The company still has almost 10 million ounces of Au equivalent resources, a proven ownership & management team, and continues to move forward toward turning resources into reserves. Unfortunately there has been a paradigm shift in the overall market for precious metals and gold floats around $1,400 per ouce instead of the $1,800. I acquired my 44K shares of this company mostly from $1.05 to $1.42 when gold was $1,000 - 1,200 per ounce. I am sitting tight although the reality is now that the company may need a cash infusion at the end of this year. I truly believe that is one reason this stock has dropped to its current level as the dilution is built in. Sometimes it is tough to be a true long. Meanwhile I have taken to day trading some BAA here and there and have make up for my losses in GoWest (that was a mess).
Well Howl-I am hanging in there. Times change and gold will not be at these lows forever. Seems people grasp any negative period and project that over the foreseeable future. FRG had good times and bad times but sold for $14. Hard to believe for some-but these tough times will eventually pass and the big boys will be wanting more gold. Time IS on our side.
How is everything with you Howl? Heading to Portugal in the near future to eat and drink:)
Unfortunately, each of PZG's ozs in the ground is only worth around $10-20 based on other valuations of other juniors who have exposed equivalent resources. . So forget the fantasies of securing $200-300 per oz on a buyout!!! Those days are long other, maybe when we see $2200-2400 gold in 2018.
The company has $18 million in cash (including the money from warrants), which should be enough for couple of years until they need to raise money again.
Cupri said that when the gold market does turn around for junior equities, we are going to see some upside in this stock. I hope they are going to sell at least one of their properties to propel the stock price, otherwise we are going to watch paint dry for another 2 years.
As of 3/31/13, the company reported $14.3MM in cash and equivalents and stated in the footnotes that plan on burnging through about $850K per month for the remainder of 2013. That $18MM you note is also AR and invesments. That is $2.55MM per quarter which will leave them with ~$6.6MM a the end of the year. At that level of cash, they will have to be focused on raising more cash baring some type of sale of Sleeper and/or other properties before then. I can see Sleeper selling at $1,800 gold prices but don't see it at $1,400 levels.