Insane valuation right nowDisclaimer: THIS IS NOT FINANCIAL ADVICE SO DONT BOTHER CALLING ME A PUMPER
I was an early investor in First Majestic Silver some 20 years ago and the setup right now is pretty much exactly the same as with First Mining Gold, except the negativity in the sector is 10 times that of early 2000's. I remember very well people hating and selling the sector back then but this level of pessimism I cannot recall. Not even during the 2015-16 bear market in the gold price do I remember this level of bearshiness. The sector is completely abandonded right now. Which brings me to the valuation of First Mining Gold which is completely ridiculous right now. I mean you can buy this stock right now for somewhere between 4-6 dollars an ounce. Anything under 10 dollars an ounce usually is unheard of (happened once in 2015-16) but this is getting insane. This is how millionaires are made folks, you buy "when there is blood in the streets" and there is no sector more hated right now than mining.
Regarding the issue with the winter road, believe this is a nothingburger in the bigger picture, which is that they will get the EA permit from the government. The Cat Lake first nation has suffered greatly from all kinds of problems lately like mold in their homes, alcoholism, social problems with opioid addictions etc. The chief has basically been overwhelmed with problems so this is their way of getting a "time out" of sorts. Dan and Keith are expert negotioators so I have zero doubt that they will come to an agreement with not only Cat Lake but all First Nations in the area. This is how the local politics there take place. The First Nations have had so much social issues lately and they are directing that anger towards the Ontario government. First Nations depens 100% on funding from the government so you can imagine how much they are trying to leverage their position in these things. First Mining's environmental team led by Steve Lines is the best in the industry (he has permitted several similar and much more complex projects before) and you can count on them getting this to the finish line. Keith has also committed to keep financing this company to the end, you can see he has basically bought all of his shares on the open market and private placements.
Keith is also a big shareholder right now in a company called Snowline which has made some remarkable gold descovieries. If I understand he owns something like 50m dollars worth of Snowline stock so I'm speculating right now that he is going to soon reallocate significant portions of the gains he has made there into First Mining Gold stock simply because of the valuation levels. This is also just speculation on my part but since he is CEO of First Maejstic Silver and they just bought a gold mine in Nevada, I'm thinking long term his vision might be to merge these two companies and create a big gold/silver mining company operating in both Mexico and USA/Canada. He even stated in a recent interview that this idea has crossed his mind, so you can be sure First Majestic might create a potential combined company in the future. He has also stated in other interviews that First Majestic is now looking for projects outside Mexico and he sees the future of the company outside Mexico as well (I guess due to potential political risks).
Regarding all of the other environmental permitting people need to really understand that they already submitted the draft EA which means regulators have already presented us with all of the issues/questions they have regarding the project. We know what those are (all material is available on the FM website) and FM has answered every one of those questions with very detailed engineering plans which will mitigate all potential environmental effects. There really is nothing new here and the issues with the First Nations will be solved 100% because this project is going to get approved by the government. This project will create enormous amounts of jobs/wealth/prosperity in this very poor region and they desperately need new roads and infrastructure up there. Warm winters soon make it almost impossible to use the ice roads these communities depend upon for supplies and food which would put them at very seious risks if these warm winters continue. They need year around roads to be developed there and the only way this is going to happen is with mining development with the support of the government.
To sum it all up: I have never in my life seen valuations like these and I have recently upped my position big time in this company. I think this has the potential to deliver insane returns (even better than I got with Firstt Majestic Silver) simply because the leverage to the gold price is insane. Do your own research but I consider this to be an opportunity that really comes along once a generation. Best of luck to you all! Exciting times for sure.