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Someone already tried to visit Bangkok office. His taxi driver couldn't find the building, so, the address as shown on web is questionable.
The mining site has never been posted. We don't even know whether it is in Madagascar or Ghana. It may not even exist.
The phone in USA seems answering services only. Thus the office may not exist.
It has been in hibernation mode for almost a year. Is it going to wake up???? Is Spring around the corner????
It seems ice age has arrived. IMO.
It took management more than one year since they secured the Ghana mining right in 2007. It came to surface in a financial report in late 2008 that they have inventory of up to 6100kg.
It seems it is their business plan to keep Ivory Coast perimetre low profile until it is ready to go. IMO.
The political situation in Ivory Coast is extremely unstable. It is a challenge for mining industry in general. So, wait and see.
PRMO secured mining rights in Madagascar in 2006, and also Ghana in 2007. They decided to reverse split 200:1 in summer of 2007. Then dumped billions of shares and also sold approximately 500 to 600kg gold bearing materials for over 10 million USD.
After all these events, they went into hibernation AGAIN for almost a year. It is a mystery.
Another email reply:
From: info@promresources.com
To: xxxxxxx@hotmail.com
Subject: RE: December PR's
Date: Tue, 14 Dec 2010 06:40:52 +0700
Dear Mr. XXXXXX,
We received quite a few email asking same question today.
This “PR” is not legit. We contacted the site (being alerted by our shareholders) and demanded this to be removed and IP address used to publish it reported to us and the SEC for further legal actions.
Since the site hide its direct email address and other contacts we reported abuse and will wait for reply for a reasonable period before consider them accountable for this as well.
Though I might not reply to most contacts due to time restraints, I do follow shareholders communication and will reply when deem necessary.
When publish PR, it will be via the formal sites as we did in the past. We will PR some exciting news when certain transactions we work on materialize, but our main focus is to be in compliance. Submitting the financials is just one step and there are few more to go before we fully comply (and the warning sign is removed).
We believe that only then the full potential of the company will be reflected into the PPS.
With warmest wishes to merry Christmas and a happy New-Year,
Dror Moradov
From: Info (info@promresources.com)
Sent: December 13, 2010 11:09:07 PM
To: xxxxxxx@hotmail.com
Hi xxx,
That false PR was already removed. Shame I was not informed of it sooner.
I still try to get the IP out of them. The contact address is a Gmail account bearing Prom name so no doubt of the intention behind that false PR. It was hit over 900 times so it was clearly causing damage one way or the other. I can only imagine what was said in the private messages sent to those that emailed that contact.
On another note, I think the financials were detailed enough as per past operations. I delivered the appetizer. Main course and the desert will be served in due time. Expectation is part of the fun and I wouldn’t spoil yours.
All I can say is: hang around, it is going to get interesting.
Best regards,
Dror
Only one person received e-mail reply from Dror. Dror promised "main course to be served". That was more than a year ago.
Gold index is edging up in proximity of $1800. I recall PRMO sold gold at $800 and made profit. They also announced gold sale program for 2011.
No word since these announcements. No PR for a year. No annual financial report which was due June 2011. No word on the inventory which supposed to worth hundreds of millions. No word on new perimeters in Ivory Coast. No light at this tunnel.
It seems that the financial reports did include Ghana operations. It is under "condensed financial statement.....operating expenses.......". It is for mining operations, labor costs, equipments, fuel, housing, exporting, shipping and inventory storage fee etc.
I am lead to believe that there is no mining operation in Madagascar, only purchase from villagers. IMO.
According to 2010 PRMO Financial:
Our wholly owned subsidiaries are: Madagascar Gold & Gems Ltd. a corporation incorporated pursuant to the laws of the Democratic Republic of Ghana, which provides gold mining & purchasing entity.
Obviously they are licensed in Ghana.
Back in early 2009, Shyam Vasnani was appointed as COO and Director of PRMO. He took over operations in Ghana and near by region.
Dror can enjoy the sunshine in Orlando.
Dec 2008 PRMO financial said they had 5000kg gold bearing material from purchasing from villagers. So far they sold ~500 kg. What happen to the balance of the inventory??
They claimed they have been mining since 2009. The inventory should be ~10,000kg by now. It is a mystery. IMO.
A possibility that some of the perimetre lease in Madagascar / Ghana will be expired soon. 5 years lease?? Just guessing.
The numbers don't add up right. They can't defend their financial statement. Too bad.
Their story line is questionable too. IMO.
Other question in regard to mining operation cost for the last 3 years.
$300,000/month x 36 month = $11,000,000 USD
The income generated from gold sale is not enough to pay for the operating cost. Where is the money from?
Lots of unanswered questions. IMO.
Dror promised 3 things:
1. Main course to be served
2. Details of minor interest of a refinery
3. Ivory Coast perimetres details
That was a year ago.
With gold index knocking $1800/troy oz again in near future, PRMO management has no sign of any kind of promoting this thing. It is sad.
Dror promised "main course will be served".
It has been more than a year. Still cooking??????
Dror is not home.
If PRMO is real and if PRMO has been producing as it has been reported, the inventory should be more than 13,000kg by now. It's market value should be over $100M.
This is the fifth year since the reported inventory in 2008. They have been selling minimal quantity, just enough to run the mining operation. Showing no profit on balance sheet. They still carry loan from major principals/CEOs.
What are they going to do with the huge inventory???? If it is real.
I am taking a wild guess: gold price has gone up from $1550 to $1640 in the last two weeks. Someone is shopping for cheap gold stock.
I can't see other reason. No light at this tunnel.
The un-audit financial report is the problem.
6,100kg gold bearing material inventory, $4.5M mining equipment, $300,000 USD monthly mining operating costs for the last three years, perimetres in Madagasdar, Ghana and Ivory Coast, more than $15M gold sale, don't mean a thing. IMO.
Gold price is falling like a rock. Hope PRMO sold all gold dust at $1,900/troy oz.
However, you never know, it may climb back up to $2,000. IMO.
Dror is not home.
Still zero promotion.
PROM published June 2010 financial report on November 29, 2010. See what will happen this year.
The following PRs in regard to gold sale:
July 8,2008 PR: 50kg smelted gold
Oct.17, 2008 PR: 100kg concentrate
Nov.12, 2008 PR: 50kg concentrate
The export tax is from June 2009, June 2010 financials and 2010/11 quarterly reports. It is under "operating expenses". I add them up to come up with the total costs.
Management is liable to these published information.
Dror has so many other business going at the same time. PROM is just one of his many side jobs. He probably forgot where he keeps the gold inventory. :) Happy Thanks Giving. TGIF.
Management and principal can't be rich if they hide all the positive facts, such as inventory, perimetres, refinery etc. Although they sold billions of share, they are at ~0.0001 to 0.0004, not much money.
If it is a real company, they can be rich if all facts are released. Sine they own tons of shares. IMO.
Good post with various scenarios.
In third world country, may be advantageous to stay low profile for junior mining companies. However, one of these days, it will explode, if it is real. IMO.
Management stop selling by end of 2010, due to tax reason. They want to make sure no profit shown on financial.
No profit, no benefit to shareholders. I don't understand their business plan. Holding unknown quantity and quality gold doesn't help investors. It is a mystery.
Quote from June 2010 financial, page 5 :
"The properties we mine we believe have sufficient reserves for the next 5 years."
If the monthly production is 250kg gold ore.
250kg x 60 month = 15,000kg
Add 6,100kg as per June 2009, the total stock should be 21,100kg by June 2015. IMO.
Believe it or not.
As per June 2009, 6,000kg gold ore @ 93 purity in inventory.
6,000 x 93 / 96.999 gold dust = 5,750kg gold dust @ 96.999 purity
5,750 kg / 250kg per month = 23 month supply
Market value of inventory as per June 2009:-
Also assuming $40,000 / kg at all time high prices:
5,750kg x 40,000 = $230,000,000
Assuming $30,000 / kg:
5,750kg x 30,000 = $170,000,000
Believe it or not :)
Gold ore sold as follow:
Dec 2008 50kg @ $1,250,000 = $25,000/kg smelted
June 2009 150kg @ $3,027,000 = $20,000/kg concentrate
The higher purity, the higher return.
Also PRMO spent $1,900,000 on export tax and $620,000 on shipping so far. If the financial is true, they have done a lot of shipments. I am guessing the inventory left Ghana and Madagascar. It is probably in Thailand somewhere. PRMO is paying $100,000 annually for inventory storage. IMHO.
Hope it is real.
Hope the annual financial will show the tonnage of inventory, instead of inventory at cost. Also specify the grade of gold ore. They already spent ~$700,000 USD in engineering and testing. They ought to have a good idea of the quantity and quality of the inventory.
Also it should reflect the gold sale program this year at all time high prices.
Management and principal are holding truck load of common shares and preferred shares. One of these days they want to get rich. IMO.
Several economists are predicting $2,000 per troy oz by summer of 2012. Believe it or not.
As you said, refinery deal is critical. 96.999% purity gold dust is more marketable as compared to gold ore. Hope it is real.
So true.
If they can refine the ~10,000kg gold ore to 96.99 % gold dust. It is more marketable and more return.
Keep dreaming.
There are two vital information that can rock the pps:
1. Market value of inventory.
2. Estimated gold ore tonnage in the ground of all perimetres in Madagascar, Ghana and Ivory Coast, according to test results from a professional lab.
If it is a real company.
PRMO is paying $100,000 USD for inventory storage fee annually. The inventory must worth a lot. Say $100,000,000 ????????
This is a million dollar question. It is a mystery.
I am taking a wild guess:
The political situation in Madagascar is stopping them from exporting big volume. DJ president has no power and waiting for presidential election in May 2012.
The quality of gold ore is low, thus difficult to find buyer.
Management is waiting for $3,000/oz.
Management doesn't want to pay tax.
Management is planning a buy out, thus preferred shareholders will get a big chunk of the profit.
It is not a real company.
IMO.