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Just hearing this now guys - hope y'all weren't hit too badly, obviously I'm glad I walked away some time ago but I didn't necessarily see this coming I must admit.
There's likely going to be a phoenix at the end of this tale of woe though I suspect - lots of gold miners seem to be doing their best to put themselves out of business these days ..........
I can't be bothered with the company anymore. It appears pointless. The timing of the gold price consolidation has killed this. They have too much debt and the costs of extraction are just too high.
I've taken what little I had left in this stock and put it into Galantas Gold. They have no debt and are using the revenue from their mine to expand production. Hopefully the returns from that will make up for the dramatic loss in this share.
Good luck to all those who are left.
I'm out.
WW
A while ago I stated that this was a company with great assets in the ground that was bound to make a lot of money for somebody in the future... the big question, given our debts, was whether it would be us that made the money, or somebody else buying us out at fire-sale prices. That when prices drop a lot the brave gamblers step in and the pragmatic take loss on the chin by selling out.
For those that thought that 20p or 10 p was bargain then 2p must be even more of bargain... this must now count as about as risky a gamble as AIM has to offer, but on the remote off-chance it pays off then that pay-off could be huge.
I'm trying to tell myself I'm not so reckless as to throw more money at this but...
"It's dead, Jim".
Looks like you could be right Malik buying already started !
.
Best to cut one's losses today having read their post. Seen suspensions in other speculative shares. Not much money around anyway, so loss makers such as Pure Gold Mining are most likely Doomed !! So agree with 'Bluetigeruk ' s post.
*maintenance
I am buying ;)
Care and main fence is something they should have done a while ago.
The gold is there. The mine is there.
Sprott is very much aware that ops have improved - they are getting the gold.
Gold price is an issue short term.
They ll be bailed.
Yes could go to zero. That’s priced at 95% on shares already.
Or blue sky at 40p.
I take that bet.
Looks like another AIM pick going bust .
Down 70% on this RNS to 2p.
Advise to sell before admin looks good advice from my experience .
Only positive for me is last trade was a slice .
Looks like only started buying them 26th April 2022.
On AIM, Pure Gold slumped 48% after it said financing woes will see it suspend operations and place its PureGold mine on care and maintenance immediately.
"This step follows an evaluation of several potential alternative scenarios and has become necessary because the mine has not yet achieved consistent positive site-level cash flow, notwithstanding recent reductions in operating costs and sequential quarter over quarter increases in production," it added.
Pure Gold said if it can not secure additional financing in the short term, it will be forced to default on its debt obligations.
And there I was wondering who could possibly be stupid enough to buy after that RNS / the shi* show of the last 2 years here. You’d be better off betting on the greyhounds…
The co was breaking even at 1800 gold.
Only reason why we are got this press release is decline in gold p.
This is why this will be salvaged.
It's over...
I am buying here.
Stock discounting now a 90-95% probability of going bust.
I am taking that other side of that bet.
Expect bailout by Sprott.
Sell your shares to book the tax loss correctly - when they get suspended / administration - which will be very soon - then its difficult to create a tax loss transaction - much harder than pressing SELL - so do it now and save yourselves a lot of hassle.
Thanks Blue
I have always wondered why RNS statementss have never been subjected to external auduit as to their accuracy. I suspect if they were, the AIM market would collapse.
My only surprise TD2, is that they couldn't manage to get anyone to buy more paper,
although that yet might happen.
SpaceHoppa
"..... with managements near lying hype....."
Precisely. That's exactly whatPure Gold was all about. Mark O'Dea, a snake oil salesman to add to all the other snake oil salesmen on AIM and TSX.
TDT
Sadly this was on the cards. Looking at the last update they were losing too much money and the drop in PoG has not helped. A sale is probably the only way investors might get some money back, but the debt position is large. I lost lots here with managements near lying hype, however I am glad I managed to get something out before this managed mess.
The suspension of operations has resulted in the Company withdrawing its guidance for Q4 2022.
If additional outside financing is not obtained in the short term, PureGold will not be able to meet its obligations as they become due, resulting in a default under its debt obligations.
thanks for the correction Winstonwolf. Still some way to go to get profitable. GLA, Dan
$3333 is canadian dollars.
US dollars which is the main metric of comparison is approx 0.75 x that.
I got a very rough $3333/oz costs for this quarter (ave. $10M cost per month, gold say $1600/oz, 3000oz/pm), or just $10M divide by 3000oz per month. So a loss of $5M approx. per month. If my basic maths is right of course. GLA, Dan
Based on this calculation
https://twitter.com/Stockpicking101/status/1577937843695001601
They claim to have world class highly experience people running this mine yet they can’t get ore through-put up to their target rate of 1,000 tonnes per day and they’re unable to find the 7.2g per tonne grades they claim to have. Seems more like a bunch of incompetent muppets to me.
And this is the second lot of world class people after Labrenz and his bunch of merry muppets got punted.
TDT
…approx. $2500/oz USD.
I'd say another 25-50% reduction in costs is required for this to be a workable mine. Otherwise this will be bought out for pennies on the dollar.
They also need to target grades >5g/t which is apparently where the current mine ramp depth is located.