New Found Gold Corp V.NFG

Patience will be Rewarded

[Patient1nvestor]

As an Australian, I owned shares in the company for more than 3 years which was later acquired by Eric Sprott's Kirkland. The company at the time made some money, but not a lot, because the grade was not brilliant before the discovery of Swan Zone. I stayed on because I didn't see anything too fundamentally wrong. And the share prices didn't go up much at all for at least 15 months even after the discovery of high grades after 20 odd years of underground minding. That is market sentiment, which is out of our control, no matter how learned we may think we are in the sphere of mining investment. And when it did go up, it shot up by close to 17 times at one stage. I bailed out at 12 times. In my humble opinion, the NFGC management's long-term vision may not align with the shorter-term view of many of us, but there is nothing wrong fundamentally for the long run. We just need to be patient - the picture we're going to see in 6 months can be very different if we use these oversold dips as an opportunity to accumulate more. I wish I had more liquid assets to go much more aggressively than I have been able to.

[Global1966]

The CEO just does not give you any sense of confidence. He should be replaced by an experienced CEO without conflicts of interest as CK has with Pali.

[Patient1nvestor]

Well, CK may be the CEO, but I don't think he calls all the shots all by himself, in a big organisation. I know this for a fact - as a senior surgeon in Australia, I used to be the CEO of one of the major university tertiary teaching hospitals, and I had many constraints in my decisions.  His interest in Pali, to me, does not represent a conflict of interest, when it has invested

[Global1966]

What is their long term vision and what is the strategy to get there?  As a ex medico in Australia, contrast the strategy of Telix Pharmaceuticals with NFG. It explains why Telix has entered the ASX 100 in a few short years and assuming 50% of their products under trials being approved, should lead to a trebling of their SP in under 5 years.

[Patient1nvestor]

If you are convinced that the current NFGC management has no long-term vision to do the company good, I suggest you sell out and move on to something where you have confidence in the management. The thing is that we cannot replace the management of NFGC, whether we like it or not.

[Global1966]

Each to their own. Your response is the standard for anyone who dares offer a contrary opinion. BTW if you know the longer term vision of the company and how it plans to get there, please share. I may buy some more

[Global1966]

CK's position is most definitely a conflict of interest. The Pali website says they are "flippers". Flipping may not be in the best interests of all shareholders. Does he excuse himself from any and all decision on offers?

[Patient1nvestor]

Well, I don't know all the ins and outs of how Pali and NFGC operate. However, if you are convinced that CK has some conflicts of interest, I suggest you sell your holdings and move on to something else where you can feel comfortable with the management. The bottom line is he is staying whether we like it or not. 

[Global1966]

Do you usually buy shares without any stated strategy other than saying they will maximise money

[nozzpack]

The assets here are superb , anywhich way I have analyzed them. But, there are no stated long term development benchmarks nor their timelines. We also have no active professional IR team which accounts for very low volumes once wash trading is excluded, and the extensive use of ATM funding has turned control of our share price to the Shorts. Its almost like the share price is being passively

[Patient1nvestor]

Agreed. You have some great points in my view. Why don't you write to KC and seek his response, please?