Premium Nickel Resources Ltd V.PNRL

Looking Ugly

[rockmoney]

Great team and people but the stock is looking really ugly here. The biggest problem is they failed to raise the $27 million and only closed on around $7 - ouch! That says a lot about what the market thinks. And that $7 million short term loan was incredibly expensive and stupid. Ok, maybe I'll take back a bit on what I said about management?

Finally, just checked their latest financals and the burn is insane. Almost $900,000 per month for general, admin and management salaries. WTF??? Add in the high cost of keeping the Botswana asstst in good standing let alone doing any work, and the balance sheet is really ugly. The market sees this so this is going lower.

But that failed financing in a hot nickel market says a lot.

[wedowee5]

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[RatPatrol]

Sooo.... to your point, it strikes me that this stock is WAY OVERPRICED. This pricing mismatch reminds me of that great investor who used to say that  "The good times last longer than you expect, and so do the hard times". We c...

[rockmoney]

I just reviewed their year end audited FS. These guys went out and bought a damn lodge for +$3 million bucks! So its on their balance sheet as a lease liability. They owe more than $1million in July and have less than $4 million in the back today. The burn is also still crazy high. This whole thing is imploding from mismanagement and zero cash management controls. This company thinks they'