RE:RE:RE:RE:Anybody else notice this?Woodporter wrote
Sclarda
I could not agree with you more. Seabridge has been sitting on their low grade resource since forever, and do not seem any closer to getting a mine done.
Far better for Pretium to focus on the high grade resource they have in hand. Drilling seems to indicate plenty more of that to go with.
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Exactly. Why would a relatively small company like PVG want to spend years trying to develop a low grade "Gravel pit" in a very hostile remote location that would also require several billion dollars and many years to see any cashflow from when they have a nice 350 000 ounce per year existing high grade mine that has more cash than debt and is now piling up cash in all directions with new drill results that show unbelievable gold grades over long intersections in many drill holes.
Management made a very good move selling Snowfield and that money will help PVG to get debt free a lot quicker which gives them a lot of possibilities such as expanding the mine and putting some of the high grade gold that they have found through it. They also have a lot of money for an extensive drilling program to see how much more gold they can find. They can also look at paying a dividend, share buybacks, taking over another smaller miner etc.
It would make a lot more sense to me for PVG to build up cash at the current rate of aprox. $350 million Cdn. per year and then say in a year or two from now try and take over a small producer or a near producer such as Ascot or a similar company with cash and shares. In that way you dont have to take on any or relatively little debt and start getting the cashflow from another mine right away. That makes a lot more sense to me than likely bankrupting the company trying to spend many years trying to develop a multi billion dollar project like Snowfield. Leave that to the big boys.
PVG has had its struggles over the years. At the same time in only 4 years the company has payed off $750 million US in debt plus interest and is now sitting pretty with cash piling up everywhere and all the options that brings.
Sooner or later the market will take notice.