New Found Gold Corp V.NFG

Gold Explorers Must Face the hard facts

[nozzpack]

Diffucult 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

[Dixiedee]

The hard fact is the producers have a depleting asset base that they must replenish to stay in bussiness the higher prices they have been getting for gold will allow them to buy assets in the ground to ensure their basic survival.over the next 12 to 36 months buying of assets will become a priority to them with strong balance sheets lots of cash but a depleting gold inventory to sell and little in

[Evenkeel123]

Yes, and this isn't one of the hunted ones.  They have been, saw, and left.  The money loosing business appears to be in good shape here.  Who would have thunk it. Of course, you can always buy the dips, lol. EK

[Dixiedee]

You know nothing of this space your always negative attitude towards Newfound Gold and the amount of time you spend bashing it is bewildering to anyone who is an actual investor in this space  you repeatedly said you don't own any shares yet you are here every day to make rediculous negative comments about Newfound gold and Newfound gold's management and actual real investors of

[1condor]

Dixiedee...seen you lately over at the TXG board. Took you long enough to recognize a real mining company. Sorry to see that NFG is down again today for you again today. 

[Dixiedee]

I have been investing in gold and gold related stocks for many decades I do have some concerns with TXg about their derivative book on forward sales that they lost 42 million US$ in the 1st 3 Q of this year  I have contacted the company to get the size and details of this profit killing derivative but so far have had no response TxG has had a couple rough days along with most gold related

[Dixiedee]

To be clear I have not bought any TXG and cannot determine a buy price without knowing the full extent of their derivative book and if it is based on a % of production to secure past financing obligations if this is a growing derivative book the stock will only be punished as the bull market progresses I hope you will stop confusing producers with exploration companies two differant animals in the

[1condor]

Dixiedee...I sure would like to know how someone like yourself who puts so much work into stock analysis ended up in NFG. You couldnt have picked a worse investment in this gold environment. Please dont say it was Sprott who was the deciding factor for you buying in...that would be embarassing.

[Dixiedee]

I belive they have the goods and the jurisdiction is top notch the infrastructure is second to none the drill results are very good they have been well financed to date time will tell .there is no denying they have gold the two questions is how much and what are the Economics of it .With so many near surface high grade zones it is hard to belive this part is not economically sound for 3 to 5

[1condor]

Dixiedee..when I went short on NFG early this year it wasn't a bunch of complicated factors that made me initiate the trade. I can say with certainly it didnt require a lot of deep research of my behalf. It really boiled down to one very important factor...the shareprice was not responding to positive company specific news all this while a strong gold bull market was raging...It really was

[Dixiedee]

Good luck with Txg if you get the derivative info I asked about please forward it to me and the short position on NFG I belive is closer to the end of its life than the beginning 

[nozzpack]

Thank you for that fine summary post. No management team, just 3 years ( in 2023 ) from confirmed discovery ( in 2020 )  , would offer to produce a MRE and PEA unless they had the goods . Yet NFG in the fall of 2023 announced exactly that intent within 7 months . Recall earlier, CK was referencing 30 million ounces . My multiple estimates are consistently bouncing around 20 million ounces

[nozzpack]

Massive wash trading continues to contain and repress the share price. The MMs are totally weaponized . I don't foresee anything changing as long as this equity financed exploration model is exited . With tax loss selling, and former equity issuances now free trading, the outlook remains very challenging. We need aggressive interventionist management willing to take the necessary decisions