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New Gold Inc T.NGD

Alternate Symbol(s):  NGD

New Gold Inc. is a Canadian intermediate gold mining company with a portfolio of two core producing assets in Canada, namely the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds other Canadian-focused investments. The Company is engaged in the acquisition, exploration and development of natural resource properties. Rainy River is a gold mine located in Northwestern Ontario, Canada, approximately 65 kilometers (km) northwest of Fort Frances, Ontario. The New Afton mine is located approximately 10 km west of Kamloops, approximately 350 km northeast of Vancouver, British Columbia, Canada.


TSX:NGD - Post by User

Bullboard Posts
Comment by shortUSA2on Aug 29, 2009 1:19pm
368 Views
Post# 16261257

RE: Existing shares and outstanding warrants.

RE: Existing shares and outstanding warrants.They do have a lot of paper out there but the bulk of those warrants are probably going to expire worthless and not become shares.  There's about 220 million b warrants with a strike of 15.00 that expire in April 2012.  No offense to those holding the B warrants but those are almost certainly going to expire worthless.  The strike for the c warrants is 9.00 in about 3 years so that would be the first weight around the neck of the NGD share price if it actually got there.  3.75 to 9 bucks in 3 years is alright with me.  The only real overhang we have until then is the most recent placement at 3.75.    The other thing to keep in mind is that when the warrants are exercised, that money goes straight to the company.  So if the c warrants get exercised fully the company gets 9 x 75 million shares sold = 700 million dollars.   The real question is whether you believe NGD management can make good investments with this money.  If they make poor use of the money then yes,  the large float becomes a problem.
Bullboard Posts