RE: RE: PEM vrs PRB (ramble)I am following what you are saying Como. While I have to factor in the PRB only has 60M S/O and has 22M in cash and equivalents, your point is well taken. I think the market (may) know that it will take many more drill seasons, and many more rounds of financing for PEM to delineate, and then develop the zones they are just touching on currently. If they are not going the route of PPs, then perhaps a JV model is in order. What will this look like and with whom? Uncertainty and more time. This allows momentum traders to look in other directions, and or place stink bids ad nauseum. This doesn't inspire investor confidence. Certainly not from traders that aren't that familiar with metals and miners. Certainly not from folks that are technical traders, looking at their arrows and sectors.
Another point that I don't read so often:
I think there is important hurdle that PEM has not cleared yet. It may seem trivial, but they have not posted a resource that exceeds the 1 Million Oz category in EITHER inferred or indicated ALONE. For example if they were to posted a Friday Zone indicated 700,000Oz and indicated 1.2 Million Oz Au. Investors would catch site of that one million Oz number, and suddenly see the inherent value here. They may or may not know whether in inferred number is better or worse that the indicated, nor the difference between these and Proven vs Probable. The 3.7 Million Oz number Probe posted is a significant pyschological advantage. That many Oz in one place looks like a going concern. Well, we who DD know that PEM is sitting on more that this. Higher grades and higher numbers. However, PEM hasn't posted these higher numbers yet. So, at a quick glance, all one may see is around 1/2 million Oz, and early into the process, a bit cash light with no seminal events happening soon. Even though discerning investors will look at the metallurgy, and the cut-off grades, and infrastructure before making up their minds about value.
For me, the advantage of a season of infill drilling will be significant. They will continue to shore up the resource at Friday-Petsite. They have extended strike, and now need to add Oz. While the longs will not be surprised at the Oz added to the resource, the average investor (should) begin to sit up and take notice. They should see that Friday-Petsite may open up toward both Monday and Zone X. The potential for more that 2-3 Million Oz will come into view. The realization there there are more Friday-Petsite(s) on the property will also become apparent. So now PEM needs money to pay for a season of infill drilling. Brutal that this is not trading above .50. The sector is thrashed.
Disclaimer, I have shares, and am long, but I'm sure you knew that...