New World Gold Corp. (PINK:NWGC) dropped below the $0.10 mark in late May. It may be trying to get back up to it, or above it, although that didn’t happen yesterday.
Yesterday NWGC issued a PR and the market responded with a new 52-week volume high of approximately 768 thousand shares. The price, however, moved just 3.30% for a $0.094 close.
Before the open NWGC announced it was now upgrading the gold reserves on its second gold mill in Northern Peru. The company’s projections would have the mill producing 100 ounces of gold per day when all renovations are completed.
There is also this newsletter we received yesterday. The promoter was compensated $5 thousand by a third party.[BANNER]
There are different opinions expressed on message boards, ranging from “…going nowhere pump pump” to “…has zero dilution…”
Saying there is no dilution is really strange, not to say wrong, at least when looking at these numbers from the company’s own reports:
- OS for June 30, 2010 – 17,549,214
- OS for September 30, 2010 – 23,140,881
- OS for December 31, 2010 – 48,619,903
- OS for March 31, 2011 – 56,538,474
Although there obviously is dilution, not everything in the reports is bad. NWGC reports income for the first quarter. It is still insignificant compared to their negative working capital, but it is something. It is, as usual, up to traders to draw their conclusions.
