Yes, I believe PEM is in the process of respondinbg to the BCSC's expectation for additional information. As PEM said, they expect to have revisions completed by summer.
PEM (Del) very wisely scaled back expenditures last October. They saw the potential for a continued precious metals market slump. As has often been the case, traditionally, it was expected by many pundits, that the metals would do well in the Fall and early winter season. It didn't happen in late 2011 and early 2012. So, the metals dropped back close to 15% (+or-) The HUI, etc., reflecting the precious metals equities, continued it's slumping decline, on average. With the metals down the shares did not resume their upward climb, as had been expected. PEM (Del) saw the potential for this condition and understood the possible impact(s). Del seems to have been rightly concerned that the precious metals sector could see further erosion in late 2011. Further, we have witnessed some companies fight the down turn and subsequent deteriorating impact on individual company share prices, by using all available information to try to spike share price upwards. Often, such efforts are usually to no avail, which occassionally, historically, has led to the demise of poorly funded firms who spent their last dollar trying to fight the market's direction. The one's that did better at surviving such conditions were those who tended to hunker down, to keep their heads low and their powder dry, until the "all clear" siren sounded. Here to, I personally believe, Dell was likely right. Had Del kept on spending as they had been prior to October, we'd be in total shut down mode. PEM can do little until they conclude new financing. It is the way of such explorers. They have the gold, in my opinion, but they have a continuous need to fund proving the ever increasing gold resource count. I wouldn't be surprised if we learn one day that PEM's staff walk and drive daily on top of a billion dollars worth of gold, if not much more.
However it was said by Brent Cook, if his implication was that explorers who do not have 2 years worth of operating cash on hand are doomed to fail. . . .I suggest he would be seriously wrong. It would depend on what is meant by the words " 2 years worth of funds." In other words, 2 years worth of funds to do what? To drill more slowly, or to drill at he same pace as previously, or to drill more aggressively than previously? We all know there are various ways of insuring that funds last for 2 years. Perhaps Cook saw a precious metals market consolidation lasting well over a year. Indeed it seems to have done so. There are conditions that "could" cause precious metals, and their shares, to languish for a time longer. Some say for another month and some say for perhaps as much as another year. Virtually all who are so-called experts in this sector believe we will see the metals, and their equities, increase significantly over the next 2-5 years. I am in their camp. I believe Del has commendably taken measures to ensure our future.
I also believe PEM is increasingly becoming more desirable and that will aid in future financing requirements and/or in arranging a deal of some sort, and that they will progress and add ounces as time goes by. My disappointment is that this market sector turn down has lasted as long as it has, has had some impact on PEM, and that PEM seems temporarilly disadvantaged from expanding their exploration drilling initiative to new levels in 2012.
I hope some of the above is of some help. It is only my opinion. Only time will tell the future. But, I am fully on board. I do still see PEM's claims having 15 to 20m ounces, if not much more. If that is the case, then Del and his staff will have discovered the largest new deposit in the world in the past 20 years. There is a lot of drilling that needs to be done. It will take many years. In the interim there are some confidential agreements in existance which tells me that PEM has the eye of some suitors. Hopefully, we will do the infill drilling at the Friday this year which could take our resource count total upwards towards 2m ounces. Maybe, if we are lucky, PEM's geologists will have found the old Bema Gold drill holes from the 1980's, for which we have all the assay data. If so, according to an independent report's reccomendation, we could add "substantial" additional ounces to our totals. Del and many of us, including me, are no spring chickens. We don't have a decade to see this company come to fruition. Time is of the essence. We have a cautious captain at the helm. Better safe than sorry. Yet, I am gang buster anxiously impatient, like everyone else, to see PEM make big strides forward. The sooner the better, as conditions allow. Yes, I could be wrong. That is the risk I have taken, along with you and countless others including our company staff and leadership.
Best regards. |
