New Found Gold Corp V.NFG

Regarding a buyout...

[GGGsOldFriend]

I don't favor a buyout that makes current investors a very nice profit at the expense of giving away substantial value for free. This is especially the case where, as here, I believe the price of gold, and, by extension, the value of gold in the ground, will increase substantially in the next 1 to 5 years. In short, I think we have the asset most likely to be in demand in a rising/sellers market. I'm in no hurry to sell an asset which I'm fairly convinced will be rising in value over the short to medium term, and that's without even factoring in the likelihood the resource will grow very substantially.

[hockeyplusgold]

When there is. A deal I would think it would be at multiples of where the stock is now 1/3 to 1/2 most likely in cash balance in shares of the purchaser possibly even shares of a royalty company on top of that that is part of the deal either way our unlocked value will  be multiples of where the stock is today 

[JRafflesUK]

hockeyplusgold - possibly even shares of a royalty company on top In the event of an early sale, this would future proof NFG shareholders with a return on future gold finds on their district scale property.

[DanWarren]

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[DanWarren]

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[hockeyplusgold]

Iam seeing 20 to 30 C$ this year without a buyout 

[itsjustme1]

If you're going to dream, dream big

[DanWarren]

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[GGGsOldFriend]

Thanks for working those numbers Dan.  I appreciate the work and the information you generated. As I recall, I only had one contention and one additional thought. I thought your discount rate was too low (5% as I recall). But in the other direction, I think NFG (and all explorers) would see a huge premium built into its stock price as gold rises from $1800 to $3000 to $5000 over such a

[DanWarren]

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[DanWarren]

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[likeike]

Dan your hitting on the magic production. Fosterville produce at 600,000 oz per year was it the first 5 years and is still producing at 500,000 oz per year. We are so much bigger than Fosterville and by the time we are producing that old  comparison will appear to be laughable. There remains such a lack of imagination as to what we have stumbled upon. IKE

[likeike]

Let me put it this way to say NFG or whoever partially owns it will become more than just a cash cow......too small......cash elephant ......too small.......Godzilla....YES. We will become a cash Godzilla and QH will become more of a genius and his  Godzilla sign will become worth a million as memorybilia.... Unchartered waters because we cannot think that big. IKE

[turugby]

the talk here sounds alot like what we heard at gbr - estimates 49 plus - fully funded for2022 - next hemlo etc. - sell to kinross , who cant afford it without help - property in Russia and Africa , inspires confidence - I hold gbr and nfg - could nfg get sold out like gbr - I made money , but feel like I got stabbed in the back

[megacopper]

      Yes I hear ya. I honestly thought GBR was worth a lot more as well. And a lot of us here think NFG will be worth a lot more in the near future but in the end something is only worth what someone is prepared to pay.   However, if New Found Gold develops the property themselves I could see in that scenario there would be tremendous value for NFG shareholders

[Gangsterme]

All this talk that GBR was worth so much more......if so why did KINROSS stock take such a big hit and still be down significantly from before announcing buyout. Seems to me their shareholders not convinced it was such a great buyout price. If convinced they got a great steal then their stock would be a great buy. Where is this reasoning wrong?

[megacopper]

  In almost all buyouts the acquiring company's share price will drop when the announcement is first made public. This is a well known phenomenon. The acquiring company has to issue shares and usually incur debt to make the purchase which is often regarded as a negative initially by shareholders of the acquiring company. 

[Gangsterme]

You are correct, often the purchasing stock drops, however the reason is because they most often pay a premium for the stock they are buying, are you suggesting that this happened to Kinross? Issuing share to purchases an undervalued stock should not cause a drop in value, only if the shareholders thought they overpaid. Where is my logic wrong?

[toller1]

The company shares drop because they just dilluted their float and usually borrowed hundreds of millions of dollars as well. They now have to build a mine and pray to hell that it is all they thought the deposit would be and more. Sometimes it works out and sometimes it doesn't. Even the great ones take time to prove up. Kirkland lake did not go up in value over night. follow the story, invest

[toller1]

The company shares drop because they just dilluted their float and usually borrowed hundreds of millions of dollars as well. They now have to build a mine and pray to hell that it is all they thought the deposit would be and more. Sometimes it works out and sometimes it doesn't. Even the great ones take time to prove up. Kirkland lake did not go up in value over night. follow the story, invest

[hockeyplusgold]

Iam guessing your talking in general terms here  nfg stock didn't drop because of dilution or because they are building a mine  this jr dropped because someone said the core sample results where bias  I think that it is starting to prove that there was likely no bias in the selection or reporting of the core samples  if this is proven to be correct like I suspect the will

[TheGreekGoldGuy]

The Greek has officially joined THE WE DON"T NEED NO STINKIN BUYOUT  group.  Dan Warren - CEO Megacopper - President and Resident fact finder The Greeks Old Friend - Group Attorney and gold bullion trading expert.  Like Ike - Head of I.R. The Greek Gold Guy - Lead Janitor Wajec - Needs to post mre, but he knows what is going on.  Membership is free, but you have to quit

[DanWarren]

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[DanWarren]

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[hockeyplusgold]

The Fed will not raise interest rates more than twice this year and it will be by .25 points each time  they will sing the song that most of the inflation Is transitory they will so the economy isn't at full employment yet  but the truth is Biden has a razor thin majority in the senate and house mid terms are coming  the debt is ballooned out of control corporate ,personal and

[GGGsOldFriend]

The FED talks. Talk is now tool number 1, 2, and 3. The FED is painted into a corner. Last I knew, they STILL hadn't actually tapered yet. I don't think they can taper to zero. I don't think they can raise three times. I'm not sure they can raise once. We'll see how markets react when the FED actually does something other than talk.  Their only exit strategy is to pray