Sent in to me By a lurker .
I do not know where it came from , I asked , haven ' t received a reply yet . I thought it important to post because it is a great commentary on Jeff Wilson , whom we find superb , honest a good stewart of sh monies and valu . We also know the DR better than most posters , and we know what he says is true . Truth is the locals are a prideful , righteous , even self righteous people at times . But they do not lie down to what they perceive as injustice .
Jeff is wise to proceed in this fashion - I could add some very pertinent info to his comments but as he used discretion , so will I .
Psy astterntion to the two holes that were drilled and why . Mayber a little reseach and calling might alleviate all the whining .
cautiousnow
“There’s a much bigger context than $PRG” (My own quote) I’ve spoken with Jeff a number of times in recent years about $PRG, so had reached out late last week to try to arrange a call for this week. We’d set a time for today. Jeff was very generous with his time, such that we spoke for close to an hour. As always, I found him very forthcoming in his comments, and appreciate the strategic lens through which he is assessing the situation in which they find themselves. The notes that follow are basically a combination of some information from Jeff and some of my own thoughts, where I’ve taken some licence in editorializing to some degree in the Big Picture piece below. The discussion was a bit anti-climatic because of yesterday’s NR, as one of the topics I had intended to discuss was the benefit of issuing an update of some sort. Summary: If I had to summarize the discussion in a single word, it would be “context”. This is because the lens through which we look at the situation colours enormously how we look at the $PRG story. Ultimately, $PRG is three lottery tickets-the Barrick JV, Ponton and JdH, each of which could be a winning ticket for a value far greater than the current market cap of $PRG. Things are not progressing as quickly as anyone would prefer because of the broader political situation in the DR and the associated sensitivities respecting mining. Forging boldly ahead without regard to the broader sensitivities in the DR could bring significant negative attention to PRG and potentially make it more difficult to conduct work programs in the future, such that they are being strategic and prudent in how they are approaching things. Although the words of the government have not yet translated to action, it sees mining as a vehicle to help the DR address its major economic problems. In that context, it would be surprising if the government did not approve both the Barrick expansion program and the Romero application in due course. Disclosure: In the interest of disclosure, I have a full position in $PRG that is material, and added another nice block of traders at the end of March that seem unlikely to be going anywhere in the near-term. I’ve spoken with Jeff at a number of shows. I find him very accessible and to be a “straight shooter “, and I really like the way that he’s put the puzzle together and supplemented the company with excellent advisors to optimize the technical integrity of their program and their broader positioning in the DR. I’m also impressed with the ongoing commitment to keeping investors informed through interviews and timely updates to the Corporate Presentation and how well he presents the $PRG story. (I should also note that Jeff is very approachable, and welcomes contact from shareholders.) For additional context on my comments, I'm just capturing some notes and personal observations that should not be taken as investment advice, and I do not have a geotechnical background. For clarity, I have no commercial relationship of any sort with any company on which I comment beyond being a shareholder or potential investor. I’m also quite transparent about my material holdings on my profile page on ceo.ca. The Big Picture: The DR is in a very difficult situation. COVID has created a lot of financial hardship in the country, which, in turn, has created a lot of unrest in the populace. Compounding things is that the country is very polarized politically. The former government party appears to be focused primarily on trying to frustrate the ability of the new government to get things done, notwithstanding the major negative impact this would have on the people. Given the negative impact of COVID on the tourism industry in the DR, the new government consistently notes that the mining industry offers a major opportunity for the country to mitigate some of the devastation that COVID has created on the economy of the DR. Unfortunately, that also means that there’s a major spotlight on mining, particularly in the context of Barrick’s proposed PV tailings expansion and, to a lesser extent, GQC’s Romero project. This spotlight attracts a number of opponents, be it political opponents of the government, local anti-development players, local businesses who like continued access to cheap labour without competition from mining or NGOs from outside the country bringing their own agenda to the DR. $PRG is caught up in this dynamic, and the proximity of Ponton to Barrick’s PV project would make it an easy target of protestors if it were to forge ahead with an active drill program at this time. While it is possible that $PRG could proceed with a continuation of its Ponton drill program without incident, it is much more likely that there would be orchestrated protests for the benefit of social media. The reality when dealing with a sensitive situation like this is that some opponents would like nothing better than video showing the military intervening to remove “peaceful” protestors. This is not at all the type of publicity that $PRG would ever want associated with its brand. It is uncertain how long the current uncertainty associated with the Barrick application will last. Given the importance of PV to the economy of the DR and the major emphasis that Barrick places on being a responsible operator in the manner in which it manages its operations and its ongoing relationships with communities, it would be very surprising if Barrick’s application were not ultimately approved by the government. (Jeff had made a point of emphasizing the importance that Barrick places on working positively with communities re education, outreach, etc.) The approval of the Barrick expansion could potentially see opposition to it dissipate relatively quickly. However, it could potentially also see the most vehement protestors attempting to interfere with the conduct of the work during at least its early stages, as that would make for some very dramatic video footage that could be used to try to create further support for a broader anti-development agenda. Ponton: Although $PRG holds all required regulatory and landowner permits and authorizations, it is in pause mode with respect to a recommencement of activities at Ponton for the reasons noted above. The good news is that the topography at Ponton is quite flat, such that seasonality associated with the rainy season is not a major concern for the property. This provides much greater flexibility in assessing the path forward than would be the case if there were major seasonality concerns in the area. The pause on the program also reinforced the benefits of owning their own equipment and using a crew comprised of 95% DR residents. They moved the rig and equipment to their facility about two hours away, and will be able to pivot back to the project in due course much more easily than would be the case if they had contracted for a rig with a company outside the DR. Another aspect of the Ponton program I found striking was the emphasis that $PRG places in trying to contribute positively to the local community, when so many need work because of the dire economic conditions. $PRG employed ~30 local people to help with the drill program in such roles as clearing, building roads, moving equipment, camp support and the house in which the crew resides. Another ~30 local people were hired to plant about 10,000 trees. This was a major contribution to the well-being of the local community. The local community is supportive of $PRG, and would like to see them recommence its program. As noted in other posts on the board, the choice had been made to start the program on the lowest priority projects in order to test drive the rig and to ensure everything was running smoothly for the shift to the higher priority targets. While disappointing, the low grades in the initial two holes do not impact negatively the way that $PRG assesses the prospectivity of the other targets. The results in some ways actually could be a bit of a blessing, as boomer holes might have put a big target on $PRG from the anti-development players. Barrick JV: They speak with Barrick periodically. $PRG are waiting to see results from the assays from the first 10 holes (~2500m) drilled to date under the earn-in agreement. As noted in yesterday’s NR, these holes were drilled on a number of targets. Fingers crossed!!! JdH: $PRG is not receiving much recognition for the inventory of attractive prospects it holds at JdH because of the regional pause in industry activity resulting from the ongoing governmental delays in addressing GQC’s Romero application. Given the economic challenges facing the DR and the degree to which the water and environmental risks associated with the Romero project are very different than represented by opponents, the approval of the Romero application seems much more likely to be a when than if event. $PRG has a number of attractive mature prospects at JdH for which permits are already in hand and to which they could pivot relatively quickly if the government signalled that it supported mining activity in the region by approving the Romero application.