RE:RE:Best Move O'Brien and Perron MadeParay99 wrote
Shadow10 wrote: Thank God that O'Brien and Perron sold the Snowfield gravel pit to Seabridge for 120 U.S.+ millon. Pretium's Bank account is sitting pretty nice and we will be out of debt in not time. Thank You Seabridge's CEO Rudi Fronk for the Cash $$$$$$$$$$
You don't understand anything, right? For last 7+ years, I didn't see much value holding PVG shares... I should have better invest that money into some other cheap mining stocks to grow it multi fold!
Free cash with PVG? That doesn't mean anything to me unless I see my $15000 grow to $25000 in last few years and not just hovering around $13000. This company sucks if we hold long... However, shorts made tons of cash!
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The problem with investing early with companies like PVG is that 7 years ago when you bought this stock PVG was nothing more than a hole in the ground. They had to get all the approvals, finance and build the mine. And while PVG will have payed down $700 million US in debt plus interest in a few short years since production began that money has not gone to long term shareholders.
In hindsight it would have been better to trade PVG over the last several years while waiting for the right time to invest for the longer term. In a few months PVG will have more cash than debt. They are doing $50 or $60 million in capex this year so another three months will take care of that. So by this fall PVG will have more cash than debt.
At that time with todays gold prices they will be cashflowing aprox. $ 330 million CDN per year. That will then be free cash that doesnt have to go to paying down debt and interest payments. That free cashflow opens up a lot of possibilities. They could easily pay a 75 cent annual dividend per share which would cost them aprox. $ 140 milliion CDN per year which would still leave them aprox. $190 million for expansion, drilling etc. They could also start looking at buying some other mining properties or existing producing mines with some combination of cash and shares. Having a nice 6% dividend or buying another miner etc should help the shareprice and give shareholders some cash every month.
It is easy to see how long term holders of PVG are frustrated as they see that despite the company making a lot of cashflow and paying down debt the shareprice has gone nowhere for years. At the same these same shareholders watch as the Teslas and Bitcoins of the world soar into the Trillions of dollars in market cap. while having 0 cashflow.
Eventually though some kind of sanity will return to the markets and companies will be valued on Profits and Free Cashflow again. Something which PVG will soon have a lot of and likely much more with higher gold prices. The cash will soon start piling up here and they will have to do something with it although even if they just let it pile up the market should start to notice when they have $500 or $600 million in cash piled up a couple years after they pay off the debt.
Things will eventually happen for PVG and its shareprice whether its a dividend, expansion of existing resources, purchase of a new mine or properties, huge piles of cash in the bank and no debt, huge money printing and inflation causing gold prices to rise or a combination of some or all of these things.
When that will happen is uncertain. From the looks of things it could be quite some time yet.
In the mean time PVG keeps quietly getting stronger everyday as they have for a few years bringing in their close to $1 million CDN per day.