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Gold index is at $1437, ready for new historical high. PRMO must be selling at these prices. Sell more gold, pay more tax and be happy.
I am wondering what is in the inventory by now. It has been growing as per last PR. My educated guess is at 10,000kg and 91.3% purity that worth more than $100,000,000 USD. IMO.
Buy back make sense. PRMO has been selling alluvial gold dust at historical high prices. They are loaded with cash. They can afford to buy back, buy other gold refinery, acquire more perimeters, buy more equipment and produce more.
Looking good, especially if management share the information with us.
Good news are coming:
Details of Gold Refinery deal.
More gold sale and net profit.
3rd quarter report.
More refinery deals.
Huge contract to sell 250kg gold dust / month.
Additional perimeters.
Detail update of inventory.
Increased production rate.
Assay results.
Looking good.
Gold index is at $1432, close to historical high. It is once in a life time opportunity for PRMO to sell more gold.
PRMO's advertisement can supply up to 250kg alluvial gold dust at 96.699% purity. Which is equivalent to $8,000,000 USD net profit monthly.
Looking good.
3's are big wall. However, it is good opportunity for management to buy back.
PRMO has been selling gold big time. Loaded with cash. Time to buy back and retire shares. All IMO.
I sent an e-mail to Dror a couple days ago. Still waiting for his reply. It is as follow:
Dror,
How are you?
First of all, I would like to thank PRMO management for your effort in bringing PRMO to production stage. I understand it has been a challenge under uncertain circumstances.
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.
I believe PRMO has gold. I am sure if shareholders are happy, management will be more happy.
Regards. Have a nice day.
DC
I sent an e-mail to Dror yesterday, asking for detailed information on current inventory. I am still waiting for reply. He may not work on weekend. Hopefully get something back soon.
I can see your point in reducing AS and OS to 2B and 0.8B. It is easier to push to pennies.
However, looking at the current AS and OS, it can be pushed to pennies also. PRMO is advertising to sell 250kg / month at 75% net profit.
250kg x 32.15 oz/kg x $1400/oz x 75% = $8.5M / month net profit
8.5 x 12 = $100M / year net profit
$100M / 8.4B share = $0.01 / share
Based on the above calculation, the first year net income can bring us to $0.01. The dynamic of investment can easily boost it up higher since PRMO has a huge inventory in the storage room. Also sufficient gold reserve in the ground for next 5 years production.
Unofficial inventory is around 10,000kg at 91.3% purity.
10,000 x 32.15 x 1400 x 91.3% = $400,000,000 Market value.
Believe it or not.
Some experts are predicting $1700 by year end. In the near future, $1500 is just around the corner.
Countries in war need to print more paper money to pay the soldiers and buy bullets. The currencies are so unstable these days. Gold is safe in uncertainty circumstances.
This is once in life time opportunity for PRMO to get in full gear. Sell more gold and be happy. All ingredients are in place. Let's start cooking.
PRMO must be selling at these all time high prices. Need promotion and transparency. When management decides to promote, it will surprise lots of people. IMO.
I agree. PRMO must be selling since beginning of this year.
I also hope the future gold sale PR will announce the details such as kg and gold content of gold bearing material. Because investors are interested in the volume for each sale.
I am keeping track of the inventory tonnage. I loss count due to missing information in June & Sept 2010 financial reports. They only talked about gold sale in dollar value. No information on weight.
I found management is hiding the amount of inventory from us. Need more transparency.
Gold index is edging up to record high again. PRMO must be selling. This is once in life time opportunity to be rich. Sell more gold, pay more tax and be happy.
If shareholders are happy, management are more happy.
PRMO is a junior exploration and mining company. It focused on gold since 2006 and acquisition of mining right and perimeters in 2007. It has gone through preliminary business planning, and development stage. It was a difficult task, especially in third world country, which has different business law and practice as compared to western world. I give credit to the management that they are able to bring it to production stage.
There has been 2 promotions, summer of 2007 and second half of 2008. Raised fund through selling shares. It seems both failed miserably. They went into hibernation in 2009 and 2010. They quietly working on mine operation, purchasing from villagers and inventorying.
The current business plan is full production and marketing, to take advantage of the record high gold index. Things are on the right track.
However, they are hiding the vital information from investors. Thus the market value cannot be estimated. Hopefully, they are working for the shareholder's interest. If shareholders are happy, management should be more happy. IMO.
I expect big boys such as Barr*ck Gold may interest in it. Or some big financial outfit may consider it as investment, hoping gold will hit $2000 or higher.
Big gold mining firm may not have exploration. They sometimes go out and buy junior firms such as PRMO. PRMO may sell Ghana interest and keep Madagascar. Anything is possible.
If they hide the $10M monthly net profit in the un-audited financial report, it doesn't help the pps.
We will see how things evolve.
I guess some major expenses such as $4M equipment, mine operating cost (monthly cost is $300,000 USD), purchase of gold bearing material from villagers, pre-paid export tax, acquiring perimeters etc.
The storage fee for inventory is $100,000 USD annually. Pretty pricy.
Also they ran into major obstacles a few times.
As you said, $10M monthly net profit will definitely ideal for all shareholders, include management, directors and principals.
I hope so. This is why I am still here. All IMO.
After the R/S, the AS has been increase from 2B -> 5B -> 10B and currently 20.5B.
PPS was @ 0.0002 in summer of 2007. On July 24, 2007, PRMO announced 200:1 reverse split. Also announced same day that they are trading at 0.04.
0.0002 x 200 = 0.04
It went up to 0.45 for a short while. Then slided to triple zero. That is the end of the story.
Quote from Dec 29 PR:" The company expects to increase production and inventory in fiscal year 2011 and while continuing our program of selling gold material that was held back on our second quarter for tax reasons."
Obviously, PRMO has been selling gold in the last two and a half months. They continue their business plan that they are not going to announce gold sale through PR. They will hide these vital information in un-audited financial reports. Obviously, they are satisfied with 0.0001/2 pps.
Obviously the production rate has been increased. However, as usual, they will not announce the production rate and detail progress of mining operation. They will not announce the tonnage of inventory. They will not assay the gold ore in inventory. So, they don't know what they are producing.
Third quarter is almost over. PRMO management is still pretending they are in hibernation.
Good thing that you found the link to the Madagascar Gold and Gem Co. showing PRMO's advertisement. They can supply up to 250kg alluvial gold dust @ 96.699% purity monthly. As you said, it can easily be $10M net profit at current gold index.
PRMO is looking for big contract with big boys such as Barr*ck Gold etc. Big gold company has very little exploration. They go out and buy small outfits. For example, DeBe*r buy lots of small diamond exploration companies. My point is, it can be a buy out or partial buy out for PRMO. IMO.
I share the same view as you. PRMO has gold. PRMO has huge inventory and it is growing. PRMO has sufficient gold reserve in the ground for next 5 years production. The production has been increased according to PRMO's PR.
It needs promotion and prove that they are real. Such as audited reports, pictures of mining operations, assay results etc. Transparent is the key that all shareholders can benefit. IMO.
Quote:" why would any company be satisfied with leaving their stock sit at .0001-.0002 for so many years? "
Good question. I have my own theory. The principal and directors own 350,000 preferred shares and 1.5B common shares. If pps goes up, they are rich. If huge dividend or buy out in big money, their preferred shares has priority in getting the dividend, the remaining money go to common share holders, if there is any money left. Thus they are covered from both end.
Also their preferred shares are convertible to common share. The lower the pps, the more it can be converted. It can be several billions common shares at current 0.0001/2 level.
The management bought 1.5B common shares in 2009 at 0.0001 to 0.0003. They sneaked in from back door in 2010 for 350,000 preferred shares ($10.00 per share). They have their own agenda. IMO.
Quote:" I guess this is more of a dream, since Dror didn't pr any of his gold sales last year, but chose to put them in the annual report. Wonder why a gold company in pinky land would choose not to pr their gold sales?"
In second half of 2008, PRMO issued several PRs for gold sales, shipments, additional perimeters and new technical staffs. PPS went from 0.0003 to 0.0018. Then it went into hibernation in 2009 and 2010. My point is, if management decides to boost pps, it can be done.
As you said, no PR for 2009 and 2010 gold sales. The only place you can find is June & Sept 2010 un-audited financial reports. It is obvious the management is satisfied with 0.0001 to 0.0002 pps. This is their business plan to keep pps at current level. Thus no PR for gold sales. IMO.
The question is why would they keep the pps at 0.0001/2? Are they going to boost pps to respectful level, to reflect the market value of PRMO?
At this point in time, there is insufficient information for the public to evaluate PRMO's market value. The management purposely hide the vital information in un-audited financial reports and fluffy PRs.
As I wrote before, vital informations are as follow:
-Tonnage of estimated pure gold and grade in inventory and in the ground in all perimeters.
-Mining details such as production rate and grade of gold ore.
-Each gold sale
-Gold sale program
-Detail of gold refinery interest
All IMO.
Quote:"But we have still yet to know their angle. - Why they do what they Do."
The pps has been 0.0001-0.0003. I look at it from different angles. One of the possibility is that they don't want people get hurt when it is not ready to roll. Say the overall business plan has not reach profitable stage with lots of uncertainty. If they issue fluffy PR and financial reports with great speculation. PPS may go up and down like a yoyo. Some people may make quick money. But some people may get hurt. People may blame management for their loss.
I am hoping that PRMO is keeping the pps low when there is too much uncertainty. This is optimistic assumption. Things may or may not be as rosy as it look. All IMO.
40K is lots of money for triple zero pinky. Who has 0.2B shares to sale? Who bought it?
As I said before, very likely Anthony released this big block. It seems a pre-arranged transaction. Someone probably knows something is cooking.
Lots of positive news can be PRed:-
Detail of Gold Refinery deal
2nd Quarterly report
Long term contract to sell alluvial gold dust @ 250kg/month
More gold sale and detail sale program
Production rate and mining operations
Detail on current inventory, tonnage, gold content and grade
Buy back
Additional perimeters
Jewelry market
More refinery deals
Expansion to other African countries
All IMO.
Alluvial gold dust @ 96.999 % gold content. Supply up to 250kg per month.
250 x 32.15 x $1400 x 0.97 = $11,000,000
@ 75 % net profit
11,000,000 x 0.75 = $8,000,000 net profit per month
Looking good.
I am guessing may be Anthony S. is involved in this trade. He has authority to release huge amount. Who is the buyer?
I believe PRMo has gold. They have lots of gold in inventory and in the ground. Also high gold content. The inventory is growing. Management purposely removed the tonnage of inventory from June & Sept Financial reports. They have their own agenda.
Management also said they do not give estimates of gold content and grade of the inventory until it is assayed and smelted. So, it is a big unknown to investors. No one knows the estimated market value of the inventory. This is why pps is triple zero. It seems management is satisfied with 0.0001-0.0002 pps. They have their own business plan.
According to PRMO advertisement, PRMO is capable of producing 250kg gold dust monthly. The gold content is 96.999%. Management can simply PR this information, pps should improve.
I think management want to load more shares at triple zero. Also their preferred shares can convert to common shares in billions if pps stay at lower level. All IMO.
Based on PRMO's track record, this is not a good place for quick money. IMO.
As I said before, PRMO is probably sitting on ~10,000kg inventory.
10,000kg / 250kg/month = 40 months supply from inventory
PRMO is also producing. I am guessing 200kg per month. It is looking good.
According to PRMO's advetisement, they are looking for big buyer and long term contract to supply up to 250kg gold dust monthly. This will probably be turning point. IMO.
If it hit 0.0003-0.0004, a good chance for a big dump for taking profit. However, it is a good opportunity for PRMO management to buy back billions of shares at these prices. IMO.
Show us the gold.
PRMO management is happy with 0.0001-0.0002. They have their own agenda. May be they want to load more share. May be it has got something to do with the 350,000 preferred shares ($10.00 each share) owned by management. It is convertible, which means can be converted to billions of common shares. So, the lower the pps, the more common shares can be converted. It can be billions.
I am not an accountant. I don't know how preferred shares work in this case. All IMO.
According to June 2009 financial report, management do not estimate the gold content of the gold bearing material. Also no announcement of the tonnage of inventory in June/Sept 2010 reports.
However, a PRMO advertisement says 96.999 % gold content and up to 250kg per month supply.
They are not willing to publish these vital informations, although they have these information available.
There is an unknown gold stockpile stored in a storage room. Storage fee is $100,000 USD per year. Management is not willing to share the detail information in terms of quantity, gold content and grade. Investors do not know the estimated market value of the inventory. So, it does not benefit the shareholder. PPS is at 0.0002. It's pity.
PRMO is capable of producing 250kg per month. They are looking for big buyer. If they can sign a long term contract to supply gold dust, pps will definitely improve.
Quote:"Somebody is selling millions of shares in 1s. Who can sell that many shares in 1s."
The 40 millions in 0.0001 yesterday is very interesting. Not many investors want to get out at this level to take a lost. I am guessing Anthony is selling. He has control of releasing more shares. This may be a good sign. Someone knows something is cooking. IMO.
Please explain how you get "O/S = 14,116,497,000 ".
It would be great if PRMO sign a long term contract with a big buyer to supply 250kg gold dust monthly. It seems this is management's ultimate business plan. Stay tuned.