Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Shame we had either a big seller / sellers in Canada yesterday. That dropped the share price on the TSX.
Gold is up today. So here's hoping we regain some of the lost ground this morning.
Marmot
You're right. Eric has not been on the weekly podcast because his wife is unwell. However, he will return this week and I am confident PUR will be highly on his list given we are only 2-3 weeks away from FP and given the recent drill results and of course, icing on the cake is to be included in GDXJ. So we could see some good buying pressure later this week subject to the gold price holding firm.
Guys
It doesn't really matter how many shares are acquired as part of the GDXJ inclusion. 14m, 15m, 16m, etc. That's still a lot of shares and more importantly, those shares will become sticky, i.e. will not be traded for the foreseeable future. This will reduce the amount of shares available for sale afterwards, which can only be a good thing for PUR shareholders.
Anyway, that's how I think shareholders should view it especially if you are in for the long haul.
Charlotte
My understand is that Van Eck has multiple investment strategies / funds. The shares they own in PUR are probably from their gold equity fund. GDX and GDXJ are part of their ETF business, which is a separate activity.
https://www.vaneck.com/row/investment-strategies/gold-equity/
Marmot, MF11
Thanks for your respective inputs.
My bad - the NAV for GDXJ is indeed US$5.9 billion. I was previously referring to the market cap shown by Google Finance, which is clearly wrong!
14.75 million shares it is then, which is still a decent number and will certainly be supportive of the share price over the next few months as Van Eck accumulates. The question is how quickly do they plan to do that given they know FP is just round the corner? But then it could be yet another dumb ETF, which accumulates over time but at a higher price (they will have to pay a premium for a producer). :)
BTB
You're welcome.
ceo.ca is a fun website to visit and see what the Canucks are thinking.
GDXJ will buy their position on Friday 18th Dec after market close. So it's likely to happen on the TSX.
For GGP, the day that happened the share price was up over 20%. I'm not saying the same thing will happen here but if my maths is correct, Van Eck will need to buy over c. 36 million shares on Friday (based on the closing share price of C$2.90 on Friday), which is more than the total monthly trading volume!
I forgot to mention the company is targeting the start of commercial production by the end of Q1 2021 as well and will become profitable next year.
One important fact to expect next year is that when the share price exceeds C$5, this will allow the bigger institutional investors to start taking positions in the company (in a profitable company). Eric Sprott described this in one of his previous interviews.
Atlantic
You may be right but only short term traders would try and take profit upon FP. There are just too many other near term catalysts with PUR such as continued drill results and revised resource estimates by the end of Q1 2021.
Assuming the company hits most of its milestones, long term shareholders will make a lot more than short term traders with this one.
Very nice.
That would explain the share price action today with many speculators jumping in in anticipation of the news. Next week should be interesting especially if we get confirmation of FP (ahead of schedule) or some further positive drill results. That would be absolute rocket fuel to the share price!
The company website has been updated to reflect 3 weeks to First Pour. Tic tok, tic tok...
Yep, that's the one!
If you trade on the TSX, this is a must-go to portal.
I thought it is worth sharing the post below from the Canadian forum as this is a very important point, which I am not sure folks are aware here. Given the high grade of this deposit, if gold price rises to higher levels, the company could easily reduce the cut-off grade, which would substantially increase the amount of mineable resource. This is why I think we could easily exceed 5m+ oz in 1-2 years once they prove up the reserves and drill further through the 8 zone. 5m+ is truly world class and would certainly attract huge attention from the majors, who are prepared to pay top dollar for such rare deposits.
"zuken forgets the market is forward looking and prices accordingly. todays share price isn't just about where we are today. smart money factors in the potential of a year or even years out. I own it because I believe they are going to be adding millions of ounces of more high grade at or better than the 8.9 avg with more time and drilling. I would say confidently that PGM is going to be at least 5 million plus ounces of high grade mine not even including anything under 4 GT. Consider with the initial 2.5 million ounce mine plan they had a 4 GT cut off to stay conservative. If those ounces where included we would probably have a few million more ounces already albeit at a lower total avg grade. Many existing mines are profitably mined at under 4 GT and mgt didnt even include those ounces. Off the top of my head I can think of Karora who is mining profitably at an avg of 2.5 GT as we speak Just wait until the 8 zone starts getting drilled up with grades on average running in the 30 g/t plus range. There is plenty of drilling space to define and find more 8 zones over time. Grade is king and can drastically change a production profile as Goldcorp discoverd. When you add millions of ounces plus high grade together you have a home run. Mgt has plenty of room to grow and outperform and they know it as does the smart money."
Trendjoe
That's correct. There could be several reasons why the director decides to sell some shares. Everyone needs some cash / income from time to time.
Yesterday's RNS also confirms there is no need for the company to wait 2 weeks since a Director traded to release news if it is material. This should be immediate once it becomes available such as assay results. It would appear the backlog at the assay labs has eased and we could get a more constant flow of drill results every couple of weeks.
KUMS
The share price closed at 150p on TSX on Friday. With today's drill results, we should be trading even higher!
Btw, today's RNS blows the myth that the company cannot post any RNS within 2 weeks of directors trading shares...
First Pour in the coming weeks is a given. Addition onto the GDXJ this month would be icing on the cake and set up us nicely for 2021.
John
First Pour is still expected before Xmas. You can track this on their website. They even have a countdown. It should update to 3 weeks this week.
Nice little drill results RNS this morning! This is a new gold zone. The key sentence for me is below. I cannot wait to see their new resource base in Q1 2021. This 2.5m resource base will be history!
"Drilling has successfully extended gold mineralization out from planned stopes, discovered new gold zones that are being integrated into the mine plan, and has confirmed stopes scheduled for near term production."
Brookstreet
The total profit from the phase 1 mine alone should value PUR at GBP 1.80 per share assuming a gold price of US$1800 /oz. Of course, it is likely we will see an even higher gold price over the next few years given all the money printing and currency debasement worldwide, which could push the valuation even higher. I will not even mention phase 2 mine and exploration upside potential...
While I can understand why some shareholders would welcome a takeover, personally, I do not want that (at least for the next 3-4 years). I want PUR to fully develop its deposit before getting swooped up by one of the majors, aka Newmont or Barrick for a ridiculous premium when the gold price is $3,000+ /oz! Newmont and AngloGold Ashanti are two of the main shareholders in PUR and I am sure they are monitoring PUR's progress very closely...
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