Replies to post #9638 on First Mining Gold Corp (FFMGF)

[Implanting]

I agree with you that dilution is hurting the share price here, but it's either share dilution or going into debt to operate the Company. Pick your poison.

I have to disagree on your premise there's been no progress with the Company in the last three years, even in a mining sector bear market. They have pushed ahead in looking for gold on our properties and have added value in that regard. Have they hit a home run? No, but finding more ounces makes the properties more attractive to potential buyers/partners so what they're doing is necessary IMO.

I see a lot of value in the Company (the shares are depressed) because it's undervalued to it's peers in a big way. A higher gold price is definitely going to have to happen, but that's going to be required for the mining sector as a whole, not just FMG.

I don't have the numbers on hand to back it up, but I would bet most of the junior/explorer miners are deep in debt or have heavy share dilution. That's the nature of the sector. Most of them either go bust or get bought out.

[Alaska12345]

I'm adding here sorry for your loss but lots of value here my friend weath building takes time I think we're close but can't put a time stamp on it

[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.