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I am wondering how much inventory left after all these gold sale. The 2010 financial report, Q1 & Q2 reports do not say the tonnage of inventory. Management purposely removed the gold tonnage from these reports.
2008 financial said 5000kg.
2009 financial said 6100kg.
I believe PRMO has been selling at +$1400, +75% net profit with our own refinery. PRMO is loaded with cash. Should be more than enough for $550,000 monthly operating cost.
Also inventory has been growing. The huge inventory does not benefit shareholders unless it is published in details or sold.
PRMO is paying $100,000 annual storage fee for the inventory. Just can't figure out their business plan?????????
What have they got in their mind??????????
How do they get rich sitting on it???????
Management needs to rebuild credibility from ground zero. It needs a strategic business plan to promote. Obviously, management is not ready for this and they are happy with 0.0001/2 at this point in time. Although lots of positive activities, they decide to hide it in unaudit reports and meatless PRs.
High risk pinky, hopefully high rewards.
PRMO sold lots of gold in Q3 for +$1400. Management decides not to PR gold sale. Frustration is the only word I can think of at this point in time.
I am hoping they are buying back at low pps. Otherwise, no other logical explanation for 0.0001/2.
Gold index is at $1472, challenging all time high $1475. PRMO must be selling lots of gold. They need cash flow to run the mining operation, which is $550,000/month.
How much gold sale in Q3?????????
Show us the good news.
Quote from Q2 report:" In 2011, we intend to further develop and bring new and exciting products."
It seems the 250kg monthly supply is "new and exciting". Bring it.
Comparing Q1 & Q2 operating costs:
Equipment Rental $40,000 -> $140,000
Export Tax $160,000 -> $216,000
Fuel $158,000 -> $258,000
Labor $150,000 -> $ 257,000
Legal $4,000 -> $14,000
Shipping $100,000 -> $150,000
Travel $25,000 -> $125,000
Lots of progress in Q2 as compared to Q1. More mining activity, more shipping and exporting. The additional legal fee is probably for closing of refinery deal. Extra traveling is probably for Dror to shop for refinery and buyer.
As I said before, I am lead to believe the inventory already shipped out of Madagascar and Ghana. Something is cooking.
Where is the refinery?
I guess it is in Thailand. Since most of the refineries are located in Thailand and Germany. PRMO's office is in Thailand.
Where is the inventory stored?
I guess it is in Thailand, near PRMO's office in Bangkok or near the refinery.
Looking at the export tax and shipping cost expenditure, the gold bearing material has left Madagascar and Ghana. It is ready for smelting and liquidity. Something is cooking here. IMO.
I can see the time is getting closer. The inventory is growing, but gold sale is minimal. I am lead to believe a big contract or big buyer is just around the corner. (lots of optimistic assumptions).
Since their monthly operating cost is $550,000, or $6.6M / year. They need to sell ~$9,000,000 annually to cover the operating cost. Their monthly production (250kg) can easily generate this income. The rest of the 11 months are simply grow in inventory. It is looking good. All IMO.
Agree. Multiple PRs for all good news definitely help.
I believe PRMO has enough positive info/activities to raise the pps to more respectful level. Q3 gold sale can be an exciting PR. Production rate and increase in inventory are definitely good news too.
PRMO is a mystery.
Yes, I trust PRMO to a certain degree (low degree). That is why I invested a in it. However, I wouldn't bet my house on this pinky. There is reason for it trading in pinksheets. Not much credibility. They need to earn credibility from ground zero.
I believe they are mining, they have huge inventory in high gold content, they sold gold, they have revenue, they have permanent staffs and also labor working in mine site with housing facility.
Management decides it is not the time to promote, for what ever reasons. I am holding (I can afford to hold). Wait and see is my strategy. All IMO.
Management has done lots of traveling in Q2. They spent $125,000 for business trips, as compared to ~$25,000 in Q1 and $20,000 in June 2010 reports.
I am guessing something to do with gold refinery deal or something else. It seems Dror is living in Florida, he might travel more these days to Madagascar and Ghana.
Quote:"false PRs and financial statements".
Which PR or FS are false document?
The OS has been at 8.4B since June 2009 financial report. No change for almost 2 years. No promotion for 2 years. Stop accusing management stealing money from shareholders.
PRMO sold billions of share in 2007/8. It is normal to raise money for business operation and development. Nothing wrong with it. I give them credit to bring it to production stage.
I understand that they need to issue audit financial for credibility. However, most pink sheet do not have audit reports. This is why they are in pink sheet. I fully understand the risk of investing in pink sheet. I treat this as lotto play. I wouldn't bet my house on it.
I think management is doing all they can to keep the pps in 0.0001/0.0002. They are hiding lots vital information in the financial reports and fluffy PRs. For example they are reporting inventory at cost, instead of inventory tonnage and assay results. They are reporting operating costs, instead of production rate. They do not report estimated gold in inventory and estimated gold in the ground.
Normal mining company reports the estimated gold found in the ground, they are trading in penny or higher, even without any production. Because investors are interested in the market value of the company. With assay results and estimated market value, investors can bid accordingly.
PRMO knows all these things but they choose not to follow the industrial practice. They have their own agenda.
Based on his track record, don't expect too much. However, this is life time opportunity that gold is at all time high, hopefully he take advantage of it and get rich for a change.
Change is the key word for PRMO. Sometimes miracle does happen.
Dror's contract as CEO/President expires this year. Gerald has the option of replacing him with new blood. However, Gerald will be around for ever.
At $1275/oz, PRMO's net profit is 75%. The net profit should be higher at $1400.
Lots of vital informations are hidden. PPS will rise if these info are disclosed. IMO.
Good chance to have a big buyer shopping for gold related investmant.
250kg = $9M net profit monthly
Main course = 250kg monthly alluvial gold dust.
Management is hiding vital information. 0.0001/2 unless they start promoting.
As gold index broke through $1460 today, it is challenging $1500 in the next few months. Lots of investors are looking for safe heaven such as gold. Hoping PRMO will find a big buyer for 250kg/month or buy out.
They keep producing, inventory keep growing, gold sale is minimal. I am thinking management is going for buy out or partial buy out. As you said, when the time come, such as buy out, there will probably be an audit financial. IMO.
I believe there has been lots of gold sale in Q3. They are hiding these info. Obviously, management wants the pps to stay at 0.0001/2, unfortunately.
PRMO is in hibernation. They are hiding lots of goodies. As I said before, the inventory details can bring us out of the basement. The current mining operations, details in production rate, assay results etc.
Without the above info, no one knows the estimated market value of PRMO. Management is satisfied with 0.0001/2. They have their own agenda. IMO.
Please explain "restricted shares" as related to $4.5M equipment purchase. Also impact to common shares. TIA.
I am lead to believe that most of the 6100kg inventory as per June 2009 financial were purchased from villagers in Madagascar and Ghana. The report said PRMO has good relationship with locals.
The 4.5M equipment was purchased sometime in 2009. Thus the mining ore should be on top of the 6100kg. My estimation is ~10,000kg total inventory by now. All IMO.
Chinese has good relationship with Madagascar politically. I believe PRMO has good connection too. My point is the business culture and business law are different to western world. Investors need to adjust our judgement while investing in third world country, considering unforeseen circumstances, such as political influence.
Hoping 2011 is better in terms of investment environment in Madagascar.
As you may know, Madagascar's political situation is extremely unstable. The current DJ president is loosing control. He won't participate in the May 2011 presidential election. The May election is now postponed to Sept 2011. More struggles in Madagascar. The mining industry suffers in the last few years. Lots of foreign mining companies are in deep trouble. It seems no good news for a while from this respect. May have some impact to PRMO's operation in Madagascar.
ABFG/PRMO's background in sapphire and Dror's background in diamond are definitely very interesting besides gold.
I understand PRMO is exploring other mineral market, which means saphire as jewelry and industrial usage. Saphire has been proven in optical technology. It has potential for computer to replace electronic component. Sky is the limit.
A promotion program with multiple PRs of positive news will do the trick.
Gold sale in Q3
Gold refinery details
Increase in production rate
Increase in inventory tonnage
Assay results
Contract to supply 250kg/month
Additional perimeters
More refinery deals
Jewelry market, especially saphire in industrial use
Go beyond Ghana and Madagascar
When management decides to promote, that's the time it takes off. All ingredients are in place, time to start cooking.
The inventory is growing, gold index is setting record high. Hoping to pick up a contract with a big buyer to supply 250kg alluvial gold dust at 96.699% purity monthly.
PRMO will surprise lots of people. IMO.
The reason company goes public is to raise fund by selling shares. Nothing wrong with it. PRMO acquired mining right but lack of $ to run the business. Thus they sell shares and use the money to bring it to production stage.
If you want to call it dilution, that is your choice.
There is no sign of dilution. The OS from June 2009 to Dec 31 2010 has been 8.4B.
I believe PRMO has been selling in Q3, from Jan 1 to Mach 31. They must be loaded with cash, $4M to $8M-ish. If it goes to 0.0003. I expect significant dumping for quick money. This is good opportunity for buy back.
1,000,000,000 share x 0.0003 = $300,000
It is peanuts for PRMO. IMO.
The OS was 8.4B and AS was 10.5B. It seems management worried about hostile take over. So AS was raised to 20.5B to ensure OS is less than 50% of AS. IMO.
The increase in operating/mining cost from $320,000 to $550,000/month is significant and worth paying extra attention. Obviously the inventory is growing in a rapid pace. There must be a reason for management to keep pushing for more production and still restrict in selling. They probably has good connection and have potential big buyer in place.
I am curious of the business plan. How do PRMO benefit from it?
It make business sense to sell gold weekly or bi-weekly. Take advantage of currently all time high prices. Although gold may go up to $1500 to $2000 in future.
Mining operating cost is ~$550,000 USD monthly. Need to sell more gold to keep the business running. Also gold sitting in inventory cannot benefit shareholders. Especially PRMO does not disclose the details of inventory. It is an unknown to investors. No value to investment world if no one knows the market value of the inventory.
Management is selling minimal amount of gold. They have their own agenda. It is a mystery. IMO.
May be they are hoping for big contract to sell 250kg / month. Or may be they want buy out or partial buy out, which will benefit preferred share holders/principal/management.