important chart & commentary on gold, page-2

Bugggs,

As you know, Yamada's chart says the worst case for the POG is a drop to $1,400 while consolidating over the next year or so before finally piercing the $1,800 ceiling. In the meantime, the Dec 2011 technical report on Panterra's website says Panterra's production is hedged at $1,330 for 126,000 ozs, which are 50% of the first several years' production, happening now.

So spotting a saucer on Yamada's chart that overlaps our hedge period is best case, since we're not losing much because of timing. Also good news is Chart 21 in the same technical report with predicts POG from $1,400 in 2012 declining to $1,200 in 2018, and silver from $30 t0 $22.5. These 'conservative' estimates made when the POG was about $1,600 prevent understating the risk in investing in the project by assuming a decline, rather than increase or maintenance in the POG.

Now, with what we know 14 months later about more of world's economies devaluing their currencies and charts like Yamada's, these POG estimates on which PGI's potential profitability are based seem more than conservative.

What is a respectful word for something beyond 'conservative?' Whatever... the takeaway is that a producing PGI will certainly exceed it's own profit projections.