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I finally opened the semi-annual report. It is still unaudited. The inventory tonnage and assay results still missing.
The good news is 8.4B OS still the same as June 2009 and June 2010. No sign of dilution. Inventory at cost has been increased from $15.3M to $16.9M. Increase in operating cost in Q2 as compared to Q1, from $368,000/month to $551,000/month. The increase in export tax, equipment rental, fuel, labor, shipping are good signs. Production rate must be increased and inventory is growing.
In view of shipping and export tax, the gold bearing material already left Ghana and Madagascar, ready for smelting and liquidity.
Due to slow down in gold sale for tax reasons in Q2, revenue dropped. I believe the gold sale in Q3 should be very healthy and significant increase in current cash flow. It helps to cover the $551,000 monthly operating cost. With refinery deal in place, things are looking good. I am excited to see things are on the right track.
Looking forward to a big contract to supply 250kg alluvial gold dust monthly.
All IMO.
Thank you for your info.
Anything exciting?
Yes, I looked at the OTC site directly. Can't open it. Strange.
I still can't open it. Anything exciting?
It was published right after closing. Interesting timimg.
Me neither. Hopefully management read this board and fix it right the way.
Quote:" ORLANDO FL -- (Marketwire) -- 12/20/10 -- Prom Resources Inc. (the Company) (PINKSHEETS: PRMO) is pleased to announce clarification of its Sales.
In the company's first quarter ended September 30, 2010, we had gross profits of $4,115,124. The company's operating expenses were $1,105,330 and the net profit, $3,009,794, resulted in an average of $1,235 per troy oz on the sale of gold material."
PRMO did PR some good news. However, there are lots more to tell the world that PRMO is sitting on a huge inventory stockpile that worth more than $100M USD. IMO.
When management decides to promote, it will fly. IMO.
According to financial reports, the OS is as follow:
June 2008 @ 2.2B
June 2009 @ 8.4B
June 2010 @ 8.4B
Sept 2010 @ 8.4B
Based on the above data from financial reports, OS has been consistent and no dilution from 2009 to September 2010.
There was a big increase from June 2008 to June 2009. I believe PRMO raised money for business operations such as $4M equipment, purchase of gold from villagers, shipping and prepay export tax etc.
IMO.
I have my doubt for another RS. Management owns 1.5B common shares. In case of RS, they need to reload again. Do not make sense from this regard. IMO.
According to the operating costs in all financial reports, huge amount of export tax and shipping costs already been spent in 2009 and 2010. I am lead to believe the inventory left Madagascar and Ghana. It is ready for refinery and liquidity.
PRMO's ad said capable of supplying 250kg / month at 96.699% purity. It is real. IMO.
Management is hiding all these information in un-audited financial report. They want to keep pps at 0.0001/2 level. It is mystery.
I expect PRMO has been selling more gold from Jan 1 to March 31, 2011, according to Dec 29 PR. They are loaded with cash by now.
Show me the money.
According to PRMO's Dec 29, 2010 PR, the 2nd quarter from Oct 1 to Dec 31, they stop selling for tax reason. Obviously, they think they sell lots in 1st quarter.
I agree with you that they should sell more gold and pay tax. The gold in inventory does not benefit shareholders.
2nd quarter report will probably coming out soon. I don't expect too much in terms of gold sale and revenue. Because they stop selling due to tax reason.
However, I am interested in the share structure. The last OS was 8.4B. Hopefully won't increase.
Also, I want them to put back the details of inventory. I am interested in the current tonnage of inventory and also gold content and assay results.
The guru probably owns millions of share.
The 2008 and 2009 financial reports said 5000kg and 6100kg of inventory respectively. Also it consisted of break down operating costs of mining include housing, export tax, fuel, labor, inventory storage fee, office overhead, communication and shipping costs etc. These are public document and management are held liable to all material in these reports.
In June and Sept 2010, they changed their tone, inventory tonnage no longer provided. Only at cost $ of inventory was provided. It seems they are trying to hide these vital information. PRMO is paying $100,000 USD for storage fee. Why are they hiding these information?
They have been producing for more than two years, they still say they don't know the quantity and quality of the gold bearing material. It is rediculous. They don't know what they are producing??????????????????????? It's unbelievable.
I have been writing on this board about inventory. I believe it is the critical element for holding pps at triple zero. IMO.
PRMO's ad says they can provide 250kg / month at 96.699% purity.
They know what they are producing.
I believe PRMO is mining and the inventory has been increasing. I am concerned with removing the tonnage of inventory from June 2010 and Sept 2010 financial reports. These reports only mentioned at cost inventory.
PRMO also said in the report "the management does not provide estimate on grade and gold content of inventory".
The investors cannot estimate the market value of the inventory. It can be from $10M to $200M. Thus it is a mystery. This is the way the management want. They have their own agenda. IMO.
3rd quarter is close to an end. PRMO suppose selling gold at all time high prices. Management decides not to PR gold sale, just like the last two years. They will quietly mention in the next financial report. They won't even put tonnage of inventory and gold sale on the report.
Obviously they don't want to create ripple. They don't want to see higher pps. It's a mystery.
I see your point. They want their pay cheque.
I am holding my shares. If everyone stop selling for one week, pps may break through 0.0002/3/4. IMO.
I sent an e-mail to Dror on March 12, asking for detailed information on inventory. Still waiting for reply.
My ballpark estimation of inventory is ~10,000 kg gold dust from 91.3%(raw) to 96.699%(smelted)purity. It worth more than $150M USD. PRMO is paying $100,000 annual storage fee for a small storage room equivalent to 1/5 gravel truck box.
Management is hiding these information because they are happy with 0.0001/2 pps. Probably due to their preferred share situation.IMO.
Big dollars. Please verify your number.
I am holding my shares. If everyone stop selling for one week, pps will probably break through 0.0002/3/4 this week. IMO.
Because the OS on the website was immediately removed after someone posted in regard to the 10.5B OS. It happened within a few hours. It seems management is reading the messages. IMO.
Probably true. I recall back in Dec. 2010, the OS on PRMO website was 10.5B for a few hours. Someone posted on this message board. It was immediately removed from the website within hours.
Management is reading this board regularly. IMO.
As of Sept 2009, June 2010 and Sept. 2010, it was 8.4B OS.
PRMO management is doing all they can to remain low profile and keep the pps at 0.0001/2. They are hiding lots of facts in the financial reports. The PRs are so fluffy that didn't trigger any ripple. They are happy with the current pps. No doubt that they are working for themselves only. The lower the pps, the richer they will be.
They can load their boat. Also their 350,000 preferred share can be concerted to billions of common shares at low pps.
When the management decides to promote, it will fly. IMO.
I agree with puting back earned money for expansion and focus on growth. However, at 0.0002 pps, it doesn't take much to buy back billions of shares.
1,000,000,000 share x $0.0002/share = $200,000 for 1B shares, it's good move in view of existing 8.4B OS and 20.5 AS.
IMO.
I hope PRMO is buying back. They must be loaded with cash, after selling all those gold in Jan, Feb & March at all time high.
GO PRMO.
Big dollars. Please verify your numbers.
Time for second quarter report. I don't expect too much in terms of gold sale. PRMO stopped selling for tax reason. However, I hope it shows new share structures, details of inventory, mining operations and refinery.
I expect more gold sale in third quarter, which all time high for gold.
Looking good, especially if management share all information with shareholders. GLTA.
When management decides to promote, it will explode. However, they have their own agenda. They must be selling gold, but don't want to PR gold sale. They are happy with 0.0001/2. Too bad.
I sent an e-mail to Dror last week. Still waiting for reply. It is as follow:
Dror,
I have PRMO shares for a while. I follow PRMO news and reports. I also post on message board as DC168. It has been an interesting investment for this pink sheet. Based on the reports and PRs, PRMO owns a huge inventory. I am interested in the current quantity and quality of it. Could you please provide detailed information on the inventory, so that investors can estimate the market value and therefore bid on it accordingly.
DC
At 250kg per month, the 10,000kg gold dust inventory can last 40 month supply. Looking for a big buyer and gigantic contract.
Monthly net profit $8,000,000 for 40 months. It's not bad at all.
If the 10,000kg has been shipped away, where is it now???
If the gold refinery is in Thailand, the inventory is probably sitting somewhere in Thailand, close to the refinery.
Lots of IFs.
PRMO paid Export tax: $300,000 (June 2009), $893,200 (June 2010) and $160,000 (July to Sept 2010).
PRMO paid shippinf cost: $20,000 (June 2009), $ 200,000 (June 2010) and $100,000 (July to Sept 2010).
Based on the above, the inventory has been shipped away from MAdagascar and Ghana.
PRMO is paying $100,000 USD per year for storage fee. In third world country, it is big time money for a small storage room. It probably comes with security with AK47.
It seems purchasing of gold bearing material from villagers in Madagascar. The 5000kg recorded in 2008 financial report is from Madagascar.
Mining operations in Ghana only. I guess all 2009 and 2010 production is from Ghana. Which is approximately another 5000kg alluvial gold dust.
Total of ~10,000kg that worth more than $100,000,000 USD. IMO.
Gold index at $1441, all time high. PRMO must be selling. It is frustrating for the investors. Management decides to keep things in the dark. No PR for gold sale???????????????????????????
It is once in life time opportunity.
PRMO website needs update to show new mining equipment, mining operations, housing faculity at the mine site, office in madagascar, inventory, assay results, perimeters, new technical staffs etc.