Hi
I have just discovered the PFG thread on Silicon Investor and have been lurking now for two weeks, reading your interesting correspondence.
I hold a large position in PFG, which I purchased in June of '95. I've watched their ups and downs and have been a staunch supporter until now. I have been in the market for some twenty years and feel that I have learned a lot over that time. I must say that I have not always agreed with some of the decisions of PFG's management, but felt the properties would overcome their obvious inexperience.
When I read that they intend to sell outright the Colorada property, which by Gerry Phillips own admission, could possibly be even more valuable than the Diablillos, it was the final straw! Investors regard acquisition of properties as a positive action but the selling of a potentially great asset as very negative(witness the sell-off this morning)and undermining the value of the stock.
I THINK ALL SHAREHOLDERS SHOULD EXPRESS THEIR DISPLEASURE AND TRY TO STOP THIS SALE BEFORE IT IS TOO LATE.
I have sent an E-Mail to Gerry Phillips this morning setting out my displeasure and also said that I thought their should be an extraordinary meeting to get the shareholders view on this important step which affects the value of the stock for all shareholders.
While I realise they need funds to pay off the option agreement on both Diablillos and La Colorada and they need funding to explore the Cerro Blanco and the property in Indonesia, I do not think this is the best way to go. A public financing or private placement is the better way. Although there is some dilution of the shares, it gives them the funding to be able to enhance the value of the company in the long run. As they say, "you can't make an omelette without breaking some eggs."
I think a joint-venture deal on the La Colorada, with PFG retaining a larger percentage than they have on the joint-venture deal with Barrick, would be quite acceptable to the shareholders and allow them to share in any success the property should have. It would also relieve them of having to bear all the costs to develop this potentially great property, rather than just selling it and having a small net royalty.
I also mentioned to Gerry the folly of releasing news at month end, Friday afternoons, and late in the day,(all of which are a no!no! on the market)and the importance of a CLEAR AND CONCISE news release.
I would urge all stockholders to get in touch immediately with Gerry Phillips and let him know how you feel about this pending sale of the La Colorada BEFORE IT IS TOO LATE!
Here's Hoping
Shirley |
