Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
One of the PRs talked about assay and gold content. If it is true and consistent quality amount the perimeters, the market value of the inventory worth more than $100M at today's price (I am conservative on this calculation). IMO.
My calculation on Post #41103 supports the "50 kg per week" estimated production rate. I found it very practical and reasonable.
I have limited information, I try to make sense out of these datas. Especially the management purposely remove the tonnage of inventory from the 2010 reports. I truly believe PRMO's inventory is over 10,000kg by now. All IMO.
Do not invest in stock based on my opinion.
The "50kg per week" is quoted from PRMO's PR. This is public information available from PRMO web site. It is 2 1/2 years old information. But I think it is still valid and practical production rate.
According to 2010 financial and Sept 2010 1st quarter reports, the inventory (at cost) is still growing. Based on my calculation, the production rate is approximately 50 kg per week. Believe it, or not.
All IMO.
2010 Financial said $6M gold sale.
Sept 2010 1st quarter report said $4M gold sale.
These report did not say anything about the tonnage (weight) of the gold bearing material sold. I am wondering why??????
2008 Financial said 5000 kg inventory.
2009 Financial said 6100 kg inventory.
However, 2010 financial and Sept 2010 1st quarter report did not say anything about the tonnage of the inventory. I am wondering why?????
Yes.
50 kg x 32.15 troy ounce per kg = 1607.5 troy ounce.
Yes, it is huge. Also considering the high gold content of the gold bearing material. And the proposed gold refinery definitely bring the net profit up significantly.
Further to my previous calculation, I have been saying that PRMO has got more than 10000kg gold bearing material. It is based on the following calculation, from January 1, 2007 to December 31 2010.
50kg per week x 52 week per year x 4 year = 10400kg BINGO
I just found out that the gold content is extremely high, probably more than 90 %. Believe it or not.
It's from October 3, 2007 PRMO PR. I also done some interesting calculation as follow:
50 kg per week x 52 week per year x 2 years = 5200kg.
According to PRMO financial report, the inventory was 5000kg by December 2008.
I understand that PRMO started production in early 2007. Say, after 2 years production, the inventory should be roughly 5000kg, based on the above calculation.
The inventory was increased to 6100kg by June 2009. Half a year production is roughly 1100kg.
5000kg + 1100kg = 6100kg BINGO
Quote:" My prediction........March 3rd,2011 we are up 1400%. STICKY THIS ONE! (LOL)"
It is doable. The gold refinery deal should go through. Probably more PR on gold sale situation. 2nd quarter financial report should be out. Gold index probably hit $1500.
I just found out that the production rate of the mine is 50kg per week of the gold bearing material. How about that. Looking very good. IMO.
Buy in 0.0002, then sell it at 0.0003 is difficult. This is a tough one to make a few dollars. PRMO has been from 0.0001 to 0.0002 for a long long time. It will take a gigantic PR to move it out of the basement. IMO.
If it goes to 0.0006 tomorrow, what will happen next week? Probably go back to 0.0002.
If it goes to 0.0006 tomorrow, who will benefit from it? Probably the flippers.
PRMO is not ready to go anywhere, unless a major PR that shake the earth. Unless the management decides to promote and push, it is not going to make anybody rich. IMO.
PRMO has got gold. The question is, is the shareholders going to get their fair share? And when?
Gold is making a big jump. Watch out. Gold rush is gaining momentum.
Governments are printing more paper money and not controlling expenditure. Gold will shine more.
Longs are holding. Flippers are waiting. MMs are laughing.
Go PRMO.
Quote: " every body write to dror "
We want buy back. We want buy back.
Tiny news creates ripple. Big news creates tsunami.
Yes. Someone with PRMO must have read your post on December 16, 2010. The 10.3B was removed immediately right after your post.
You are right. I saw the 10.3 B share on PRMO web for a short period of time, then was removed. I am not surprised that it is sitting at 10.3B.
It seems that PRMO is still hungry in cash, even with the revenue in the pass 3 years. However, the $4M equipment, payment for the villagers for the inventory, acquire minor interest of a gold refinery, continue production from the mine. They all need cash.
PRMO will sell more gold in 3rd quarter, production rate will increase, inventory is expected to increase. Gold index is at record high. Gold rush is here to stay for a while. It is looking good. I expect the cash flow will improve significantly with the gold sale program. Buy back is a good possibility.
The 8.4 B shares is a concern. However, a buy back program can easily solve this problem. Say, if PRMO spend $ 1M to buy back 3.3B shares at 0.0003. It can easily done. This is my calculation:
$1,000,000 / $1400per oz = 715 oz of pure gold
715 / 32.15 oz per kg = 22.2 kg of pure gold
It is peanut to PRMO. PRMO owns hundreds of kg of pure gold. IMO.
Just wait when PRMO build up the cash flow. It is going to fly.
Quote: "When that news hits whenever it does then we will have a good gain and then continue to build so best to hold tight for it."
I agree. Gold index is edging up again. I hope PRMO is taking advantage of this gold rush. Our President/CEO promised more gold sale, higher production rate, increase in inventory in 3rd quarter.
Patience is the key for this Pinky. IMO.
Gold is challenging $1400 again. Go Gold Go.
I am expecting minimum 2 PRs in near future. The gold refinery deal and 2nd quarter financial report.
Other information also need update such as regular shipment/sale, production rate, assay result for the inventory stockpile, updated quantity for the inventory, expansion on mining operation on all perimeters, jewelry market, additional perimeter, share structure and preferred share details.
Quote from Dec 29 PR: "The company is currently negotiating, a minority interest in a gold and silver refinery."
How long it take to close a deal? 2 to 3 weeks? Once PRMO becomes a share holder, the gold bearing material can be shipped and processed right the way. I have done some calculation:
First sale in 2008 - 50 kg of gold bearing material that was smelted.
Revenue $1.25 M and profit is $0.951M @ 76%
Second and Third sale in 2008 - 150 kg of gold bearing concentrate.
Revenue $3.027M and profit is $0.489M @ 16%
There is a big different if PRMO can sale pure gold. I believe PRMO has got more than 10,000kg gold bearing material inventory. This is huge profit. IMO.
Quote: "Why isn't this trading like a profitable company?"
Good question. It has got almost all ingredient to be successful. I guess it is still a junior mining company. It started the gold mining business in 2007. Sold some gold in 2008, it was looking good. Then stock market crash and global recession etc. Also it seems lack of capital to buy equipment and pay the villagers.
However, it owns lots of gold bearing material now. A huge stockpile readily to liquid that probably surprise lots of people. The $4M equipment will work harder and generate more inventory. It is expanding its mining activity. Proposed gold refinery. It also has a selling program, i.e. regular shipment and income. It also exploring jewelry market.
The president/CEO is communicating with shareholders. He promised that main course will be served.
It takes time to gain credibility and reputation from investment industry. Dror is moving to the right direction. IMO. I hope it will be traded like a profitable company. Soon.
Quote:" Do you have documented on your historical data stock sheets please how many PRMO shares were authorized and or outstanding July 2007?"
No, I don't.
Anybody can shed some light on this issue?
Quote:" However, the stock market crash and global recession in 2008, brought the whole world to a stop situation. Also PRMO's mine in Madagascar went into trouble. The government of Madagascar was over turned in early 2009. The new president (DJ) failed to gain support from other African countries. Major negative impact to all mining and exporting industry."
This is a general statement. It meant that in general, mining industry went into trouble. Sorry for my English.
Cheers.
I meant "next election in May 2011"
Gold was ~$800 to $900 in 2008. PRMO was trading at $0.0018 and was looking good in late 2008. Total of 3 gold sold PRs.
However, the stock market crash and global recession in 2008, brought the whole world to a stop situation. Also PRMO's mine in Madagascar went into trouble. The government of Madagascar was over turned in early 2009. The new president (DJ) failed to gain support from other African countries. Major negative impact to all mining and exporting industry. The DJ President is still struggling. He may not be allowed to run the next presidential election in May 2010. Thus Madagascar is still unstable politic-wise.
I meant down hill from 0.0018 to 0.0001.
On July 8, 2008, PRMO send a PR for first shipment of gold bearing material. It went from 0.0002 to 0.0012. On July 14, 08, it was traded at 0.0018. Then it was all down hill slide.
Going back to July 23, 2007, PRMO was trading at 0.0002. PRMO announced reverse split (200:1) on July 24, 07, on the same day it was traded at 0.04. (200 x 0.0002 = 0.04). It went all the way to 0.42 on August 3, 2007. Then it was all down hill.
Hope the information helps.
Have a good trip to Bangkok. Don't be surprised to find other two companies sharing same office as PRMO. They are:
Tiger Enterprise SARL and Blue Bay Co. Ltd.
Dror is the contact person for these two mining and jewelry firms. Very interesting.
I believe the gold bearing material inventory has been growing significantly. Here is the statistic:
Dec. 2008 @ 5000kg
June 2009 @ 6100kg or $ 7,232,472 at cost
June 2010 $12,300,000 at cost
Sept 2010 $15,315,000 at cost
Based on the above, the inventory on Sept 2010 is twice as much as June 2009. So it is save to say that the inventory is now more than 10,000kg.
PRMO sold 100kg gold bearing material on Oct. 2008 for $1,927,000. Gold index was ~$800 to $900/oz. What is the market value of the 10,000kg at $1375/oz? PRMO also has sufficient gold reserve for 5 years production.
My point is, if PRMO provides the detail information on it's market value, the PPS will fly. IMO.
No official word for buy back. Just rumor and possible verbal from Gerald and Dave, ex-PRMO guys.
Buy back needs cash. When PRMO's cash flow is strong enough, this is definitely a good strategy that benefit all share holders. PRMO is committed to carry out more sell, higher production rate and inventory. With the proposed gold refinery, things will flow much smoother.
Yes, I agree 0.0003 is cheap. Lots of valuable information are not available to the public. Sometimes I need to read between the lines on the financial report and PR, trying to dig deep for facts. I think PRMO has potential. IMO.
I think these type of mining company in third world country is unique. The information may not be as transparent as western world. Their culture in mining and exporting need to be looked at from different angle. These countries rely on natural resources as major revenue. But their law and their business rules are challenging for foreign company. I have heard they need a troop with rifles to transport the gold.
Anyways, it is looking good. Lots of senior gold company cannot afford to do exploration. Thus the juniors like PRMO is getting more respectful in gold mining industry. IMO.
According to page 27, June 2010 financial report, under "Valuation of Inventory", the inventory on the financial reports are at the lower of cost or market value. Since the cost is lower than market value, the $15M has to be at cost. Financial report has to follow this criteria.
The actual market value of the inventory is higher than $15M. PRMO acquired 5000kg gold bearing material by December 2008. The gold index was ~$850/oz. PRMO sold 200kg gold bearing material and made profit at that price. So, the cost must be lower than $850/oz. My point is, at today's gold index ($1370), the market value of the inventory is huge. IMO.
So, I think the estimated PPS based on inventory is very promising.
Some gold mining companies trading at pennys, without producing one ounce of gold. PRMO has $14,565,000 in revenue and $6,760,588 in net profit. Has $4 M worth of equipment. Has got between 6100kg to approximately 9000kg gold bearing material inventory. Sufficient gold reserve for 5 years production.
Also from July 1 to Sept 30, 2010, it has $4M revenue. On top of that, the inventory grew, estimated at $3 M at cost according to financial report.
PRMO is a junior mining company, it runs into lots of obstacles. Financially and technically. It seems that it is on the right track, finally. It takes time and effort to gain credibility and reputation from mining industry and investment industry. It is heading towards to the right direction. IMHO.
Quote: " I am a former long - hows this, this goose is cooked once again. "
Dror has delivered the appetizer, he also promised the main course will be served. But when??
It seems that some of the longs have been banned/restricted/limited to this board. We miss their knowledge and opinion. IMO.
The true value of PRMO is a mystery. The available information is not sufficient to estimate it's market value. Normally, mining companys drill hundreds of holes, take samples across the perimeter, verify the gold content and estimate the total amount of gold within the perimeter. Investors can work out the value. The PPS should reflect the value of this company.
PRMO has not announce the total estimated amount of gold it owns. There are information such as inventory was 6100kg by June 2009. Current inventory at cost is $15,315,000 as of Sept. 2010. Sufficient gold reserve for 5 years production. Also perimeters in both Ghana and Madagasca.
The inventory has not been assay. Thus the actual value of the inventory in unknown.
Lots of question need to be answered. IMO.
I have done a search for PRMO's address in Bangkok. Actually, Tiger Enterprise SARL shares the same address as Blue Bay Co. Ltd. Very interesting.
Have a good trip.