Post by
charni on May 24, 2018 2:13am
Like Diamonds - PGD is a story of survival and growth
POSITIVE FACTORS IN THIS STORY
The Friedland brothers own approximately 45% of the shares. Serious vested interest in the project - skin in the game as they say - IMPORTANT. They participated in all Rights offerings to the maximum and more. They believe in the story with vision, work, and money. This is a legacy for Eric to complete.
Eric and his team generally know pretty well what they are doing in the mining sector - seasoned mining exploration individuals - they kept the company afloat in the worst resource bear market in history (which is still on-going). In fact, Eric has doggedly advanced the project with his management team step by step. Remember in better times Eric's Peregrine Metals was taken out at $3.28 USD.
A very robust growth in the asset base with this new PEA news
CH-6 and CH-7 open at depth still, which should add more goodies to the gravy train
Multiple pipes delineated - yet to be explored for additional resource growth - "field of dreams" which is why us speculators risk our money on.
Rights offerings help a company survive, especially in poor market conditions when outside financing becomes difficult. Had to be done. Proper management decision.
The main negative is the very poor resource market sentiment - in speculation, they say buy when there is "blood in the streets" - especially pertinent when management is sound and the robustness of the project keeps getting better and better but market sentiment blinds seeing the opportunity.
Comment by
mill44 on May 24, 2018 9:28am
And that is my problem, and most likely the market's problem as well, with a rights offering from PGD. Each new one makes my idea more valid.
Comment by
schocor on May 24, 2018 11:40am
Cudjo Please explain how exercising rights - inserting money into the project to keep our share % ownership the same - results in dilution?
Comment by
griefman on May 24, 2018 1:08pm
In my crazy mind, dilution is when you add more to something, like adding a cup of water to a cup of milk, you are diluting the milk even though you have 2 cups of fluid. Thus, if you have a million shares of XYZ company and it’s SP is a buck, and you add another million shares at 50 cents, you end up with 2 million shares, but now the SP is 75 cents...is that not dilution? What am I missing?
Comment by
mill44 on May 24, 2018 1:43pm
"a reduction in the value of a shareholding due to the issue of additional shares in a company without an increase in assets." Did the rights offerings cause dilution then?
Comment by
schocor on May 24, 2018 1:50pm
No because the increase is assets was the cash we had to put into the company to get the shares.
Comment by
griefman on May 24, 2018 1:52pm
Holy frick Batman, what, huh?
Comment by
mill44 on May 24, 2018 2:16pm
So using strictly your definition, at the end of the 21c rights, did we have dilution? Aug 12, 2014 - close at 41c, 143.8M shares, worth 59M, Oct 8 - 19c, 215.8M shares worth 41M. They raised 15.1M issued 72M shares, total 215,764,791. The total after closing would be 56.1M, a 3M drop at the closing of the rights offering.
Comment by
griefman on May 24, 2018 2:24pm
Mill, who are you asking about their definition? Thx
Comment by
mill44 on May 24, 2018 1:49pm
Kodiboy. adding any water to milk would result in diluton, no matter what. Try making lemonade instead. You get some friends over, make some lemonade. If more show up than you expected, you add more water to your lemonade to have enough. Did you dilute it? Not if you added more sugar and lemon to it as well.
Comment by
schocor on May 24, 2018 1:42pm
Mill having participated in the rights offerings; I own the same amount of PGD as I did before the offering? Correct or false? This answer explains whether existing shareholders who participated int he rights offerings have been "diluted" or not.
Comment by
mill44 on May 24, 2018 1:54pm
Is today's PGD the same company that was before the rights offering? 50M raised through rights offering should be reflected in the assets in order to say that the rights have not been dilutive. If you say that the value of Chidliak went up 10 times, I will agree with you. But did the value of PGD?
Comment by
mill44 on May 24, 2018 2:32pm
Ekim, Oct 8, 2014, closing price was 23c. Jan 28, 2016, closing 11c. Aug 17, 2017, closing 13c. Those closing prices are pretty close to the rights. That is the right assumption, at least in PGD's case.
Comment by
Kidlapik on May 24, 2018 3:35pm
So what your saying is...if its another rights offering its bad but if its a sale/JV/deal its good! Cool glad we can go over the options again and again with no additional info available other than pure speculation on both sides on what the outcome could be.
Comment by
cudjo on May 24, 2018 3:39pm
true, all speculation until we know what we know, last question kidlapik, and I will stop beating the dead horse, what is holding the share price back with all the great news we have had?
Comment by
Kidlapik on May 24, 2018 3:42pm
Fear of another rights offering / fear of managements agenda being to privatize the company
Comment by
Kidlapik on May 24, 2018 3:43pm
I also think fear of Nunavut in general and I have always believed if this same project was in the same geographical location as KDI our current share price would be vastly different.
Comment by
cudjo on May 24, 2018 3:47pm
fair enough, not sure if I agree with you on the far north, not like it is 1950. Think we will know soon enough, not sure if I am going to hold out for a partner, or sell and short again, have to consult with the bones. Thanks for your input, good luck.
Comment by
griefman on May 24, 2018 3:47pm
Cudj, maybe the answer is soooo simple, that large retail holders of this stock are embarrassed to be so deep down the sinkhole, they refuse to accept the obvious, because it’s so obvious it shouldn’t even require additional discussion. Ya don’t need to beat it over the head over and over.
Comment by
cudjo on May 24, 2018 3:49pm
thanks kodi, looks like roby keep selling into the bid ;) ttyl, good luck.
Comment by
mill44 on May 24, 2018 11:51am
Five years and considerable amount of money invested in this and anyone who stumbles into PGD now has the same chance of making money as you.
Comment by
schocor on May 24, 2018 11:56am
partially true I suppose - truth of the matter is we have all made a pretty good % return on the last rights offering we participated in. The smart money into a mining project is always the last money into a mining project - but is PGD a good investment NOW is my question. I think the answer is YES.
Comment by
cudjo on May 24, 2018 12:06pm
Suggest you check your dates charni, and the terms and timing of the no free look, the company made a mistake IMO, or it was designed, as mil suggested, then Robert came in, if Robert had not come in, titanic. Even with Roberts help, the sp has been titanic, if your in now, you may be okay, but the long longs are in tough. Good luck.
Comment by
schocor on May 24, 2018 12:13pm
Cudjo - Chani's dates regarding DeBeers/Anglo match up pretty good to my recollection. The LONGS, have made good money off the last two financing agreements considering where the share price is at today. Once again, your perspective is YOURS and not universal.