TommyJ7651
6 hours ago
Just a random idea that crossed my mind when reading about the latest developments at NexGold Mining. NexGold has clearly stated as one of their objectives to become the next mid-tier producer in Canada by evaluating more potential acquisitions. They are now on a very clear path to become a producing miner in the next 2-3 years or so since they are already fully permitted with the Goliath-Gold complex and they have solid financing from Frank Giustra and other investors.
Since FFMG already is a major shareholder in NexGold, would it be completely out of the question to maybe merge these two companies at some point? I know this might seem odd but hear me out on this. I would love to get your opinions on this since I think this could potentially be a very good move for us.
We know for sure Keith especially would more than likely want to develop the assets for himself so this could potentially provide a very good path for a future gold company Like I said, NexGold will start mining the Goliath-Gold complex during 2026-2027, so if they decided to merge with FFMG not only could we see a clear path for revenues, but we could then use this merged platform to potentially create a very large gold mining company in a few years time. FFMG already owns a part of NexGold and both companies shares are very depressed right now which would make it easier to make a case for a combined company.
The revenues from the Goliath Gold Complex could then be used (in part) to finance both development at Springpole as well as Duparquet. You get permits for Springpole and maybe get that smaller operation going at Duparquet and suddenly we could be looking at a very significant gold mining company in the making. I know for sure Frank Giustra is a guy who likes to think big on deals like this and since Keith is also known for building his companies through M&A then I cannot see how these guys could not have at least thought about merging the two companies. I have no idea on what terms Keith & Frank are personally, I really hope they don't have any "beef" between them or anything like that, but I think both of them will recognize a good deal when they see one.
The combined company could also be a much better "sell" to the bigger investment community when the sentiment eventually turns. Having both Frank & Keith as financial backers in the combined company could provide superior credibility going forward when we are looking to get financing for the mining operations. I really think this could be a potential deal in the making here and FFMG being already an owner in NexGold would make it a natural move so to speak.
A deal like this would also most likely release us from this "pressure" to find a bigger partner on the Springpole project. We could then completely focus all the energies and money of the combined company on getting Goliath up and running and then direct those funds towards Springpole and Duparquet. I really don't see any pitfalls for a plan like this. Another "positive" for many of you guys would be that Dan would most likely be let loose. I cannot see how he would have any role in the combined company, other than maybe as a M&A director or something like that. This deal would really transform us into becoming a real mid tier miner with significant assets for the future. I really would love this deal to be announced.
NexGold has a superb Chairman (Ex-President of Barrick / DeBeers) and CEO (35 years of mine building experience) as far as I am concerned and both would be perfect for the combined company. Keith and Frank would stay as financiers and advisors in the background which would also just be perfect. Keith is so busy with First Majestic anyways so he really can't have that active of an role in FFMG other than guiding the company behind the scenes and providing M&A advice.
Like I said, both companies have very depressed shares, so it's not like shareholders in either one would lose out here in any way. NexGold would benefit enormously from getting two world class projects with clear paths forward and FFMG would benefit from getting another great permitted gold asset with near term revenues. I really think this deal is actually quite a no-brainer and could be incredible if it could be done on good terms. Let me know what you guys think about this,
TommyJ7651
1 day ago
I indeed have noticed this. Gold has been so "hated" for so long it's as if almost nobody dares to mention it now that it has indeed risen spectacularly in the last decade. The major banks are indeed quite bullish on gold with lots of of them predicting 3k$ gold in the near future, so it's not as if the banks are against gold rising.
The problem as I see it is that the "general investment community" is still so focused and drunk on this AI bubble they really cannot see any other opportunities yet. We must have a big enough correction in the AI stocks so that the majority of investors understand that trade is over with. Right now, we are sort of in a twilight zone where people are starting to get skeptical if AI will deliver the ROI that has been promised (spoiler alert: it won't). But people are still long this stuff.
When we eventually get that big correction for whatever reason then people will start to look for new trades to go long and that is where commodities and precious metals especially will start to shine. This is exactly what happened back in the early 2000's when the IT bubble burst and investors were suddenly hit with horrible losses and were left out without any major investment themes. It was exactly from this macro setup we got one of the greatest commodity bull markets started. I see sort of the same happening now, but we really need to get a big crash in the AI stocks first.
Keep in mind that back then, gold stocks had already started their bull market during the IT crash, so we might very well get the same happening now. When investors will see their beloved "Mag 7" stocks in the reds while also seeing that gold stocks are outperforming everything else then that is when they will start to aggressively chase performance. I think it is very probable we will get a scenario like this. This will be a repeat of 2000-2010/11 only this time it will be on steroids due to all the money printing done during covid. The dollar, at some point, will start to weaken massively due to the FED's upcoming reaction to the AI crash. The dollar will not become worthless or anything like this, it will just weaken massively against gold and other major currencies.
Implanting
2 days ago
Gold is so undervalued in dollars IMO because the West still has some belief in the dollar system. Gromen spoke to that change coming in this video. I NEVER hear anyone on MSM business news talk about the dollar being on its way out as the reserve currency, but we can see many countries around the world, those banding together in the BRICS alliance that aren't joining to stay in a dollar-based system. The momentum is beginning to swing away from the dollar, but investor's in the West don't want to come to grips with it.
Gromen also spoke to all the gold being accumulated in a big way by the central banksters. These are the same scam artists that claim gold's not money, but they're not buying Bitcoin or hoarding fiat. They keep buying gold.
Gromen also said something in the video that really surprised me He made the claim that he thought physical gold was still more undervalued now than the miners are currently. I don't know how he comes to that comparison, but IMO most of the miners are unbelievably cheap. Not sure I agree with him on that remark.
Implanting
3 days ago
I'm thinking a lot of the action we saw in the share price yesterday was caused by the new offering. Those newly diluted shares we're most likely being issued yesterday. I don't know that for fact, but why not, the news about the offering broke yesterday.
Near the end of the PR it states this: The Bought Deal offer is expected to close on before Sept.26, 2024 and the non-brokered offering is expected to close on or before Oct.10 2024
So, what that tells me is we can expect some weakness in the share price moving forward as the market digests these new shares. As we get closer to those closing dates, I would expect to see some good buy-in prices showing up. It will be interesting to see how low our share price goes.
TommyJ7651
3 days ago
I actually thought about this, but I'm not really sure about what the insider trading rules state about insiders participating in a financing round if the company is also negotiating a bigger deal behind the scenes?
Because I cannot see how it would be illegal for a publicly traded company to raise money from insiders even if a deal was in the works. If a company needs money then it has to be allowed to raise money in an offering. What if a deal negotiation took over a year and the company was running short on cash? Should the company go bankrupt simply because it could not accept money from insiders? This really makes no sense at all and I think it is allowed for insiders to participate in financing offerings even when a deal is in the works. Otherwise you could end up in very problematic situations and companies like FFMG could very well fail if they were unable to raise money anywhere else.
Buying stock on the open markets is a different situation all together and of course should be restricted for insiders if they are sitting on information not available to other investors. We STILL have not seen a single insider buy / sell on the registry which again could indicate something is up because that type of insider activity would of course be insider trading.
So here is just another thought that struck me with this latest financing round and lack of insider activity in the last 3-4 months. What if all of the insiders participated heavily (Keith especially) in this latest offering because they knew this would probably be the last time they had any chance of getting more stock before a deal would be announced? The shares were underwritten by the two investment banks who then probably sold lots of shares to their private clients whom most likely also figured out this could be a very good entry point.
Pure speculation of course on my part, but the lack of insider buying / selling is really making me think something is up. Keith has consistently said he will be in the markets buying up stock. So why hasn't he done it in the last months or so? I mean no insider has sold either thank god, which would be a very alarming fact if that were to happen.
It all just feels so weird to me right now with the heavy volume days right up until the latest offering was made public, and now lots of shares traded hands in one day when you look at both exchanges. I just have a feeling something is up and I mean that in a good way. The fact that FFMG is able to raise money so easily every time makes me think somebody knows something here. Yes, we have been issuing a hell of a lot of shares to get where we all today, but Keith seems as calm as ever in every interview I have seen. It's like he just knows we will get these two mines up and running and the end will justify the means so to speak. I sure like his confidence because without Keith behind the scenes I would have not invested. My sole reason for investing from the beginning was to participate in Keith's vision. Time will tell if that turned out to be a wise decision or not, but at least in First Majestic I ended up making a killing.
TommyJ7651
3 days ago
As far as I can tell it was mostly retail who was selling. The other question is of course who was buying? Usually during bottoms the shares move from weak hands into strong hands so my guess would be the "smart money" so to speak was buying heavily here. I know I would have bought heavily today if I only had the funds available, but right now I don't. Because the only reason anyone would buy at this point of peak negative sentiment would be that they still believe in the company and think the valuation is off. If you really think about this logically then why the hell would any long term bigger shareholder sell now when we are so close to finally achieving the big milestone we all have been waiting for? It would make no sense at all to invest heavily in this company for many years only to sell just before we submit the final EA. It really makes not sense at all, which tells me it was mostly retail investors selling on the news of more financing.
To me it seems Keith & management are now just determined to get this Springpole EA permit done no matter how much it costs. They will issue shares and do financing until we reach that point which is, after all, what they have been trying to achieve since the beginning. Any additional funding will of course also be used to further drill out and scope the Duparquet deposit for the updated PEA.
I think this story will unfold exactly as First Majestic some 20 years ago. I remember very well how all of a sudden the share price skyrocketed in a years time and suddenly everyone seemed completely happy and fine with everything. This was after many years of completely miserable performance where the stock basically went down or was flat and nothing seemed to help the stock. The problem is that you just don't know when it will happen. It is very possible the stock might suddenly catch a bid even without any significant news. We might submit the final EA and maybe nothing happens with the stock, and then maybe a few months after that one day it suddenly rises several fold. It is impossible to predict these things.
TexasMarvL
4 days ago
Good call-out. Btw, I just noticed this is two different offerings for a total of $12 million.
"Bought Deal Offering" for $7 million and
“Non-Brokered Offering” for $5 million.
I don't see how many Units associated with the Non-Brokered Offering.
Am I reading this correctly?
51,852,000 units of the Company (“Units”) at a price of $0.135 per Unit for aggregate gross proceeds of approximately $7 million (the "Bought Deal Offering"). The Underwriters have been granted an option (an "Over-Allotment Option") to purchase up to an additional 15% of the number of Units issuable under the Bought Deal Offering, exercisable in whole or in part, up to 30 days following the closing of the Bought Deal Offering.
In addition, the Company intends to complete a non-brokered private placement of Units (the “Non-Brokered Offering” and together with the Bought Deal Offering, the “Offering”) for gross proceeds of up to $5 million.
Nsnz33
4 days ago
Most important thing is for all of us to be as inclusive, compassionate, and even tempered as possible so that we can minimize any accidental flares of hate speech or misogyny, else our iPhones, electric toothbrushes, nose trimmers, electric shavers, portable power banks, laptops, electric vehicles might randomly explode
"There are only 2 genders and men can't get pregn..." Mossad: *click* kaboom
Implanting
4 days ago
Maybe, but depending on when a deal is announced and the Company has access to money from the deal, would anything make a difference, but we don't know that.
My suspicion is we need the money from the offering and that even though we may be talking to potential deals getting done, nothing's been finalized yet. The company still needs working capital, but I noticed in the PR that two of the companies that cover FMG are big buyers in this offering, so was this offering some sort of pay-off to them? Who knows, but one hand washes the other.
IMO the Company Insiders have all their shares and are loaded for the move higher.
https://firstmininggold.com/news/first-mining-announces-7-million-bought-deal-public-offering-and-non-brokered-private-placement
Implanting
4 days ago
I don't want to see the dilution, but I perceive it as something that has to happen UNTIL we get a deal done. If they can't raise money through share dilution now, the company won't exist. We go broke. I see this dilution as a bridge for the company surviving until we get a deal done. I'm almost desensitized to it now because it's literally gone on for years. As COminer said this has probably been about offer 5 or 6 since Dan said we wouldn't have to do another offering. LOL
IMO nothing short of a much higher gold price, a big pivot into the miners, or more specifically a deal getting done for us is going to change anything for our share price. I only hope this is the last share offering, but it may not be. The cash they're raising gets smaller as our share price falls.
Implanting
4 days ago
Nsnz33, IMO this is one of your best posts to date on this board. I think I agree with almost everything you said.
It may have been the last time or one before that I asked Paul Harris why the Hell the EA was being pushed back to October. I was under the impression it was an issue stemming from the Canadian gov. side, but Paul told me that October was our DEADLINE to have it submitted. In other words our time was up to get it submitted. Paul didn't know the details, but that certainly struck me as odd. Take from it what you will. Could dragging your feet be a reason? I don't know.
Your cow milking theory is plausible IMO too, but what about this? Dan may already know his time AFTER Springpole gets EA approval and the mine building phase of the journey starts that his time as CEO may be numbered. My geuss is he would either be demoted in some fashion with the Company or let go altogether, so Keith sets him up with his golden parachute. LOL
Whatever they may have cooked up between themselves I could really give a rat's ass. Let's get the ball rolling on our share price before we all die of old age here. The Snake Oil Salesman isn't a very good one for our share price and after all, that's really what matters.
Nsnz33
4 days ago
EA submission July deadline b.s, no more dilution was b.s, Duparquet open pit b.s
We're in September now, why hasn't the EA been submitted yet?
And one has to speculate that Keith might be using Dan as a lightning rod to avoid being held culpable and is really the one pulling the strings and green lightning the bulk of these decisions. Then on the other hand it's also likely Keith truly did delegate Dan autonomy and discretion and Dan deliberately dragged his feet to ensure the processes take longer than they should so he can keep his post and thus his $500k salary ($300k after taxes using Canada taxes I'm guessing) for Dan's future after this will likely not be as lucrative paywise as what he has got now so naturally he's gonna be incentivized to b.s and milk the cow for every drop. I've witnessed this in companies I've worked for, higher ups hiding under pretenses when in reality they don't care about the company, employees, or doing the right thing, they're just trying to prolong their tenure, squeeze more months/years of paychecks, garnish their resumes, rinse and repeat with the next company. First Mining might very well be Dan's retirement cash cow that he's milking for every drop, afterall the $1 million he's spent on the shares he's purchased is small relative to how much he has made through his salary over what is it now, 5 years of being with FF?
But it's too late now, let's hope they keep finding more gold at Dup and Spring to offset the dilution AND net a gain in asset value and thus market cap. Like Tommy said, getting financing alone isn't easy and so long as it is spent on a healthy ROI oriented basis, it's alright.
We just need sentiment to return, rotation from tech to value to take place. Gold is doing its job, albeit it will likely drop to $2300-2400 in the coming market crash prior to the jew infested and owned federal reserve coming to the rescue with more money printing.
But when is the EA being submitted? We're in September, October now. That snake oil used car salesman said July.
Implanting
4 days ago
Zen, thank you for your input here. Most of my concerns revolve around some of what you're talking about.
The main one being continued share dilution and why IMO it's so crucial to get a deal done to finally put to rest this continuing dilution. Dilution that I might add Dan said would stop literally years ago. More bullshit on his part because that never came close to happening.
It's clear in my mind that this dilution is going to continue UNTIL a deal is announced and the financial situation with FMG changes dramatically. A deal that makes further share dilution NO LONGER NECCESARY and puts FMG in a place of financial security. The good news, if I'm right, is that process may be going on as we speak. Keith even made the statement in this last interview that Dan was talking to various interested parties. How far are we from getting something done? That's up to speculation, but if they're talking to interested parties IMO that's a good thing.
I know big deals don't get done overnight and if they're speaking to multiple parties my guess is it could get long and drawn out. All shareholders in this Company want to see this Management get the best deal possible for us, because we've damn sure waited long enough to see it happen.
My hope is this is the last share dilution we have to endure before this long wait is finally over. That's my 2 cents.
COminer
4 days ago
I really don't care how many shares Dan has purchased. I don't question Dan's hopes & dreams for this company. I do question his truthfulness and credibility, the latter of which is zero at this point.
I distinctly remember Dan (at least 5 or more equity offerings ago) telling shareholders that we were all set with equity raises and we should be able to get through the approvals without further equity dilution. BS! If memory serves me correctly, that was at least 2.5 to 3 years ago and we were hanging around $.25/shr with ~750M fully diluted shares outstanding and approx 1.5 to 2yrs until expected approvals. I could be off there b/c that's just from memory but it illustrates my point.
Fast forward to today. I don't have time to go back and count how many equity raises we've done but it has to be at LEAST 5 or more. We are still more than 1yr away from EA approval at Springpole, and out share price is at $.10 with almost a BILLION fully diluted shares outstanding.
I don't need to be told that I don't understand dilution. I agree with you, not all dilution is a bad thing but when it's executed through deception you get exactly what we have, a shitty share price held by retail bagholders because the Street doesn't believe a DAMN thing Dan says. Neither do I, btw.
TommyJ7651
4 days ago
What if we don't have any interest in the other assets right now? You cannot sell something which no one wants to buy unless you let it go at firesale prices which is also a stupid idea. I think we can all agree management for sure is considering all financing options all the time. If there was a reasonable way of monetizing the portfolio then I'm sure they would have done it.
After all, Keith owns 30m shares and Dan still owns 10m shares himself. I don't think they want to "dilute" their existing holdings for nothing tangible in return. Did people forget Dan has put almost 2m of real cash into this company? He stated in a personal conversation with me he has a significant portion of his family's entire net worth in the company stock. Keith has also participated in all financing rounds and bought a significant amount of shares on the open market. You think he wants to be "diluted" by the company any more than we do? Both Dan & Keith have not sold a single share as of today. I can show you several companies where management got all of their stock through option grants and sold all of their holdings as soon as they got hold of them. I don't think we could have a more committed Chairman & CEO in FFMG, but maybe that's just me.
Maybe I'm just getting old or whatever, but I don't really feel the company has done anything wrong since the IPO. I think we have been trough an awfully long bear market which has depleted most investors emotionally and that is understandable. I still believe in what Keith & Dan is trying to achieve here and I myself see a fantastic future for the company. Sure, if the sentiment in the market for miners would have been fantastic the last 10 years this company would probably already have been bought out for a billion dollars plus. But the market seldom behaves in the way that you think it will. Sometimes you get lucky on the timing and sometimes you don't. What is important is that the company progresses on it's goals. The share price will eventually catch up to reality as long as the company makes meaningful progress. And I think we can all agree that FFMG has made substantial progress from what it was back in 2015-16. If the share price turns out to be between 1-2 (CAD) dollars in a year or two for whatever reason, then all of a sudden people will forget it took 10 years of hard work to get there. It's funny how that works out sometimes.
It is possible that I have been wrong this entire time and the company will end up failing, but that is a risk I am willing to assume. I lose no sleep with my position in FFMG other than maybe being too excited at times about it's future.