RE:RE:RE:RE:DisappointmentNoswet wrote:
why cant we focus on getting our existing producing mines to operate more efficiently and turn a profit before we throw in a new one. Great to explore but we have to show a profit at some point before investors get interested in us. No business can survive long continuously losing money unless they are building the asset up to more easily dispose the whole thing.
Premier is an exploration company. Always was. That's Ewan's thing.
He got creative a few years back trying to find ways to finance exploration without constant dilution. He tried to put together a streaming business, but decided to sell that off, and instead to buy a couple cast-off mines (one from Yamana, one from Goldcorp) that had significant exploration upside. One turned out very well (no one should be surprised that Goldcorp didn't know what they had), the other looks like a dud (apparently Yamana did know what they had). But make no mistake, the mines only exist to provide cash flow to finance exploration.
The bulk of the value in this company is in the exploration properties, not the mines. The recent rejected offer for Centerra's half of Hardrock shows that PG's half of that project is worth it's entire market cap or more. Not to mention Cove, Hasaga, and Rahill/Bonanza, each of which would be a flagship for most junior explorers. The mines are a side show.
Unfortunately, the market seems to have decided to value PG as a miner, and miners get valued on totally different metrics than explorers. It's not a miner, so the market is making a mistake. And when the market makes a mistake, that's an opportunity.
But there's no telling how long the market can remain mistaken, or what might trigger it coming to its senses.