RE:RE:RE:RE:RE:RE:Sic Vs Nfg vs Labjknf,
1) It's market cap, not share price, that determines the value the market has placed on a company.
If NFG did a 100-to-1 stock split resulting in a price of 0.08 a share, would it all of a sudden be the bargain of the century? Of course not. The market cap would still be the same and the total value of your investment in NFG would be the same as well. You'd just own 100 times more shares, each of which would be worth 1/100th of what the pre-split share price was on each original share.
Similarly, if SIC did a 1-to-100 share consolidation (reverse split), would the 38.00 per share post-consolidation price make SIC way overpriced even though the market cap would remain the same and the total market value of your shares would also be the same as when the shares were 0.38 each....?
It's like saying receving 10 dimes is a way better deal than receiving 1 loonie.
2) You stated in a previous post:
".....even a blind man can see that SIC has similar gold results to NFG....."
Here are the metal factors (gxm) of the top 10 holes drilled by NFG and SIC to date (someone please correct me if I made a mistake anywhere):
New Found Gold (NFG): NFG 21-182 146.24 g/t Au over 25.60 m = 3,744 gxm
NFG 21-241 430.17 over 5.25 = 2,258 gxm
NFG 20-59 124.44 over 17.70 = 2,203 gxm
NFG 21-137 261.33 over 7.20 = 1,882 gxm
NFG 19-01 92.86 over 19.00 = 1,764 gxm
NFG 21-201 150.28 over 11.50 = 1,728 gxm
NFG 21-80 24.0 over 46.0 = 1,104 gxm
NFG 21-462 69.15 over 14.15 = 978 gxm
NFG 21-122 106.46 over 9.15 = 974 gxm
NFG 20-23 22.3 over 41.35 = 922 gxm
Sokoman Minerals (SIC): MH 18-17 33.56 g/t Au over 24.90 m = 836 gxm
MH 18-39 124.70 over 5.10 = 633 gxm
MH 20-18 68.70 over 8.10 = 556 gxm
MH 18-01 44.96 over 11.90 = 535 gxm
MH 21-342 56.58 over 5.55 = 314 gxm
MH 21-141 64.00 over 4.20 = 269 gxm
MH 21-163 13.09 over 18.90 = 247 gxm
MH 21-163 21.07 over 11.60 = 244 gxm
MH 18-08 207.51 over 1.05 = 218 gxm
MH 20-115 47.20 over 4.60 = 217 gxm
I consider any hole of 100 gxm or higher to be a very good core, so I'm not knocking the wonderful holes SIC has produced to date, and with holes like this, a mine is certainly a possibility. However, I think it's ridiculous to claim that SIC's results are "similar" to NFG's results.
- NFG has hit no less than seven cores with a metal factor of over 1,000 gxm.
- SIC has hit zero.
- NFG's 10th best hole has a superior metal factor to SIC's best hole.
In fact, I challenge anyone to find me a junior gold exploration-stage company anywhere in the world that has produced 10 cores that match or exceed the 10 NFG holes outlined above.
Bottom line: SIC's holes are nowhere near as impressive as NFG's.
3) I agree there is no guarnateed slam dunk for any company re. a takeout, mine, etc. Who knows what the price of gold will be going forward, future drill results, company-specific issues, other factors, etc. However,I think the odds are much better with NFG than with SIC at the moment, thus the difference in market cap in my view.
4) It is not necessarily the case that the more properties or claims packages a company has, the better off they are.
Each land claim package you control costs money to:
- stake the claim.
- pay to lease drills and hire staff to drill cores, work in the core shack, etc.
- get the holes assayed, etc.
All else being equal, the more properties you have, the faster you go through your money, the more equity raises you need to do, and if a particular property is eventually determined to not be worth mining, the money you spent exploring the property is gone without anything to show for it.
Not saying any of SIC's properties will not prove to be profitable - just stating that pointing to multiple properties and deciding that controlling more land packages is better is not the case. It's what you reap from those packages (or the money you lose spending on a package that ends up being moose pasture) that determines the company's success.
I too do not wish ill on any SIC LAB NFG investor - just providing my personal opinions / agruments / points-of-view on the companies. Obviously, people will differ on their views and each must make their own investment decisions.