Todor Pichurov

Pershing Gold Corp. (OTCMKTS:PGLC) Takes it Easy After Spike

by Todor Pichurov February 16, 2015

Following a dramatic surge in share price last Wednesday, Pershing Gold Corp. (OTCMKTS:PGLC, PGLC message board) seems to have moved into calmer waters. The next two sessions saw share volume dropping and price action slowing down to fractions of a percent. On Friday PGLC closed 0.8% up on 1.6 million shares traded.

Last week's spike was triggered by a press release from the company. PGLC announced coming across a high-grade gold stratum in its Relief Canyon Mine project. The company previously reported that a concentration of 2.24 ounces per tonne was the highest achieved to date. Just several days later the company published the PR announcing an intercept with a concentration of 2.57 ounces per tonne – a new record right on the heels of the previous one.

We don't keep a resident geologist to help us with deciphering this sort of PR but the market's reaction was good indication of how much of an impact the news had. The original 16% spike seemed like it could lead to a rapid retrace but so far the stock is holding its ground. In fact, the slower trading of the last few days could be a good sign and PGLC may be solidifying its new position.

PGLC is currently at its most expensive for the last six months. Here is what the company last reported in a quarterly:

  • $10.4 million in cash
  • $678 thousand in current liabilities
  • zero in quarterly revenues
  • $3.9 million in quarterly net loss

It remains to be seen whether having Dr. Phillip Frost of Opko Health fame among its beneficial shareholders and hitting those new record concentrations will do PGLC any good in the long run.

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