RE:RE:RE:RE:RE:RE:RE:How Soon Could NFG start mining?Well, I appreciate your view, Dixie. NFG mngt has made good progress.
But, what if external forces, i.e. a much worsening economic, geo political, and falling stock market were to happen, and seriously impact NFGs ability to raise cash?
This last financing already saw a first for NFG, i.e. that the share price AFTER the financing dropped below the price that the private placement investors received, even after the tax benefits they received to lower their actual private placement price they paid for the NFG shares.......I think this was a first.
In the past, the share price for NFG after a new private placement financing was made, the share price always fell to equal the Private Placement shares were sold at, but then the NFG share price would recover in a fairly short time.
This time the share price kept falling after the private placement. So, this is not a good sign. In my view, this share price action might be a combination of Short Player manipulation, and possibly the charities that received shares from the flow thru financing just not giving a dam what price they were able to sell the shares they were given at ( if my understanding of flow through share financing is understood properly).
My concern is that NFG mngt should prepare for possible very negative external conditions which could seriously impact NFG. They should shore up NFGs ability to weather external storms by getting into a positive and significant cash flow position, and accomplish this as rapidly as possible.
This is a matter of being prepared for difficult times, which is not hard at all to imagine might be coming our way.
We have a management team which is quite young. One hallmark, as I have read, for selecting a winning gold exploratiin stock, is to choose those which have management with multiple experiences of creating a successful mining company, or shepparding their gold exploratiin outfit into a good buyout by Big Gold.
We just had reports that NFG has been laying off workers, and that they had been spending money at too great a pace, in the observation of a poster over on the CEO board who says he lives near by QW, and that it was about time that NFG slowed down its frenetic pace.
This laying off people at NFG has been considered a good thing to lower costs by some posters. It may well have been to conserve cash, and wait for the seismic survey to generate targets for drilling.
But, I also recall Erich Sprott (ES) speaking in Gander last year, and not being very happy about the latest financing, that it wasn't handled as well as it could have been.....and this latest financing was the worst in performance as I reference above.
At the same conference in Gander, ES also went to great lengths to explain how the professional Short sellers of Canadian resource exploration stocks are creating a real danger in helping to destroy the ability of exploration firms to raise needed funding.
So, possibly the NFG mngt team has made some blunders.
And maybe they need to to take precautionary steps to prioritize beginning mining ASAP to counter difficult environments that may be coming in terms of recessions and dropping stock markets.
And, seeing that generating significant cash flow would be the biggest step they could take to counter the share price manipulation of the professional Short Player here, thus responding to ES's alarm over the effect of the Short Sale players effecting NFGs share price.
I once heard Collin Kettel ( CK) say that the share price doesn't matter, and in light of what appears to be constant manipulation of the share price by Short players, I thought CKs statement was naive.
Putting a priority on getting significant cash flow going for NFG seems to me a very important goal for NFG to do. That will be a very significant key step to accomplish ASAP.
Generating significant cash flow is very important, and I think it needs to be pushed ahead as a project as rapidly as possible.
No more NOT having a plan to combat the Short sellers negative impact on the share price. NFG needs to fight back.
It's best to move ahead as if NFG plans to remain independent. That will also be the best strategy to prompt some Big Gold Firm to pay up the proper value for QW if the insiders at NFG DO want to sell out at a respectable valuation.