Q: Would appreciate your analysis of NGD in Comparison to NFG!
Would you invest in either and which one has the best profile going forward in these uncertain times?
Thanx
Gary
Would you invest in either and which one has the best profile going forward in these uncertain times?
Thanx
Gary
5i Research Answer:
NGD is $3.2B market cap, 9X earnings, no dividend, up 103% in a year and 13% YTD. The balance sheet is fine and very good revenue and earnings growth is expected. NFG is $505M market cap, down 46% over one year and down 3% YTD. It has minimal revenue, losses and negative cash flow of $64M in the last year. It does have $40M cash but is going to need more capital. It has a decent gold project in Nfld., close to infrastructure, but as a developer it has work to do and it is hard to compare with a producer such as NGD. We would prefer NGD, on valuation and lower overall risk.