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PGLC - Pershing Gold Corporation

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by Dan Thunderbolt, Apr 11, 2018.

  1. Dan Thunderbolt

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    Had Pershing Gold on my watchlist for quite some time. Recently bought some shares. There have been delays with the start of production but I think now might be a good chance that they will actually get it done.

    Link to company presentation:
    http://www.pershinggold.com/Cache/1001233022.PDF?O=PDF&T=&Y=&D=&FID=1001233022&iid=4353299

    The project has a Net Present Value of $145 million at a gold price of $1,250. At a gold price of $1,350 the NPV is $185 million. The current market cap is below $80 million.

    Here is a link to an interview from January this year. Based on this I assume they are moving closer to getting the project financing done. Once the financing is done it will take 6-9 months until production.

     
  2. bigbear0083

    bigbear0083 Content Manager
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    [​IMG]


    Pershing Gold Corporation engages in the exploration, development, and mining of gold and precious metals primarily in Nevada. It focuses on the exploration of Relief Canyon properties covering an area of approximately 25,000 acres in Pershing County in northwestern Nevada. The Relief Canyon properties comprise approximately 948 owned unpatented mining claims, 120 owned millsite claims, 172 leased unpatented mining claims, and 2,235 acres of leased and 2,770 acres of subleased private lands. The company was formerly known as Sagebrush Gold Ltd. and changed its name to Pershing Gold Corporation in February 2012. Pershing Gold Corporation is based in Lakewood, Colorado.
     
  3. Dan Thunderbolt

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  4. Dan Thunderbolt

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    In my estimation, the stock price of Pershing has dropped to its current levels because the start of production had been delayed further and further. However, I think that at the latest by May / June of this year the project financing will be done. Then 6-9 months construction phase. The plan is 97.100 oz Au / year with AISC of $801. Minelife is 5.6 years. This results in $50 million profit per year at a gold price of $1,300. Equity financing is already done. Listen to the interview at youtube in my first post. The most interesting and important part of the interview starts at 21:25 min.

    Once the project financing is done, in my opinion the stock price of Pershing should move up significantly. I also hope that the minelife will be extended by increasing the resources. The current drilling program is particularly aimed at this. Positive results could boost the stock price as well. See also the following link:
    http://www.northernminer.com/news/p...f-canyon-while-trying-to-build-it/1003794945/

    The market cap of Pershing is currently less than $70 million (I had mistakenly stated in one of my previous posts that it is $ 80 million).
     
  5. Dan Thunderbolt

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  6. Dan Thunderbolt

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    Yesterday received feedback from Jack Perkins (vice president, investor relations). Not much new to report, but let's hope the project financing will be done soon and the start up of construction will begin. Then significantly higher prices should follow imo.

    "The first order of business is securing the project finance. That is still on track and we are negotiating terms as we speak. I can’t say much more than that, other than it is our first priority. Once this is completed, we will finish building out the leach pads, relocate the crusher and install an overland conveyor system. We also plan to install a refinery in the plant. Timeline for construction is 6-9 months from when we secure the project finance. This very short construction period is due to the fact that we have so much infrastructure already in place on site."
     
  7. Dan Thunderbolt

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    According to slide 7 of the company presentation on their website the Pre-Feasability-Plan Net Present Value of the project is $165 million with a Gold price of $1.300. Lots of upside potential imo once financing deal is done. Current market cap is below $70 million.
     
  8. Dan Thunderbolt

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    With each day that passes we are getting closer of finalizing the project financing. Then Pershing will move up rather quickly imo.
     
  9. Dan Thunderbolt

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    Pershing Gold Appoints Jeffrey G. Clevenger to Board of Directors
    PR NewswireApril 26, 2018

    LAKEWOOD, Colo., April 26, 2018 /PRNewswire/ -- Pershing Gold Corporation (PGLC), (PGLC.TO), (7PG1.F) ("Pershing Gold" or the "Company"), an emerging Nevada gold producer, announces the appointment of Jeffrey G. Clevenger to its Board of Directors.

    Mr. Clevenger has over 40 years of experience in the mining industry. Since March 2009, he has served as chairman of the board of Golden Minerals Company, also serving as its President from March 2009 to May 2015 and as its Chief Executive Officer from March 2009 to September 2015. Mr. Clevenger served as a director, president and chief executive officer of Apex Silver Mines Limited from October 2004 until March 2009. Mr. Clevenger worked as an independent consultant from 1999 when Cyprus Amax Minerals Company, his previous employer, was sold until he joined Apex Silver in 2004.

    "We are very pleased by the addition of Jeff Clevenger to our Board of Directors," commented Stephen D. Alfers, Pershing Gold CEO and Executive Chairman. "His extensive experience in mining operations adds to our current team of experts and will bring tremendous value as the Company progresses towards a production decision at the Relief Canyon Mine."

    http://www.pershinggold.com/file/Index?KeyFile=393191700
     
  10. Dan Thunderbolt

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  11. Dan Thunderbolt

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  12. Dan Thunderbolt

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  13. Dan Thunderbolt

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    The major owner/insider bought additonal shares.
    http://www.pershinggold.com/Doc/Index?did=44684431

    I hope that PGLC will soon publish the full-feasibility study and then subsequently ink the project financing. Stock should then move up again. PGLC will earn the current market cap after 1.5 years.
     
  14. Dan Thunderbolt

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    Just went through the Investor Presentation May 2018 which includes some new interesting information in comparison to the previous version (see in particular below slides 3 and 4)
    http://www.pershinggold.com/Cache/1500110605.PDF?O=PDF&T=&Y=&D=&FID=1500110605&iid=4353299

    Four Ways to Build Shareholder Value (slide 3)

    Re-rating in market
    - Financing
    - Construction
    - Production

    Growing resource
    - History of expansion
    - Open in three directions

    Exploration potential
    - Highly prospective >27,000 acre land package

    Potential acquisitions
    - Alio Gold purchase of Ryepatch: 35% premium
    - Hecla purchase of Klondex: 65% premium

    Upcoming Milestones (slide 4)

    - 2018 Drilling Program Results
    - Feasibility Study
    - Project Financing
    - Construction, 6-9 months
    - Production

    Investment highlights (slide 5)
    - Potential for multiple re-rating as Relief Canyon Mine approaches production
    - ~$145MM NPV at $1,250/oz Au on Relief Canyon Mine alone, PGLC trading at ~$70MM market
    capitalization
     
  15. Dan Thunderbolt

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    Pershing Gold Announces Positive Feasibility Study for Relief Canyon
    Company Release - 5/30/2018 8:00 AM ET
    http://www.pershinggold.com/file/Index?KeyFile=393692201

    "Mine Development Associates ("MDA"), Kappes Cassidy & Associates ("Kappes Cassidy"), of Reno, NV and Jorgensen Engineering and Technical Services ("Jorgensen Engineering"), of Centennial, CO, completed the FS for the Company's Relief Canyon gold mine with an effective date of May 24, 2018. Highlights from the FS include a pre-tax net present value ("NPV") of $154 million, a pre-tax internal rate of return ("IRR") of 91% and pre-tax Net Cash Flow of $204 million. The NPV, IRR and Net Cash Flow figures assume pre-tax economics using $1,290 per ounce ("/oz") of gold ("Au"), $16.75/oz of silver ("Ag") and a 5% discount rate."

    "Upon completion of the current drill program, Pershing is planning on updating the resource model in the third quarter of 2018."
     
  16. Dan Thunderbolt

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    Now that the Feasibility Study is done I expect that we are indeed moving closer of getting the project financing done and ultimately getting closer to production. I also expect that the mine life will be increased by the results of the ongoing drilling program. Putting all things together I still believe PGLC is undervalued at current levels.

    From yesterday's press release:
    "Drill results to date from eight infill holes in the first target area are on average about 30% higher in gold grade than predicted within the resource model. It is likely that these results would have a positive impact and should result in an enlargement of the current FS pit."
     
  17. Dan Thunderbolt

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