Post by
arh0070 on Mar 10, 2021 11:39am
Nee
Well Mr Market is not impressed ,the price of NEE stock has dropped by 50% in conjunction with the takeover of Eclipse .
The problem of selling a stock with limited float was illustrated by the sudden fall of PGOL stock recently .One can only get out at a decent price when there are lots of buyers and its going up especially if one is selling a significant number of shares (600K or so).
If Pgol really was a royalty stock I probably would have held on ,but it isn't ,it is controlled by one person (Trevor) and what he says goes .Whilst it has great cash flow from its royalties from the Moss mine it has no intention of sharing this with shareholders as far as I can tell.Most royalty stocks (think RZZ for example)pay shareholders a dividend and reward them by buying back shares .
PGOL has done neither though it could well afford to do so .Instead it is drilling at its two prospects ,so its kind of a hybrid ,not a royalty stock and not an explorer but a bit of both .
I have little doubt that if Trevor decided to use half of its cash flow to pay a dividend to shareholders (all of them )and buy back shares then the value of PGOL would go up and trade like a royalty stock with the p/e that goes with that.That was the reason I originally bought a lot ,when I realized that wasn't going to happen anytime soon I sold .
Might reconsider if the situation changes .
I am also not a fan of companies that are totally controlled by one person ,they tend not to listen to shareholders and are primarily operated for the benefit of the one person who controles .
The Canamex transaction has not turned out well and who knows when that mess will be sorted out .The Moss mine transaction was fantastic but the CEO who brought the Moss into efficient production has now resigned .
If one looks in detail through sec fillings from PGOL there are two insider transactions which were very troubling to me ,hence again why I sold .
This would all turn around if a dividend is paid and shares are bought back ,and a proper independent board appointed to vet and approve any financial transactions.
Just my personal opinion of course ,everyone needs to do their own due diligence which includes going through the 80 page SEC filing ,I didn't do this originally but finally got around to it prior to selling .Investing in this space is very very risky business and one has to be extremely careful and cautious,this is what 30-40 yrs investing in this space has taught me ,sometimes very painfully.
Comment by
Dragoon on Mar 12, 2021 8:03am
They are just starting to do more mining at Moss. With the production in the last quarter if it will be the same for the full year it is already more than 50k gold ounces mined per year. But I expect more will follow if you read the presentation. Also Patriot Gold is pending results from new drilling at Windy and Rainbow. They are looking for more investments.