The start of production next year is dependent on the management's ability to fund development works over the next few months. This is evident from the statement in the recently declared outlook. However, finding funds for a project which is about to start production is not going to be that tough. The valuations are very attractive, and the management is maintaining that it will be able to start production in 2014. The 50K ounces predicted by the management will change the game for the company for all times to come. This is because the transition from a development company to a production company is a major step for mining companies. It continues to spend on development / exploration and spent $5.2 million in 2012. The focus remains further exploration of the Relief Canyon Mine and recommission of the gold properties. The planned expenditure for 2013 is $3.2 million. The expected cost to recommission is $2.4 million, and it is expected to be completed by the end of this year. Importantly, as per estimates, the gross margins for the production will be around $700 per ounce which may translate into good cash flow in 2014. The major transition will change the balance sheet and it will be easier for the company to find funds for future operations / development of other properties. These events will make the intended listing on NYSE even more fruitful. The institutional investors will obviously value Pershing differently as compared with other smaller gold mining companies who have not started production. In March, Barry Honig had increased the stake substantially indicating that the immediate future may lead to good returns for the investors. The stock has shown strength by bouncing from recent lows of $0.38 and may be poised for much more. These two triggers, the start of production and the intended listing, make Pershing a good bet at current levels. However, success depends on management's ability to deliver on the promises. That is the most crucial thing to watch.
"finding funds for a project which is about to start production is not going to be that tough"
if only this was true - selling Valor shares for pennies just to keep the lights on in the office is not going to get the mine up and running or extend exploration.
We don't have a PEA published yet so your wild #$%$ guess at "gross margins for the production will be around $700 per ounce " is pure fiction.
Alfers is meant to be one of the best in this industry and he can't raise the funds to mget this mine up and running - a full listing before end of Q2 - not a chance.
Alfers stated they had to raise a lot more money than 6 or 7 million. Based on the assay reports your cost-per-ounce figures came out of a magic lamp. On 90 tons/ounce? NO WAY! One third of the year is already gone and there is nothing going on at the mine.