K in the prior-year period.

    On top of operating expenses, the Company recorded interest expense of $915 during the period relating to interest from the $40.00K notes payable received in July 2011 which is unsecured, bears interest at 10% per annum, and is due on demand.

    NSRS had cash of $16 and total assets of $60.59 K at October 31, 2011, compared with $nil at April 30, 2011. The increase in cash and total assets was attributed to the receipt of $40 K from the notes payable in June and July 2011 and the fair value of the shares issued for the mineral property.

    Source: http://biz.yahoo.com/e/111219/nsrs.ob10-q.html

    Financial Strength (03-Feb-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.25 0.74 0.60
    Current Ratio (MRQ) 0.01 1.35 1.00 0.93
    LT Debt to Equity (MRQ) 6.84 14.97 94.53
    Total Debt to Equity (MRQ) 7.78 19.67 133.36
    Interest Coverage (TTM) 0.39 4.32 28.52

    Technical Analysis

    Source: http://stockcharts.com

    NSRS is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb03-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Latin American Minerals LATNF 0.296 23.42M n/a n/a n/a n/a
    Bearing Mineral Exploration Inc. BEAX 1.05 6.27M n/a n/a n/a n/a
    Bullfrog Gold Exploration BFGC 0.800 23.92M n/a n/a n/a n/a
    Sagebrush Gold Ltd. SAGE 0.470 61.01M n/a n/a n/a n/a
    Impala Mineral Exploration IMXC 0.0019 141.19K n/a n/a n/a n/a
    Median       n/a n/a n/a n/a
    North Springs Resources Corp. NSRS 1.13 800.40M n/a n/a n/a n/a

    Source: Thomson Financial

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