# Pershing Gold - PGLC - Any comments?



## prex (Aug 27, 2017)

I am thinking of buying shares of a gold company due to the worldwide political developments. Came across Pershing. Looks interesting, trading near alltime low but somehow I think the main reason is that they have had many delays. In my opinion there is a good chance that they will soon get the project financing done and start up construction and ultimately production. According to their company presentation at their website 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.


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## james4beach (Nov 15, 2012)

In my opinion, gold miners have always been a poor way to diversify into gold for the purpose of hedging and risk reduction in a portfolio. Mining stocks are extremely volatile and seem to chronically underperform gold bullion over the long term.

If you're doing this due to politics or risk management, I think you're better off with a pure bullion ETF. My choices for this are IAU in the US and MNT in Canada, both of which are gold bullion and track the gold price quite well in their respective currencies. You can also hold physical gold.

Additionally when looked at from the perspective of portfolio design (to reduce volatility), mining stocks are absolutely the wrong choice. Gold bullion is the thing that has low correlations with stocks and bonds, and so it's the correct tool in portfolio design.


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## prex (Aug 27, 2017)

Thanks for the feedback, this is highly appreciated. I ended up taking a small position. In my opinion Pershing Gold stock price should start moving up once the drilling results come back, the ore reserves increase and construction starts. I suppose this will happen rather sooner than later. Time will tell...


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## prex (Aug 27, 2017)

Good deal for Pershing imo. According to information provided during the conference call the intention of the new management is to get the financing done for the Relief Canyon mine in the next 2-4 months.

Americas Silver Corporation and Pershing Gold Corporation Announce Business Combination
Company Release - 9/30/2018 9:48 PM ET
https://finance.yahoo.com/news/americas-silver-corporation-pershing-gold-014800688.html

"Under the terms of the Agreement, holders of Pershing common shares will receive 0.715 common shares of Americas Silver for each common share of Pershing by way of a share exchange (the "Exchange Ratio"). Holders of Pershing preferred shares may elect to exchange those shares for new non-voting preferred shares of Americas Silver, adjusted in respect of exercise price and number based on the Exchange Ratio, or common shares of Americas Silver based on the Exchange Ratio. Based on the closing price of Americas Silver on the NYSE American on September 28, 2018, this implies a value of US$1.69 per Pershing common share. This represents a 39% premium to Pershing's closing price on the NASDAQ and a 39% premium based on the volume weighted average prices of Americas Silver and Pershing for the 10-day period ending on September 28, 2018. Existing shareholders of Americas Silver and Pershing will own approximately 64% and 36%, respectively, on an undiluted basis, following the close of the Transaction."


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## prex (Aug 27, 2017)

Just in case someone is looking for a promising mining company due to possible declining stock markets and a possible rise of metal prices. Americas Silver plus Pershing Gold has lots of potential imo.

Acquisition of Pershing to give USA step-change growth and diversification into Nevada gold
https://gmpsecurities.bluematrix.co...ematrix.com&source=libraryView&htmlToPdf=true


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