Prom Resources Inc (PRMO)

[DC168]

I really want to verify the value of the inventory. PRMO acquired 5000 kg by December 2008. It was increased to 6100 by June 2009. Gold index was ~ $900. PRMO management decided to keep the inventory until higher prices. Which is at $1405 today. It is almost 50% increase. What is the present value?

If inventory increased by 1100 kg in half a year, it should gain 3300 kg from June 2009 to December 2010 (1 1/2 years). Thus the current inventory should be around 9400 kg.

According to financial report, they are ready to liquid. It is as good as cash.

First quarter report said $4 M revenue and $3 M net profit. How much (in weight) gold bearing material was sold?

The quality of the gold bearing material has never been published. Difficult to estimate to present value.

Lots of question to be answered.