Lack of news from the management regarding start of production is the main reason why the stock is not doing much. It has been quietly consolidating around these $0.45 levels. The stock had moved from
$0.25 (52 week low in May 2012) to around $0.59 levels in January 2013. It has retraced from those levels but has repeatedly found support around $0.42 level. The recent range has been narrower, and the volumes have been very low. The 10 day average is 200K compared with 900K for three months. It continues to trade above the 200 DMA of $0.42 but is unable to cross the 50 DMA of $0.48 indicating lack of momentum. Any update from the management regarding the start of production could be the next trigger. Further, the management had indicated that they are planning to list the stock on major exchanges in the next few months. These two fundamental changes would alter the course of the stock for a long time. Usually these mining companies take years to deliver returns. But after the long gestation period, once the production starts, the returns are exponential. Fortunately for PGLC, the waiting period has not been that long and, if the production starts as per plan (50K ounces next year), then the current prices will seem to be missed opportunities in hindsight. Investors like Barry Honig and Frost Gamma Investment have been upbeat about the company (with substantial purchases this month). Since Barry is an insider, the purchases can be based on his faith in the long term story of the company. He bought around 11 million shares in March itself. However, till the stock breaks out of this range and stays above $0.48 for many days, the quiet period may continue. Then it has to take out $0.52 and then $0.60. Then, the road will be clearer and may become a highway.
"He bought around 11 million shares in March itself" - his large increase in PGLC shares in March was mainly because of the swop in his large shareholding of CRGC.
Barry Honig owns or controls 46,683,888 shares as of latest filing when he bought some more (250,000 shares for $100,000). His holding includes shares swopped from CRGC even though they are still restricted - same goes for Frost.