After doing my analysis in calculating true value of Pershing Gold here is a breakdown of conservative numbers and how I get to 45 cents per share today!!
Replacement value of mine: $30 million
Ounces on balance sheet today: approx. 560k ounces at $125/oz(emerging producer)=$70 million
Cash on balance sheet $10 million
Permits ; nearly fully permited=PRICELESS (years of uncertainty for any other company)
Land position: 39 square miles with unlimited exploration upside
Nevada:No Taxes and no geopolitical risk
Ounces on balance sheet in production according to BMO report: $200-400/oz
My guess they have over 850k ounces and the grades are now 100 times better than Allied Nevada and CDE the neighbor and investor in Pershing who has been producing for 30 years. So my guess conservatively today, not including value for permits and exploration upside, this company should be trading between 40-45 cents per share liquidation value with only what is currently on the balance sheet and with the update 4301 report and PEA this stock should be trading close to 60 cents with production costs between $800-900 ounce.
maxkonaet just trying to show you that if the options and warrants were exercised..look at the pages is the investor presentation..those shares have to be exercised and they would need to pay the company an average of .42 cents on approximately 60 million shares. They would just increase book value if exercised and it would be dilutive just as any financing would be..but these are above the market so I think that would only be a positive. Yes they do burn cash but this is what needs to be done to increase the gold reserves and to expand the company and this is why we are investors in the company.
if the options and warrants were converted then the company would receive an additional $25 million in cash?and you think this is worth $50 million maxkonaet? simply you are an idiot also!!!!
$14-16 if they do it in 2014 otherwise much higher. Why would they keep adding like they did today? only one reason to save a few bucks in the long run. In Asian markets they trade at 30-50x ebitda; PFSW is cheap!!!
I guess you just learned how to figure out shares outstanding vs. FULLY DILUTED DUMMY!!!. I am here to teach...anywhooo lets catch up another day
Learn how to read that page....remove the options and warrants from the number and you get the outstanding shares. The others become shares when exercised and paid for a higher price!!!That page shows the only difference is 1 million more stock options otherwise I am 100% accurate
Maxkonaet and Hanna, I solved the share count after digging thru q's and k's,
Share count is as follows:
approximately 273 million common shares
approximately 33 million common for preferred $11 million conversion which carries 0 interest
CURRENTLY 306 MILLION SHARES OUTSTANDING WHEN PREFERRED CONVERTS;IF YOU INCLUDE WARRANTS AND OPTIONS WHICH ARE ABOVE THE MARKET THEY WOULD BRING IN $25 MILLION CASH SO YOUR SHARE COUNT IS WAY OFF!!! A DOLLAR IS WORTH DOLLAR AND IS NOT DILUTIVE TO CURRENT SHAREHOLDERS BECAUSE THE MONEY WOULD COME IN ABOVE THE MARKET.
approximately 26 million warrants outstanding at average price .45 cent
approximately 32 million options outstanding at .40 cent
306 million shares outstanding everything else is above price...regards all
once special situations sells this doubles or triples..company should do a secondary for their position..transcosmos takes 700k and rest gets swallowed by some big funds and the we see a moonshot!!they will be happy to get out now and a few large funds would be able to aquire without moving stock around..
I wish I knew the future..it is definitely being accumulated..by me. Now I need that press release. This company is one of the cheapest startups that you could publicly own with insiders that have huge skin in the game. Love the prospects and I think growth for this company in China and rest of Asia is going to be huge for the next few years!!!This stock is trading $5- 10 bucks cheaper then where it should be!!
I have been in before reverse split also. I do not want to trash Layton but he brought us pretty far and did a great job but investors could not relate to him and he had little skin in the game. Losing contracts such as Carters in late 2012 were not failures but rather successes for the company but bad for bottom line. They did a phenomenal job growing sales for Carters but it made sense for them to take it in house; not sure why we lost Fifth and Pacific co's.. Willoughby has done some tremendous deals in a short period of time; not sure if Mint and strategic investment was paved by Layton buy nevertheless we still do not know if a good deal or dilution. Willoughby is able to get the value of the company across in a way Layton was never able to do with the funds and analyst community. 2015,16 and up thru 20 could make this a real big company if they execute perfectly. Will be a bumby ride with contract losses and new wins but either way we will keep growing stronger.
Listen to the call is all I could say...I could not do it justice by what I could say in writing.BULLISH BULLISH BULLISH..would not be surprised to see a DWRE kind of run..at least $15-20 by end of next year maybe $30-40 by 2016...yes I hold thing long term and this company is going higher..let Special Situaions sell now to all the buyers that want in!!!Good luck all
I am definitely holding but I am not expecting much price action either way..more biased for a slight bump up unless they can give us 4th quarter guidance and they usually won't get numbers from clients for a few weeks. If they happen to release some anticipated numbers for the mint, new signings and increased guidance for q4 the I think we could see a move to $8 but I am really sticking around for next year which should be transformative and maybe even a sale of the company to transcosmos, ibm, orcl, ingram micro , dwre or even sitel if they could afford us...even a good fit for GRPN..this is a new company and growth and earnings are coming our way finally
anybody care about this company? Nissan, China Software...Sugarcrm partnership...NTT partnership...hello out there..NTT took over 2 cloud plays today...an easy double but I am in for a 10 bagger
stock is doing great, company has been telling the story, growth in asia is all the rage..this company is still dirt cheap compared to demandware, channeladvisor etc...look at workday, netsuite, veeva..I mean this stock could really go to $20..If anyone also wants another company that I love with tremendous upside check out BVSN...I own almost as much as this and I think could be a multibagger within1-2 years trading at cash and negative enterprise value with new client wins and big partnerships that were just forged over the past few months!!!