Thoughts on Premium from a listener
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Re: It’s all about the money. . . . . .
To my way of thinking, this is all about 2 things. The precious metals market correction and it’s effects on funding-financing availability. Period. For PEM, I have only been worried about sufficient funding, for good reason, as it turns out. MaxV, you might recall my first bringing this up 1.5 years ago in late summer or the Fall of 2011 when I posted that I thought PEM should be arranging additional funding because the amount they had stock piled would be insufficient. You diasagreed with me and wrote that you did not want to hear anything further about funding. Welllllll ???? I was right then, have been ever since, and remain so today.
PEM has had everything else going for it. It has the gold, it has great tests, decent enough assays, a class Geologist, a gifted IR, and a totally dedicated and committed CEO. It’s Board of Directors includes people of talent, success, skill and proven ability. What is missing from this formula remains to be funding. I hope the Board members have done everything within their power to help solve this issue. That said, I continue to believe that we will see the metals sector recover within several months (+or-). The length and depth of this market correction has caught the entire industry off guard. Consequently, 70% of the industry is on the ropes, so to speak, PEM included. In my opinion, PEM “can” obtain the needed funding to get through this market downturn. Del has to make it happen and I believe Del will do it. Assuredly, there is more than one option at his disposal. So, we will have to wait and see, or sell our shares. I choose to wait and see. In my opinion there are many reasons why this issue will get resolved. That does not negate the negative emotions and disappointment many of us feel throughout this waiting process.
Again, to me, this is what it always has come down to. Ensuring sufficient funding-financing. Remember, virtually all sector firms did not see this lengthy market correction coming so most do not have sufficient funds on hand.
So what are the options? I can think of a dozen different ways to proceed. I have every confidence that Del is far more experienced at this than I am. I have no doubt he will have more than one “poker in the fire.” Del has choices. None are the best, nor do they occur at the most opportune time. However, procedural choices are “guaranteed,” none the less. I have had my say on this subject with all who would listen. Now, like everyone here, we impatiently wait to hear any news Del can release as time goes by. I, for one, want to encourage Del and his team. They need our support in times like these. They need to know that they are not alone and that their continued efforts are deeply appreciated.
Allow me to mention one more time: PEM has the gold; they likely have made one of the largest discoveries in the US and/or North America in decades; and, they possess a 100% accurate and proven treasure map that shows where all the gold is located. All they need is a respectful proper partner to help make this discovery a world class success. It is all about the money.
I am in agreement that we need to ride this out, but I am curious as to what happened to the idea of the buyout from Midas?
After reading a post that refuses to hold anyone accountable, here are my two bits.
As much as it appears PEM has some very promising prospects from a geologic/exploration perspective, the failing of the company cannot just be attributed to general market conditions. Market conditions are difficult, sure, but management has been particularly inept at raising funds and preparing for tough conditions.
Management has some of the worst timing raising funds that I have seen from a junior explorer (I have been in this sector for almost three decades). Just look back at the past few years:
Sep 11/09
Announces a $3 million financing, priced at $0.25, while hitting new short term lows. This despite the fact that the stock was trading above $0.25 since Jul 7/09 and hitting as high as $0.55. That is, management waited for the stock to show weakness before the placement.
Apr 19/2010
Announces a $7 million financing, priced at $0.30 with the stock trading at a short term lows of $0.30. This was the lowest level in 4 months, being the first time to sink to $0.30 since Dec 24/09. The stock traded as high as $0.67 in those 4 months. Again management waited for great share price weakness before raising funds. Not only that they re-priced the issue at $0.25! Seeing a pattern yet?
Nov 28/2011
After watching the stock trade above $0.40 for a year (Jul 2010 – Jul 2011) and as high as $0.80, they raise zero funds. They wait until the stock is trading at 52 week lows and announce a $7.5 million financing. The prospectus is filed at $0.15! WOW!
However, further incompetence follows and the prospectus must be withdrawn due to trouble with the regulators on other matters.
2012
They raise small amounts again at horrible price levels, although by now they have little choice.
Sep 10/2012
This latest financing takes the cake. Using a somewhat convoluted issue, if I understand it correctly, it is essentially: For a $1000 investment, the purchaser receives 15% interest, plus 2000 common shares (valued at $160 at time of issue), plus 4000 warrants (strike at $0.15). In other words, if held for one year, the $1000 is worth $1310 plus warrants if the stock never moves from the $0.08 at time of issue. Seems like an investment for insider buddys.
Anyway, while I have long been excited about the property, the management responsible for financing needs to be replaced. I.e. Del is doing this company no benefit, let’s hope he resigns soon.
I hate to say it but this company died with Wilf.
Sadly, Del has clearly shown his gross incompetance by running this compamy into the ground (pun intended).
PEM in its corporate presentation shows an image of the Carlin trend and the amount of oz it contains. However, Carlin is a carbonate hosted gold deposit, PEMs Idaho deposit is not a carbonate hosted deposit. The comparison right there is an attempt to mislead investors. The poster above claims that PEM has one of the largest discoveries in decades? That is far from the truth. Are you claiming the “deposit” is larger than Pebble Creek? Or Meadowbank? Or White Tiger? Or Galore Creek? Bigger than Detours mine? these were all discovered on the past few decades.
These finds all have reserves, PEM currently has resources in the inferred and indicated category. Less than a million of indicated gold resource at 0.9 g/t and 200,000 at inferred resource at 0.8g/t do not suggest one of the largest discoveries in NA in decades. There is a big difference between a resource and reserve.
So to say this one of the biggest discoveries in NA in decades I think the listener needs to provide evidence of this otherwise I believe his claims are misleading.
Please provide evidence to back up your claims or admit you are speculating and that your current opinion is based on gut feeling and not facts.
misleading.Well if you took the time to do DD on PEM you would find that placer mining on the Orogrande Shear Zone produced 8 million oz of gold.So that alone if history is an indication of Carlin and Yukon that the theory is placer mining left 90% in hard rock ore.So to make a statement (while not proven yet) that this could be one of the largest disctict discoveries in decades is not out of line.
The prpblem is PEM will never on its own prove this out due to the fact they are out of money and has asked debenture owners to for go interest payments while at the same time ask them holders if they want more PP in a future financing.I still can not figure out how one would not collect interest but be willing to put more money in.
PEM is fighting for its life there is no onther way to put it.But clearly the OSZ is likely one of the largest gold discoveries in the US.After all the evidence is that Idaho is in the top 3 world class silver disctrcts in the world. Gold is found with silver as a rule.
But from a risk stand point and with no clear direction from PEM on how they will fund its survival the shares are cheap but carry great risk.It may well one day prove to one of the largest gold discoveries in the US but its unclear if PEM will own it.
There is no question on geology,the big question is money to keep it.
James
i think marwal was referring to the size of pems strike length of approximatly 30km’s and the multiple strikes,deposits and geo anomalys, targets that have been found with just a little exploration. it may not be big in ounces yet but in project size its huge. if you looked at pems project maps you would understand marwals statements.
If its so great why has no major invested mufti millions as a partner? AEM just purchased $13MM of equity in ATAC resources. AEM invested more than PEMs market cap for 8.5% of their project. Why Not buy ALL of PEM with cash to spare if its such a large deposit? Because the truth is that it is low free gold spread out over a long distance with no single accumulation economic.
Do lawyers only fib and exaggerate when they work as politicians? You people are delusional. I look forward to the financial statements in April to prove the company is still spending the float on non mining related expenses. How the company spend over $100K per year in travel costs for a mine in Idaho…the office is in Vancouver.
I am of the opinion that Pem will have to JV, the whole deposit or sell the Friday Deposit, to bring the OSZ to full potential. Hopefully without giving up their too much of their 100 % equity. But what major gold company wouldn’t want a piece of a major gold discovery in Idaho. Especially as Mr. Flanagan reported from a conversation with a retired geologist from Newmont mining that the potential of gold is at depth which hasn’t been drilled yet. Our management has to find the best deal for the shareholders. I have a feeling that Del thinks, if he can tie in all the zones into one deposit, It will bring the best value for shareholders. But how do we get the money to drill that 250 permitted drill holes without shareholder dilution? All I have to say is come on Del, pull that rabbit out of your hat.
no comments on the logan pem deal al?
Off Topic (again)
Thanks to Peter Grandich for linking to this – well worth the 3 minutes.
http://www.tastefullyoffensive.com/2013/01/people-vs-winter.html