First Mining Gold Corp (FFMGF)

[eik]

Yes, nobody likes dilution. The market definitely does not. Still, the value of “exploration and development” company is represented by it's market cap. Based on this number one can calculate the price of the “ounce of underground gold” that the company owns. And, as we can see from FF presentations, First Mining Gold is about 4 times undervalued comparing to it's peers & competitors right now. “Fair” share price is about $0.8 right now. I do believe that the management doesn't do enough to support share price. I even suspect that they may do this intentionally – as part of some negotiations with potential JV or merger partners, etc. For example, what would Keith do if he planed to significantly increase First Majestic stake in First Mining? Clearly he would prefer to buy FF shares as cheap as possible using AG shares that doubled in price recently. Anyway, although the market doesn't care much about drilling results and growing reserves, it will react vigorously to any potential money making news (like new significant investment by First Majestic or Sprott, new JV, sale of some assets, etc.) Just look at "peers" which share price had exploded in similar situation. Our share price would jump closer to dollar range in a minutes. Right now investors have several options: a) sell and go away; b) patiently wait for this to happen; or c) average down and trade part of their position. The latter is my choice in this situation.