FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) lost almost 12% on Friday to close at $0.4408, very near its 52-week low of $0.4172. Volumes on this down day were very heavy. FFMGF has a 30-day, daily average trading volume of 890,740 but on Friday the shares traded over 4.7 million times.

FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) is a unique player in the minerals market. The company does not mine its assets, rather it seeks to acquire mineral assets when the prices are low, bank the asset, then exploit it when the price returns to historical norms. When the mineral’s price is at a level where extracting it would make business sense, FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) enters into agreements with third-parties to execute the exploration, development, and production while First Mining takes a residual interest in the project. That interest may be in the form of royalties, minority interests, or equity positions. The goal of this business plan is to generate continual cash flows for the shareholders of FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF).

The most recent events with regards to the company’s future are the testing that is taking place at its 28,500 meter diamond drill infill program on its Goldlund Gold Project – wholly owned by FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF). On April 25, 2017, the Company announced the results from the first 12 drill holes from the Goldlund Gold project and on May 2, 2017 the Company announced the results from an additional 11 drill holes at the project. Of the 37 holes now released, 34 holes contain significant gold mineralization. Gold extracted during the current drilling program occurs both as fine disseminations in quartz vein stock-works and as more discrete larger grains up to 2 mm spatially associated with pyrite in the quartz veins.

Despite the company’s commitment to a gold play, shares of FIRST MNG FIN CORP COM NPV (OTCMKTS:FFMGF) do not seem correlated to the price of gold. Over five years FFMGF shares have appreciated over 65% while a popular gold ETF has only gained 4%; over the past year FFMGF has lost 24% while the gold ETF has lost 4%; and YTD FFMGF has lost 32% while the gold ETF has lost 8%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.