Market Recognition of PFN’s True ValueI agreewith NL’s comment, that even 40cents is way too little for what PFN has going for them. Let us have close at look at the value ofthis company:
RiverValley Property - The gross value of ore (there exists significant potentialfor the future expansion of ore, asRiver Valley is located at the largestnon-ferrous mining and smelting district in Canada) at the current prices isapproximately $1.4 billion. Based on today’s closing of 25 cents, the MarketCap/Oz of ore is only $24. Stillwater Mining paid $127 per PGM reserve ounce (thedeal was a real steal for Stillwater, as it took advantage of the credit crisisthat created a low value of the Marathon PGM) when it took over Marathon PGM at $3.95 per share. My quick calculations (correct me, if I am wrong) showthat PFN should be worth over $1.30 just for its PGM reserves alone using the Stillwaterdeal of Marathon PGM.
Ofcourse, PFN has other assets too that are not reflected at its current price -The Destination Gold Project with Resource estimate over 600,000 ounces. 2011drill program could further expand on this. Rock and Roll Gold & Silver Project, wherethe NI 43-101 update is expected soon. PFNalso has 7% equity position in Fire River Gold Corp that is slated for production soon. Treasuryhas over $6m in cash & securities.
The stockis incredibly undervalued and the current share price is not anywhere near thetrue value of this company. It is amazing to find some people are rushing tosell this stock without having the patience to wait until the market recognizesits true value. Today’s volume is a reflection of the fact that the marketrecognition of the true value of this stock has begun finally. So hang on toyour stocks.
GLTA