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Perhaps management know that POG is likely to drop quite a bit over the next month or so and have decided to raise while POG is around $1800. If one follows daily cycles it is most likely that gold will descend into a DCL/ICL reaching a bottom in early October. We could well see gold in the 1600s again or lower before the next serious upleg. Not financial advice but just DD from what is available for free on internet.
No RNS as yet but word is more fundraising on the way. Tried to sell but price was already down 12 %. Price of new shares will equate to about 60P per share with warrants priced about 78p. I am very disappointed with this Co who promised so much but are constantly failing to deliver.
I think it is fair to say that management at PGM did a great PR job last year, however, the net result was over promise and under produce. That does not give investors confidence in any company. Ideally management will now try to regain that trust by producing grades and quantities at the higher end of the recent estimates. The potential is certainly there for PGM to be a great company if we believe all that was stated last year but I guess folks are being cautious for the time being. I sometimes wonder where this gold bull run is taking us as it has been downhill for the last 12 months, lower lows and lower highs are hardly ideal. Consensus seems to be saying that we could still see another pull back or 2 before we see gold reaching any where near the 1900's again. Most gold miners have been hammered for some weeks now and I guess folks can afford to be choosy when investing. Good luck to all PGM holders of which I am one.
https://www.puregoldmining.ca/wp-content/uploads/2021/08/PureGold-Deck-August-3-2021-Final2.pdf
A good update and worth reading.
Troajan; thank you for sharing that update. Good news about the decreasing fire risk and overall a bullish update from the CEO. I can see at least a 50% increase in the sp by this time next year if things go according to plan.
Sprott: " We update our CY21 production forecast from 39koz to 35koz, and maintain our BUY rating and C$2.05/sh (£1.19) PT based on production lifting to 81koz next year then to 110koz by CY24."
PGM / PUR presented virtually this am at investor day Toronto. Notes taken from CEO.CA;
- Surface exploration still paused, all drilling underground
- After two new mill screens installed in July they should hit 1,000/tpd
- Expect commercialization by end of quarter (therefore July 1st)
- Actively mining from both ramps
- $17M raised for capital development must be used on ramps
- Based on new ramps & shaft rehabilitation expecting a 25% improvement over current estimates
I read that some folks are still thinking we could see a pullback to around $1750ish for POG but in the ST anyway $1816 might form a degree of support; anyway it was good to see such a quick rebound from $1816 with better things still to come.
It always good to see the directors buying but I thought the reaction in USA and Canada was rather muted with the sp only rising slightly ! I guess there will always be doubts about PUR until we start to see good grades and an increase in the reserves. If the POG can break through 1800$ that will be bonus.
T M: Marked as a sell??#
Trades 19
Vol. Sold 66,413
Sold Value £49.15k
Vol. Bought 275
Why do I bother with premium membership ??
T D; Cup half empty I guess; my cup is half full. If one does not trust the management one should not invest; I trust the management as does Sprott and I trust Sprott's judgement. I see this as a good buying opportunity if one is prepared to hold medium to long term. GLA
P W: Not a video but latest (19 April 21) from the CEO explaining Q1 problems.
https://www.mining-journal.com/leadership/news/1408593/pure-gold-financing-to-accelerate-ramp-development
Sotolo; " ultimately the price is falling because more people want to sell like the bosses than buy,". I understand that lse figures are not the most reliable but at around 3.45 pm today they showed about 1.4 million buys to less than 700,000 sells !!! Surely lse can not be that far out with the numbers to force a drop in the sp ??
Christo: PUR is listed in The USA (LRTNF) as well as in Canada (PGM.V). From my research PUR seems to have a very solid board so I doubt there were any shenanigans going on; just teething issues building up to commercial production.
"On the financials, we estimate ~$30m cash position from the $45m at 4Q20 and model minimum cash of $5m in 3Q21, albeit this is difficult to forecast as working capital balances are the key driver. Most notably, whilst the ramp up and lower cash balance is disappointing, the key takeaway is that cash is being re-invested into the mine and is a ‘deferral’ and not a loss of revenue. As such, we maintain our BUY rating and lower our previous C$2.55/sh PT to C$2.05/sh. This is based on a small production drop plus weaker short-term gold price, but also we lower our NAV from 1.2x based on a premium for expansion to 1x until operations reach a steady footing. Stepping back, commercial production, guidance on 2H21 and CY22, plus~25km of surface drilling this year should all provide material catalysts, while access to drill 8 Zone from 2H21 should see this continue into next year. C$2.05 = £1.17
The macro picture seems to favour the price of PMs increasing in due course; if the price was not being manipulated using paper gold and paper silver contracts the price would already be much higher. One only has to check the price of PM coins and bars and the premiums are up to 50% above the spot price, that gives you an idea that the demand is greater than the supply and so the price should go up. The banks just counter that with more paper gold/silver contracts to keep the price steady or lower. Why do you think the ETFs changed the wording of the contracts when buying into an ETF ? Bottom line is that they might not actually hold enough PM to meet the paper trail they have created. Take SLV which uses paper contracts for silver investments and compare with PSLV which uses PHYSICAL silver to back the investments. People are getting wise to the paper trails and many investors have moved funds from SLV to PSLV as it is known that Sprott (PSLV) continually buys physical to meet the demands of the ETF. Bottom line is that the prices will go up when the manipulation comes to an end and that might not be far away if Basel III comes to fruition in June.( Basel III : It hikes the minimum amount of capital banks must hold, introduces new leverage and liquidity ratios, and limits the use of internal models.) Short term nobody really knows where gold/silver might go, some say one more drop to $1675 Gold/$22 Silver, and some say this is all noise and it is all up from here if prices can hold above $1700 gold and $25 silver. ATB
Pick.. Thank you for your good wishes. Please note that in the case of STX the "analyst notes" are hardly worth the paper they are written on. Just check the timing of the note just before the stock crashed. That just confirmed to me that either the analyst was totally unaware of the problems facing STX or it was a scam.I reinvested my STX funds into PM stocks on the Canadian market and already I am nicely in the green. I know it will not be straight up but I do believe PMs should have a good year. I follow David Brady (Irish) working in Canada and his reasoning makes a lot of sense. Good luck with your investments.
pc-m; I wish you luck with your investment. I have lost faith in the management and so I sold out at a considerable loss. My gut tells me I could recover the loss more quickly investing else where; eg gold and silver stocks which are grossly undervalued right now and with the macro picture hinting at inflation, lower yields and a lower dollar the PMs should recover some time this year. I bought into STX because my daughter has an iron deficiency and I understand the problem and the need for good medication. Alas management let us down and the writing was on the wall when the previous CEO quit so suddenly and a few months later sold a whole bundle of shares. The brokers were less than forthcoming with the truth right up to the crash. ATB
PC_M; "Director and his wife both wouldn't have bought 400k shares if there was a possibility of price going down"; I suggest you take a look at some of the RNSs following the price crash. I can not remember the price but there was insider buying well above the present price .
I have been listening to various broadcasters trying to get a consensus as to where the PMs are heading. I think David Brady (Irish) hit the nail on the head talking about risk/reward in that he sees the possibility of another 50 point drop in P O G but a possible 400 point increase whenever the trend is reversed which he thinks could be very soon.