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Quote:" WE ARE LOCAL MINING COMPANY WHICH DO MINING OF ALLUVIAL GOLD DUST AND ALSO HAVE USED RAILS AS SCRAPS. WE CAN SUPPLY UP TO 250KGS PER EVERY MONTH."
PRMO's advertisement is very interesting. Who would buy 250kg gold per month? Big boys like Barr**k Gold?
Gerald is ~70 and Dror is ~50. One of these days, they want to get rich before it's too late.
Please explain the public, private partnership as related to PRMO.
When management decides to promote, that's the time it explode exponentially. IMO.
PRMO is capable of producing up to 250kg gold bearing material, which may results in ~$7.5M monthly net profit.
$7.5M x 12 = $90M annual net income
Go PRMO Go.
I disagree with your analysis about scam. If PRMO is a scam, they would have release fluffy PRs to boost the pps to 0.01 or higher, so that they can steal more money. So far they have been keeping it at 0.0001 to 0.0002. They can only steal very little money. It doesn't make much sense.
The bank robber won't rob the bank for one dollar. They would go for millions. Since they serve the same jail term for both cases.
All IMO.
PRMO has sufficient gold reserve for next 5 years production.
$7.5M x 12 month/year x 5 year = $450M net profit
On top of $450M, PRMO has a huge inventory in the storage room, ready for liquidity.
Why is it trading in 0.0002 ??????????????? It is a mystery.
Quote:" WE ARE LOCAL MINING COMPANY WHICH DO MINING OF ALLUVIAL GOLD DUST AND ALSO HAVE USED RAILS AS SCRAPS.
WE CAN SUPPLY UP TO 250KGS PER EVERY MONTH."
According to previous gold sale, it is safe to say 100kg (96.999% gold content) can generate $4M gross and $3M net profit. So, for 250kg, it is $10M gross and $7.5M net profit. This is excellent for one month. Looking good.
Please explain how is it relate to PRMO.
Please explain. Dror is running Blue Bay CO and Tiger enterprise also.
Quote:"Do you see this moving with this data considering the company may not want it to move?"
Eventually the management want to get rich. They have been waiting for years. They aren't rich yet. IMO. This is once in life time opportunity that gold index is setting record everyday. They don't want to miss this gold rush in their life time.
Multiple PRs for PRMO current activities will move the PPS.
All ingredients are in place. Something is cooking.
All IMO.
According to June 2010 Financial Report, page 5, under "Competitive Business Condition", PRMO has sufficient gold reserve in mining perimeters for 5 years production.
PRMO has sufficient gold reserve for next 5 years production. With huge inventory in the storage room, 250kg monthly gold sale would improve cash flow significantly. Great potential for buy back.
1,000,000,000 share x 0.0003 = $300,000
Cost only $300K to buy back 1B shares. It is peanuts for PRMO.
According to Oct 2007 PR, PRMO's weekly shipment was 50kg gold bearing material. Since the production rate has been increasing as indicated in December 2010 PR, I am not surprised it can supply up to 250kg per month. Also PRMO is sitting on a huge inventory, it is great to see 250kg/month gold sale.
According to PRMO website, 91.3% gold content from samples back in 2007. It is nice to see the current 96.999% gold dust. Results in more profit.
It is a gigantic PR for the above. It will move the pps.
Quote from Oct 2008 PR:" MIAMI, FL -- (Marketwire) -- 10/17/08 -- Prom Resources, Inc. (PINKSHEETS: PRMO) ("the Company") is pleased to announce that they have sold 100kg of gold mining concentrate for USD$1,927,000.00.
"Having difficulties with the material acquired from this specific location, since our refinery could not handle it, we decided to sell the material as concentrate in order to focus on increased liquidity," said Dror Moradov, President of the Company."
"OUR REFINERY"??? Obviously PRMO had their own refinery back in 2008. So, the recent acquisition of gold refinery is just additional refinery. Also PRMO will acquire more refinery according to last week's PR.
The pps has been kept in 0.0001-0.0002 level by management, for what ever reasons. Shareholders has no control of this business practice. However, I am confident that PRMO has huge gold inventory. Since I believe the un-audited financial reports are real. I believe this business reaches a point that can explode anytime. IMO.
I believe the inventory is growing to a point that it worth more than $100M. It is up to management if they decide to promote this stock and push the pps to respectful level, which I believe is $0.01-ish. This is why I am holding and hoping for the best.
All ingredients are available, put it in the pot and start cooking.
If everyone and their brothers & sisters want PRMO's share, the 8.4B common shares doesn't mean much.
Quote from Dec 20 PR:" 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."
$4,115,124 / $1,235 / 32.15 oz/kg = 100kg
PRMO sold 100kg pure gold in December. If management announce the sale program for 2011, pps will definitely improve.
PRMO has huge inventory. Also has sufficient reserve for next 5 years production. Lots of information available in financial reports. However, they need to be promoted through media. Tell the world that we are here for real business.
More expense data on mining activities:
..................June 2008...June 2009...June 2010
Camp Supplies.....$15,000....$275,000...$129,000
Fuel..............$33,400....$$300,000..$600,000
Housing...........$26,000....$120,000...$100,000
Labor.............$30,000....$350,000...$450,000
There has been consistent mining operation in the last two years. Production rate seems quite steady and gradually increase. It is safe to say that the inventory has been increasing.
As I said before, the inventory in Dec 2008 was 5000kg, June 2009 was 6100kg. The inventory is probably more than 10,000kg by now. According to assay results on PRMO web site, gold content is at ~91.3 %. Assuming (optimistic assumption)gold content is consistent for all inventory and we are selling pure gold, the total tonnage of pure gold in inventory is:
10,000 x 32.15 x 0.913 = 290,000 oz
@ $1400/oz and 75% net profit
290,000 x 1400 x 0.75 = $300,000,000
PRMO is sitting on $0.3B inventory. Believe it or not. All IMO.
I looked at the SS history closely. Interesting data:
June 2007 / AS @ 2B / OS @ 0.86B
June 2008 / AS @ 2.5B / OS @ 1.4B
June 2009 / AS @ 10.5B / OS @ 8.4B
June 2010 / AS @ 10.5B / OS @ 8.4B
Actually, there is no increase from June 2009 to June 2010. This is a good sign.
The major sale of share is from June 2008 to June 2009. This was the time in which $4.5M equipment bought, additional perimeters acquired, mine production started and major shipment took place.
Another thing is principal and management bought 350,000 preferred shares in 2010. They are $10 pps, which I think is a concern to common share holders. They have first priority for dividend and upon liquidity. IMO.
It seems some people look for quick money. Buy @ 0.0001-0.0002 and sell @ 0.0003. It is a hurdle but shouldn't be a big concern. IMO.
Quote:"N*G said it plans a $25-million exploration program this summer at its Three Bluffs gold project in Nunavut."
This is a recent news from a gold mining company. They are going to spend $25M just for gold exploration purpose. My point is, it cost lots of money to bring a mine site to production stage. PRMO has been raising money through stock market. They ran into obstacle. Then raise more money. It is reasonable.
It seems they need to generate money last year for gold refinery deal. Now they are selling pure gold for 75% net profit. Results in strong cash flow. Thus buy back is a possibility. IMO.
It doesn't take much to buy back 1 B shares.
1,000,000,000 x 0.0003 = $300,000
It is peanuts for PRMO.
Another way to break through triple zero is buy back. I expect more gold sale this year, with the strong cash flow, buy back is a good possibility.
PRMO needs multiple gigantic PRs to break through triple zero. Investors are interested in following:
Sale program
Mining/Production details
Inventory details - gold content, grade and tonnage
Assay results in all perimeters - gold content, grade and tonnage
At this point in time, insufficient information for investors to evaluate the market value of PRMO. Difficult to bid on PRMO without knowing the asset and market value. IMO.
PRMO has a sale program. It would be great to PR details of the business plan in regard to sales. A couple years ago, management talked about 100kg weekly shipment. Investors are interested in these program.
In the next 60 days, I expect multiple PRs for following:
Refinery details
Second Quarter Report
Gold Sales
All IMO. Do not buy stock based on the above.
This is change in direction. So, it is significant to me. IMO.
When Dror replied two e-mails from shareholders back in December 2010, things have changed. This is a positive sign for me that PRMO is ready for a good run. IMO.
PRMO is selling pure gold these days. Results in strong cash flow. Possible buy back.
Exploration, mining, refining, exporting and selling gold. Great business to go into these days, especially gold index is making record high everyday.
Political turmoil in middle east. UN is sending warship to middle east. Governments are printing more paper money like crazy. Gold will shine more. IMO.
Quote from March 1 PR:"continuing our program of acquiring minority interest in small operation throughout Africa."
PRMO is buying more small refinery throughout Africa. This is strategic planning to expand the operation in Africa.
Also, small operations can possibly be other avenues such as jewelry. Very interesting.
Quote:"And most importantly, we still have absolutely no details on MINING?"
The financial reports, under "Operating Expenses" has detail break down costs on the labor, equipment, fuel, engineering, shipping, export tax etc.
Quote:"Maybe you can explain to everyone here how Dror is able to mine in Madagascar when there was an arrest warrant out for him back in the ABFG days?"
It seems Dror is living in Florida. Shyam is the man running the operations in Madagascar. I have no prove. I am only guessing.
I understand the frustration of people who invested in ABFG/PMRX/PRMO. Things have changed in the last two years or so.
PRMO acquired mining right in late 2006 and early 2007 in Madagascar and Ghana. The investors back then had gone through lots of tough times. It is understandable. PRMO has gone through lots of obstacles through these years, trying very hard to bring it into production and exporting stage, especially in third world country. The business law and business practice are different to western world. They need to raise money from stock market, just like other public company. Sometimes they need to raise more money because things aren't going smooth as usual.
Anyways, it seems they are on the right track. Good potential for 0.0002 pps.
All IMO.
Yesterday's PR is what I have been asking for....transparent. Nice update on closing refinery deal with detailed information to follow by another PR. This is very professional approach. Keep shareholders on top of the business development status.
June & Sept 2010 Financial reports, 2 PRs in December. Yesterday's PR, another PR coming up soon for refinery detail and third quarterly report should be just around the corner. Multiple PRs strategy works well.
Also I expect PRs for gold sale. It is looking good.
Quote from Dec 29 PR:" continuing our program of selling gold material that was held back on our second quarter for tax reasons."
The net profit for selling pure gold is 75%, as compared to 37% for selling gold bearing material, based on previous reports. The gold refinery definitely a big step in overall business development. With the selling program and record high gold index, strong sale is expected. The cash flow may generate dividend, or possible buy back.
1,000,000,000 common share x 0.0002 - $200,000
PRMO can easily buy back billions of shares. They might already started buying back program. Anything is possible if they have the cash. All IMO.
Quote from March 1 PR:" The company expects to increase production and inventory in fiscal year 2011 and while continuing our program of acquiring minority interest in small operation throughout Africa."
PRMO is buying. It must be rich in cash flow. It must be selling lots of gold lately. It is going outside Madagascar and Ghana. So, sky is the limit.
PRMO management is doing a marvellous job. Cheers.
I know lots of longs have been holding patiently. Holding is the key to success. All IMO.
Looking forward to your great posts.
Wonderful. I can smell the main course.
We are going to the mooooooooooooooooooon.
This is exactly what I am trying to say. PRMO stop selling in second quarter for tax reason. The thing is, if we don't sell, shareholders cannot benefit from the unknown inventory. If we sell, we pay tax, make profit, may result in dividend. Nothing wrong with it.
Gold index made history again. It broke through $1430. I hope PRMO is selling today. It is once in life time opportunity. Take advantage of it. Sell more gold, pay more tax and be happy.
PRMO acquired mining right in Madagascar and Ghana in 2006/07. They need money to bring it to production stage. Just like other public companies, they go to stock market and raise money. Nothing wrong with it.
So far, they raised million dollars. This is needed for dufferent phases in their business plan. It isn't smooth ride in third world countries. Their business law and business practice are different to western world.
I think PRMO is on the right track. Financially getting stronger. Cash flow is improving. Operations are smoother. Great potential. IMO.