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Can you think of any positive notes at this point in time?
Do you know the quantity of the inventory today?
Do you know the tonnage of pure gold in inventory?
Do you know the market value of the inventory?
Do you know the tonnage of pure gold in all PRMO perimeter?
Normally, mining company announce the tonnage of pure gold found in the ground, they trade at pennies. They haven't even start production.
From all the evidence so far, they are reluctant to sell the inventory in big volume. It seems they are going for buy out or partial buy out.
Preferred share holders get the first cut of the pay cheque. If there is any $ left, common share holder will get the balance.
In the last 2 years, the PPS has been between 0.0001 to 0.0003. That's all the common share holders got. Not much.
The management is reluctant to sell the 6100kg (possibly up to 10000kg by now) so far. They even held up the sale in 2nd quarter for tax purpose. Hopefully they sell more this year at $1345 price level, so that PPS can go up.
PRMO's directors and officers purchased $1.5B common shares in 2009. Also the principals purchased 350,000 preferred shares in 2010. They are loaded.
If PPS goes up, they make lots of $. If there is a buy out or partial buy out, they will get priority of the dividend $ of the preferred shares. They are protected from both ends.
Any body familiar with the preferred share situation with PRMO?
Currently 350,000 preferred share owned by PRMO's Principals. They are $10 per share. Also redeemable, convertible and has priority to receive dividend or upon liquidation. Thus they gets dividend first, then the balance $ go to common share holder.
Who are the principals that own preferred share? According to June and Sept 2010 Financial and quarter report, it seems that they purchased in 2010, for a total of $3,500,000 revenue for PRMO.
This is for your reading pleasure in regard to PRMO's share structure changes.
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
Enjoy.
Dror has been shopping around Germany and Thailand for gold refinery in the past 3 years. It is time consuming and costly to arrange smelting through these refinery. This is a tough industry. Thus it is an excellent move to acquire minor interest of a gold refinery. The process will be much smoother and economic, results in higher net profit.
In June 2008, 50kg gold bearing material was smelted. The pure gold was sold for $1,250,000 USD. Net profit was $951,225, which is 76%. Gold index was ~$850 to $950.
Today's gold index is at $1343. PRMO is very promising from this perspective.
Quote from June 2010 Financial: " In 2008, we acquired an inventory of gold bearing material. It was management decision to keep inventorying this material, until the price of gold increase."
Inventory is as follow:
Dec. 2008 @ 5000kg Gold Mining Concentrate
June 2009 @ 6100kg Gold Bearing Material
Current inventory is unknown
Inventory has not been assay, thus gold content/grade is unknown.
This is the time when gold hit all time high. The management should be selling in order to take advantage of the gold price.
It's looking good.
We are going to the moon.
Many moons ago, man dreamed of walking on the moon.
Many moons later, man did walked on the moon.
Keep dreaming.
Gold was $1100 a year ago. It went up to historical high $1426 last November. It is back down to $1345 today. It is going up and down like a yoyo. Even at today's price, PRMO is making huge profit. Because the mine operating cost is relatively low, approximately 25%, according to 1st quarter report. PRMO's sluice box mining method is economic.
PRMO also purchase gold ore from villagers. The cost is unknown. I guess it is more expensive than mining. Because it is labor intensive, such as panning. IMO.
Some experts are predicting $1500 gold index by end of 2011. In this case, PRMO will be the stock everybody want. The senior mining companies will probably line up at the door and try to buy PRMO. IMO.
PRMO is not going anywhere unless the management decides to promote and push. So far, we are travelling in dark. No light in the tunnel.
We need a PR that shake the earth, such as gold refinery and gold sale.
Go PRMO Go.
Thank you very much. Have a safe trip home.
I tried to google PRMO's address in Bangkok, couldn't find it. The street names are very confusing over there.
GLTA
For a company that stay at triple zero one for a long period of time, credibility and reputation are next to nothing. PRMO's PRs in the last 4 years are promises only. The management can't deliver, can't follow up on timely manner and lack of consistency. The un-auditted financial report doesn't help. There is insufficient information for the public to estimate the market value of the company. In conclusion, it is lack of transparency and credibility. IMO.
I believe PRMO owns huge inventory that consists of high gold content. PRMO's perimeters are promising too.
Tell the world the estimated tonnage of pure gold we already have and the amount will be produced in future. Let the public decide what the pps should be.
PRMO management is working towards more transparent. However, they purposely removed the inventory quantity from June 2010 financial and Sept 2010 quarter report. They are only reporting at cost inventory in $. So the actual amount is unknown to the public. Normally, mining company announce the quantity of gold found, they are trading at pennies, even without production stage.
They claims the inventory has not been assayed. This is unacceptable. Normally, mining company send the gold ore to qualified lab to verify the gold content. The lab result is published. The market value of the inventory can be estimated.
PRMO claims they have sufficient gold reserve for 5 years production. The perimeters should be assayed. The total tonnage of the gold in these perimeters can be estimated.
Based on the above data, the market value of PRMO can be estimated and made public. The pps should reflect the true value of the company.
PRMO failed to provide the above. IMO.
"No-Limit " should be in Bangkok by now taking pictures in front of PRMO's office. Interesting to see how it look.
The polar bear is in hiberation mode. It will probably wake up in Spring.
Main course is as follow:
Gold Refinery
Regular Gold Sale and Income
Increase in Production Rate
Increase In Inventory Volume
Dessert is as follow:
Buy Out for All Inventory
Buy Out For Ghana Operation
Dividend
Boy, I am hungry.
All IMO.
I don't think RS will happen. Since the insiders are loaded with ~1.5B shares. IF RS happen, they need to re-load again.
Just my opinion.
Winmax / Eatr sell jewelry. Is that what you are refering to?
I am guessing.
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. "
The theory of selling the inventory or Ghana operation is from the the above PR. PRMO management is reluctant is sell large volume of the inventory. Secondly, they allow the inventory to grow without selling in 2nd quarter. In conclusion, the only logical explanation is buy out of the inventory or Ghana operation.
I am guessing that the inventory worth over $100M, possibly up to $300M. All IMO.
From all the evidence that I got, this is the best opportunity for PRMO management to take advantage of the all time high gold price. Do the right thing and make the most out of the situation. I believe PRMO has got huge inventory, and it is growing daily. The best scenario is probably find a buyer for the entire inventory and possibly the entire operation in Ghana.
Lots of senior gold mining companies cannot afford exploration. They go out and buy junior mining company such as PRMO with known reserve. I think if PRMO can get a good price for Ghana, may be it is the best decision for the shareholders at this point in time.
PRMO may continue exploration in Madagasca and Nigeria etc. This is what most junior mining company do the best, exploration. IMO.
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. The company expects to increase production and inventory in fiscal year 2011 and while continuing our program of selling gold Material.
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Danny, are you saying that the above statement are not true? Prove it please.
ORLANDO, FL -- (Marketwire) -- 12/29/10 -- Prom Resources Inc. (the Company) (PINKSHEETS: PRMO) is pleased to announce negotiating interest in a gold refinery.
The company is currently negotiating, a minority interest in a gold and silver refinery. This move will assist the company in consolidating the gold bearing material it has on hand into a purer form when exported and optimize returns. 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.
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It has been 3 weeks since last PR. It is show time. Bring it.
What is your point as related to PRMO?
If PRMO's un-audit financials are true, you will probably be 100 times richer.
0.0002 x 100 = 0.02
PRMO in penny land. IMO.
GLTA.
I agree. I treat this triple zero pinkie similar to gambling in Las Vegas. If I loose all vacation money, I go home as a happy loser.
No one would sell their house and put all money in this leaky basket. But sometimes, miracle does happen. It seems that there is light at the end of the tunnel. Hopefully, it is not a firefly.
GLTA
You will be happier if you are 100 times richer. GLTA.
I am curious, in a third world country, PRMO pays $100,000/year for storage. What kind of facility it is? It wouldn't be someone's garage or backyard.
I am trying to imagine the estimated +/- 10,000kg inventory (equivalent to 10 metric tonnes). How big would it be? It must be loose particle that look like loose sand.
A regular size gravel truck box is approximately 12 to 15 cubic meter. It can probably carry 20 to 25 tonnes of loose sand. Since gold is much heavier than sand. So, my ball park calculation is that the 10,000kg is approximately 1/4 truck box in size.
$100,000/year for 1/4 truck box size storage space. It is probably in a secured area with troops and AK 47. :)
All of the above is a wild guess. All IMHO. Do not invest in stock based on the above.
The following is a comparison of the costs of inventory storage and labor. I found it very interesting.
year / Inventory storage $ / Labor $
June 2009 /$8,000 / $350,000
June 2010 /$100,000 / $450,000
Sept 2010 /$25,000 / $150,000(3 month)
(25,000x4=100,000/yr) / (150,000x4=600,000/yr)
According to June 2009 financial, 6100kg gold bearing material inventory storage cost is only $8000, as compared to $100,000 for year 2010. I guess, in 2010, the gold was stored in a much safer and convenience location at a higher cost. Or the quantity has grew to significant amount. It is significant to pay $100,000 per year for storage. This is very positive sign to me. IMO.
The labor cost is consistently growing, indicating moderate increase in production rate in mining activity. I am impressed. It support my theory that the annual average production rate is around 50kg per week. IMO.
I agree that it is very possible a sluice box operation. I don't think they crush rock, since crushers are more expensive and need trained staff to operate.
PRMO report also mentioned mining at "river bed". I am guessing they are mining at alluvial flood plain near a river. It usually consists of sandy, silty and clayey deposit. They can simply flush the deposit down the sluice box and let gravity do the job. Since gold is the heaviest mineral, it can be separated with other mineral. This type of operation is more economic, especially in a remote area with limited resources, human and equipment.
PRMO has geologist and mining engineer to oversee the technical end of operation. Also has experienced marketing staff to streamline various phases of business plan. I have high hope for this junior mining company. It is a pinky, high risk, hopefully high return.
Quote: " Why has there not been a big move yet??? "
I wish I have the answer. PRMO is a mystery at this point in time.
I think the most critical ingredient is missing. The management has not been pushing yet. The last 2 PRs are meatless. Didn't even trigger a small ripple. It was waste of company $ to post those two PRs. The management should know the result prior to issuing them.
Some of the shareholders tried hard to buy at ask, in order to hold it at 0.0003. It seems painful and ineffective. People want to buy at 0.0002 and sell at 0.0004. They are not successful too. If everyone has similar strategy, no one would buy at 0.0004. Also MMs are watching closely behind the scene. They are playing games too. In conclusion, this is not a good place for quick money. IMO.
I hope I shed some light on your good question.
I think PRMO will issue a gigantic PR that will shake the earth and surprise people. Patience is the key for this Pinky. IMO.
According to PRMO's report, each tonne of the raw material from the mine can generate more than one ounce of gold bearing material. The gold content of the gold bearing material is at 91.3%. Hope it help.
The gold content is on PRMO's web site. On the web site, go to Investor Relation and click View PROM Resources Information on the right hand side of the screen. It says 91.3% Au. Au means gold. It is from assay on gold bearing material back in 2007.
I am not familiar with the mining operation over there. All I know is $4M worth of equipment.
I enjoy watching mystery movies, such as Indiana Jones. It's fun.
I see your point. PRMO has been a mystery. Dr. Dror may have the answer. Stay tuned.
Sorry. I made a mistake. Gold content should be 91.3% (not 95%). Thus the corrected numbers are:
$930M x 0.913 / 0.95 = $894M. So, round it up to $0.9B.
It's Friday, I made mistake too. :)
The following is for your reading pleasure. All IMO.
I think PRMO is a $1B company. IF the following is true:
Existing 10,000kg gold bearing inventory.
Production rate is 50kg per week.
Gold bearing material consists of high gold content, up to 95%.
Mine operating cost is $300,000 per month.
1) Existing inventory's net profit
10000kg x 32.15 troy oz per kg x $1350 x 0.95 = $412 M
2) Next 5 years production's net profit
50kg per week x 52 wk per year x 5 years = 13000 kg
13000kg x 32.15 x $1350 x 0.95 = $536M
operating cost = $300000 x 12 mon per yr x 5 yr = $18M
Net profit = $536M - 18M = $518M
1 + 2 = total net profit = $412M + $518M = $930M
I just round it up to $1B net profit. The tax is not included in calculation.
TGIF. Have fun.
I am working on more calculation to justify the $1B price tag for PRMO. Stay tuned. :)
I see your point.
Just for discussion purpose only. What if PRMO worth $1B. Would you change your mind?
I think the gold refinery deal is going to turn things around dramatically. IMO.