Pure Gold Mining Inc (LRTNF)

[molee]

So ... "SPOILER ALERT" .. An honest opinion from a guy I follow ...

"Changes at Pure Gold Mining (PGM.V)(LRTNF)(PUR.L)

The year 2021 was a tough one for most of us but few mining companies experienced more problems than did Pure Gold Mining.

Maybe the Company’s internet home page gives us a clue to the brains or lack thereof who were running this company.

PureGold is a Growth Company

Our Mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and disciplined creativity to achieve exponential transformative growth, in both size and scale of our multi-million-ounce gold deposit.

Our Phased Organic Growth Strategy is also pure and simple, and financially solid.

Our Phase One Mine is just the beginning. Our growth will be fueled by our aggressive and highly-successful exploration drilling program along our 7-kilometer-long Gold Corridor.1 More than one million metres of drill results confirm that this Gold Corridor has similar rock, structure, and geology as the famous Red Lake Mine Complex right next door – mines that have produced over 25 million ounces of high-grade gold, valued at over USD $50 billion dollars in today’s market.1,3,8

Our World View?

Dream Big.

Sounds much like the same nonsense peddled by the Canadian cannabis operators with much the same results in the market.

PGM.V closed Dec. 31, 2020 at C$2.58, and closed Dec. 31, 2021 at C$0.68, which happens to be a loss of -73.64% for those who were holding, including me, at least for a few shares that I didn’t sell along the way.

We investors weren’t dreamers. We simply bought the news release hype that this mine would become one of Canada’s finest Gold mines when all we could later see were missed guidance, operational difficulties, and dilutive share issuances at highly dubious prices and timing that perhaps the Ontario Securities Commission might care to investigate.

Today the Company issued another news release. This one announces the replacement of the CEO and CFO Darin Labrenz and Sean Tetzlaff. I don’t know the new people, Troy Fierro and Chris Haubrich, except that Haubrich had been a vice-president.

Not being on the inside like Eric Sprott and many others who knew far more than the public of what was truly going on, I will venture a guess that many greedy parties were involved in daily warfare at Red Lake.

The Company also reports that “following operational improvements at the mine, it is now targeting daily production of between 600 and 700 metric tons for the first quarter of 2022”. They say that Q4 daily production of 556 tons yielded a total of 7,657 oz of Gold.

If that’s the rock doing the talk, then investors have been badly let down.

On Oct. 27, I reported: “Today, the Company reported improvement in several areas:

Production highlights and milestones for the third quarter include:

• Average daily throughput of 685 tpd for the quarter, a 35% increase compared to the second quarter driven by increased stope access and mill upgrades;

• Gold production of 9,260 ounces, a 54% increase compared to the second quarter driven by higher grades and increased tonnage…

Maybe the Company forgot what they reported after Q3, and maybe they simply don’t care when they look into your face and lie?

It’s not as if several of us here including Goldbug58 and Scott were not questioning the falling share price of my once “favorite mine developer”. You can find that via the Comment Search function on this page.

Anyway, I kept a few shares through year-end to remind myself that (i) mining is a tough business that often goes sideways, and (ii) the first report of problems there early in 2021 should have led me to accept the possibility of a worst-case scenario where insiders were painting lipstick on a pig.

Is there hope for the shareholders? I wouldn’t know. You’ll have to ask the insiders, including those who didn’t quietly or illegally (i.e., without reporting) off their stock during the year. Clearly, somebody was selling throughout the year.

My guess is that the insiders who still own and control the management of this Company are now trying to work out a self-benefitting deal to sell the asset to a mining company in the Red Lake area that is professionally run. That’s usually how these things go."

https://www.billcara.com/community/