Post by
GoldinMind123 on Jan 26, 2023 11:07am
New Poster - Shared Objective
Hey all,
New poster here. Not new to the Anaconda/Signal Gold story, assets, etc. just never took the plunge to register and post. I have been snooping about these parts for years.
I have a relatively small position in the company in comparison to most of you, but it's money I don't want to lose and it represents some skin in the game. Like you, I want my investment to grow not disappear.
I've recently seen some new posters around these parts (example: Nozzpack and Shiftyone). Clearly I've noticed some animosity amongst posters. While I agree some of the approach about trying to "educate" users who've been following the company or resources for years can be a bit off putting, as can the rehashing of outdated info, it is however nice to see some new views and people asking some questions.
I certainly don't agree with everything anyone on either side of the equation has to say. However, it is time that management be questioned and held accountable.
There's no doubt the CEO and CFO have a track record of developing assets to a degree and then selling them. I see this as beneficial for Goldboro. However, I take particular issue with the mismanagement of the Newfoundland assets.
Overall, I think the Baie Verte area would best be served by an amalgamation of all the assets by a single entity and to rationalize the assets. Rambler trucking ore to Nugget Pond and then concentrate to Goodyears cove makes no sense nor money. Signal has the tailings storage and deepwater port, and a significant and prospective land package. Hammerdown has a tidy little resource for 5-6 yrs, but it is further from Nugget Pond which also doesn't have a significant tailings impoundment. Hammerdown also has a nice land package which has shown significant promise.
The problem with the idea of selling the Newfoundland Signal Gold assets is this; A mill without a resource is relatively worthless. Nugget Pond after the mine was depleted sold for something like $1M and was flipped to Rambler for $2M. Teck Duckpond shut down and tried to sell the mill as a package for a pittance and sat on it for years. It doesn't matter what was spent to develop the mill or what it would be worth if you had a resource when you don't have one anymore.
We can point to the Stog'er Tight estimate they completed in December all we like. The reality is, Signal, the company who had the mill and workforce to further develop Stog'er Tight decided it wasn't worth the risk. It's a lot more risky for a new operator/investor, especially given any skilled employees whom aren't anchored to the Baie Verte area would be in high demand and likely had jobs lined up as the press release went out, or shortly thereafter. You also have a mill that likely now requires investment because surely they started to let things slide when shutdown was contemplated.
As it sits, the Signal Gold Newfoundland assets are relatively worthless, and anyone with any interest in acquiring them know they have the ball in their court. They outwaited management, now there's a site requiring reclamation work, a mill gone/going on care and maintenance, a depleted workforce, and no resource. Any offer price is going to be god awful ugly it MIGHT fund a few drill holes in Goldboro.
To me this is what lends support to the idea of a spinout. A separate public vehicle that can raise money to explore the landpackage and breathe some resource back into the Newfoundland assets is the best way to increase the value of those assets to in turn sell it, or one day operate a mine again.
This management team had to know the resource was depleting and should have done something to realize/maximize the value of the assets a few years ago. They took the asset value in Newfoundland to essentially 0. It's clear their focus ws on Goldboro, but that doesn't make it ok to not make the best decision for shareholders on the NL assets. Thankfully the shareprice and market cap today already prices out the Newfoundland assets, so we at least have that.
As for the press release of Q4 production. 1) It really doesn't matter, if it's a hit or a miss, and 2) it's probably not out because they likely lost people whom contribute to it and now the data flow is likely slower.
Comment by
DoumDiDoum on Jan 26, 2023 11:49am
Hello GoldInMind, welcome to the board. Thanks for sharing your thoughts. I want too to get the maximum of NFLD assetts. On my side, I think that the best way to maximise it is merging with MAE: that will create a nice synergy. @nozzpack, you have one prospect for your activist group? ;-) GLTA