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Lots of positive news should be PRed regularly. Every sale, monthly production tonnage, production rate, update on inventory status, expansion on mining operation on perimeters, negotiation of gold refinery status.
Transparent is the key word. Need more PR and detailed info.
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..."
Need PR for the gold sale. Need PR to update the production and detailed inventory status. Shareholders will benefit from these activities.
Yup. Gold index has gone up $15 in the last couple hours. Looking at the debt of most countries these days, the end result is inflation. Gold is going to shine more during inflation period. Hoping that Dror is selling today.
On this message board, scroll down just below the mining equipment photos, you will find all reports. It is on screen # 3 of home page of this message board.
They are from previous annual financial & quarter reports. The "Operating Expenditure" has detail break down of all costs.
The following is comparison for property tax paid by PRMO:
June 2008 $0
June 2009 $32,400
June 2010 $138,400
Sept 2010 $37,000 for 3 months (Annual x4 = $148,000)
PRMO acquired mining right in 2007. There was very little mining activity in 2008, thus property tax was zero. There was a big increase in 2010 for the perimeters. It seems that the mining operation expanded significantly in fiscal year 2010. It continue in 2011. This is encouraging.
The following is comparison for engineering cost:
June 2008 $15,000
June 2009 $200,000
June 2010 $162,920
Sept 2010 $15,000 (x4 = $60,000)
PRMO had done major engineering in exploration, sampling and testing in fiscal year 2009 and 2010. They must have good knowledge of the quality and quantity and the perimeters.
The following is comparison for export tax paid by PRMO:
June 2008 $8,750
June 2009 $300,000
June 2010 $893,200
Sept 2010 $160,000 (x4 = $640,000)
The following is comparison of shipping cost:
June 2008 $12,000
June 2009 $20,000
June 2010 $200,000
Sept 2010 $100,000 (x4 = $400,000)
PRMO had already shipped significant amount of gold bearing material away. They continue to ship more material in 2011.
In conclusion, PRMO's business plan is on the right track.
All IMO. Do not invest in stock based on the above.
Which hat Dror is wearing? PRMO, Blu* Bay Co or Tig*r Enterprise?
Excellent post.
According to PRMO report, each tonne of raw material produces more than one ounce of gold bearing material. The gold bearing material consists of 91.3% pure gold.
However, this is based on very limited sampling back in 2007 at particular location. Thus the actual data is not published for all perimeters and also through purchase from villagers. Too much unknown and uncertainty.
PRMO must publish these data thoroughly. PPS will fly.
Gold index is gaining momentum. It jumped $30 (2.2%) today. I hope Dror is selling.
How do company / share holders benefit from not selling. Just sit on it and wait? Wait for higher price?
How much pure gold PRMO has currently in inventory? Also in the ground?
Gold index jumped $25 USD in the last couple hours. I hope Dror is selling today.
I believe PRMO management has problem getting this thing off the ground, from technical and financial perspective. They tried to raise fund through selling shares and possibly loans. It seems they ran into major obstacles a few times. Especially operating in third world country.
Anyways, from all evidence, they are on the right track from operations perspective. Gold index is relatively high to be profitable, which is very encouraging.
As I said before, I would like to repeat one more time, most gold mining company grill test holes, send samples to qualified lab to verify the gold content and grade. Estimate the pure gold tonnage within perimeters. These are vital information for public. The market value can be estimated. The investors can bid on it accordingly.
All IMO.
High risk, hopefully high return for this pinky.
If management provides the estimated quantity and grade of the pure gold in inventory and in the ground, it will fly. IMO.
It has been 5 weeks since the PR in regard to negotiation in minor interest of gold & silver refinery. Patience is the key for this triple zero pinky.
This triple zero pinky will stay at triple zero unless Dror put a price tag on this thing. How much does it worth? Asset, inventory, reserve, pure gold tonnage, equipment, mining right etc. IMO.
I am not an accountant. However, if company do not sell product, they do not make profit. If they sell, they pay tax.
PRMO has been stockpiling gold bearing material since 2008. Monthly operating cost of the mine is ~$300,000 USD. Annual inventory storage fee is $100,000 USD. These are big expenditures. Management is reluctant to sell big volume, thus income, cash flow and profit are limited. I am guessing that they are waiting for higher gold price? May be $2000/oz? Couldn't think of any other logical reason.
They do not announce the gold content, grade and current quantity of the inventory.
PRMO is moving towards more transparent. These are vital information that should be published. Investors can bid accordingly. PPS will reflect the market value of PRMO. IMO.
According to June 2010 financial report, it was management decision to keep inventorying the gold bearing material until gold price increase. Also, Dec. 2010 PR says management decided to put selling on hold in 2nd quarter for tax reasons.
This is the business plan and management strategy. Looking forward to more sale and increase in production and inventory in 2011.
I prefer selling more gold and paying tax. Use the profit for business development. Hopefully, PRMO's cash flow will improve in 2011, expansion in business can be achieved.
IMO
I believe PRMO management is reading this board. They own 1.5B common shares and 350,000 preferred shares. I am sure everybody is happy with $0.107.
Go PRMO Go.
If everyone and their sisters want a piece of the pie, it will fly.
Quote" Share count seems a bit bloated from my perspective."
Authorized Common Share as of November 4, 2010 is 20.5B
Outstanding Common Share as of September 30, 2010 is 8.4B
Authorized preferred share is 10,000,000
Outstanding preferred share as of September 30, 2010 is 350,000
There is rumor that the outstanding common share has been increased from 8.4B to 10.3B. Hopefully, the next quarterly report will clarify this issue.
Quote:" could it be BOUGHT @ 0.0001"
It seems that people have difficulty to purchase at 0.0001 in the last few days. The 0.0001 transactions are probably for MMs only.
GLTA
Quote: "I believe most all longs on this board would be more than happy with a price range of .01 to .05 for PRMO but $.50 is not in the cards,......"
If everyone and their cousins want a piece of the pie, it will fly. If PRMO announce all gold tonnage (in terms of estimated pure gold tonnage) in inventory and in the ground, it will fly.
At this point in time, based on all PRMO's reports and PRs, there is not enough information to calculate the true value of this company. This is one of the reasons why they are triple zero.
They say they have 6100kg gold bearing material in June 2009. It doesn't mean much because the gold content and grade is not published. Although they claim high gold content, it doesn't mean anything in real term.
They say sufficient reserve in perimeters for 5 years production. But the perimeters have not been fully assayed. Can't calculate the pure gold tonnage in the ground.
Based on my ballpark calculation (limited information from PRMO reports and lots of optimistic assumptions), PRMO has 23,000kg of gold bearing material. It includes current inventory (10,000kg) and next 5 years production (13,000kg). Say average gold content at 91.3%, it means 21,000kg pure gold, or 675,150 troy ounce of pure gold.
The PRMO web site indicates gold content at 91.3% AU, based on grab samples. If it is consistent through out all perimeters, the above calculation is a reasonable estimate.
If it is sold today, at $1340/troy oz.
21,000kg x 32.15 oz/kg x $1340 = $904,701,000 USD
Thus, the present value of PRMO is ~ $0.9B USD
The PPS should be way up there.
I have been writing message about inventory and perimeters, also pure gold tonnage. This is vital information that should be published. Investors can bid accordingly. PRMO's pps will reflect the true value, which I think should be in pennies, or up to $0.50 USD.
All IMHO, and ballpark calculation. Do not invest in stock based on the above.
I said previously that pps could be in $0.5. It was a ballpark calculation, based on very limited info and lots of assumption.
I think the inventory should worth more than $100M. Simple calculation:
$100,000,000 / 8,400,000,000 share = $0.012/ share
I also include the next 5 years production. Thus the pps should be way up there. IMO.
First of all, the $15M inventory is at cost, as shown on the financial reports. On the report, it is normal to report the lower of "at cost" or "market value". In this case, the $15M is not the market value. This is good news to PRMO share holders. Because the market value should be much higher than $15M.
Secondly, I don't know what they do with the money they generate from selling shares. I can only guess that it is for daily operation, or something else.
Gold index is at ~$1320. It seems it will stay at relatively high level for sometimes.
Governments are printing more paper money, not controlling expenditure. Gold will be strong.
US annual deficit has been around $1.5 Trillion per year. There is no sign of cutting back. So far the total debt is ~$14 T. The european countries are heavy in debt too. The end result is higher gold index.
PRMO is promising. IMO.
I guess PRMO has loans. The net profit goes to pay down the debt.
I recall the $4.5M equipment, it seems there was some kind of loan arrangement.
Also cash advance to buy gold bearing material from villagers. Prepay export tax. Mining costs $300,000/month operating cost.
It's calm before storm.
Longs are holding. Flippers are waiting. MMs are lurking.
TGIF
Frustration is probably appropriate word for investing in this triple zero pinky. It has been trading between 0.0001 to 0.0003 for over a year.
PRMO is paying $100,000 USD/year for storage of the inventory. The storage space is equivalent to ~1/4 gravel truck box. Obviously it worth lots of money.
PRMO's monthly operating cost is $300,000 USD for mining. In third world country, lots of work can be done for this kind of money.
I am confident that it has gold. Based on the previous sales revenue and net profit, the inventory worth more than $100M USD. A simple calculation as follow:
$100,000,000 / 8,400,000,000 share = $0.012/share
However, the public does not know the estimated value of the inventory. Also no knowledge of the quantity of gold in the ground (perimeters). Thus it is extremely undervalued. IMO.
It would be great if management update the PRMO web site to show the equipment, housing, office, mine site, inventory etc.
PRMO has huge inventory, from 6100kg to 10,000kg gold bearing material with high gold content. So far they sold approximately 400 to 500kg. Management is reluctant to sell more in 2nd quarter for tax reason.
PRMO got lots of inventory but not selling large volume. They don't announce the estimated pure gold tonnage of the inventory. They are hiding vital information from the public. Unless they become more transparent, the pps will stay low. Because the investors do not know the estimated market value of PRMO.
This is an unusual business plan. It seems the management is reluctant to improve the situation. IMO.
Hopefully the gold refinery deal can turn things around.
Quote:"Last year, PRMO made a net profit of $3,009,794. Many gold stocks are at least in the pennies range so why isn't this the case here?"
I wish I have the answer.
However, I think there is a vital information missing from PRMO's reports. The estimated tonnage of pure gold in the inventory and in the ground within perimeters have not been published.
Normal exploration and mining company drill holes within perimeter, send core sample to qualified lab to verify the gold content/grade and estimate the tonnage of pure gold within perimeter. They announce to public and the investors bid accordingly. Theoretically, the pps should reflect the estimated market value of this company. They are traded in pennies even without producing.
I hope I shed some light on your question. All IMO.
I believe PRMO has gold. According to finanacial reports, the mining operating cost is $300,000 USD/month. The storage fee for the inventory is $100,000 USD/year. June 2009 the inventory was 6100kg gold bearing material, and is growing based on inventory at cost as stated in 2010 financial reports.
The financial reports and PRs are public document issued by PRMO management. They are held accountable for all information on these documents.
PRMO management and technical staffs are professionals. They are in this business for many years. They may not be successful at this point in time, in terms of PRMO's performance. However, they have a viable business plan. The main ingredient for gold mining company is gold index. The current $1330 price level is very favorable. PROM's gold sale net profit is ~75%, based on the first quarter report. PRMO is promising. IMO.
Thank you for your positive message. Please refer to my message #41315 in regard to common share changes as follow:
I have reviewed PRMO's share structure since 1997. It consisted of 0.01B authorized preferred share and 0.2B authorized common share. The company was reinstated in Oct 2006. The authorized common share was increased to 0.9B.
Authorized common share changes:
June 26, 2007 increase from 0.9B to 2B
July 5, 2007 reduce from 2B to 0.01B (reverse split 200 : 1)
July 5, 2007 increase from 0.01B to 2.5B
July 7, 2007 increase from 2.5B to 3.5B
Sept 5, 2008 increase from 3.5 B to 5.5B
Feb 2, 2009 increase from 5.5 B to 10.5B
Nov 4, 2010 increase from 10.5 B to 20.5B
I can relate significant events to the above changes. It justify the fund raising through sale of shares. PRMO needs to raise fund for business development.
The 3.5B A/S in 2007 was needed for kick start of the mining initiative. PRMO secured mining right and acquired perimeters in Madagascar and Ghana in 2007. The money was used to get the business plan going. Lots of media promotion were carried out. Results in several gold shipment to refinery for assay and verification. Somehow things turned sideway in early 2008. PRMO
needed to raise more fund. In mid 2008, another major promotion was carried out. They claimed multiplr shipment of gold bearing material is ready to hit refinery. The A/S was increase to 5.5 in Sept 2008. So, they raised more fund. Money was used to sell gold.
3 gold sale in late 2008. The A/S was raised again to 10.5 B in Feb 2009 for further development such as $4.5 M equipment and purchase of gold from villagers.
However, things turn edsideway again. It probably related to political disruption in Madagascar. The current DJ President took over in early 2009. It has been extrememly unstable since. All mining industry was impacted. The DJ president may not be allowed in the May 2011 presidential election. Anyway, PRMO's business plan hit obstacles.
Things improve in 2010. More gold sale. Gold index range from $1100 to $1400. The A/S was increased to 20.5B in November 2010. It is probably for the acquisition of the minor interest of gold refinery.
In conclusion, PRMO is a junior mining company. Lack of funding and facing unforeseen obstacles. They have been struggling in the last few years. It seems there is light at the end of the tunnel. Gold index is very favorable. Mining operation is on the right track. Business plan is working very well.
All IMO.
Quote:"3. WHO BELIVES THIS WILL RUN UP A .01 IF NOT MORE? AND WHY?"
I believe PRMO's pps should be in penny. My previous estimated true value of PRMO is $0.9B. Based on existing ~ 10,000kg inventory and next 5 years consistent production rate at 50kg per week. Based on PRMO assayed gold content of gold bearing material at 91.3% AU. I used gold index of $1350/ troy ounce in my calculation.
Based on the above, pps should be more than 0.50 / share.
All IMO.
I think PRMO management is reading this board. I find it is a good communication tool with these gentlemen. I am trying to write issues from different perspectives. Some positive and some negative point of views. I try to dig deep into the reports and PRs. I bring some issues up to the board readers for discussion and exchange of opinions. It has been working very well. IMO.
I have been writing messages about inventory. I think it is critical to the overall mining operation and progress of the business plan. Since it is the end product of the mining and purchasing plans. I believe PRMO has got huge volume in inventory. However, PRMO has not announce the estimated pure gold tonnage from it. I am disappointed and hopefully management is reading this post and consider this as a vital information for investors. The PPS should reflect the market value of the pure gold in inventory and in the ground. IMO.
Quote:"There was 3.5 million perferred shares sold that is $35 million dollars. Correct?"
Wrong. I have gone through both June 2010 and Sept 2010 reports. There is typo on the front page. The content calculation indicates 300,000 on June report and 50,000 on Sept report. Thus the total is 350,000 shares.
At this point in time, there is no sign from the management to push the PPS higher than 0.0002. No effort in promoting this stock to reflect all they claim --- gold.
The principals own 350,000 preferred shares ($10 per share), which has priority in dividend and liquidity (buy out). They are covered.
I agree. Sell more gold, pay tax, PPS will go up, benefit to all share holders.
I believe PRMO can go to penny, if they are more transparent. Especially what they found in terms of pure gold. Existing inventory and also in the ground.
Sure. I will give them a month.
Unfortunately, as of tomorrow, it will be 4 weeks from the PR about gold refinery. They only got 24 hours left.