Q: what are your thoughts on this company share price decline after Eric Sprott stepped in and bought a large amount of shares at around the 5.00 level giving him 19% in the company and now trading around 3.10 level. thank you.
5i Research Answer:
The stock is bouncing a bit but it is still down 32% year-to-date. It recently reported positive metallurgical test results on its Queensway project and the stock was up 5% to start November. Drilling results continue to be positive and NFG now has $54.7M in cash on its balance sheet. We still view it as interesting but very high risk given how early on it is. Keep in mind Eric owns dozens of junior companies. His endorsement is solid, but not unique.