Share price extrapolated from Quinton's comments...FWIW... In "Crescat Gets Activist on Gold & Silver # 84, at the 45 minute mark, Quinton Hennigh said the following about NFG, from which I will extrapolate a fair share price.
- At the end of the day, he thinks it’s “very realistic” to think that NFG will have 10 to 20 million tons (of ore) at half an ounce to an ounce per ton.
- Explorations companies tend to trade up to about 20 percent of the metal value in the ground.
Extrapolation (in U.S. dollars):
Using a midpoint of 15M tons of ore and a midpoint of .75 oz. per ton, we get 11,250,000 ounces.
Assuming a gold price of $1,800 (which I think is very conservative), we get a value in the ground of $20.25B.
20% of $20.25B is $4.05B
At current share count, that implies a share price of over $25 per share for NFGC. Of course, the 11M ounces haven't been proven up yet, but that's beside the point. I took what QH said is "very realistic", used his middle numbers, and $1,800 gold. If you think QH knows what he's doing and is likely to be correct, then we're in for some massive share price appreciation, even while still only an explorer. Unless, of course, you think the average price of gold is likely to be significantly less than $1,800.