Prophecy Platinum Featuring on Jay Taylor's Newsletter - 09202013


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Prophecy Platinum Featuring on Jay Taylor's Newsletter - 09202013

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Prophecy Platinum Featuring on Jay Taylor's Newsletter - 09202013

  1. 1. TAYLOR HARD MONEY ADVISORS, INC. PO Box 780555, Maspeth, NY 11378 (718) 457-1426 Sept. 20, 2013 J Taylor’s WWW.MININGSTOCKS.COM Energy & Tech Stocks Weekly Hotline Message (Now in our 32nd Year) September 20, 2013 Stock Pick of the Week: Prophecy Platinum Corp. Business: Developing the world class Wellgreen PGM. base metals project in the Yukon. Traded Toronto: NKL US OTC: PNIKF Shares Outstanding: 68,774,692 Recommended 5/31/13: US$0.53 Price 9/20/13: US$0.74 Market Cap: $36.5 million Resource – PGM + Gold 7 million oz. Nickel 2 billion lbs. Copper 2 billion lbs. PEA Pre-Tax NPV: $973 million PEA Pre-Tax IRR: 20% Average Annual Pre-Tax Cash Flow: $205 million Web Site: The following headline from a press release put out by Prophecy Platinum, I consider to be nothing short of phenomenal. Prophecy drills 352.7 m of 2.62 g/t PtEq at Wellgreen 2013-09-13 09:41 ET - News Release - Mr. Greg Johnson reports Not only is this a hugely impressive intersection among many, but the most recent set of drill results from the New Far East Zone, suggest possible continuity between the Main Wellgreen deposit. Moreover, this deposit remains open in most directions and it may extend to much, much deeper levels. I say that on the basis of a report of mineralization to a depth now of 800 meters. Assays from that deeper hole have yet to be received and reported. But based on Gold D o w J o n e s /G o ld A n n u a l R e tu r n s - 4 0 % - 2 0 % 0 % 2 0 % 4 0 % 6 0 % 8 0 % 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 Y e a r s 1 9 6 8 - 1 9 9 6 PercentageGains/(Loss) D J IA % G o ld %
  2. 2. TAYLOR HARD MONEY ADVISORS, INC. PO Box 780555, Maspeth, NY 11378 (718) 457-1426 Sept. 20, 2013 Copyright @ 2013 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED 2 the visual observation of the core, the right kind of rocks to host mineralization were located to that depth. You really can’t afford to miss my interview with this company’s CEO Greg Johnson, which will air next Tuesday, September 24th at approximately 3:15 PM New York Time. Go here to listen live or down load my interview with Greg after Sept. 24th . Here are a few of the points I would like to make that have me so optimistic about this project: • This is already a major deposit given a resource that counts 7 million oz. of platinum group metals plus gold as well as 2 billion pounds of nickel and 2 billion pounds of copper. It will get larger and perhaps much larger given the potential for continuity of mineralization at depth and along strike. • Uncertainty over metallurgical recoveries is the main concern I have heard from several mining and investment professionals. While that is most certainly an important question regarding future profitability of the Wellgreen, it should be noted that profitable production has taken place from this mine with a concentrate shipped to a Sumitomo smelter in Japan for recoveries. I think it highly likely that the current management team, which has platinum group metallurgical experience, will optimize metallurgical recoveries well above those that lead to a profitable PEA study prior to the new and technically competent management team taking over, headed by Greg Johnson. I expect metallurgical issues will be put to rest and as that happens, I expect new money to come into this story. • The other major concern is the availability of capital which the PEA suggested would be upward to $1 billion. For a micro-cap company that’s a problem. However, the new management is identifying some high grade starter pits that should enable a much smaller start up operation that would require a much smaller initial capital outlay. Moreover, there is good reason to anticipate that smelters needing a steady and predictable supply of various metals from a politically saf e jurisdiction like Canada’s Yukon might well provide some initial funding of this world class deposit. And of course as management derisks the project, the company’s shares should rise considerably above current levels and that should help raise some equity funding on its own as well. With platinum group metals required to reduce auto emissions in China and around the developing world, and with South Africa rapidly entering a stage of political self destruction, the Wellgreen should be seen as a spectacular opportunity for investors. And unless the world comes to an end (I’m sorry I can’t rule that out as lots of bad economic events are developing), the Wellgreen should richly reward Prophecy Platinum and its shareholders as future economic projections improve dramatically with project optimization. J Taylor’s Gold, Energy & Tech Stocks (JTGETS), is published monthly as a copyright publication of Taylor Hard Money Advisors, Inc. (THMA), Tel.: (718) 457-1426. Website: THMA provides investment ideas solely on a paid subscription basis. Companies are selected for presentation in JTGTS strictly on their merits as perceived by THMA. No fee is charged to the company for inclusion. The currency used in this publication is the U.S. dollar unless otherwise noted. The material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. The information contained herein is based on sources, which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available information. Any opinions expressed are subject to change without notice. The editor, his family and associates and THMA are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the company mentioned above. Under copyright law, and upon their request companies mentioned in JTGETS, from time to time pay THMA a fee of $500 per page for the right to reprint articles that are otherwise restricted solely for the benefit of paid subscribers to JTGETS. To Subscribe to J Taylor’s Gold, Energy & Tech Stocks Visit: