Q: Where do you see NFG heading in the new year. Price has going up nicely in the last 3 months and news seems to be more promising!
Would you be a buyer today and why or why not?
Thanx as usual
Gary
Would you be a buyer today and why or why not?
Thanx as usual
Gary
5i Research Answer:
The sector has been strong, and NFG has participated. It has $71M cash. While Dundee has sold shares, it still has strong shareholder support including Eric Sprott with about 20%. Revenue is supposed to ramp up in 2027 with the start of the Queensway mine and it should see profitability soon after. This usually gets it a re-rating. We would consider it buyable, but there are many similar stocks and sometimes when a mine is near production stocks go a bit quiet as investors wait to see if everything performs as expected. It is high risk, but we think still decent for speculators. We do think the sector stays strong for a while.