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Now Nevsun to 'vigorously' fight class action suits

Postby Aragaw » 23 Mar 2012, 14:51


TORONTO (miningweekly.com) – It has become a recurring theme in the North American gold sector this quarter: report operational setbacks, announce large impairments as a result, and wait for the class action law firms to swoop.

Nevsun Resources, which mines gold in Eritrea, is the latest company having to fight off lawsuits, after shocking the market in February with the news that 2012 production would be half as much as previously thought because it made a mistake in calculating reserves at its flagship Bisha operation.

US law firm Izard Nobel LLP said last week it had filed a lawsuit seeking class action status against Nevsun. Glancy Binkow & Goldberg LLP, the Law Offices of Howard G. Smith and Faruqi & Faruqi LLP also filed class action suits against the company, all making similar claims.

As did Kaplan Fox & Kilsheimer LLP and Kahn Swick & Foti LLC, and partner Charles C. Foti Jr, former Attorney General of Louisiana.

Chief among the allegations levelled at Nevsum were that its management knew or ought to have known that the reserves were smaller than it estimated, Bisha produced a large amount of waste rock, and that the company was accelerating mining of the orebody to mask the allegation that there was less gold there than it said.

Nevsun CEO Cliff Davis on Thursday brushed off the claims, saying such suits were commonplace in the US.

“We believe these suits are without merit and Nevsun will vigorously defend itself,” he commented on a conference call with analysts.

“Nothing more needs to be said, and I will hold my tongue on any other comment.”

Other companies that have recently found themselves in the crosshairs of class action lawyers include Kinross Gold and Agnico-Eagle. Lawyers are targeting Kinross because of a multibillion-dollar impairment it took at the Tasiast mine, in Mauritania, while Agnico-Eagle is in their sights after it shut the Goldex mine, in Quebec after geological conditions made the operation unsafe.

Nevsun, which reported a $78-million profit for the fourth quarter, plans to produce between 190 000 oz and 210 000 oz of gold this year at Bisha, compared with the 379 000 oz that came out of the mine in 2011.

Earlier this week, the company announced plans to buy back up to four-million shares because management believes the stock is undervalued. The share has suffered in the wake of the lower 2012 production target, shedding just under half its value since its close on February 6 – the day before it made the announcement.

Nevsun said it will continue with its $100-million copper phase expansion at Bisha, set to start producing in mid-2013.
http://www.miningweekly.com/article/now ... 2012-03-23



Re: Now Nevsun to 'vigorously' fight class action suits

Postby Gash » 23 Mar 2012, 15:44


What most people fail to understand is whatever happen to nevsun or it's shares does not have anything to do with eritrea's income since Eritrea does not have any share in nevsun. Eritrea have a 40% share in Bisha project not in Nevsun. What is perplexing though is, why do some people seem to get joy out of failour of others.



Re: Now Nevsun to 'vigorously' fight class action suits

Postby Awash » 23 Mar 2012, 15:56


Woe unto ye with blood-money in your hands.
blood money.jpg
blood money.jpg (31.96 KiB) Viewed 740 times



Re: Now Nevsun to 'vigorously' fight class action suits

Postby eden » 23 Mar 2012, 16:15


gash,

why do you assume aragaw wrote the story or why do you assume he agrees with the story or why do you assume he is celebrating the perceived failure of others? he simply is sharing a story. this is not the first time you reacted this way.

last time, i posted a great story on eritrean bicycle winner and you assumed i brought it to redicule eritrea people.

don't fall for political propaganda and think the whole world is after eritrea. save yourself from going crazy over something that may not be even there. i'm not asking you to be naive or to forget our history. i'm asking you to do yourself a favor and try some kind of treatment for your delusional outlook instilled into you followers via the decades old hgdef propaganda. hope you take this to heart.

no wonder we fail to march forward. we are holding ourselves back being prisoners of our own thoughts.



Re: Now Nevsun to 'vigorously' fight class action suits

Postby Gash » 23 Mar 2012, 16:42


Eden,

STFU! Tell that to someone who doesn't know you.



Re: Now Nevsun to 'vigorously' fight class action suits

Postby eden » 23 Mar 2012, 16:47


Paranoia [ˌpærəˈnɔɪ.ə] (adjective: paranoid [ˈpærə.nɔɪd]) is a thought process believed to be heavily influenced by anxiety or fear, often to the point of irrationality and delusion. Paranoid thinking typically includes persecutory beliefs, or beliefs of conspiracy concerning a perceived threat towards oneself. (e.g. "Everyone is out to get me.") Making false accusations and the general distrust of others also frequently accompany paranoia.
Last edited by eden on 23 Mar 2012, 16:50, edited 1 time in total.



Re: Now Nevsun to 'vigorously' fight class action suits

Postby Fed_Up » 23 Mar 2012, 16:48


Lowlanderu

what you read is what your shitt woyannie mentality processed and provided it to you, but I read no where in this thread that Gash in fact accused aragaw for being happy for the failure of others. Can you provide us what we unable to find in this threads...or are you just suffering the typical TPLFist cripple and twist mentality? Wey tata ...sentun chilen enenur bakachihu?



Re: Now Nevsun to 'vigorously' fight class action suits

Postby Aragaw » 23 Mar 2012, 16:51


Gash wrote:What most people fail to understand is whatever happen to nevsun or it's shares does not have anything to do with eritrea's income since Eritrea does not have any share in nevsun. Eritrea have a 40% share in Bisha project not in Nevsun. What is perplexing though is, why do some people seem to get joy out of failour of others.


It only affects its shareholders whichever way the stock goes.



Re: Now Nevsun to 'vigorously' fight class action suits

Postby Aragaw » 23 Mar 2012, 16:57


Eden wrote:gash,

why do you assume aragaw wrote the story or why do you assume he agrees with the story or why do you assume he is celebrating the perceived failure of others? he simply is sharing a story. this is not the first time you reacted this way.

last time, i posted a great story on eritrean bicycle winner and you assumed i brought it to redicule eritrea people.

don't fall for political propaganda and think the whole world is after eritrea. save yourself from going crazy over something that may not be even there. i'm not asking you to be naive or to forget our history. i'm asking you to do yourself a favor and try some kind of treatment for your delusional outlook instilled into you followers via the decades old hgdef propaganda. hope you take this to heart.

no wonder we fail to march forward. we are holding ourselves back being prisoners of our own thoughts.


Eden,

The only reason I posted it was there was debate on it here few days ago. I don't really care if it goes up, down or side ways. People can speculate whatever they want.



Re: Now Nevsun to 'vigorously' fight class action suits

Postby eden » 23 Mar 2012, 17:08


aragaw,

i know man. these hgdef blind followers do not have their own brains. they have this siege mentality which is the product of decades and decades of propaganda. he immediately replied to the thread with this: "What is perplexing though is, why do some people seem to get joy out of failour of others." this is dialogue killer not just for him but the entire forumers. this is not his first offence and that's why i tried to air the issue so forumers don't get discouraged from openly discussing and learning from one another.

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