Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
New Found Gold (TSXV: NFG) has been added to the VanEck Vectors Junior Gold Miners ETF (GDXJ) pursuant to the fund’s Q4 rebalance, with the anticipated rebalancing to be complete by December 18, the company announced on Monday.
The VanEck gold ETF gives investors exposure to some of the largest gold mining companies in the world, delivering what can be thought of as “indirect” exposure to gold prices. It seeks to match as closely as possible the price and yield performance of the AMEX Gold Miners Index.
New Found Gold is currently advancing its flagship Queensway project located 15 km west of Gander, Newfoundland, where drilling last winter returned the highest grade intercept ever recorded in the province.
The company followed up that discovery with a planned 10,000 m drill program this year, which returned more high-grade results from the Keats and Lotto zones.
Drilling at Queensway last winter returned the highest grade intercept ever recorded in the province
Drilling success has sent New Found Gold’s stock up by more than 300% since its initial public offering in August, which attracted interest from high-profile investors in the industry. Major shareholders in the company currently include Palisades Goldcorp (33%), Eric Sprott (18%), Novo Resources (11%) and Rob McEwen (7%).
“New Found’s inclusion in the GDXJ is a milestone for the company, reflecting successful execution of our exploration program at the Queensway project in central Newfoundland,” New Found Gold CEO Craig Roberts said in a press release.
“The initial drilling from our 100,000 m program at Queensway has delivered some outstanding high-grade intervals over significant widths at both the Keats and Lotto zones, separated by 2 km along the Appleton fault zone. This has significantly increased the company’s market visibility and liquidity, bringing additional trading flexibility and value to our investors.”
Shares of New Found Gold surged 13.4% by midday Monday, sending the company’s market capitalization to C$628.5 million.
