RE:RE:RE:NEXG.v Appoints Industry Icon Frank Giustra as Advisornofluff wrote: An astute investor should always fear dilution. Many ways to dilute. Morgan mentioned warrants.
I am not sure how many are out there at present. Sp has to be much higher to justify exorsize.
Still do not know mill cost and such. With gold at record highs and going up, streams are likely to b sold. With Teck and the camp supplier taking shares for there interests, would seam good.
Currently, we are down 10% from when the deal was first proposed. If the warrants carry the same pp tax advantage, they could be exorsied at undervalue. The big q is. Will the drill add enough metal to compensate for dilution?
I hope to cautiously add, going forward. These guys have not instilled big confidence in success so far.
However, a permitted greenfield gold mine is not a bad thing. At some point miners will become popular.
Happy hoping:))
Nf
It's all very well for management to cite ambitious growth targets and a 50% undervaluation based on NPV and resource volume, but the market (which is always right) doesn't value NEXG (TML) so low without a reason. I believe that cautiously awaiting future permits and approvals for the Goliath project is one such reason. Their issuance would be essential for a better valuation, as authorized projects trade at a much higher multiple. Another essential reason is concern about the necessary financing. Even if prospects have probably improved with the takeover of BWCG and a (first) participation by Frank Giustra, the merger will not in itself finance the construction of GGC's 350M project.
The EV is 73M, and in my opinion it will have to double again to hope to obtain acceptable financing. Dilution will then be all the less painful for individual investors as the other sources of financing negotiated will be significant (share of loans, royalties or another source of financing). What do you think?