Lebed.biz Alert – PKL could make some of us wealthy!
Description
PC Gold (TSX: PKL)‘s 100% owned Pickle Crow mine previously produced 1.47 million ounces of gold and PKL is currently undertaking a very aggressive drilling program designed to build a large 43-101 compliant resource base!
PKL currently has 66 million shares outstanding and a market cap at $0.79 of $52.1 million with $19.55 million in cash and no debt! PKL recently raised over $10 million at $0.90 per share. The stock is currently trading for 12% below its recent private placement price of $0.90 and 21% below its 2008 IPO price of $1! (gold prices are now 58% higher than when PKL had its 2008 IPO at $1)
Lebed.Biz
Imagine if PKL is able to build a 43-101 compliant resource base of 1.47 million ounces of gold (equal to their past production). With gold at $1,375 per ounce, a valuation of $200 to $300 per ounce in the ground could be very realistic. If PKL has another 1.47 million ounces of gold in the ground, a valuation of $200 to $300 per ounce would value PKL between $4.45 and $6.68 per share!
When Pickle Crow began production in April of 1935, gold was at a price equal to $555 per ounce in today’s dollars adjusted to the CPI. The mine paid off its capital expenditures in just 11 months and issued a cash dividend to shareholders!
When Pickle Crow closed in September of 1966, gold was at a price that was only $234 per ounce in today’s dollars adjusted to the CPI. It was simply no longer profitable for the mine to remain open, especially with rising expenses as they continued to drill deeper underground.
Today with gold at $1,375 per ounce, gold is 2 1/2 times higher than when the mine first opened profitably and 6 times higher than when the mine had to close due to losses. Not only that, but modern technology has made it a lot more efficient and cost effective to drill at deep underground levels. In my opinion, there is huge potential for Pickle Crow to reopen and become even more highly profitable than it ever was, simply by mining below previously drilled areas!
In March of this year after positive drilling results, PKL rose 179% in just five trading days to a high of $1.90 per share. On Friday, PKL made a remarkable turnaround from a 10-month low of $0.62, finishing the day up 20% to $0.79 on very strong volume of over 1 million!
In my opinion, PKL has seen its low and it is unlikely we will ever see $0.62 again. I believe a very explosive move to the upside could potentially come in the months ahead for PKL! Pickle Crow has PROVEN itself to be one of the most highly successful and profitable producing mines in Canadian history. I believe as PKL continues to drill and proves to the world that a major deposit of gold still exists in the ground today, the precious metals community will start to pay a lot of attention to this company. (almost nobody knows about it today)
PKL doesn’t even need to ever become a producing company on its own! Just by drilling and proving what still exists in the ground, I believe there is potential for the company to one day become a target of a billion dollar giant that is already producing in the area!
I hope you understand why I have given PKL a speculative rating of 1, my highest level of confidence! I take great pride in my speculative rating of 1 picks! I believe my track record of speculative rating of 1 picks is one of the most successful in the world! I am not being arrogant, I am just being honest… you have no idea how many hours I spend researching companies and how rare it is for me to discover an opportunity like PKL!
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Jonathan Lebed
Lebed.biz
Staff
Tags: Lebed, PC Gold, Pickle Crow, PKL
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