Primary Gold (PGO)

C

Caput Lupinum

Well-Known Member
Silver Stacker
Bought PGO at $0.02 in February and is currently trading at $0.105

Primary Gold has a 1.4 million oz project (Mt Bundy) in Australia and a market cap of about $50 million. It is broken into several small open pit projects. They want to begin production on another high grade deposit (150,000 oz), which has 9 gpt. The capex for this deposit (Tom's Gully) is $25 million. They have a nice pipeline for growth with several drilling targets. The cash costs are $500 per oz at Toms Gully, making it very economic. They recently raised $4 million, so investors have some confidence in the company. It's very high risk, but also could be very rewarding. 285 million shares outstanding.

DYODD
 
I bought a lot of juniors and speccys in February that are up 100-400%. Basically any small cap that doesn't hold debt has done well over the past 6 months with the rising gold/silver price like MOY, DRM, BLK, RMS, ABU, RSG and RNS.

PGO on a pullback if the gold price further consolidates would still be good value.

Ones that I wanted by have slipped the net and that I no longer consider undervalued but am watching for a pullback - EXU, ORR and IVR

RED is the only one left that I have an open order on.
 
RIM looks like it is still poking and hoping for gold and silver at its Fifield project. My preferences is for companies who already know what they've got and have at least completed a pre feasibility study.

I don't know enough about the social media sector to comment on MKB
 
Caput Lupinum said:
RIM looks like it is still poking and hoping for gold and silver at its Fifield project. My preferences is for companies who already know what they've got and have at least completed a pre feasibility study.

I don't know enough about the social media sector to comment on MKB
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It's MKO actually, I think we may differ a bit on our targets, I prefer to look at those who have the potential to multi bag from a low base, as opposed to those that have a solid base and prove up over time. The real difference is the overall risk between the two. I like to play the risk reward ratio over a few different plays on company's that have a past history of previous success when metals were the story of the day. A buy at .004 that go's to .03 for me is a much better play than one that go's from .21 to .24-.27

I appreciate the solid base, but a few grand risked here and there on a small cap possible with a FA base over a 3-5 month time frame is a lot more enticing than
a solid entry on a stock that will only get you a 25% gain as opposed to 3-700% in the same time frame.
 
I bought PGO, the topic of this thread knowing how much proven resources they had and how much their capex was for their projects at $0.02, 6 months ago which is up over 500% at the moment despite the recent pullback in the gold price. There was no need to wait for drilling results. I have 6-12 late stage development juniors which are up 200-500% from the beginning of the year. Even a producer like Saracen is up 200-250% from where I bought at the beginning of the year.

Lodestar is an example of why I avoid the poke and hope gold explorers. They were being pumped on the forum for a while recently until they turned up nothing and their SP crashed. They are too hit and miss for finding gold, but they don't miss mining investors through capital raising.

Pick the timing on the underlying commodity and there's no need to invest in the risky explorers in order to get huge gains.
 
Paterson's Securities updated coverage of PGO :|

Overall, Primary Gold Limited (PGO) offers investors exposure to a potential large scale (>150kozpa) gold opportunity at its Mt Bundy project in the Northern Territory. This is a significant change in direction for the Company that was previously solely focused on the development of the small high grade Toms Gully deposit. The change in direction has been driven by the appointment of a number of highly experienced mining executives to the PGO Board. The reinvigorated Board has been able to successfully raise $4m to pursue the large scale gold option. The project already has a significant Mineral Resource base of >1.2Moz which includes the Rustlers Roost deposit which offers a large bulk tonnage open pit ore source and the small high grade Toms Gully mine. PGO is planning a significant exploration program over the Mt Bundy tenement package which contains numerous exploration targets. Based on the potential for PGO to establish a c.150kozpa gold operation at the Mt Bundy project we have determined a target price of $0.24/sh. We believe an operation of this scale could attract the attention of other Australian Gold companies looking for future growth opportunities.
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http://www.primarygold.com.au/pdfs/asx_announcements/2016/160712 Patersons Research Note.pdf
 
Bit late for all that, It's like inviting everyone to a bbq at 2pm but you have it at 12pm.
when everyone arrives all that's left is potato salad.

next time let us know beforehand so we get some meat
 
CGN may have a chance. Bought it as a speculative investment at $0.08 and is currently trading at about $0.065, but they have debt and I expect more likely they will be bust or sell their flagship before they can get the capex to fund it. There's nothing left in the gold space worth buying at current prices. Had to be in late last year or earlier this year.
 
Caput Lupinum said:
There's nothing left in the gold space worth buying at current prices. Had to be in late last year or earlier this year.
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Well said. Thank you for putting the baby to bed.

Red just jumped, PGO just got pumped by Hot Copper in a mail out.

There's some retracement in a lot of the speeding ticket stocks, but the big wins were realised in the last three months/post brexit referendum. It would not surprise me to find that a vast amount of capital moved into the ASX, from EU and British capital markets. Causing the sudden surge of the majority of the gold basket here.

Increased capital in the Equity markets here also facilitates the subsequent capital raisings that often ensue.
 
Which is why I've started looking at other sectors (uranium) that I believe are undervalued where the next big gains "may" come from. I'm not expecting uranium to rise for up to another 2-3 years, but I would rather be a couple years early in uranium than 3-6 months late on gold if I want those big gains.
 
Caput Lupinum said:
Which is why I've started looking at other sectors (uranium) that I believe are undervalued where the next big gains "may" come from. I'm not expecting uranium to rise for up to another 2-3 years, but I would rather be a couple years early in uranium than 3-6 months late on gold if I want those big gains.
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Yes. Uranium is an interesting area. Thank you for mentioning it.

Ranger is in decline, and they are quite literally picking over their tailings.

From the reading, it's a rather different marketplace, which is in significant oversupply right now. The reason that Honeymoon was sold by RusAtom, were to do with the economics of production. Spot price is currently 27. lb, while production at Honeymoon based on reviews shows AISC of 43, coming down to ~35 or so with increased scale of the ISL process.

Demand is however ramping, and the number of reactors coming online is interesting. There are less plays with speculative potential, as compared with Lithium or Gold. Great opportunities for proven deposits to be taken to production, as long as production is contracted forward for 5 years minimum, ideally life of mine. They can convert into great divident yielding stocks.

It's an area to read up on definitely, and very enlightening while doing so.

The industry seems in a whole more responsible and detailed with it's reporting. Just reading through some of the Ranger statements and Activity Summaries is a world of difference in professionalism and attitude, when contrasted against Lithium or Gold explorers. Safety is a much higher priority, partly because of the public perception.

I look forward to discuss it more in future.
 
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