Topic: How To Invest

I would appreciate your opinion on this stock: New Guinea Gold Corp. Thanks for all your past guidance.

Article Excerpt

New Guinea Gold Corp., $0.09, symbol NGG on Toronto (Shares outstanding: 207.2 million; Market cap: $17.6 million; www.newguineagold.ca), produces gold at its Sinivit mine in Papua New Guinea. This mine only produced 1,503 ounces of gold in the quarter ended September 30, 2010. As well, the mine continues to face numerous operational challenges and unanticipated problems. Right now, the main problem is that the current ore-extraction process can only remove up to 50% of the gold in the ore. The company will have to spend considerable sums to fix these problems. New Guinea Gold also has a complex corporate structure. In addition, operating in Papua New Guinea entails considerable political risk. We don’t recommend New Guinea Gold Corp. Corp. …