PGM has a great deposit at Owendale, and some other interesting property that more knowledgeable followers than I have written about. The cap value is absurdly low in relation to the in-ground assets. So I see low downside, though there may be a long time to wait, and a lot of the faithful have lost confidence and patience.
The problem is not the deposit.
Whether you feel the problem is management, which has changed direction abruptly, or that investors in the market are not giving cap credit for in-ground assets unless it sees near-term production, or some other reason, you will have to decide for yourself.
It remains to be seen when and whether the value will be unlocked.
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I stress, this is just my opinion:
The company has a lot of intrinsic asset value above its current market cap, as you have noticed. But I doubt that PGM on its own can realize that value for shareholders without a major transaction, which could be very good for holders....someday.
The departure of Robert Mosig signalled a difference in strategic intention between Mosig and the Board. Up until then, PGM made noise about competing with more prominent projects, they claimed and tried to look like a contender in the ni-co-sc project beauty pageant.
But then Mosig left, the stock price tanked, and management endorsed a smaller cap scandium-only project. The new MD must be assumed to endorse the direction of management. Therefore I do not expect the new man to accomplish a lot, even if he is capable; because I think the Board's basic strategy is somewhat defensive and has serious flaws.
I think the value will be primarily in scandium, which management recently confirmed when the BOD stated it was going forward with a smaller scandium-only project, rather than a full nickel-cobalt-scandium project. There is some logic to this, but PGM is not able on its own to make a successful independent initiative in scandium...they have to wait for someone else to make a market breakthrough in scandium utilization.
On the plus side, I believe the uptake in scandium will happen faster than most people think; but we are still talking in a few years, rather than weeks or even months.
So I do not think PGM is control of its own destiny in scandium, because what is needed is very high technical capabilities and corporate connections, to develop a complex scan-alu supply chain.
(20min delay)
