Executive Summary / Key Takeaways

• New Found Gold Corp. (NFGC) is rapidly transitioning from a pure gold explorer to an emerging Canadian gold producer, primarily driven by its high-grade Queensway Gold Project in Newfoundland and Labrador.
• The company's strategic acquisition of Maritime Resources Corp. and the robust Preliminary Economic Assessment (PEA) for Queensway, projecting significant gold production and attractive economics, underscore a compelling investment thesis.
• NFGC is well-capitalized, having secured C$63 million in recent financing and with strong backing from strategic investors like Eric Sprott, ensuring funding through 2026 for its aggressive development plans.
• Operational advancements, including successful Phase III metallurgical test work confirming gold recovery and ongoing extensive drilling, de-risk the Queensway project and highlight its district-scale potential.
• Amidst a surging gold market, with prices at unprecedented highs and strong institutional demand, NFGC offers investors exposure to a high-potential, de-risked asset in a Tier 1 mining jurisdiction.

Unearthing a New Chapter in Canadian Gold

New Found Gold Corp., incorporated in 2016 and formerly known as Palisade Resources Corp., has steadily carved out a significant presence in the Canadian mineral exploration landscape, focusing on high-grade gold deposits in Newfoundland and Labrador. The company's core assets, including the Queensway, Kingsway, and Mustang properties, represent a strategic foothold in a region increasingly recognized for its geological prospectivity. NFGC's journey has been characterized by a relentless pursuit of discovery, as evidenced by a substantial increase in research and development (R&D) expenses, which rose from $1.12 million in 2017 to $36.50 million in 2024, reflecting a sustained commitment to exploration.

This focused exploration effort unfolds against a remarkably bullish backdrop for the global gold market. In 2025, gold prices have reached unprecedented highs, with futures trading at $3,777.8 per ounce at the time of a recent IPO. This surge is fueled by robust institutional demand, as global central banks have purchased over 1,000 tonnes of gold annually for the last three years, a significant increase from the prior decade's average. This institutional momentum has translated into record assets under management for gold ETFs, reaching $407 billion in August, with North American ETF inflows projected for their second-strongest year on record in 2025. Industry analysts, including Goldman Sachs, forecast gold prices to reach $3,700 by the end of 2025 and potentially $4,500 by mid-2026, creating an exceptionally favorable environment for gold-focused companies like NFGC.

Operational Edge and Technological Validation at Queensway

New Found Gold's strategic advantage lies in its operational approach and the validated potential of its Queensway Gold Project. The company's methodology centers on extensive diamond drilling and detailed metallurgical test work to de-risk and advance its discoveries. A significant operational milestone was the announcement of Phase III Metallurgical Test Work results, which confirmed gold recovery from the Keats West Zone. This validation is a critical operational differentiator, providing tangible assurance of the economic recoverability of gold from their ore body. While not a "technology" in the traditional sense of a novel processing method, this successful metallurgical testing is a crucial technical achievement that underpins the project's viability and future production capabilities.

The Queensway project also benefits from its "Versatile Deposit" characteristics, with mineral resources defined within a series of open pits. This design offers inherent flexibility in mine planning, grade sequencing, and tailings deposition strategies, which can lead to optimized operational efficiency and cost management. The presence of high-grade veins exposed at the surface further enhances the project's appeal, with 73% of the indicated ounces contained within just 24% of the tonnage in the initial Mineral Resource pit shells. This suggests the potential for high-grade starter pits, a strategic operational advantage that could significantly impact early-stage cash flow and project funding.

The company's 2025 work program at Queensway is a testament to its aggressive development strategy, involving a 70,000-meter diamond drill program, with 80% dedicated to resource definition and pre-development work and 20% to exploration. This systematic approach aims to expand and delineate the known gold zones, such as the Keats West, Lotto, Dome, and Dropkick zones, where recent drilling has yielded impressive high-grade intersections, including 55.0 g/t Au over 35.05 m at Keats West and 42.8 g/t Au over 14.95 m at Dropkick. These results demonstrate the project's significant upside potential and the effectiveness of NFGC's exploration and delineation strategies.

Financial Trajectory and Strategic Capitalization

As a mineral exploration company, New Found Gold has consistently reported negative net income, which is typical for companies in the pre-production phase. For instance, the company reported a net income of -$34.91 million in 2024, following -$60.07 million in 2023 and -$65.69 million in 2022. Similarly, operating cash flow has been negative, at -$38.67 million in 2024 and -$74.64 million in 2023, reflecting the substantial capital deployed into exploration and development activities. However, these figures represent investments in future production rather than operational losses from a revenue-generating business.

Crucially, NFGC has demonstrated robust financial acumen in securing the capital necessary to advance its Queensway project. In May and June 2025, the company successfully closed a C$63 million bought deal financing, including a C$56 million offering and a C$20 million non-brokered private placement. These financings were significantly bolstered by the participation of strategic investor Eric Sprott, who holds a 19% stake and intends to increase his shareholdings to over 20%, signaling strong confidence in the company's prospects. The proceeds are earmarked for eligible Canadian exploration expenses at Queensway and for general corporate and working capital purposes, ensuring the company is fully funded through 2026. The sale of non-convertible senior secured notes of Maritime Resources Corp. for US$2 million in April 2025 further strengthened its treasury. The company's current ratio of 4.03 in 2024 indicates a healthy short-term liquidity position, providing a solid foundation for its ambitious development plans.

Competitive Landscape and the Path to Production

New Found Gold operates within a competitive gold mining sector, where it positions itself as a specialized explorer with a focus on high-grade discoveries in a Tier 1 jurisdiction. Compared to industry giants like Barrick Gold Corporation (NYSE: GOLD), Newmont Corporation (NYSE: NEM), Agnico Eagle Mines Limited (NYSE: AEM), and Kinross Gold Corporation (NYSE: KGC), NFGC is a smaller player. These larger competitors benefit from established production, diversified portfolios, and substantial cash flow generation, as reflected in their positive P/E ratios (e.g., GOLD at 28.83, NEM at 14.84, AEM at 15.95, KGC at 21.78 in 2025) and robust balance sheets. In contrast, NFGC's current P/E ratio is negative (-14.00) and its P/S ratio is 0.00, indicative of its pre-revenue, exploration-heavy stage.

However, NFGC's agility and regional expertise in Newfoundland provide a distinct competitive edge. The company's 100% ownership of the Queensway project, located in a mining-positive jurisdiction with excellent infrastructure and a skilled local workforce, allows for a more focused and potentially faster development cycle compared to the complexities of managing vast global operations. A transformative strategic initiative is the definitive agreement to acquire Maritime Resources Corp. , a move explicitly aimed at combining the entities to create an "emerging Canadian gold producer." This acquisition is a clear signal of NFGC's ambition to transition from pure exploration to a more integrated mining company, enhancing its competitive standing by adding production capabilities and potentially leveraging synergies.

The Preliminary Economic Assessment (PEA) for the Queensway Gold Project, released in July 2025, provides a concrete roadmap for this transition. The PEA outlines a phased mine plan, with Phase 1 requiring an initial capital cost of $155 million, projected to yield an average annual gold production of 69.3 thousand ounces (koz Au) at an All-In Sustaining Cost (AISC) of US$1,282/oz Au in Years 1 to 4. This initial phase is designed to self-fund Phase 2, which involves growth capital of $442 million, targeting an average annual gold production of 172.2 koz Au at an AISC of US$1,090/oz Au in Years 5 to 9, with a payback period of less than one year. These figures highlight the project's strong economics and its potential to deliver significant value.

Outlook and Key Risks

The outlook for New Found Gold is centered on the continued de-risking and advancement of the Queensway Gold Project towards production. The company plans to commence bulk sampling in the first half of 2026, a critical step in validating the mine plan and metallurgical recoveries on a larger scale. Ongoing engineering studies, including metallurgical test work and trade-off studies, along with additional environmental work for permitting, are all geared towards a seamless transition to development. Analysts anticipate an EPS of -$0.13 per share for the fiscal year ending December 2025, reflecting the continued investment phase before revenue generation.

Despite the promising outlook, investors should be mindful of inherent risks. Exploration and development in the mining sector are capital-intensive and subject to geological uncertainties; there is no guarantee that identified resources will ultimately prove to be economically viable. Commodity price volatility, while currently favorable, remains a risk factor. Operational challenges, such as the temporary suspension of heavy equipment activities in August 2025 due to forest fire risks in Newfoundland, underscore the environmental and logistical hurdles that can impact project timelines. Furthermore, securing all necessary regulatory approvals for mine construction and operation is a complex and time-consuming process.

Conclusion

New Found Gold Corp. stands at a pivotal juncture, poised to transform from a successful explorer into a significant gold producer in a highly attractive market. The Queensway Gold Project, with its high-grade resource, validated metallurgy, and robust PEA economics, forms the bedrock of this transformation. The strategic acquisition of Maritime Resources Corp. (MAE) further solidifies NFGC's ambition to become an emerging Canadian gold producer, enhancing its competitive position through scale and potential synergies.

Backed by substantial financing and strong institutional support, the company is well-equipped to execute its development plans. While the path to production carries inherent risks common to the mining industry, NFGC's focused strategy, operational advancements, and the current favorable gold market conditions present a compelling investment narrative. For discerning investors seeking exposure to a high-growth gold story in a Tier 1 jurisdiction, New Found Gold offers a unique opportunity to participate in the unearthing of substantial value as it progresses towards its golden future.