Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

New Found Gold Corp V.NFG

Alternate Symbol(s):  NFGC

New Found Gold Corp. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration, and evaluation of resource properties with a focus on gold properties located in Newfoundland and Labrador, Canada. The Company holds a 100% interest in the Queensway Project, which comprises an approximately 1,662 square kilometers area, located about 15 kilometers (km) west of Gander, Newfoundland and Labrador, and just 18 km from Gander International Airport. The Queensway Project is divided by Gander Lake into Queensway North and Queensway South. The Company also owns a 100% interest in the Kingsway property, which consists of 264 claims on three licenses covering approximately 77 square kilometers. The project is located approximately 18km northwest of the town of Gander, Newfoundland. The Company is undertaking a 650,000-meter drill program on Queensway. It has royalty interests underlying Keats South and several additional zones in Queensway.


TSXV:NFG - Post by User

Comment by DanWarrenon Aug 20, 2024 11:38am
120 Views
Post# 36187988

RE:Comparison of Mining and Population Estimates ..10 Prospects

RE:Comparison of Mining and Population Estimates ..10 ProspectsYes, Nozz. I hope this is the outcome NFG is going to pursue.

There appears to be a great future for NFG as a company, IF they retain as close to 100% ownership of Queensway as psoosible.

Maybe a small % Buy In from some Big Gokd firm might be acceptable, but, I have to think BOOTSTRAPPING NFG into startup production using Maritime makes the most sense.

By doing this, NFG starts production at minimal cost, and generates cash flow that could put an end to future dilutive selling of shares to raise capital to explore, develop and mine Queensway QW. The cash flow would allow NFG to secure loans if needed, based on the cash flows ability to service the debt.

As I have said, NFG is in the Catbirds Seat (favorable position, has the upper hand, has all or most of the cards in negotiations). Thus, use this favorable situation to start mining on NFGs OWN. Build cash flow, AND the share price, all whilst the price of gold is establishing higher valuations in the next few years.

Once NFG is mining and producing cash flow, ending further dilution from additional selling of shares, NFGs position GAINS strength. They may never need to sell any portion of QW to BIG Gold.

I've done the calculations of Net Present Discounted Value for NFG using reserve figures only of 15 million ounces, which your Analysis continues to show is the likely resource just in shallow depths at North QW. I came up with around $110 USD for each share of NFG, assuming NFG remains independent and mines all 15 million ounces.

I'm not saying that the share price of NFG would begin to rocket to that level. As Erich Sprott pointed out, Kirkland Lakes purchase of the Fosterville mine took years of vastly improved mining activity before the market noticed and started to greatly increase the share price. So a steady climb is likely, and future dividends from mining, too.

Thus, the $110 USD net present value figure is just a magnet, pulling the stock price higher, substantially, as results come in year after year.

Bottom line, I think, staying as close to 100% ownership of QW seems to me the best way to achieve the great investment return QW looks to be possible to provide. If they do this, NFG could be a spectacular long term investment, with no need to contemplate selling your shares.

Maybe a small  Buy in, would give us an immediate large boost to the share price, and that could be welcome to investors.....but at the cost of less future returns. Still, such a buy in might give retail holders access to more capital to invest in other promising developing resource stocks so incredibly under valued now.

I say that, in light of these two possibilities, remaining independent with 100% ownership of QW, or allowing a low % Buy In by some Big Gold, either one would be great for excelllent long term gains.

NFGs motto should be...

Don't Sell Out to BIG Gold - BECOME Big Gold !

NFG is in the Catbirds Seat. Stay as independent as possible, start mining ASAP, BOOTSTRAP operations, likely using a toll milling arrangement with Maritime, and further boost the share price and further enhance NFGs Catbird Seat advantage over the years ahead while the gold price increases, possibly dramatically.

It makes no sense to Sell Out QW... certainly not for at least a number of years. And assuming NFG becomes successful with smaller initial mining of NQW with toll milling, why sell out then?.....On to building its own mill and greater production!

That's the vision I see.


<< Previous
Bullboard Posts
Next >>