SoLets look at this objectively and not from an entrenched position. You have a choice between 2 companies.
A:
- produces something everyone needs
- is a large cap
- generates billions of cash flow per yr
- has doubled in 1 yr and tripled in 2 yrs
- pays a 12.5% fwd dividend
- has reserves for the next 40 years
- will experience much higher revenue and income in the coming year due to some underlying change in the market for its product
- trades at reasonable p/e and cash flow ratios
B:
- produces something that no one needs
- is an over priced small cap
- burns cash
- has declined by 65% in 18 months
- will never pay a dividend
- no reserves atm, some resources but no one knows how much and if any is economic
- future of is commodity is unknown
- trades on hopeium
Which is the better buy?
As for the market cap of nfg consider this:
Detour was bought for something like $4B if I recall. Close to $3b of that was for plant and equipment and the balance was for about 20m ozs of 1 gm open pittable gold. Today the equipment and installations would cost another $1.5b more to acquire/build but the gold wouldnt be worth more despite the fact theyve proven out more ozs, ozs that are discounted to zero as they wonts be mined in the next 10 yrs.
Btr this morning cant come up with acceptable pricing from contractors for their pfs and have suspended plans to put it back into production. They have several m ozs of reserves/resources.
The point being nfg still needs to buid a mine assuming they have the reserves someday. The market cap already takes into account that you have several million ozs but those ozs arent proven by any means.
Thats the way I see it. You fellers are way overvalued.
But lose your money. I will enjoy watching. Sorry to see ES caught though. And you wont have to question that when he doesnt participate in any more financings. If he does then I will be very surprised.
Bucc says hi from Tibet. Hes slimmed down, learned to shave, had veneer teeth put in and is on a strict carrot juice diet. Hes become a Shaolin monk. Kung Fu stuff.
Clifford.