New Found Gold Corp V.NFG

Stockwatch article Aug 29

[brennan]

Collin Kettell and Denis Laviolette's New Found Gold Corp. (NFG) added three cents to $3.68 on 157,000 shares. Like Snowline, New Found has been a favourite of institutional and retail investors alike for the past three years. From there, however, the two promotions are miles apart, literally and figuratively. New Found Gold is busy at Queensway, in north-central Newfoundland, and it delivered a bounty of bonanza-grade assays from several sites along a lengthy strike -- hits with three-digit grades over two-digit intervals in several cases.

Those hits powered New Found to $13.50 in the summer of 2021, but since then the company has focused on turning much of its property into Swiss cheese without much thought toward declaring a maiden resource estimate for any of the promising zones. The company filed a prospectus two years ago, allowing it to raise up to $100-million (U.S.) for exploration and drilling at the Queensway project and for commissioning of a mineral resource estimate. There has been much drilling since then, but little commissioning. That has taken its toll on investor interest and therefore on the company's share price, which recently dipped to just $3.21.

[nozzpack]

Thank you. They have yet to lay out a strategic plan as to what and when. That has really sunk the share price , as no tangible assessment can be made by shareholders as to  what all of that drilling means in terms of current progress towards Resource estimate.

[BladeMaster]

I believe NFG management has no intention of producing an MRE, as an MRE will hand-cuff the valuation of the company should they enter negotiations for a buyout.  Furthermore, by simply putting out pure data on cores drilled, potential suitors can come up with their own MRE and appraoch NFG with competng offers when the time is right ~ this will provide a negotiation advantage, being pursued

[shiftyone]

Blademaster, I believe they have the goods. I also believe that Eric Sprott actually controls the company from a distance, and Colin is just the one who does what Eric wants. They are going to need more cash.  The biggest financial backer has been Eric Sprott.  Hopefully that will continue. But if you were him and really wanted to see what this deposit holds.  And you had no

[nozzpack]

Your financial logic is illogical . At $10 per share , ES 50 m shares would be worth $500 m compared to $200 million at $4 per share. The extra 12.5/ m new shares at $4 would gain just $75 million at $10. Too many of your assumptions do not hold.