FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) is a junior gold miner that has been tracking with the majority of its market space over the past several months. In fact, FFMGF’s weekly chart looks almost exactly like that of the GDXJ chart. And we might extrapolate that dynamic out to judge this one largely by macro factors, which we will address in a few minutes. But for now, let’s take a look at the company’s most recent press release and a 30,000 foot view of operations.
FFMGF recently announced the sixth set of assay results, comprising 14 drill holes (Tables 1 and 2) from its Phase 1, 24,300 metre diamond drill infill program on its 100% owned Goldlund Gold Project, located near the town of Sioux Lookout in northwestern Ontario, Canada.
FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) frames itself as a company that engages in the acquisition, exploration, evaluation, and development of mineral properties. It primarily explores for gold, silver, lead, zinc, and copper deposits. The Company currently holds a portfolio of 28 mineral assets in Canada, Mexico and the United States with a focus on gold.
FFMGF’s flagship property is the Springpole Gold project covering 32,375 hectares located in northwestern Ontario, Canada. The company is headquartered in Vancouver, Canada.
FFMGF is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.
According to company materials, “First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. The Company currently holds a portfolio of 25 mineral assets in Canada, Mexico and the United States with a focus on gold. Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.”
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As noted above, FFMGF shares have more or less perfectly mirrored the junior gold mining space over recent months, as summarized by the action in the GDXJ ETF. That said, the company did just announce some assay results.
Commenting on the results, Patrick Donnelly, President of FFMGF stated, “As our drilling program continues at Goldlund we keep hitting very encouraging intersections of gold mineralization which supports our view that the Goldlund project is amenable to bulk mining methods. Furthermore, once we complete the Phase 2 drilling campaign currently underway at Goldlund, and receive the remaining assay results, we will commence work on a new NI 43-101 mineral resource estimate for Goldlund.”
In addition, Keith Neumeyer, Chairman, stated, “The latest results from the Goldlund program reaffirm our decision to move forward in drilling and de-risking this asset which we believe will add organic value to the Company and our shareholders. I look forward to seeing the Phase 2 drilling results later this year as it will move the focus away from infill drilling and towards pure exploration targets at this large project. This has the potential to provide further upside to future project economics and I continue to gain confidence that Goldlund will become one of our flagship assets.”
As far as macro factors, as we have noted, the big change in the environment of late is the dramatic dive in the value of the US dollar. That sets the tone for commodity markets, especially gold. In this case, the move in the dollar is more rooted in the rise of the euro following the dramatic victory in the French presidential elections by Macron over Le Pen in early May. That seems to have quelled the crash of confidence in the EU’s ability to maintain its overall structure in terms of monetary and fiscal intricacies. At this point, that shift has helped support gold miners as the price of gold has risen about 6% in the past few weeks. We would like to see the junior miners react better during this period. But they have to contend with the specter of a Federal Reserve bent on beginning the process of normalizing its balance sheet as early September or October of this year.
So, there is a mix of macro headwinds and tailwinds in place for gold and gold miners at the moment, and FFMGF has been very much a middle of the pack name.
Currently trading at a market capitalization of $266.89M, FFMGF has a significant war chest ($28.1M) of cash on the books, which must be weighed relative to virtually no total current liabilities. The company is pre-revenue at this point. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $FFMGF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $FFMGF, either long or short, and we have not been compensated for this article.