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Management decided not to sell more gold in 2010, but they generate $3,500,000 revenue from selling 350,000 preferred shares to principals / directors at $10.00/share. Why?
PRMO is producing gold and put it away in a vault so that no one knows the amount and market value of the inventory. It is a strange business plan. Can't figure it out.
They are producing, invnetory is growing, but they hesitate to sell more gold for tax reasons. Doesn't make any sense. Why border to produce if they are not selling? Why borrow money from principal if we can sell gold?
History tells us gold price will come down. PRMO should take advantage of the current record price and make a few bucks, before it is too late. IMO.
Quote from April 20 PR:" We are enhancing shareholders value, said Dror"
Gold index at $1500. PRMO is increasing production. PRMO has significant inventory. If management doesn't take any action to improve the pps immediately, it is definitely a scam. No excuse. IMO.
Management/principal owns 350,000 preferred shares, which is convertible to common shares. The lower the pps, the more it can be converted. I am not an accountant, I don't know how it works. However, the PRMO financial report clearly says they are convertible. Can be in billions of common shares at 0.0001 pps.
Obviously Dror is too busy. Time to change leader.
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. "
Q3 has passed, Q4 is almost half gone. No PR for any gold sale in 2011. Obviously, management don't want to see pps to pass 0.0002.
Agree. PRMO management purposely hiding lots of vital info.
It produces 175kg per month and it is trading at $1.52.
PRMO capable of producing up to 250kg per month. Anyone can do the math. $$$$$$$$$$$$$$$$$$$$$$
Bre-X scam back in 1997 shocked the gold mining industry. It created millionairs and also lots people went belly up. I brought it up to show the dynamic of gold ore assay results, which PRMO is lacking.
I have read 2007 PRMO reports talking about 91.3% purity of gold bearing material from alluvial gold deposite. The recent PRMO advetisement talked about 96.699%. Q1 report said 25% operating cost and 75% net profit. Also inventory is growing. If PRMO proofs the above with audit report, things can change dramatically. IMO.
By the way, the head office of BR*X was in Calgary, same city that Gerald is living in.
I recall a scam gold exploration company called BR*X, they announced the assay results and estimated pure gold tonnage in the ground of their perimeters. They found 200,000,000 troy oz of gold. Their pps jumped from $0.50 to over $250.00 CAD. (Traded in TSX). Unfortunately, the assay results are fraud. It collapsed when the facts were found. The CEO ended up jumped off a helicopter somewhere in Indonesia.
My point is the dynamic of assay results and estimated tonnage of pure gold in the ground can send the pps to the sky. If PRMO is real company, it will fly. IMO.
Good luck.
History tells us this is not a good place for quick cash. Some people have been waiting for the magic moment more than 2 years. There is no sign of any light at the end of the tunnel.
However, things can change. Hope for the best. High risk, hopefully high return.
PRMO's gold hidden in the vault has no value to shareholders, because no one knows the market value of it. Unless it is made public or being sold. PPS will fly. IMO.
Sell more gold and pay more tax. It is the only way to benefit shareholders.
PRMO's advertisement to sell up to 250kg/month is in Taiwan, which has close business link to mainland China, which is loaded with cash. Definitely a possibility to buy out PRMO.
I recall back in early 2010, India bought 400 tons of gold. Gold index jumped over $1000/oz immediately.
USD has been sinking like a submarine. The government is still printing paper money to pay for the wars. There is no sign of controlling expenditure. Gold will shine more.
As I said before, PRMO management is piling up more inventory, but refuse to sell more gold. They are probably going for buy out. IMO.
USD is dropping like a falling rock. Gold is heading the opposite direction. However, it is against gravity. What goes up, must come down. It's matter of time. PRMO should take advantage of the gold rush, before it is too late.
It seems management knows the inventory worth more than $100M. They know the gold in the ground worth more than $100M. They just don't want to share this info with shareholders.
Obviously, at this point in time, they don't want to see pps go higher than 0.0002. IMO.
History tells us gold price won't stay high for ever. What goes up, must come down. It seems the gold rush will be around for a while, could be monthes. PRMO should take advantage of it and make a few bucks out of it. If it doesn't, it is definitely a scam. No excuses. IMO.
Sooner or later, the management wants to get rich. That's the time.
Sooner the better for us shareholders. GLTA.
Dror is too busy running his own businesses, Gerald might put new blood in this organization. You never know. Shyam is qualified to run this outfit.
I suggest promoting Shyam, COO, to replace Dror as CEO. He is an expert in marketing. Familiar with Ghana, Madagascar, Nigeria and Liberia.
Just a thought. PRMO needs changes.
Dror's contract as CEO/President of PRMO expires this year. Is Gerald going to do anything? Probably not.
I am leaning towards a buy out or partial buy out. Because management refused to sell more gold due to tax reasons. Production rate has been increased and inventory is growing. The revenue generated from the minimal gold sale can marginally pay for operating cost, which is $550,000 monthly.
Management is watching the inventory growing, they must have a business plan to get rid of it - selling at lump sum or large contract to supply gold dust. IMO.
15,000kg at 96.699 % purity with refinery after smelting.
15,000 kg x 32.15 oz/kg x $1400/oz x 0.96699 = $650,000,000
Operating cost @ $550,000 / month
550,000 x 12 x 5 = $33,000,000
Net profit = $650,000,000 - $33,000,000 = $617,000,000 on top of existing inventory that worth $68,000,000
Total net profit = $617,000,000 + $68,000,000 = $685,000,000
$685,000,000 / 8.4B = $0.0815 pps
As I said before, it should be in pennies,if it is real company. All IMO.
*Do not invest based on above info.*
On top of the inventory, it has sufficient gold reserve for next 5 years production. Say 250kg / month.
250kg x 12 x 5 = 15,000kg
According to financial reports, inventory at cost is ~$17M. The operating cost is approximately 25% according to Q1 report.
$17M / 0.25 = $68M
The market value of the inventory is minimum $68M.
$68,000,000 / 8.4B = 0.0081 pps
Looking good.
If PRMO verify everything in their reports and PRs, disclose all facts and activities, it should be in penny. IMO.
My theory is that management is going for buy out or partial buy out / dividend. So that their preferred share will grab most of the money, not much left over for common shareholders. IMO.
Okay to ask. We are sharing info on this board.
According to Q1 & Q2 reports, PRMO management & principal purchased 1.5B common shares in 2009. Also in 2010 they purchased 350,000 preferred shares (@$10.00 per share). They are loaded. If pps goes up, they are rich. If in the case of buy out or dividend, preferred share has priority in getting the money, the balance goes to common shareholders. They are covered from both ends. IMO.
I see your point. PRMO is a mystery. No doubt.
I am judging from the financial reports and PRs. I assume they are true (optimistic assumption), this is why I am still here.
PRMO is paying $100,000 USD annual fee for storage of inventory. The inventory must worth lots of $. $100K is lots of money in third world country. It can buy premium services. If the inventory worth $10M, the storage fee is 1% annual charge, which is very high service charge.
I am guessing the inventory worth minimum $80M. All IMO.
*Do not invest base on above info.
I see your point. Management owns 1.5B common shares. It's win win situation for all shareholders.
A real company should buy back at low pps to enhance share holders value. I am hoping the recent big blocks ($40K) are buy back. Miracle sometimes does happen. I am keeping my fingers cross.
Dror has been hiding Q1 & Q2 gold sale in the financial reports, in which very little people pay any attention to these report. PRMO needs real promotion. IMO.
Good point. As you said, technically they should verify the gold ore prior to storage. What is the assay results? Someone should know the details of the material put away for storage.
I don't believe that they don't know what they are producing. They have been mining for more than 2 years. Lots of testing has been done. IMO.
PRMO is paying $100,000 per year for storage of inventory. Where is it? Ghana, Thailand or Germany. Some where near the refinery?
It's lots of money for a little storage room as big as two refrigerators, assuming ~10,000kg of gold bearing material. The inventory do not benefit the shareholders if no one know the weight and gold content of it. What is the market value of it? Management is hiding these vital information that can boost pps.
Based on the gold sale PRs, it is real. It is producing and has perimeters and equipments. However, the management has decided not to promote. Thus lots of vital information is hidden in financial reports and PRs. Management loves the 0.0001/2 at this point in time.
Is the management going to promote this company? This is the million dollar question.
It seems there has been gold sales in Q3 (Jan to March), however, no PR yet. The business plan has not been changed yet.
When management decides it is the right time, they will announce that one magic proof. They are sitting on a huge stockpile, but they are selling minimal gold to keep the operation running. Their motive is to wait for the big moment, that big bang to make them rich. IMO.
Hopefully, shareholders will get the fair share.
At this point in time, even the gold index hit $1600, PRMO still trade at 0.0001/2. Without management's support and promotion, pps is not going any where. All positive news and activities have been hidden. Management is satisfied with triple zero.
A good chance they have been selling gold in Q3, however, they decided not to PR the gold sale. Production has been increased, they decided not to announce details of mining such as production rate and assay results. Inventory has been growing, they decided not to announce the tonnage and gold content of inventory. Too much unknown, too much uncertainty.
When management decides to promote, it will fly. IMO.