Since they are not in production , they are not making profit anywhere yet. At thieses prices for PD an PT we would have to see their actual results before talking about profits.
Pt more so if you look at the breakdown on the resources at Bushveld. Waterburg is majoity of Palladium. Gold is very low compared to the two.
is (dot) gd/5Ec8QU
Toronto Stock Exchange
Company Name: Platinum Group Metals Ltd.
Last Updated: August 27, 2015
Insider Sells Volume: 76,500
Insider Sells Value $: 25,055.00
Insider Sells Transaction: 19
many people were saying it was a bargain at 90 cents, then 80 then 50... fundamentals take a back seat when commodities are involved.. once metal commodities started to break down due to economic weakness, the bottom can never be determined for awhile... the writing was on the wall quite a long time ago...
Short answer is, I don't know what's going on. Slightly longer answer? I don't think China, Russia, S.A., Detroit or Montana will greatly affect the trend until the banking/investment houses decide it will. I believe the trend reversal will be interesting. No idea when it will happen.
Buy and hold investors in small caps might wish they could be in limited partnerships instead and not be on the stock market. A partnership holding would be difficult to sell but not valued by the stock market. Of course there are master limited partnerships on the stock market. They pay 90% of earnings as a dividend.
Gosh, anyone not familiar with underground mining go find the June article about PLG on the biv website.
Thanks for the kind feedback. Such is few and far between for anyone these days.
As I recall, you have been in and out of PGM miners for a good number of years. Do you have a gut feel for the current macro direction? Are we finally bottoming in PMs and industrial metals ... or do you see, "Big trouble in [Big] China"?
That last question is for any and all.
Very impressive PLG action today. The broad indexes all bounced up in fleeting fashion as Putrid Languishing Group ses another new 52 week low in defiance to the overall rigged markets. How quaint. So now we have an established pattern here. When the market is down PLG leads the way. When the market is up PLG drops further yet. 25 trading days left to over-the-counter bulletin board time. On its way to the Pink Sheets no less.
"Ultimately I think the best thing to do is determine what the future net cash flows will be and value the company based on that and then see how it compares with the market valuation …"
How do you " determine what the future net cash flows" in the wake of this commodities rout? How do you gauge the long term damage to emerging market demand cause by China's crash?
Even if Pt were not to decrease further, but be range bound between $950 and $1100 over the next few years, would PLG have a positive or negative (all-in) cash flow? If it's not positive, then at what point will they need another round of financing?
PGM prices are a huge risk, as is whether the production at WBJV will meet, exceed, or fall short of expectations. If you believe you can reliably project cash flow with all these unknown, more power to you.
I'm not selling PLG at these levels, as I am hoping for some sort of commodities relief rally (which may or may not come). PLG has some real headwinds to work through, not the least of which is the question of how many investors (such as myself) would wish to decrease exposure to this stock if it were to pop, let's say, to $.50. OTOH, I guess if you are buying in at these levels, then even $.50 would double your money. Lot's of risk for that reward, though.
I think it's a bit overdone. Pt can't stay down here for too long. It was expected to drop due to ETF selling, and there was a technical hard bottom speculated to be at about 800 and those extremem technical projections are speculative as are forecasts that Pt will be in the 1400s by the end of 2016. It is expected to be bolstered by supply demand forces once that abates. So I was baffled why it fell below .70 given that they have locked in their financing, timely I might add, and are going to be producing at Bushveld in less than 6 months. PLG is capitalised at under $300 million but is sitting on 30 to 40 million ounces of low cost minable Pt (equivalent). I don't own any and sold it all at .43 because I was flustered as to why it was sitting there so long. If I can cash out of one of my other investments soon enough I would be buying here. Some things don't make sense, like this market in general is driven by a manic electronic herd mentality. Ultimately I think the best thing to do is determine what the future net cash flows will be and value the company based on that and then see how it compares with the market valuation which can be a sub intelligent calculation.
"any reason why this stock cant even hold half its . 53 cent big share issuance ???"
Any reason? Do you need any reason beyond Pt falling 20%+ and Pd 30%+ in this time-frame?
I don't understand it when people make a leveraged bet on a metal (as "investing" in any mining company is) and choose to post complaints about how bad the company and/or management is when the underlying metal tanks. This sort of posting is common on mining and energy boards, these days
I'm deep underwater with my PLG "bet", but find it bad form to blame anyone else for my unfortunate choice to stick it out through this prolonged commodities rout. It's my responsibility to decide when to reduce my exposure, not the company's or management's.
Had the opposite occurred and Pt surged to $1800, and PLG followed suit to $5, would the same posters be singing the praises of the company and management? or be patting themselves on the back for choosing this "investment".