RE:Maybe this is itPremier has underperformed GDXJ by 30% over the past 30 days. Given their large, high quality reserves/resources, it makes little sense that the shares are down in a market where gold spot is up > 2% and GDXJ is up over 5%. Yes, for the umpteenth time the company delivered a poor set of operational results, although this was expected and entirely due to their Mercedes mine. Exploration results were actually quite good. A question for the conspiracy theorists out there: who would benefit most from keeping Premer's share price down? Perhaps a key financing parrtner partner so they have more leverage to negotiate incredible off-take terms AND accumulate shares at distressed valuations? Or perhaps it's their Greenstone JV partner who has engaged in practicies that are unethical and borderline illegal? Delaying Greenstone, knowing that Premier was depending on those cash flows for future growth...keeping Premier's shares at low levels, waiting for another act of desperation so they can try to bid for PG's stake in the project? Or maybe it's a HF that has looked at their cash burn rate and projected they'll once again have to tap the market to fund future growth? Given the company has been burning much less cash as a result of COVID-related closures, I think it may be related to the first or second...any thoughts? With an average turover of less than $1mn/day it would not be difficult to keep these shares down.
I've read numerous posts talking about gold mining managements continuing to pay themselves healthy salaries while their companies hemorrhage cash. Sadly, this quarter's increase in salaries and stock based compensation did not make me feel like Premier is much different from the rest in this regard. If the stock was at $8 shareholders would be willing to overlook this, but it's clearly not and this type of behavior does little to help with management credibility.