Executive Summary / Key Takeaways

• First Mining Gold Corp. ($FFMGF) is strategically positioned as a pure-play gold developer in Canada, focusing on advancing two of the country's largest undeveloped gold projects, Springpole and Duparquet, amidst a robust gold bull market.
• The company's core strategy revolves around acquiring high-quality mineral assets at low costs during market downturns and systematically de-risking them through exploration, permitting, and community engagement, as evidenced by recent significant drilling successes at Duparquet and landmark agreements for Springpole.
• Recent capital raises totaling $36.4 million in July and August 2025 have significantly bolstered liquidity, providing crucial funding to accelerate development at its flagship projects and underscoring strong investor confidence.
• Despite being a pre-revenue development-stage company, First Mining Gold appears deeply undervalued on a per-ounce resource basis and against its fundamental Net Asset Value (NAV), offering substantial upside potential as it progresses towards key permitting milestones and a potential re-rating.
• Key catalysts for re-rating include the anticipated federal environmental assessment decision for the Springpole Gold Project by Q1 2026 and continued positive exploration results and community collaboration at Duparquet, positioning the company as a prime candidate for future acquisition by larger gold producers seeking to replenish their pipelines.

The Golden Horizon: First Mining's Strategic Play in a Bull Market

First Mining Gold Corp. ($FFMGF) stands at a pivotal juncture, strategically cultivating a portfolio of significant gold and silver deposits across Canada. Established in 2015, the Vancouver-based company has meticulously assembled a collection of mineral properties, including the flagship Springpole Gold Project and Duparquet Gold Project, alongside the Cameron, Pickle Crow, and Treasury Metals projects. Unlike established producers, First Mining operates as a dedicated explorer and developer, a critical distinction that shapes its financial profile and investment thesis. Its overarching strategy has been to acquire high-quality mineral assets at attractive valuations during bear market conditions, positioning itself to capitalize on subsequent market recoveries and the inherent leverage to rising gold prices.

The current macro environment provides a compelling backdrop for First Mining's strategy. Gold has entered a historic bull market, with prices surging 26% in the first half of 2025. This rally is fueled by shifting global monetary policies, particularly in the U.S., coupled with aggressive central bank accumulation and supply-side constraints. Analysts project gold could climb to $3,700 per troy ounce by the end of 2025, potentially reaching $4,000 by mid-2026. This environment, characterized by expanding global M2 money supply and increasing investment flows into gold equities, creates a fertile ground for companies like First Mining, especially as larger gold miners actively seek to replace dwindling reserves through acquisitions of significant, de-risked projects in stable jurisdictions.

Within this competitive landscape, First Mining Gold carves out a distinct niche. While major players like Barrick Gold , Newmont Corporation , Kinross Gold Corporation , and Agnico Eagle Mines Limited dominate global production, First Mining focuses on advancing large-scale, pre-production assets in mining-friendly Canadian jurisdictions. This focused approach minimizes geopolitical and operational risks often associated with more diversified, international operations. The company's "technological edge" lies not in a singular proprietary extraction method, but in its refined exploration methodology, agile project development, and proactive engagement with local communities and Indigenous groups. This integrated approach allows for efficient resource definition and streamlined permitting processes, which are critical for advancing projects from discovery to development.

Building the Foundation: Operational Momentum and Project Advancement

First Mining's operational focus is squarely on de-risking its two primary assets: the Springpole Gold Project in northwestern Ontario and the Duparquet Gold Project in Quebec. The Springpole project, one of Canada's largest undeveloped gold resources with 4.6 million ounces of indicated gold and 0.3 million ounces of inferred resources, represents significant leverage to gold prices. A major milestone was achieved in November 2024 with the submission of the final Environmental Impact Statement / Environmental Assessment. Management anticipates a federal decision on this critical permitting step by the end of 2025 or Q1 2026. This progress is underscored by a Long Term Relationship Agreement (LTRA) signed in July 2025 with the Mishkeegogamang First Nation, establishing a collaborative framework for the project's development, operations, and closure, emphasizing environmental respect and direct community benefits.

The Duparquet Gold Project, located on the prolific Destor-Porcupine Fault Zone in Quebec's Abitibi region, is a PEA-stage development project experiencing significant exploration momentum. In March 2025, First Mining initiated an estimated 18,000-meter drilling program, accelerating efforts by adding a second drill rig in April 2025. These efforts have yielded promising results, including the expansion of the newly discovered Miroir Target, with drill hole DUP25-064 returning 3.23 g/t Au over 25.9 meters, including high-grade intercepts of 11.20 g/t Au over 2.0 meters and 10.16 g/t Au over 1.4 meters, extending mineralization to 100 meters depth. Furthermore, a significant new gold zone, the Minuit Discovery, was identified in July 2025, with intercepts such as 2.25 g/t Au over 12.8 meters. This aggressive drilling campaign and positive results highlight the company's ability to effectively identify and expand resources, a key operational differentiator in the exploration sector. Complementing this, First Mining signed a Memorandum of Understanding (MOU) with the City of Duparquet in September 2025, formalizing collaboration for the project's development and addressing community needs, including a co-habitation plan and land transfers.

In a strategic portfolio optimization move, First Mining divested its remaining 20% interest in the Hope Brook Gold Project in July 2025 to Big Ridge Gold Corp. (BRAU) for C$3 million in cash and 7 million common shares of Big Ridge. This transaction allows Big Ridge to consolidate 100% ownership and enables First Mining to further concentrate resources on its core Canadian assets.

Financial Performance and Capital Strategy: Fueling Future Growth

As a development-stage company, First Mining Gold's financial statements reflect its pre-revenue status, with zero revenue reported annually from 2015 to 2024. The company consistently reports negative net income and operating income, with a net loss of -$15.31 million in 2024 and -$7.04 million in 2023. This is typical for junior mining companies focused on exploration and development, where significant capital is deployed before any production begins. Operating expenses totaled $19.75 million in 2024, up from $9.60 million in 2023, driven by increased exploration activities and general and administrative costs.

Cash flow generation is also characteristic of a development company, with annual operating cash flow consistently negative, reaching -$3.95 million in 2024 and -$5.07 million in 2023. Free cash flow has also been negative, at -$25.05 million in 2024 and -$23.61 million in 2023, reflecting substantial capital expenditures for property, plant, and equipment, which amounted to -$21.09 million in 2024.

Recognizing the capital-intensive nature of its business, First Mining has been proactive in securing financing. In July and August 2025, the company successfully completed an upsized non-brokered private placement, raising approximately $24.4 million, and a public offering that generated $12.0 million, totaling $36.4 million in gross proceeds. This capital infusion significantly enhances the company's liquidity, with management stating the proceeds will enable "significant progress at Springpole and Duparquet." As of June 30, 2025, the company reported a cash and marketable securities balance of $5.8 million, supplemented by an equity interest in PC Gold Inc. valued at $21.5 million.

Comparing First Mining's financial ratios to its larger, producing peers highlights its distinct stage. While Barrick Gold (GOLD) trades at a P/E ratio of 27.37, Newmont (NEM) at 14.80, Kinross Gold (KGC) at 20.96, and Agnico Eagle (AEM) at 15.63, First Mining Gold has a negative P/E ratio of -29.53, indicative of its current lack of earnings. However, its Price-to-Book (P/B) ratio of 1.40 suggests that the market values its assets, albeit at a discount to the intrinsic value of its resources.

Competitive Moats and Strategic Differentiation

First Mining Gold's competitive advantages are rooted in its strategic focus and asset quality. Its portfolio of large-scale, advanced-stage projects in Canada, a tier-one mining jurisdiction, provides a significant advantage over competitors operating in less stable regions. The company's business model, centered on acquiring high-quality mineral assets at low costs during bear markets, contrasts with rivals who may have overpaid for assets during bull cycles, potentially giving First Mining a cost advantage in its asset base.

The Springpole Gold Project, as one of Canada's largest undeveloped gold projects, positions First Mining as a standout in a sector where large-scale development opportunities are increasingly rare. This scale is crucial for attracting the attention of major gold producers who need to replenish their reserves. Historically, almost every 5 million-ounce gold project in Canada that received environmental assessment approval has been acquired by another mining company for $500 million or more. This suggests a clear path to potential value realization for First Mining. The company's focused gold-centric strategy offers purer exposure to gold market trends compared to diversified miners.

Furthermore, First Mining's proactive engagement with Indigenous communities, exemplified by the LTRA with Mishkeegogamang First Nation and the MOU with the City of Duparquet, is a critical differentiator. These agreements foster collaborative development, minimize social and environmental risks, and can significantly de-risk project timelines and enhance long-term operational stability, providing a competitive edge in a sector increasingly scrutinized for its social license to operate.

Risks and the Path Ahead

Investing in a development-stage mining company like First Mining Gold inherently carries significant risks. The primary concern remains the lack of revenue and profitability, as the company's future potential is entirely tied to its successful transition from exploration to production. Project development is capital-intensive and subject to delays, cost overruns, and permitting challenges. While the company has made substantial progress on the Springpole environmental assessment, a federal decision is still pending, and any adverse outcomes could significantly impact the project's timeline and viability.

Commodity price volatility also poses a risk, as the value of First Mining's assets and its future profitability are directly linked to gold prices. Although the current market is favorable, gold prices can fluctuate. The stock itself is characterized by high daily movements and periodic low trading volume, making it a "very high risk" investment.

Despite these risks, the outlook for First Mining Gold is compelling, particularly given its perceived undervaluation. The company trades at approximately USD 8 to USD 10 per ounce of gold resources, a stark contrast to recent acquisitions in the gold sector valued at around USD 200 per ounce. On a Net Asset Value (NAV) basis, First Mining trades at less than 0.1x NAV at historically low valuations. The fundamental NAV of CAD 1.83 per share, based on a Pre-Feasibility Study (PFS) for Springpole at US$1,600/oz gold and a Preliminary Economic Assessment (PEA) for Duparquet at US$1,800/oz gold, could exceed CAD 5 per share in today's gold environment where prices are above US$2,500/oz. Analysts project an average 12-month price target of C$0.70, representing a potential upside of over 141%.

Conclusion

First Mining Gold Corp. presents a deeply discounted opportunity within the burgeoning gold market. The company's strategic focus on acquiring and advancing large-scale, high-quality gold projects in Canada, coupled with its proactive approach to community engagement and efficient exploration, positions it for significant value creation. While its pre-revenue status and inherent development risks necessitate a discerning investment approach, the recent capital raises and ongoing operational successes at Springpole and Duparquet underscore a clear path forward. The anticipated federal environmental assessment decision for Springpole in the near term, alongside continued positive drilling results from Duparquet, serve as powerful catalysts for a substantial re-rating. As larger gold producers increasingly seek to acquire de-risked, tier-one assets, First Mining Gold's portfolio, underpinned by its strategic asset base and methodical development, stands out as a compelling target, offering investors a unique opportunity to participate in the next wave of Canadian gold production.