Pershing Gold Corp. (OTCMKTS:PGLC) Up on News
Mining and mineral exploration companies have always been a favorite of penny traders looking to get in early, hoping for huge profits later on. Pershing Gold Corp. (OTCMKTS:PGLC) is one such penny company that has been making occasional splashes in the market.
PGLC last surged in both price and volume in late August, when the company announced a $11 million private placement. One of the major buyers in the stock placement was one of PGLC‘s founders – Mr. Honig and the preferred stock issued was convertible into common shares at prices that were virtually level with the then-current market price. Both these factors gave a degree of confidence and assisted the volume and price spike of August.
Excitement about PGLC appeared to die down quickly as the daily volumes shrunk significantly and proceeded even lower until the last session. The company published a press release before the market opened yesterday, announcing the discovery of ‘high-grade gold’ in its Relief Canyon mine and emerging opportunities for even better results in the lower zone of the area. The release contains a lengthy tabulated info sheet regarding purity and depth.
Investors should of course bear in mind that these are not definitive results, as PGLC announced it will post verified final data on its website. The release speaks of expected improvement in the indicated and inferred gold amounts but those are still non-definitive, even if informed, expectations, so caution is advised.
The Q2 report of the company showed the following figures:
- $1.4 million in cash
- $1.1 million in current liabilities
- $1.9 million in quarterly net loss
The company is not yet generating revenues as it’s still exploring the property but the balance sheet is pretty decent, especially compared to those of some other OTC same-sector peers. Still, a cautions approach is advised as PGLC is still a penny stock and the outcome of its operations is not yet certain.
Other stocks that were in the limelight yesterday include Elite Pharmaceuticals, Inc. (OTCBB:ELTP) who went up by 21% to a close of $0.155 per share. Proveticus Pharmaceuticals, Inc. (OTCMKTS:PVCT) picked up in both volume and price and ended the session over 13% up, at $0.95 per share.
