KRR just reported decent quarterly results, and I like the fact that Tony Makuch, the former CEO of KL has recently joined the board of KRR. I believe that Makuch played a major role in the success of KL, and I was disappointed when he was kicked out at AEM, probably because of a culture clash.
Eric Sprott has recently made a big purchase of NFG shares, to add to his already big holding. He also played a big part in the success of KL, I believe.
I'd be very interested in your take on these two companies.
Eric was very influential at KL, and discovered it very early. NFG recently closed a bought deal public offering that raised gross proceeds of $56M and now brings NFG’s cash and marketable securities balance to approximately $71.4M. The offering was approximately 50% funded from existing shareholders. The proceeds are expected to be used towards exploration drilling as well as advancing the Queensway Project. Management was ‘very pleased’ with recent drill results from the Queensway project. Our sentiment regarding NFG remains similar as they now have even more cash and have displayed better drilling results which are both positives, whereas cash flow remains highly negative.
We have liked KRR for a while and like the changes. KRR presented a strong Q3 with an adjusted EPS coming in at $0.08, representing a $0.04 year-over-year increase. Revenue also displayed positive growth at $107.1M up significantly from the prior year at $81.3M, driven by record quarterly gold sales. Q3 cash position was also up $13M from the prior quarter reaching $84M. KRR maintained its two-year guidance in terms of production for the remainder of 2023 and 2024. Both KRR and NFG display growth opportunities, while NFG is the higher-risk, higher-reward option by being pre-revenue.