Pure Gold Mining - share monitoring

Discussion of the proposed Cashback Investment Club

Moderator: CIC officers

HOLD / BUY / SELL Pure Gold Mining

Hold
8
57%
Buy
1
7%
Sell
5
36%
 
Total votes: 14

BeautifulSunshine
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Re: Pure Gold Mining - share monitoring

Post by BeautifulSunshine » Sat Jan 01 2022 12:11pm

Beachboy wrote:
Thu Dec 30 2021 9:40am
AAAlphaThunder I appreciate the time taken to provide a response so thanks for that. Can I ask what 'in for the long-haul' means and what a suitable exit position to you looks like? The commentary is definitely an interesting read. The aspirations contained within it for the latter part of 2022 at best only get us back somewhere towards a position we held nearly 12 months ago.

Hence why it would be good to understand your thoughts and other members on a suitable exit position. This of course might be different for our different holdings. For example, like mine where I would like to at least limit of current exposure to this single share and at the same time being some new enthusiasm/excitement to the club by having fun choosing a new investment. My fear is that if we just sit on existing shares in hope that they will go up (with little information to support that) coupled with limited new funds being added by members the club will of course continue but will naturally stagnate.
Hold for one year and see how things pan out, mull a medium-term investment horizon. If not, sell for profit.
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garindan
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Re: Pure Gold Mining - share monitoring

Post by garindan » Mon Jan 03 2022 12:38pm

So I have thought very carefully about this company and our investments in it.

Firstly, I'd say that the New Year, finally getting the systems for the new treasurer sorted out and exiting of those members that wanted to leave has given us the opportunity to seek investing the cash funds we have at our disposal. We will move that cash into new investments and in the process of doing that we'll greatly alter the balance of our portfolio of shares. No longer will we be as heavily into gold, so worries about that should not longer prevail.

Secondly, I've come to understand a fair bit more about mining for gold in the past months. One thing is for sure - setting up a new mine, dialing in your gold extraction systems and honing gold recovery is no easy thing to accomplish at speed. There is also a great consideration to be made as to what material should be run through the systems during this time. It clearly makes absolutely no sense to run your best material through a sub-optimal set-up. Likewise it does not make sense to run purely low grade material either. You'll either lose high percentages of gold during the tuning set-up with high grade material or you'll struggle to dial-in the extraction system if the material is so poor there is little to recover in the first place. Hence mixed grades are normally used during set-up, which is going to produce lower gold per ton than expected over the long-term.

Thirdly, there is always a call to be made as to whether run lower grade material through the extraction process or just to class it as equitable to the overburden useless dirt removed to get to the cost effective gold seam. It's quicker to class it as overburden but if it pays to run it through the extraction process you are losing money you could have, even if it is not a great return.

From the reports I've seen I'm inclinded to believe PUR has struggled to dial-in the machinery and has been running a mix of mediocre and lesser quality materials since the start of production. If this is true, which is not incredibly surprising noting the complexity of the mine, it can be understood why the gold recovery rates reported as lower than "expected" by the shareholders. If they were truly poor grades from the good areas the likes of Sprott would be looking elsewhere. They fact these investors are still in suggests there is nothing materially wrong with the mine's gold reserves. Gold doesn't go off, it's in the ground waiting to be recovered after all.

Clearly the management has done themselves no favours over the past year. In 2020 they were full of interviews, reports, news and so forth. In 2021 things have been far more quiet. The director share sales have stoked the fire but gold recovery reports are improving.

So my view is to continue to sit tight. I still feel excited about the prospects with this one, despite it having been so high and fallen back. In hindsight it would have been great if we had sold at the high and now been able to buy back again. We all know that is not how the cookie crumbles very often. I do feel we will get back to those kind of prices again though, even if it takes another year to do so.
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garindan
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Re: Pure Gold Mining - share monitoring

Post by garindan » Tue Jan 04 2022 9:47pm

garindan wrote:
Mon Jan 03 2022 12:38pm
Clearly the management has done themselves no favours over the past year. In 2020 they were full of interviews, reports, news and so forth. In 2021 things have been far more quiet. The director share sales have stoked the fire but gold recovery reports are improving.
So PUR has moved to sort this management issue out. See here.
Pure Gold Mining Inc. said Tuesday that it has appointed Troy Fierro as president and chief executive officer, replacing Darin Labrenz.

The owner of the PureGold mine in Canada also promoted Vice President Chris Haubrich to chief financial officer, replacing Sean Tetzlaff.
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hiswitzend
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Re: Pure Gold Mining - share monitoring

Post by hiswitzend » Fri Jan 07 2022 5:37pm

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garindan
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Re: Pure Gold Mining - share monitoring

Post by garindan » Sat Jan 08 2022 10:48am

hiswitzend wrote:
Fri Jan 07 2022 5:37pm
https://www.proactiveinvestors.co.uk/co ... 70480.html

this is a bit from the new CEO
Good find and very interesting. Stark contrast between this new guy and the old. The new guy seems to talk good sense and has what sounds like great experience. Looking forward to hearing more in due course.
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parchedpeas
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Re: Pure Gold Mining - share monitoring

Post by parchedpeas » Mon Mar 28 2022 2:37pm

parchedpeas wrote:
Thu Dec 16 2021 10:26am
Coming here every three weeks to try and prompt some discussion over PGM as it sank lower and lower has not been fun at all.
I don't want to be *that guy* as I'm no longer a member, but I think the club needs to get on top of the latest developments with this one before it becomes another Carillion.

https://www.londonstockexchange.com/sto ... mpany-page

Good luck.

Beachboy
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Re: Pure Gold Mining - share monitoring

Post by Beachboy » Tue Mar 29 2022 8:40am

parchedpeas wrote:
Mon Mar 28 2022 2:37pm
parchedpeas wrote:
Thu Dec 16 2021 10:26am
Coming here every three weeks to try and prompt some discussion over PGM as it sank lower and lower has not been fun at all.
I don't want to be *that guy* as I'm no longer a member, but I think the club needs to get on top of the latest developments with this one before it becomes another Carillion.

https://www.londonstockexchange.com/sto ... mpany-page

Good luck.
Thanks for your continued interest and concern despite leaving, it is useful.

I have tried, without success, on several occasions to at the very least reduce the amount of our holdings to limit the club's exposure. Every time I have suggested this, the responses have generally ranged from apathy (i.e. no response) or a desire to 'hang on in there for the long-haul'. Garindan to his credit does always provide a well structured rationale for his preferred course of action.

Currently I don't think it helps that the 'CIC Current Investments' report is broken and appears 'stuck' so some members glancing that will be seeing an inaccurate picture at present.
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parchedpeas
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Re: Pure Gold Mining - share monitoring

Post by parchedpeas » Wed Apr 06 2022 12:23pm

Image

16p today. The 'Current Investments' report still shows it at 44p.
https://www.imutual.co.uk/report?id=909

The club holding in PGM is now worth around £460.

At least 5 of the 'members' of the club have not visited this site in over six months. These people influence the direction of the club. In addition to this, I've left the club, and yet I'm still able to 'vote' on whether we buy, sell or hold.
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parchedpeas
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Re: Pure Gold Mining - share monitoring

Post by parchedpeas » Thu Oct 27 2022 12:04am

If additional outside financing is not obtained in the short term, PureGold said it will not be able to meet its obligations as they become due, resulting in a default under its debt obligations.
It's going bust.

https://www.proactiveinvestors.co.uk/co ... 96221.html

Club members might wish to request an updated valuation as there has not been one in over six months.
It won't be pretty reading.
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