New Found Gold Corp V.NFG

RE:RE:RE:RE:NFG royalties

[AlwaysLong683]

Goldziggy wrote: They wont do a financing at this price makes no sense, they still have plenty of money and it would be way too dilutive. I could see them doing one at 10$ but not in october-november like you keep saying every week haha. Tons of bashers on here hoping for lower prices to get in cause they have no money to buy in at these prices or higher

NFG had just under $85M in cash on March 31 (source: NFG financial statements for the quarter ended March 31 which were released on SEDAR May 16).

We won't know how much cash they have left (excluding marketable securities) until they release their financial statements as at June 30 (release date last year was August 27) and their September 30 financial statements (release date last year as November 22), so how exactly do you know they will have a sizeable cash cushion left in October / November? It would be nice if NFG posted cash on hand and marketable securities as separate items on the "Share Structure" page of their website and updated their respective amount / current market value at the end of each month by presenting the date as at these numbers were accurate, but they lump the two together for some reason.

I suspect that with 14 drills currently turning along with staff wages and salaries, materials, assay expenses, etc., coupled with high inflation, money will be running low by October / November and I doubt NFG is going to allow it to be depleted too much before getting an injection of cash lest they be forced to do a raise at the mercy of the market at that later date. Also, they did their latest equityh raise in October / November last year and will likely have another fiscal year's worth of tax deductions ready to flow-through to the private placement purchaser(s) at that time if not sooner. This goes with the territory when you're a junior explorer - no revenues, no access to debt for any significant term - an equiy raise is really the only tool you have in your toolbox, and the price is typically based on what the shares have been trading at during the previous month or less. You allow your cash to drop too low and you could end up being forced to take an even lower price per newly issued share.

"Bashers" having no money to buy at these prices? Really? One can get a board lot of 100 shares at $5,50 right now for a total cost of $550 bucks. Not exactly a king's ransom.

Time will tell.....