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LumpyGravy
The 5m oz is the 2.5m PUR has identified in their previous resource base and the 2.5m which has already been drilled and extracted by previous operators.
What Darin meant is that the size of the deposit in PUR's tenement is already world class as it has at least 5m oz, which means there is a high probability of finding a lot more as they continue drilling. A world class deposit is usually at least 5m+ but ideally 10m+ oz will get the majors super excited and that can lead to a potential takeover with a huge premium. However, as a long term shareholder, I would prefer if PUR remain independent as I believe it can become the next Kirkland Lake.
Hi guys
Here's the latest video on PUR. Nothing new that existing shareholders are already aware of but still good for reference. If you want to go straight to the PUR interview, it's around the 7 minute mark.
Interestingly, Rick Rule disclosed he's also a shareholder in PUR. We should see some interesting price action in the coming weeks especially with First Pour just round the corner.
https://www.youtube.com/watch?v=JdqIBqn-T0k
Agreed.
If I remember correctly, GGP's share price was up 20% in after market trading on the day of the inclusion in the GDXJ as Van Eck had to buy quite a sizeable amount to meet their minimum holding size.
Trek
Well spotted - there's currently an arbitrage trading PUR between the LSE and TSX right now.
The price on the TSX closed at C$2.55, which is GBP 1.47 whereas you can now buy on the LSE at GBP 1.43. This is a HUGE 5% spread.
If the gold price holds at current levels or increases, you could see the MMs bring the ASK up to GBP 1.47 at the Canadian open later today.
And that's just the revenues from the phase 1 figures. The profit from the phase one will be over US$1 billion, which is C$ 1.3 billion, which is more than the current market cap!
The current valuation does not attribute any value to the growth potential of the company. We willsee a revised resource base by end of Q1 2021 and I wouldn't be surprised if we end up with 4-5m oz compared to the current 2.5m in the previous resource base which was completed in early 2019. The company has drilled over 400 holes since the last resource base and all the discoveries made since then are not included.
What gets me the most excited though is the underground drill programme in the high grade 8 zone starting next summer, which should be very interesting!
Stockable
Like Sanlorenzo mentioned, PUR is currently a developer and will become a producer next year. In the mining industry, there is a clear distinction between the two categories as producers trade at a higher P/NAV multiple compared to developers. So while PUR is loss-making because it has no revenue, assuming the gold price does not fall off a cliff, I would expect you will have to pay a lot higher for each share. This is something I thought it was worth pointing out to you.
Sanlorenzo, All
Looks like they moved it to another video. Here it is.
https://www.youtube.com/watch?v=UUU5G40dSQA
I suggest you guys watch it while the link is still active. The last 5-10 mins are the key takeaways, i.e. what are the catalysts to look out for apart from First Pour next month. Enjoy!
And this one too:
https://www.youtube.com/watch?v=GG3k0heglQY
Starts from 2hr 28 mins 45 mins.
DL gives some colour about the next catalysts for PUR regarding phase 2, which includes a new resource base at the end of Q1 2021 and also a new PFS next year. Still a lot of upside here!
Well, we finally got some drill results and those are very exciting! The result from test hole PGL-0003 is some of the highest grades I have come across through my various holdings and is comparable or even better than the highest grades reported by KL. Over 1kg of gold over more than 1m!
It's also worth noting that the drill results for Wedge are at very shallow depth from surface at less than 400m! Who knows what they will find as they drill deeper? Remember Goldcorp transformed into a multibillion company thanks to the high grade which they found at depth from 1.5 - 2.5km!
This is looking very encouraging. I am sure Eric Sprott will mention those results on his podcast on Friday.
Sanlorenzo
Glad to meet another KL shareholder here. I have been one since the early days and still holding - this company keeps performing!
Fair point. The 30% dividend yield is applicable for shareholders who have held from those days. I was trying to make a point about holding PUR for the longer term.
I think it is worth clarifying that a return on an investment in PUR is dependent on what time horizon you are looking at. If you are looking to trade and make a quick buck, then this is not the company for you as this is something you should have done 6 months ago.
However, if you are willing to wait for the company to reach its full potential, then things may turn out very differently. I do not look at the short term volatility in the DXY, which will no doubt temporarily affect the gold price because in the medium to longer term, we are in a solid gold bull market which is likely to last for several years if you look at both the fundamentals and technicals.
KL was trading at less than CA$3 back in 2015 and now trades at over CA$60 and now delivers a 30% dividend yield. If PUR was to expand the resource base (which I think is likely over the next 12-18 months) and once they drill further into the 8 zone next year, then I believe there is no reason why PUR cannot be a 5x from the current market cap especially as it expands production capacity. The main risk is that the Oxygen group decides to sell in the next 2-3 years, which is a possibility which could limit the upside.
Novagold owns 50% of Donlin gold deposit, which is huge but it is in the middle of nowhere in Alaska and as far as I understand not near term production and has a market cap of over CA$4.6 Bn. Another good example is Wesdome Gold mines, which can produce c. 100k oz p.a. and has a resource base of 2.7 million oz (M&I) and has a market cap of nearly CA$ 2 billion.
Same here Brookstreet. PUR is by far my biggest holding.
As Rick Rule says, a bull market has a knack of bringing as few people as possible for the ride. Most importantly, 90% of the gains is made in the last 10% of the rally! So hold on tight to your shares and you will all be rewarded handsomely in due course.
Guys
One thing worth clarifying is that I believe those options were granted in 2015 when the share price was around 10 Canadian cents.
Those were NOT granted this year / this month. Obviously there's been a lot of progress since then and I think it's fair that management / board are allowed to cash in on their options if they want to. You would do the same if you were in their shoes.
Just my opinion.
Graking
I have heard from various sources that there is a huge backlog at the assay labs in Canada due to COVID-19 reducing the number of personnel onsite and the high number of miners drilling now as it's the peak summer / autumn season.
We need to remain patient and top up on dips.
SpaceHoppa
This is the podcast I previously referred to. Lol! Great that you manage to post the link by splitting it.
Pure Gold's profit margin will be among the highest in the world (at the current gold price, that's over $1100/oz!) and the resource base will expand over the next 12-24 months. It's just a matter of time. My personal gut feel is that they will have at least 5 million oz compared to the 2.5 million they have now.
Once the company is pouring gold and generating a profit, we will likely see more institutional investors piling in as many of them cannot invest in loss-making companies. So bring on 2021!
I suggest you listen to Eric Sprott's latest podcast just released today. It's called Sprott Money News Weekly. Among his various company discussions, he mentions Pure Gold and is confident the drill results and eventual resource estimates will be a lot higher than what they have defined under their NI 403-101 resource estimate as this is always more conservative. Listen around the 20-21 minutes mark. Hope people have been adding over the past few weeks. I have!
Market is not pricing all of this future upside as we get closer to FP and once the company releases a revised resource estimate.
Good summary Mick. You have covered all the rationale behind why Pure Gold could become the next KL especially once they start drilling the 8 Zone next year. This could really transform the company like it did for Goldcorp all those years ago.
Btw, in case people are wondering, it appears drill results have been very slow to come out in Canada and elsewhere, mainly due to COVID-19 slowing things down and also the high number of companies drilling in the summer. Eric Sprott mentions this in his latest podcast. So I would not read too much into why it is taking so long for assay results to come out. I have some other companies which are also drilling and which are also pending assay results. So hang tight and wait for drill results which should be round the corner now!
Looks like the insider selling is done at least for now. Onwards and upwards!
Hope folks took this opportunity to top up in the low 120s!
That is not how I read it.
He still holds 1.7 million shares. He exercised 250,000 options and sold them in the open market. He has 147,000 options left. As I previously said, it may be well be options expiry date soon. So insiders will likely monetise those beforehand.
Can someone who is familiar with Canadian stocks check and confirm this?
Hmm, looks like I cannot post any links.
It's on Youtube and is dated 8 Sept 2020 and posted by O&M Partners.