PVG Down, POG Up ExplanationPVG is a classic example of what happens when you lie to and mislead your investors. You get a 40% haircut. I am in awe that long or short- there are investors and commenters here that simply can't accept that PVG lied and that they received exactly what they should have.
Not one commenter here has ever addressed the great "we mined 82k ounces from developmental muck" announcement commensurate with SSR and ZIJN selling millions of shares. Not only did that lie create a fantastic selling opportunity for insiders- it screwed the rest of us who hung on thinking things would get even better when they started milling 16g tonnage.
That is why the POG goes up and PVG goes down. We are now stuck with an overhead supply of stock and burned investors now waiting to break even before selling. We are dead money for the forseeable future and in my case- I've been long here since 2013. This is a classic can't short can't be long position- best thing to do at these levels is buy more and wait for a fair offer from a major. Or write covered calls or puts and at least make a premium.
(To be fair- goldminers have been slaughtered and at these levels- are a screaming buy. Anyone short here whether in individual miners, etfs, or indices are just asking for trouble, especially if gold ever clears the 1365 hurdle)
I'm not even sure the 4Q report will be very rosy-given this outfits propensity to dilute shareholders with additional debt, cheap offerings, and other surprises.. I am taking a jaundiced, skeptical view of any cheerleading attempts in the upcoming report. It is is time to put up or shut up. One commenter months back mentioned that PVG might have to pay all of the costs associated with delivering power/transmission lines to the site at once- I've been trying to find out what that liability is and I cannot. Hoping to hear from someone with a little clarity on that issue. I'm fully aware of the fundamentals- it's those snakes in the grass that worry me.