You guys need to understand that Keith is the real force behind everything here. This is his "darling company" which he built from scratch. This means (in my honest opinion) that he could not care less if retail investors don't have the patience to wait this thing out or not. He has stated many times he is a very long term investor and that is how he views his investment in FFMG as well. If smaller retail investors get angry and sell their stock during the development phase then it really does not mean anything to him. He keeps buying shares more or less every month and the company is raising money from Keith and his group of people on quite a regular basis. I understand it has been mostly his circle of friends and other company insiders that participate in the private placements which means small retail investors are completely irrelevant in the bigger picture when it comes to financing this company. As long as this company can raise money from the PPs and keep moving the projects forward (as they have done) then Keith just sits back and let's management do their job. When you are a multi millionaire like Keith it is much more easier to be patient and have a long term view of this story. When you are a small retail investor then I understand it is very easy to get frustrated because you are envisioning your 5-10x to happen every year yet it does not materialize. I have been trough this "waiting phase" myself back when I was an early investor in First Majestic Silver so I know what we are going through, but I must admit it has been difficult at times because I have a very large position in this company.
Of course, this reality also puts Dan into a quite an uncomfortable position as a CEO because he has to keep on trying to convince the smaller retail investor base to keep believing in the story although he knows very well this thing is in reality being financed by a small circle of people/insiders as well as monetizing the other smaller assets and royalties. This is also why I think Keith likes Dan to be the CEO because Dan definitely has a big personal commitment to the company in the form of 10m shares (all mostly bought through PPs) and also believes in what they are trying to achieve. He has also assembled a good team that has the goods to take this company to the permit finish line. That is really all we need as investors as well. The payout in this investment will really only come when we get a major development going and good sentiment returning to the sector.
Sure, you can of course argue that it would have been very prudent to get the share price up so that previous financing rounds could have been done with a much higher share price and prevent unnecessary issuance of shares. But since the entire sector has literally been "dead" for many years then I think Keith & Dan has just decided it to be more important to raise whatever money they can and just keep on moving the projects forward. I really don't think there is much Dan or any other CEO could have done differently to make the share price go up when the entire sector is under water. Even the best gold mining development companies have had their shares pounded very bad and I really think FFMG is among the best you can place your money in right now.
If you really believe in this story then there is really nothing else you can do other than to keep accumulating shares on a regular basis (just like Keith) and wait this thing out. If you don't have the patience then you are free to sell your stock and invest your money somewhere else. This is why I mostly tell newer investors to avoid the mining sector entirely because it is a very different game. It is probably the toughest industry on the planet and the risks are very material.
Having said that, I can also tell you that the gains that are possible to make in this sector are truly spectacular once you hit a "jackpot" and sentiment turns. I made a incredible amount of money with First Majestic some 15-20 years ago but it took several ups and downs to get there. I see the exact thing happening once again with FFMG and that is why I have invested a significant amount into this company. If this entire thing ends up failing then I can live with that and I won't go broke, actually far from it.
AI
