2 things needed..gold much higher and more discoveries
If you do the math, it appears that the market is valuing gold at $22 in the ground due to low gold price and cost of extraction. This is low. In the past, it was closer to $100 when gold prices were much higher. So, when gold goes up to $2000 per ounce, it might be reasonable to be around $100 in the ground. If they can increase their reserves to 10 million...(2 big ifs) then we might see a price of $7 or so depending on the fever. My opinion is that gold surprises to upside this year. I think around 1800. PZG finds some more reserves and the stock gets bought out at 5 or $800 million. Acquirer gets 2 nice properties...solid au resources and bonus silver resources. Just an educated guess. One key...Crupi has got to keep the share count down.with this deal... Crupi gets 20 million and Friedberg gets $120 million.
I think PZG should be accumulated now, imo. Inflation is going to begin to become apparent, and all the "tools" in the world, will not be able to hide it. People are not stupid, although ithey are treated as such, imo.LOL.
I agree fully. If you read that Miner's Bliss piece in Seeking Alpha, (if true), there could be some incredible upside. At the time of that writing, they were thinking that they would get over $240 or so in the ground. Now the market seems to be evaluating things at $22 au in the ground. LOL or more appropriately- #$%$. AT $240 and 5 million ounces between the two mines measured/indicated- and $1,700 gold, you might have a price of $7.5 per share. If gold goes much higher and they find some additional reserves, maybe we have a "teens" price. Lots going for PZG. I am just taking some while guess. If Gold, were in the $2200 plus range, and the reserves when up to 7,500,00 ounces, you'd might get a price of $500 in the ground depending on how good the grade is. Somebody gets $16 billion worth of gold for $3.7 billion price. I'd take that deal every day. This would put PZG into the $20s. Just showing how it could be done. 3.7 divided by 160 million shares equals $23.44 a share for less than a 1/4 cost of the gold in the ground.
I like your thinking !!! Based on your analysis looks like a first or initial entry in the low 80 cent level will pay back handsomely over the next 18-24 months. I have a modest stop trigger order in at 77 cents if it dips further in the next 2 weeks. Will support bigtime down to 34 cents. A $5-10 gold in the ground cost is not a bad price.