FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) has been trekking along in a lateral consolidation after putting in clear and strong support over the summer in the $0.40/share zone. The move has likely been supported by strength in precious metals markets due to rising tensions on the geopolitical front, with a war of words escalating between President Trump and North Korean dictator Kim Jong Un.
That said, we have some recent micro-level catalysts perhaps starting to take control of this trade: specifically, the company just announced positive results on its independent Preliminary Economic Assessment for its Springpole Gold Project in northwestern Ontario, Canada. Management notes that the results of the assessment suggest that this project may have economic viability with the potential for excellent margins on low cash costs of $619 per ounce of gold equivalent and an average annual payable production of 322,000 ounces of gold equivalent, over the life of mine. The stock has been on the move higher since the results hit the wires.
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, the stock has started to find some further traction on the back of positive PEA results for its Springpole project.
“This updated PEA study represents a significant improvement in both economics and annual and total ounces of gold and silver produced when compared with the previous PEA completed for Gold Canyon in 2013. The results of this PEA indicates that the Springpole Project may have economic viability. The PEA demonstrates that the Project has excellent margins with low cash costs of US$619 per ounce of gold equivalent and an average annual payable production of 322,000 ounces of gold equivalent, over the life of mine On that basis, once in production as contemplated by the PEA, Springpole would be one of the largest gold mines in North America,” said Keith Neumeyer, First Mining’s Chairman.
If the company comes away with full confidence in the economic viability, the environmental assessment will come next. This would appear likely as the company notes that the data suggests a full payback of initial capital in 3.5 years from the commencement of commercial production.
The chart shows 2% piled on for shareholders of the company during the trailing week. Market participants may want to pay attention to this stock. FFMGF has evidenced sudden upward volatility on many prior occasions. In addition, the company has seen interest climb, with an increase in recent trading volume of 56% above the average volume levels in play in this stock over the longer term.
Now commanding a market cap of $298M, FFMGF has a significant war chest ($22M) of cash on the books, which compares with 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. Sign-up for continuing coverage on shares of $FFMGF stock, as well as other hot stock picks, get 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.