Firstgold Corp. is an exploration stage company engaged in the acquisitions and exploration of various mining properties in the State of Nevada. Currently the company holds interest in Relief Canyon mine, Red Caps project and Crescent Valley project.
The company is consistently late with their regulatory filings with the Securities and Exchange Commission.
For the last quarter ended October 31, 2007 the company had no revenues and incurred a net quarterly loss of $1.99 million. The stockholder equity has still increased by 72.6% to $6.37 million over the last quarter mainly because of the decreased long term debt.
On October 10, 2007 the company had $4.7 million in cash and was adequately financed to continue operations for at least 3 quarters with current expenditure rate. The company currently concentrates on Relief Canyon drill program. On January 17, 2008 they have announced the drill results on this property. They can be found here: http://www.firstgoldcorp.com/press_release.asp?id=2008_01_17 . The company has still to wait for the technical report on these drillings before continuing to the testing of deeper targets.
The company has properties which show rather high potential for gold exploration activities. They have already conducted primary researches and are equipped to start exploitation if the results confirm possibility of profitable gold mining. The stock seems to have overreacted to announcement of initial drill results in November of 2007 and has been on the downtrend since the beginning of December. Still the new announcement of drill results and current financial condition of the company allows assuming the stock will continue on the general uptrend and this recession is just a short term matter. The only problem is the company will need additional capital if they will decide to engage in the mining operations. The capital will most likely be raised through equity or debt financing which would result in increased dilution to current shareholders as well as somewhat reduction in share price.
The company is consistently late with their regulatory filings with the Securities and Exchange Commission.
For the last quarter ended October 31, 2007 the company had no revenues and incurred a net quarterly loss of $1.99 million. The stockholder equity has still increased by 72.6% to $6.37 million over the last quarter mainly because of the decreased long term debt.
On October 10, 2007 the company had $4.7 million in cash and was adequately financed to continue operations for at least 3 quarters with current expenditure rate. The company currently concentrates on Relief Canyon drill program. On January 17, 2008 they have announced the drill results on this property. They can be found here: http://www.firstgoldcorp.com/press_release.asp?id=2008_01_17 . The company has still to wait for the technical report on these drillings before continuing to the testing of deeper targets.
The company has properties which show rather high potential for gold exploration activities. They have already conducted primary researches and are equipped to start exploitation if the results confirm possibility of profitable gold mining. The stock seems to have overreacted to announcement of initial drill results in November of 2007 and has been on the downtrend since the beginning of December. Still the new announcement of drill results and current financial condition of the company allows assuming the stock will continue on the general uptrend and this recession is just a short term matter. The only problem is the company will need additional capital if they will decide to engage in the mining operations. The capital will most likely be raised through equity or debt financing which would result in increased dilution to current shareholders as well as somewhat reduction in share price.
