Looks to me both SOC & PMR are pure promotion plays to get them rerated, as fundamentals are outstanding - just have top 20's owning huge 90%+ in both.
PMR's sedex deposit looks to be a pearler if it drills at depth - the grades on that silver were through the roof. Broken hill is the right address and they have some ground there.
In honesty though, I would be buying SOC here, presents far better value IMO.
SOC market cap currently $26M - they own 81% of PMR so that is worth around $30M off the bat. Realistically, you are buying PMR at a 10-20% discount through SOC, especially when you factor in the rest of the portfolio.
I think PMR will continue its run to likely 60c on low volume, but any major strikes the market will quickly become aware of the arbitrage and SOC should naturally rerate.
Reason I bought the parents is not only are they seriously undervalued just on the PMR investment, but they have an exceptional tenement holding themselves - many with bonanza grades, $10M funding from Chinese and will have 3 drill rigs running by the end of the month.
The amount of drilling activity won't go unnoticed when they start pumping out results. Drilling the Hobbs deposit below could be a game changer.
PMR Price at posting:
45.0¢ Sentiment: None Disclosure: Held
