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.
Yes. On July 24, 2007, 200:1 reverse split. The pps was changed from 0.0002 to 0.04 (200 times) on the same day.
Several PRs were issued in the following months. PPS went from 0.04 to ~0.4 (10 times). Then it collapsed by end of 2007 due to lack of follow through with gold sales. It went back down to tripple zero.
October 3, 2007 PRMO PR:
Prom Resources, Inc. (PINKSHEETS: PRMO) ("the Company") -- After a preliminary economic assessment the company is pleased to announce that it will now resume shipments of gold bearing ore at the rate of 50 kilos per week (one kilo is equivalent to 32.15 troy ounces).
50kg x 4 = 200kg / month
PRMO was capable of supplying 200kg per month back in 2007. Interesting.
How much is 250kg gold dust at 22+ carat or 96.999% purity?
250kg x 32.15 oz/kg x 0.96999 x $1,800/oz = $14,000,000 / month
Subtract operating cost = $350,000 / month
Monthly Profit = $13,650,000 USD
Export tax not included in calculation.
"We can supply up to 250kg per month."
"We sell alluvial gold dust of 22+ carat and purity of 96.999%."
These are meaty PR that boost pps. Unfortunately management failed to inform investors.
It seems Madagascar gold and gems ltd is mining in Ghana. Ivory Coast is located adjacent to Ghana, (just west of Ghana). I expect this subsidiary will handle operation in both countries.
I am not sure if the previous financial reports include this subsidiary. Theoretically it should, since the mining operating cost in the reports should reflect Ghana operations. IMO.
Details of Ivory Coast perimetres will be available soon. Should be positive news.
Obviously, management has their own agenda. Even gold at $1,840 today, they don't push. When they load up more shares, it will be different. IMO.
Unfortunately, PRMO's credibility is at ground zero. No one believe what they claim. It seems they are satisfied with the current situation at 0.0001. I am lead to believe they will get much more than their existing 1.5B common shares. Then they will push. IMO.
Normal gold mining and exploration company take samples from perimeters, conduct assay with details technical report. Announce the estimated gold tonnage and grade in the ground. Approximate market value of the gold in the ground can be estimated. They are trading at pennies or more, even without production.
PRMO's business plan is not normal industrial practice. They are producing, but hiding lots vital information from investors. This is why trading at 0.0001. It is a mystery. IMO.
The message is clear from management according to March 1st and April 20th PRs:
"The company expects to increase production and inventory during fiscal year 2011."
The inventory is growing, which is good news. Unfortunately, management not willing to share the details of the production rate, grade and amount of gold ore produced, quantity and market value of inventory.
How is the huge inventory going to benefit PRMO and it's shareholders?
Agree. They are doing everything to keep it at 0.0001. IMO.
By the time they convert their preferred shares to common shares, they will push.
Directors and principal own 350,000 preferred shares at $10.00 per share. They are convertible. Thus it can be converted to common shares, which may equivalent to billions of shares. Thus the 20.5B a/s can be for conversion purpose.
They are covered from both ends.
The 8.4 Billion common shares definitely scare people. Also no one knows the market value of this outfit. They claim they have huge gold bearing material inventory and it is growing. But no one knows the amount, grade and market value of it. They are trying very hard to keep vital informations away from investors.
They claim they are mining gold. But no one know where the mine is. It is top secret. Lack of transparent is the main problem.
March 1, 2011 PR says about minority interest in 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 acquiring minority interest in small operation throughout Africa."
I like "throughout Africa". It seems they are actively acquiring other small refineries. Hope it is a real company.
April 20, 2011 PR says: "Over the past two quarters the company has negotiated a minority interest in gold assets and continued to inventory gold bearing material. The company expects to increase production and inventory during fiscal year 2011."
Although it looks like a scam and smell like a scam. With gold index at ~$1,800, I am still hoping for miracle. IMO.
Further clarification to inventory stated at cost. According to June 30, 2010 financial report, page 27, under "Valuation of Inventory". It says:
"Inventory is stated at the lower of cost, ......, or market. Inventory consists principally of purchased gold bearing material or mined gold bearing material."
The financial report has to show the lower of mining cost or market value. Obviously, the mining cost is lower than the market value. Thus the $15M as shown on the report is the mining cost.
On the other hand, the financial report did not say the market value of the inventory.
6,100kg worth $15M? It seems too low. I recall Oct 17, 2008 sold 100kg gold concentrate for $1.927M. Also Nov 12, 2008 sold 50kg for 0.816M.
I believe the $15M is referring to the cost of producing/purchasing the inventory.
I believe the inventory worth more than $100M. If financial reports are true.
IMO.
2008 financial said 5,000kg. 2009 said 6,100kg ready for liquidity. Management decided to remove the tonnage from June 2010. Only inventory at cost was on the report. It must be for a good reason to hide it.
According to financial reports, there has been mining activities in the last 2 years at $300,000 to $350,000 per month operating cost. Assuming they produce 150kg/month:
150kg x 24 month = 3,600kg.
Total = 3,600kg + 6,100kg = 9,700kg gold bearing material
Monthly operating cost is ~$350,000. With limited gold sale, they are running very tight.
Good point.
I am trying to imagine their business plan. It is extremely unusual the way they are hiding vital informations. May be I don't understand the business world in Madagascar and Ghana, which is different to North America.
I am guessing when the lease expire, i.e. no more mining, that is the time to liquid the inventory.
Miracle do happen once in a while.
Obviously, PRMO's business plan is keep mining, producing and stockpiling gold bearing material. Limited gold sale due to tax reasons. Do not announce details of assay results. Ensure public has no knowledge of market value of inventory. Borrow money from principal and CEO to keep the operation running.
It seems the management is not getting pay for all the time and effort they spent. No record of salary for management. Unless they draw salary through subsidiaries, which has no financial report to clarify the operating costs.
Too much unknown.
It is your money. Good luck.
Gold index will break $1,900 / oz this week. However, don't expect anything from PRMO management.
I would like to reiterate 2009 financial report:" 6100kg gold bearing material ready for liquidity.........".
If it is true, it is sitting in the storage room, which costs us $100,000 USD annual storage fee, as per financial reports.
Management purposely removed the tonnage of gold bearing material from June 2010 financial reports. No one knows the exact amount of the inventory. Too bad.
Management works very hard to keep the pps at 0.0001. IMO.
As of June 2009, PRMO owns 6,100kg gold bearing material. I assume it reaches 10,000kg by now. They may ship them to this particular refinery to upgrade to 96.9% purity. Definitely better return.
What is the market value of 10,000kg gold dust at 96.9% ??
These type of PRs definitely help pps.
I am not a gold expert. However, early this year, several expert predicted gold would reach $1,700 by year end. It is now $1,880 in August. So, even the experts couldn't pin point the all time high.
With the global debt crisis and un-control money printing by governments, gold is looking good for now. But, what goes up, must come down. When the global economy settle down, it will probably back down below $800. All IMO.
As I said, PRMO should take advantage of the situation. Don't miss the boat.
If PRMO can sell Ghana operation for a good lump sum, it is probably the best scenario for all shareholders, with juicy dividend. IMO.
I am sure there are senior gold mining companies out there looking for gold.
History tells us gold price will come down. A good example is it happened in early 80's, drop from $700 to $150 in a few weeks.
PRMO should take advantage of the all time high prices and make a few bucks, before it is too late. IMO.
Gold is heading towards $1,900/oz. Go PRMO Go.
Show the world that we are the REAL THING.
Someone try to visit Bangkok office. He took a taxi from hotel to the address shown on PRMO web. The taxi driver couldn't find the office building. It is a mystery.
I guess you called Orlando, Florida's office. Obviously, no one works there. You only talked to answering service. They transfer you to voice mail. If you leave a message, hopefully someone will call back. But don't expect too much.
I sent them e-mail early this year. No reply. Same thing happened to other people.
It seems Dror only reply once. He promised "Main course will be served". It was half a year ago. He hasn't done anything yet.
It seems phone call to PRMO's office can only talk to someone that take a message. No reply also.
I am lead to believe PRMO is not an active company. Unfortunately. IMO.
Gold has gone through the roof. It is heading towards $1,900. Go PROM Go.
Dror, are you there?
Gold buyers should be lining up outside PROM's office, if PROM is a real company.
Gold is going to hit $1,800 soon. Where is Dror? Is he selling gold? May be he is waiting for $5,000/oz.
History tells us that gold price will come down. IMO.
According to recent financial reports, they are still mining. Operating cost is $350,000 USD/ month. It can get lots of work done in third world country with this money. I hope it is a real company. IMO.
Management is trying very hard to keep it at 0.0001, for what ever reason. They have vital information that can easily rock the pps. They decided to keep it in their pocket. Keep in mind that management and principal owns 1.5B common shares and 350,000 preferred shares. They will be rich if pps goes up or buyout/dividend. They are covered from both ends. IMO.
All time high gold index didn't help PRMO. Management don't sell big volume since they don't want to pay tax. Can't get rich if they don't sell gold. IMO.
I believe management is sitting on a huge inventory. However, they are happy with 0.0001. It is a mystery.
I am wondering why the financial reports do not have detail info in regard to Madagascar Gold & Gems Ltd. It must be generating income from selling gems & jewlery. It is sole subsidiary of PRMO.