RE:Perron figuredWhynottoday2 wrote
....to be Net Debt Free by the end of June. Wonder if he sandbagged again and is already Net Debt Free?
Anyways does anyone know or willing to guess if the smoking hot US inflation number coming out on Thursday is going to be positive or negative on the Gold price and/or PVG current -$12.90 price??
Place your bets accordingly!
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At the end of the first quarter March 31st. PVG had aprox. $249 million US in debt and aprox. $209 million US in cash which means they had a net debt of aprox. $40 million US. In the first quarter they had cashflow of over $61 million US or aprox. $20 million US per month in cashflow.
In April and May they would have cashflowed over $40 million US which is equal to the net debt they had at the end of the first quarter. So congratulations everybody except mini PVG is now net debt free and cashflowing aprox. $240 million US dollars per year or $20 MILLION US PER MONTH at the current gold prices. That equals aprox. $320 million CDN. The current market cap of PVG is aprox. $2.4 billion CDN. That equals an aprox. 13% cash return at the current shareprice. If gold were to go up a bit with inflation, money printing etc as it surely should along with the US dollar rising PVG could easily be cashflowing $400 or $500 million CDN.
Having invested in a lot of junior gold projects over the years it taught me a lot of lessons on when was the best time to buy shares. That is why i have never owned a lot of PVG as although you could see it was going to do well eventually there are always a lot of bumps in the road and it takes years for them to find the resources, permit, finance and build a mine and then pay back all the debt. PVG has done this in a very impressive way paying back some $700 million US in debt plus interest in a few years and is now at the point where the debt is gone and the cash is pouring in. The Snowfield sale also helped a lot in getting rid of the debt.
At the same time for whatever reason the PVG sharerprice is at a low level and dropping steadily.
Speaking from my own experience with gold miners right now is the time to load up on all the PVG shares you can. It may go lower in the short term but as the quarters tick by and the cash piles up all over the place which leads to a lot of possibilities for PVG such as dividends, share buybacks, huge exploration drilling, takeover of another miner etc. the market will sooner or later take notice as nothing beats having a huge cashflow and no debt.
Come on PVG show us the money!!!