Oh 1fer...
I know you're disappointed by the current share price, but if we'd stayed an explorer it wouldn't matter what we were looking for, there would be no capital to support the ongoing business and we'd be done. Take a few minutes to trawl through all the junior explorers that are being kept alive by loans from directors, or are winding down to a shell company as they know that they won't get any value for sinking more money into the ground. There are literally hundreds in this position.
Exploration drilling and drill results require nothing more than drilling a hole, logging the core and then getting a grade analysis to announce. Resource drilling (what PMY are doing) requires a lot more testing at site (such as testing different separation methods) as well as putting the core analysis into an existing JORC model once you get the results back. If you are drilling a hole into a known deposit and trying to improve the JORC model, its not as simple as announcing grade when it gets back from the lab (and Xmas holidays at the labs don't help, surely). If KBL drilled a hole there, and another one 100m away and all we are doing is drilling in the 50m spacing to give certainty to a JORC model, announcing a grade isn't market sensitive or meaningful. They have grade, they have a deposit, don't worry about that, it was never in doubt - unless all the KBL directors, the labs and the geologists perpetrated a fraud of historic proportions. Even PMY and Henan Yuagang and Tony Poli et al would have to be in on that fraud now, and they wouldn't even be beneficiaries of it. So its not something to worry about.
PMY could have spent ten's of millions of dollars to try and locate a deposit in the SFR tenements with potentially no outcome, but also keep in mind they never entered into this JV to be an operator. They we being paid to find projects for Cleveland Cliffs and would have kept just a very minor share as they explored it, and only ended up with the project when Cliffs left Australia. They took a swing at the exploration (just like we all bought a Powerball ticket this week) and it didn't pay off, so rather than sink tens of millions more into it they have now gone quiet on it (just like I won't be buying a Powerball this week). They still have it, and I'm sure would love to farm it out, but no one wants exploration assets at the moment. No one!
Violin came along just before Sorby. Early stages exploration project that looked very exciting as an exploration project, but only had the barest of sampling done at surface. They then secured Sorby and in order to show the market that they had focus, and because there is no capital being offered by investors for exploration, they decided not to proceed with the option (which would have required further payment).
They looked in Colombia. Hard. They found little of substance. They got their money back. Then a geologist was murdered there. Then investors walked away from Colombia again. The potential is still there, the contacts are still there, the PMY tenements are still there. But there is no capital prepared to invest in Colombia at the moment, let alone Colombian exploration.
Move on from Simon's wage. Its not share price linked. Its still low compared to a lot of the market. It is fair given he is the only executive, secured a mine-able deposit and raised the money in a terrible market and has moved the company from an exploration company (read as: shell that doesn't know it yet) to a mine developer (read as: shiny future!). If it's more than you are paid, well, that's for you to remedy. This isn't communism where we all get paid the same.
PMY, like all juniors in this market, are capital constrained and affected by a terrible macro environment. It takes time and money to do things right so that we are rewarded when the market turns or when the spotlight shines on PMY. The register is very tight now, all the disappointed short term traders are likely out, the lazy short term placement stock has been dumped and the major shareholders keep scooping it up. Have some confidence, as when it does run it'll run hard because its tight and massively undervalued on any metric.
Expand
