Business Context and Reporting Period
New Found Gold Corp. filed a Form 6-K for March 2023, dated March 15, 2023. The filing reports an anticipated increase in the Company’s weighting in the VanEck Junior Gold Miners ETF (GDXJ) following a March 17, 2023 rebalancing.
New Found owns 100% of the Queensway gold project, a 1,662 km² exploration property located approximately 15 km west of Gander, Newfoundland and Labrador. The project is accessible by the Trans-Canada Highway and is near an airport, power infrastructure and a skilled workforce.
Financial and Operating Metrics
- Cash and marketable securities were approximately $72 million as of March 2023.
- The Company was undertaking a 500,000-metre drill program at Queensway.
- The filing does not provide revenue, net income, cash-flow, margin or debt figures.
- GDXJ had approximately US$3.8 billion in assets under management.
Material Changes and Outlook
- New Found’s anticipated GDXJ weighting was expected to increase from 0.32% to 0.42% on March 17, 2023.
- The approximately 10-basis-point increase was expected to result in additional GDXJ purchases of New Found shares.
- The ETF’s exposure to New Found was expected to increase by approximately 31%.
- Management stated that the higher weighting could improve the Company’s visibility and access to investors while it continues its exploration program.
Risks, Contingencies and Unusual Items
The release contains forward-looking statements concerning exploration, drilling, assay results, mineralization, project merits, funding and future activities. Actual results may differ materially due to exploration accidents, unexpected geological conditions, assay or drilling interpretation risks, permitting and governmental clearance requirements, financing limitations, political uncertainty, and regulatory or legal changes.
The anticipated ETF purchases and weighting increase are dependent on the stated rebalancing and are not a guarantee of future share-price performance, financing availability or exploration success.
Key Facts for Investor Verification
- Confirm the March 17, 2023 GDXJ rebalancing and the resulting New Found weighting.
- Verify the approximately $72 million balance of cash and marketable securities and its date of measurement.
- Review subsequent disclosures regarding the 500,000-metre Queensway drill program, assays, permitting and exploration results.
- Consult the Company’s annual information form and management’s discussion and analysis for financial condition, liquidity and detailed risk factors.