Thank you Bigsee, I also enjoy and often agree with your posts. I have looked at PLG. I have been burned by a mining stock that I invested in during a construction period and got pounded. Can you guess which stock I speak of? PLG has a way to go before ore is out of the ground. I love SWC because I made great profits with them in the past and believe that they will see $25 a share again. Right now I am learning about shipping and looking at DRYS.
Best of luck to you and Happy Holidays,
I hope NAP survives. I want to reinvest but first want to see how they get out of the box they are in. I worry that BAM has outflanked them.
As you know I sold my position in PAL and bought SWC. New management at SWC is focused on growing organically. McCallister lost his job doing what you propose SWC should do now and buy a foreign property. Just not going to happen my friend.
Fair enough Ribble, explain to me if it is so cost effective, why is there 12 million tons of the material in a stockpile? Keep in mind it was mined from an open pit so the cost of excavating the material is much lower than underground mining, yet it was still too expensive to process.
Some important things to keep in mind.
1. They are missing their production numbers at the moment and using low grade stockpile material to cover the shortfall. This is a desperate act. I don't care what Gallagher says, this is not cost effective.
2. The need for money was to be settled once, now they been to the well one more time with another financing shortfall coming.
3. Management said that capex would be 10 million in 2014, last update was now at 30 million.
4. We still do not have guidance on production from the underground shaft for 2014. Without that it is still too early to determine if NAP can service its debt.
5. Management is still struggling with the mess left from the previous management.
6. The time to invest is when du Toit does not use the term "challenging " any longer.
I would stay away from PAL until they are consistently hauling ore via shaft. Too many unknowns. The worst thing about PAL, as soon as they solve one problem other takes its place. The story is never we are beating our production numbers and are making money.
I am no longer a stock holder just a sap that lost money down a shaft in Canada. Bell, are you still a stockholder? If so, do you think PAL can avoid BK.
As an aside, I hope you are feeling better and the doctors have given you many years to lament about PAL.
I admire the strength you had to muster to get healthy. Hang strong.
I will be looking to get back in on the mine once either NAP gets financing and meaningful production from the shaft occurs or by buying the company that buys them. I still believe in the value of the mine. I think management missed its one chance to get it right. I feel bad for them because the cards were shuffled and cut before they even got into the game.
Here is my thoughts on the most likely outcome:
BAM will force bankruptcy and then front the remaining moneyto get the mine producing and have a very valuable asset up for sale. For those hanging strong, I hope I am wrong and huge profits await you.
I made a small mint with SWC when I bought at $3 and sold at $21. I still like palladium fundamentals and like a little less drama in my palladium mine. PAL owes me big, in time this mine will make me money. I will buy when 4,000 tpd from the shaft is confirmed. According to Phil that may not happen till the end of Q2 2014. We shall see.
Best of luck friend,
"Damn Canandian miners." Jim
"If that happens what will BAM do?"
Thanks for the laugh Bell, it was needed after yesterday.
I think BAM is already putting a for sale sign on the property. There was a big sell-off a few days before earnings and then we find out they need more money. Yesterday's sell off felt just like the last. Smart/insider money knows something.
First off, I admire your courage. I truly hope PAL pays off for you. Here are my reasons for selling and writing to buy back in:
1. Do you know how much money they truly need? I thought they needed only150 million from last financing but that turned out to be false.
2. What are your concerns about not having enough money to ramp up production that would allow them to access more money to ramp up production? They seem to be stuck in an infinite loop.
3. BAM gave PAL one more chance out of many used and management failed.
4. BAM is not a white knight, BAM sells BK companies. That is what they do.
5. Assuming PAL gets financing, at what terms and can PAL meet the convents for the initial BAM loan. My fear is that PAL has offers on the table for money but none fit with its financial position going forward. In other words, the numbers don't work.
6. Without guidance on production and cash cost per ounce for 2014, it is hard to tell if PAL has a chance.
I am not making any kind of statement regarding your decision to buy PAL and I truly wish only the best for you, I have been following PAL for years and I wanted to share my concerns with you.
Only the best for you,
Thanks for your concern. Please do not feel sorry for me. I survived brain surgery, this is nothing.
I think the plan would be to haul Roby zone ore to surface via ramp. This is how the Roby zone has been mined. I don't see a need to haul it to the lift. Most of the stopes are mainly in place for that operation.
1. $800 palladium
2. $850 palladium
3. $900 palladium
Cheer up Bell, at least you are still alive to be miserable.