Opinions Stockchase Insights
New Found GoldNFG.VWAITJun 02, 2025
Stockchase InsightsStock price when the opinion was issued
As of May 29, 2026. Market Open.
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He's been a skeptic for years. The deposit will clearly be economic. Question is at what scale? He's increasingly attracted to it as its market cap has fallen and as they've done more work on the deposit. Sees it as a string of deposits that ends up being over the 1M oz. threshold.
His former mentor and partner, Eric Sprott, is the largest shareholder. Having a difference of opinion with Eric is often very hard on your wallet. He's not only watching it, but actively studying it.
The sector has been strong, and NFG has participated. It has $71M cash. While Dundee has sold shares, it still has strong shareholder support including Eric Sprott with about 20%. Revenue is supposed to ramp up in 2027 with the start of the Queensway mine and it should see profitability soon after. This usually gets it a re-rating. We would consider it buyable, but there are many similar stocks and sometimes when a mine is near production stocks go a bit quiet as investors wait to see if everything performs as expected. It is high risk, but we think still decent for speculators. We do think the sector stays strong for a while.
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Jaime Carrasco
NFG is down 12% year-to-date, but has had a nice bounce from its April lows and amid good earnings results in May. In late May it was up big as it increased the size of its bought deal financing to advance the Queensway Gold Project to the development stage. The news flow is improving for NFG, and a higher price of gold is also helping to lift goldstocks, but we would like to see its price rise above $3 to signal a potential reversal in its price trend. The company has seen negative price momentum since 2021 and we would prefer to see this reverse before getting more interested in the name.
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