Replies to post #9968 on First Mining Gold Corp (FFMGF)

[ValueInvestor001]

They did increase it from $1.40CAD to $1.70CAD on August 16th due to higher gold and silver prices.

Their calculation is as follows:
- Net Present Value for Springpole at a 9% discount rate = 637,121 kCAD or 1.04 CAD per share
- Cash: 8,511 KCAD or 0.01 CAD per share (as of 6/30/2019)
- Remaining Tier 1 & Tier 2 assets are valued at $45USD per Gold Equivalent Ounce, totalling 400,684 kCAD or 0.65 CAD per share
- Value of Tier 3 assets: 15,000 kCAD or 0.03 CAD per share

Total current value = 1,066,265 kCAD or 1.74 CAD per share (584,222 k common shares as of 8/8/2019 and 28,997 k options and warrants (ignores options and warrants with a strike above 0.50$), for a total of 613,219 k fully diluted shares).
This gets then rounded to the nearest decimal to get to the 1.70 price target.


Cormark Securities has a Target price of $0.70 (based on $1350 gold price).
Their calculation is as follows:
- Springpole (100%), Ontario NPV5% - 2025 start C$988.8
- Goldlund (100%), Ontario 1.69 MMoz @ C$30/oz in-situ C$50.6
- Hope Brook (100%), Newfoundland 0.95 MMoz @ C$10/oz in-situ C$9.5
- Cameron (100%), Ontario 1.00 MMoz @ C$10/oz in-situ C$10.0
- Pickle Crow (100%), Ontario 1.26 MMoz @ C$10/oz in-situ C$12.6
- Duquesne (100%), Quebec 0.48 MMoz @ C$0/oz in-situ C$0.0
- Pitt Gold (100%), Quebec 0.26 MMoz @ C$0/oz in-situ C$0.0
- Duparquet (10%), Quebec 0.43 MMoz @ C$0/oz in-situ C$0.0
*****
Total Development assets: C$1,071.5

Cash estimated at Aug. 15, 2019 C$7.5
*****
Total Net Asset Value: C$1,079.0
Shares O/S (MM) 584.0
*****
Total NAVPS (C$; Rounded): C$1.80

They then value FF at 0.40x the Net Asset Value, resulting in their 0.70 CAD price target.