Al's Insights – Tue 1 May, 2012

More words from Premium Exploration

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Featuring:
Al KorelinChristine Kopr
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Comments:
  1. On May 1, 2012 at 11:10 am,
    skii says:

    Al, thanks for getting Christine on to clarify what’s happening here.
    My outstanding concern is as follows:
    The company *MUST* admit fault for not having raised money at higher prices–market conditions are bad, but most companies did not blow it this badly—the reason they must admit fault is so that shareholders can “forgive” them and understand that management realizes they made a enormous error in judgement and *will not make that mistake again*. We are in a giant worldwide debt crisis that is not going to go away. This market is going to be prone to booms and busts, and running out of money until the sharks start circling pushing your sp down to almost nothing is not acceptable. Admit fault, say you understand what happened, and that it will not happen again.
    Raising a *much smaller* amount of money at a *premium* to market is definitely a good start–at least we did not see 40-50% dilution as we would have if the company had raised $7-8M.

    • On May 1, 2012 at 11:28 am,
      Joey Walmsley says:

      skii, just a question about the most recent financing. How happy would you have been in September or October of last year when the SP was in the .40 range and Premium decided to do a financing before the Dundee warrants expired in early January? Most if not all Venture companies SP’s are currently being controlled by brokers and institutions that know when a company needs financing. Good to hear Christine explain the current situation with Premium, sometimes emotional but very good when shareholders need answers…..

      • On May 1, 2012 at 6:47 pm,
        Big Al says:

        Many thanks Joey,

        Good point!
        This is a very emotional time for them.

        Big Al

  2. On May 1, 2012 at 11:53 am,
    skii says:

    Knowing how desperate they were going to be for cash by dec-jan, especially heading into tax-loss selling season, there was no excuse not to have raised say, $4M or so at $.40—10M shares to buy the company another 12 months or so worth of cash, with dilution of about 7%; that’s peanuts. Then see if the sp can hold up *and* get the cash from the warrants. 5-10% dilution every year or two is expected in these junior explorers; sure it’s not ideal, but it’s not a disaster. Raising $7.5M after your sp is down 80-90% is a disaster, and I’m glad they abandoned that idea..whether by choice or not

    • On May 1, 2012 at 6:49 pm,
      Big Al says:

      Evening skii,

      They are working very hard and certainly doing the best they can. That is why I put $18K into the private placement.

      Big Al

      • On May 2, 2012 at 5:16 am,
        James Flannigan says:

        The very idea of investing is to put money out now for a future return.Some investors think a future return is 3 months.I think more in terms of 3 to 10 yrs.Lets see were the price of PEM will be in 3 yrs.then one can measure returns or losses.To take a daily quote is foolish when it takes years to make a mining project.buyers of PEM including Al at 15 cents will make alot of money when the current fear turns to greed

  3. On May 1, 2012 at 12:11 pm,
    meritmat says:

    lets see a million bucks in the bank……we are so screwed

    • On May 1, 2012 at 6:49 pm,
      Big Al says:

      Evening Meritmat,

      I would not give up yet. We live in an interesting world, my friend!

      Big Al

      • On May 1, 2012 at 7:13 pm,
        meritmat says:

        Very true thank god for Aun)

  4. On May 1, 2012 at 12:26 pm,
    Mark Alan says:

    I’m not a share holder, nor do I have any interest in the company, but to me, PEM just has too low of grade even if they obtain a NI 43-101 estimate of 1+ million ounces. Reading interviews from mining CEOs, most are looking to obtain companies with reserves in the 3+ million ounces with moderate grade. Even if they establish a multi-million ounce deposit with average grade, this is a project that is going to take some time.

    • On May 1, 2012 at 12:41 pm,
      James Flannigan says:

      Well the TRR deal this week was done at an average grade of .82gt.Gold Corp mines the los filos deposit in Mexico grading grading .68 with only a 73% recovery.So if Friday has tonnage in the 1gt range it will be very minable.A rising spot price of gold as expected in the near future helps even low grade mines become a cash printing press.Mike o says Friday will hold 5 million oz in his view.That will do wonders for the share price

      • On May 1, 2012 at 6:52 pm,
        Big Al says:

        Hi James,

        Appreciate your input. As I have told others, we live in interesting times.

        At least, you all know where Big Al and The Little Blond Lady put our money.

        Big Al

    • On May 1, 2012 at 6:50 pm,
      Big Al says:

      Very good point Mark A!

      I am in this one for emotional reasons and I truly believe in Del. Call me crazy if you want to.

      Big Al

  5. On May 1, 2012 at 1:09 pm,
    Mark Alan says:

    Oh no doubt. But it takes a lot of infill drilling to bring that estimate into calculable results and it takes money for that. Then a PEA study would also have to be performed to discover the true economics of the site. I wouldn’t say that PEM is a bad company, I’m just saying that it is going to take a lot more time than people realize. This company reminds me a lot of another called Northern Freegold. Had a few great hits and was the “hot stock” back in 2009, then management and Mother Nature beat it to a pulp. It now has a very low grade 3+ million ounce near surface resource, but the share price is abysmal. The only thing helping that company is the copper estimate.

  6. On May 1, 2012 at 1:25 pm,
    Clark says:

    Well, the $1 million will be gone in a hurry. With salary & administration costs(including the $200k+ per year Del grabs) we may expect they’ll be back for more money in the near future. Hmmmm, wonder if they’ll find sacrificial lambs to give them 15 cent/share again?

    • On May 1, 2012 at 6:54 pm,
      Big Al says:

      Hi Clark,

      I don’t believe that Del grabs $200K per year. I am under the impression that it is more like $94K. Prove me wrong. I would really like to know.

      Big Al

      • On May 2, 2012 at 1:50 am,
        John says:

        Per the information circular from last year, his annual salary is $211164 (and a huge stack of options). The circular for this year should be out shortly, which will list his salary for 2011.

        Takes about two seconds to look up.

      • On May 3, 2012 at 3:55 pm,
        Joey Walmsley says:

        Al, the 2010 Remuneration or Fees for Del were 211,164 with share based award of 49,600 but the 2011 numbers were 124,853 with share based award of 18,700 but some may ask why Ellie received 29,727 during 2011 with nothing in 2010. I know you and Del do not venture to the BB’s but I am sure people would like an answer to Ellie and clear the air. JMO

  7. On May 1, 2012 at 7:54 pm,
    Clark says:

    Hi Al:

    Google “Premium Exploration Officer Salary” and you will get several links that substantiate what I have said. Your good buddy Del may be taking far more than you thought. Here’s just one of many available sources.
    http://investing.businessweek.com/research/stocks/people/person.asp?personId=6425358&ticker=PEM:CN

  8. On May 1, 2012 at 8:03 pm,
    castanheiro says:

    Hi Big Al,
    Thanks for getting Christine on the program to clear up some things. I also appreciate you taking the time and making the effort to arrange an update on PEM. When I am tough on a company, or someone, I try to be equally tough on myself, and I will give credit where it’s due, just as quickly as I’ll render criticism. Is the $1m sufficient to get them to a 43-101? No, of course not, nor what they desired, but under the circumstances, it was a valiant effort, and I appreciate their aversion to dilution. I won’t say that all my concerns have been answered, but, I think Christine handled herself well, and demonstrated her own personal passion in the project, and I like to see that. Again, thank you!
    Best

  9. On May 1, 2012 at 9:53 pm,
    Cecil Henry says:

    I dont have the stomach for this anymore. Until the market overall turns around I dont see much reason to hope.

    Why is this worse than 2008? Somebody is trying to exploit the market.

    • On May 2, 2012 at 10:50 am,
      Dan, calgary says:

      Hi Cecil,

      The TSX.V either gains or loses, nothing in between. Money either is flowing in or out but rarely static. Now, Wednesday, the money is flowing out and almost every stock goes down with it. That is why PEM is doing so poorly.

      In my view PEM will only go up with the TSX.V so why bother putting any money here? I have a small amount of shares that I will sell soon to get out of this stock forever. There are many better bets with better cash positions and financial management.

      Dan

  10. On May 3, 2012 at 7:19 am,
    Dan, calgary says:

    Note to self: Don’t ever buy back into the PEM story. Its a money hole for the little guy.

    Dan

  11. On May 5, 2012 at 9:11 pm,
    Steve says:

    Al, I would love to hear guest guest speakers like Brent Cook or Micky Fulp talk about Premium. I would like to hear someone, who is independent of Premium address the technical aspects of Premium´s projects in Idaho, address the subject of resource estimates.

    • On February 4, 2014 at 10:31 am,
      Jeanne says:

      I have been so beiredlwed in the past but now it all makes sense!

  12. On May 7, 2012 at 9:25 am,
    Jeff says:

    Steve actually has a great point here — from a geological perspective, someone other than PEM officers who are competent to discuss and speculate on the *geology* in terms of liklihood that the drill results/intercepts thus far indicate a system that possibly/likely is or is not a ‘district’ …. discuss what factors lead towards that conclusion vs. those that suggest otherwise, would be very educational ….