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Playfair Mining Ltd V.PLY

Alternate Symbol(s):  PLYFF

Playfair Mining Ltd. is a mineral exploration company based in Canada. The Company’s main business is the acquisition, exploration and development of natural resource properties. The Company has interests in various properties in Grey River Newfoundland, Rostvangen-Kvikne-Vakkerlien Project (RKV Project), Folldal Project and Osterdalen Project. The Grey River property is located adjacent to the fishing village of Grey River (population of approximately 350 people) on the south coast of Newfoundland. The property consists of nine mineral claims (1,750 hectares). The RKV properties cover 201 square kilometers (km2) in a mining area about 100 kilometers (km) south of Trondheim by road. The RKV Project covers three Besshi-type Volcanogenic Massive Sulphide (VMS) copper mines (Rostvangen and Kvikne), a nickel-copper deposit (Vakkerlien) and over 20 additional known mineral occurrences. The Company acquired exploration rights on the approximately 216 km2 North Osterdalen Project.


TSXV:PLY - Post by User

Bullboard Posts
Comment by imerc23on Jul 24, 2012 6:03pm
293 Views
Post# 20148448

RE: The problem with this stock

RE: The problem with this stock

Mrs G wrote: "The problem with this stock,as i see it that they should diversify into more different properties like gold and silver instead of just one metal".

 

Well, there's problems here all right, but whatever complaints we might have about the management, I think we have to give them credit that they did in fact try to diversify PLY's portfolio -- not (I admit) into precious metals (as Mrs G) advocates, but at least into other kinds of industrial metals.


Don Moore bought the tungsten properies for PLY around 2004-06, because he felt that China's stranglehold on the tungsten market would lead to shortages and higher prices for this strategically important metal.  But as the years went by and the price of tungsten remained low, he felt he had to diversify Playfair's portfolio of properties, which led to the acquision of the Letitia Lake rare earth project in 2009, and then the disastrous Seal Lake copper drilling in 2010-2011.  With the benefit of hindsight, we can see that the Private Placement shares issued in Oct and Nov of 2010, to finance the Seal Lake exploration, torpedoed the company a few months later when the drill results were unsuccessful and those shares became free trading. The ghastly slide in PLY's share price, which began in Feb 2011, has never abated since then.  In retrospect, PLY probably would have been more successful if management had kept focussed on advancing their Grey River & Risby projects, when the tungsten prices soared in 2010-2011.

Bullboard Posts