NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) garnered Federal Fisheries Act authorization for its Goldboro gold project in Nova Scotia, the final permit needed for construction and operation, reported Ron Stewart, managing director and mining analyst at Red Cloud Securities, in a Nov. 13 research note.
Red Cloud raised its target price on the mining company by 7.5% to reflect its latest developments and the investment firm's updated commodity price deck.
"We maintain our Buy (Speculative) rating and increase our target price to CA$4.30 per share (was CA$4 per share)," Stewart wrote.
194% Implied Return
At the time of Stewart's report, NexGold was trading at about CA$1.46 per share. From this price, the return to the new target is 194%.
Steady Progress on Goldboro
In his report, Stewart presented all of the work NexGold has done recently in regard to Goldboro.
"Collectively, these achievements demonstrate the unilateral stakeholder support of the company's plans to advance Goldboro to commercial production," the analyst wrote.
In October, the junior miner appointed Brian Jackson as its new vice president (VP) of projects. He is well experienced in engineering, procurement, and construction management contracting and in major project construction. Previously, he was VP of project execution at Ausenco Ltd., was director of the Côté Lake gold project in Ontario, and was involved in advancing the Voisey's Bay mine in Labrador.
In September, NexGold closed the sale of a 2.9% net smelter returns (NSR) royalty to Appian Capital Advisory Ltd. for US$24 million (US$24M) in cash. The royalty applies to gold or gold equivalent production up to 1,250,000 ounces (1.25 Moz) and beyond that quantity, changes to gold only for the life of mine. NexGold retains the right to repurchase 1.9% of the royalty for US$29M up to the third anniversary of the closing date and for US$30.5M up to the end of the fourth anniversary.
NexGold retired its US$12M credit facility with Nebari and exercised its buyback right on the 0.6% NSR royalty Nebari held. In doing so, the Canadian explorer-developer eliminated all of its outstanding third-party debts.
Also, as part of its agreement with Appian, NexGold signed a nonbinding letter of intent (LOI) for a senior credit facility of up to US$175M for the construction of Goldboro. Stewart pointed out that the LOI demonstrates Appian's interest in the project after it appraised NexGold's plan for advancing it to production.
In August, NexGold received the provincial industrial approval permit for Goldboro from Nova Scotia. About the same time, the gold company closed a CA$112.5M bought-deal equity financing, comprised of 69.4 million (69.4M) hard dollar units at CA$1.44 per unit and 7.94M flowthrough shares at CA$1.58 per share. Each unit consisted of one common share and one share purchase warrant. The warrants are exercisable at CA$1.92 per share until Oct. 31, 2027.
Updated MRE Next Step
For Goldboro, Red Cloud models a high-grade open-pit operation producing 1.2 Moz at an all-in sustaining cost (AISC) of US$1,341 per ounce (US$1,341/oz) over the 11.3-year life of mine. Project economics are an CA$854M post-tax net present value discounted at 5% (NPV5%), a 52.7% internal rate of return (IRR) and a 2.1-year payback period.
Potential exists to expand the Goldboro resource. At the project, NexGold has traced mineralization over a 3.4-kilometer strike and to a depth of 550 meters (550m).
"We expect the updated feasibility study to be based on an expanded mineral resource estimate and reserve base that could support a production increase to up to 150,000 ounces per annum," wrote Stewart.
What to Watch For
Upcoming events that could boost NexGold's share price, noted Stewart, include an updated Goldboro mineral resource estimate and an updated Goldboro feasibility study.
Ownership and Share Structure
Major shareholders of NexGold are management and insiders with 9.2%, Sprott Inc. with 4.1%, Extract Advisors LLC with 3.3% and Ninepoint Partners LP with 1.04%, noted Stewart.
The mining company has 241.3M basic shares outstanding, a market cap of CA$352.3M and a 52-week range of CA$0.61–1.82 per share.
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Important Disclosures:
- NexGold Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold Mining Corp.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Red Cloud Securities, NexGold Mining Corp., November 13, 2025
Ron Stewart | MD, Mining Analyst Daniel Kozielewicz | Research Associate Shikhar Sarpal | Research Associate Surya Sankarasubramanian | Research Associate Red Cloud Securities Inc. 120 Adelaide Street West, Suite 1400 Toronto ON, M5H 1T1 [email protected] www.redcloudresearch.com Disclosure Statement Updated November 13, 2025 Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.
Company Specific Disclosure Details Company Name Ticker Symbol Disclosures NexGold Mining Corp. TSXV:NEXG 3 1. The analyst has visited the head/principal office of the issuer or has viewed its material operations. 2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit. 3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer. 4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration. 5. An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly. 6. Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities. 7. A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer. 8. Red Cloud Securities Inc. is a market maker in the equity of the issuer. 9. There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions. Recommendation Terminology Red Cloud Securities Inc. recommendation terminology is as follows: • BUY – expected to outperform its peer group • HOLD – expected to perform with its peer group • SELL – expected to underperform its peer group • Tender – clients are advised to tender their shares to a takeover bid • Not Rated or NA – currently restricted from publishing, or we do not yet have a rating • Under Review – our rating and target are under review pending, prior estimates and rating should be disregarded. Companies with BUY, HOLD or SELL recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and may be followed by “(S)” or “(Speculative)” to reflect the higher degree of risk associated with the company. Additionally, our target prices are set based on a 12-month investment horizon. Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
