Everything Green in my Screen..except NFG.
On a day when the POG broke through all time highs, this once again highlites the fact that pure high cost explorers get no respect from investors .
Afterall, how many of those can interpret grade, dip and what gold at 1000 meters of depth means .
Virtually none.
The only thing that really counts is tangible gold production and its supportive cash flows offsetting the probability of more funding by equity dilution.
Compounding this is the ATM funding system automatically fixed at the lows of the day.
In short, it is a feast for the shorts.
It is a fact that gold producers with adequate gold resources and no debt trade at valuation multiples between 2-3 times that if the best explorers.
Until and unless NFG management publicly commits to early and timely production, the market cap here will expand only from continueing dilution and not from share price increase.
The market cap trend but not the share price trend for the past three years confirms that this is so.
So, you have the option to be a passive shareholder accepting that your capital gains here are unbiased by managements actions or an active shareholder who takes management to task for not taking those options that converts NFG into an early rapidly growing gold producer.
Surely, if our share price cannot advance when gold prices reach an unparrelled high and even subsequent to yet even more excellent drilling results , we must crystallize our dissent by contacting management en masse , demanding that actions be taken to replace this erosive ATM funding solution by early production of our best discoveries .
Copy and send this post if you wish .
Afterall, it's your capital and your future wealth that is at risk.
GLTA