Running some basic valuation numbers only causes me to wonder how/why the current PGLC PPS could even be sustainable, leave alone realistically possible without first at least tripling the current estimated resource.
Under a very best case scenario;
Current market cap @ $107.8M divided by the report indicated measured plus inferred gold @ 717,000 oz = a $150 valuation per in ground oz. (extremely high) or $196 for only the 552,000 measured ozs (ridiculous for no PEA or current known production cost value).
At the report indicated rate of .019 oz gold per processed ton @ an impossible 100% recovery rate = 52 tons (+/- 3 tri-axil dump truck loads, or a 2 bay garage full-floor to ceiling) of material will need to be dug up, moved, screened, and tailings spread, all to recover only a single oz of gold.
A state of the art (very expensive) processing plant running at top efficiency runs around 1600 tons per day, meaning a maximum of only 32 ozs might be recovered @ a unrealistic 100% recovery rate.
At a 32 ozs per day recovery @ 1150 per oz sold = $36,800 daily cash flow x a 300 working day year = $11,040,000 in TOTAL ANNUAL income but only IF 9,600 ozs are in fact recovered per annum.
I can only wonder what the cost of permits, reclamation bonds, machines, machine maintenance, fuel, labor, smelting, management salaries, insurance, drilling, engineering, consulting, sales, corporate offices, taxes and who knows what else might end up in fact being per year ($700 per oz... really?). All while considering that $300M-$500M just to get to a mine of this scale into a full scale production mode, is like an industry wide average.
I honestly wish the best for Pershing and their shareholders in all their endeavors, I just truly believe (know) there are a great many far better (fantastic by comparison) opportunities available in the PM space. That's all...
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