RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Investment BankersTheGreekGoldGuy wrote: Ike, Megacooper may have lost the Force. He said "There is nothing easy about proving up a world class high grade gold system like we are seeing in Newfoundland" In reality, NFG is making it look extremely easy, with their 38 press releases exposing mostly Super Bonanza grade gold in 18 months. During the next 18 month's NFG will be starting out with 11 drills, with 3 more on the way. NFG is being drowned by gold in the uncharted waters of Newfoundland. The GGG here, Time is usually the enemy of Junior Miners, but with NFG, time is their friend. Buitd it and the big boys will come.
1) Some in here have said words to the effect that, if another junior explorer hit a hole like _______, their price would soar, but when NFG hits it, the price doesn't move, so the investment community is asleep at the wheel or under-appreciating NFG's ongoing results. Well, that's because that other junior would probably have a market cap many times smaller than NFG and thus expectations aren't nearly as high as it is for a 1B+ junior gold exploration-stage organization which, as I mentioned in a previous post, was rewarded with a 200% increase in share price in only 5 months from January to May 2021 when they hit those massive holes in succession.
2) Junior Gold Exploration company investors are paying attention to NFG and valuing it based on their criteria, regardless of whether one agrees with their valuation assessments or not:
a) When the results of the assay investigation were released before market open on Feb 23, the market jacked NFG's share price up by over 10% in one day on volume of over 550,000 shares.
b) When NFG announced before market open on April 12 that Sprott had purchased Novo's 15M shares for 8.35 and 8.45 per share, investors bid up the price from a close of 7.68 the previous day to as high as 8.43 before closing at 8.25 on volume of over 500.000 shares.
c) When NFG announced before market open the following day (April 13) that it had made a new discovery of 43.9 g/t Au over 3.85m between Keats and Golden Joint, this (likely combined with continuing interest over the Sprott purchase spilling over from the previous day) boosted the share price a further 8% to close at 8.92 on volume of over 300,000 shares.
For comparison purposes, the 30-day average trading volume for NFG is slightly under 150,000 shares, so not only was the share price bid up after info was released with regard the above three events, but volume was much higher than usual as well. From what I can gather, K purchased GBR for just under 2B at the time of the transaction. With the recent rise in share price to just under 9.00, NFG's market cap currently sits at around 1.47B.
I believe NFG is worth significantly more to a major than GBR, but I believe those predicting an NFG takeout price of over 30.00 a share (over 3 times where it's trading at now) are being quite unrealistic. Also, those who say they won't sell until the share price hits a certain astronomical number don't seem to understand that it is not their decision. If Palisades and Sprott cut a deal, the agreed-upon takeout price is what you'll get per share, either in cash or in the form of the share equivalent of the acquirer at that takeout price. After close, your NFG shares will disappear.