Gold Explorers Must Face the hard factsDiffucult as it has been for explorers to raise funds at decent prices, in an environment of POG volatility , it will be even more difficult .
This will not be the case for gold producers particularly with energy prices now at levels consistent with the pre Covid era.
My investments in POG are largely weighted to producers and those soon to be producing.
Maritime sits, according to my detailed analytics , as the best emergent gold producer that I have ever come across.
It has everything including two mills, Aggregates, Tailings reclaimation, Deep Water import/ export port and a long term business model...Hub and Spoke..that makes eminient economic sense for its many polymetallic projects.
Its excess gold milling capacity sits as choke points to all Junior gold producers in NL including NFG.
Its asset complentarity with Firefky Metals...already an incipient JV partner ...makes such a merger almost impossible to ignore, further enhancing the Hub and Spoke business model.
And Dundee is its sugar daddy .
It will soon resume modest production leading up to commercial resumption of Full mining of its high grade open pit HammerDown mine at 75,000 ounces per year at very low AISC starting in early Q3 of 2025.
It also makes emininent economic sense for NFG to acquire Maritime, converting it immediately into
producer status, alleviating the withering costs of persistent equity dilutions at lower and lower prices.
It will have to make a deal with Dundee, but Pali...essentially a subsidiary of NFG management....would offer Dundee the constituents of a deal, including, as Dundee is wont to demand, a spin off of a signifucant asset such as QWS or Kingsway etc.
NFG management has recently committed to MRE and PEA which is very good news .
But, acquiring Maritime , fully permitted in all matters of gold production, would advance NFG's emergence as a gold producer by at least a year , bulking up its negotiating heft that would enable acquiring at very cheap costs, 2 million stranded ounces of gold in SW NL that need only a processing outlet and a Deep Water port.
2 million open pittable ounces of gold is a major gold resource , saving many millions in exploration costs.
Its time NFG management to take the obvious strategic decisions that would quickly transform it into a gold producer backed by a world class gold discovery whose future development would make Senior Tier status just a matter of the development schedule of QWN.
AIMHO
GLTA