5 reasons to buy plv, page-4

Sartori

Let me respond by making a blanket statement: We are a very young producer so any statements about our performance as an iron ore PRODUCER at the moment will necessarily involve discussing our potential as we don’t have a long production track record.

If you were going to look for a company in the iron ore sector whose SP was depressed so plenty of potential upside and some good basic fundamentals that an investor would be looking for, then I believe this is it. I will supply an analogy that does not involve the AFL so you may find it deficient. A guy I know is a prolific buyer of second hand vehicles. If it has a recent paint job and well detailed, he is usually not interested. But the old banger with a few dents and a rust spot or two gets his blood pumping. He knows enough to determine if the engine, drive train and suspension are basically sound or not. A vehicle in that sort of condition is never going to command a top dollar price. He also knows that if the basics are right he can rectify the things that are wrong with a bit of work and money. I think you get the picture. This company has some question marks over it for sure, but PLV has some good fundamentals which are definitely worth an investor taking a look under the hood so to speak. However yourself and others are so ‘rabidly’ negative that in this analogy you are like the person that sees someone looking over the vehicle then rushes up to point out all the things that are wrong with it. You keep on pointing out that the SP is very low and no one is showing any interest in buying it – well hello, would you buy it if you read all the negative stuff on here. I get that some have bought at prices way above where it is now, but the fat lady aint singing yet. In a recent post you suggested that we should just package the company up and hand it over, the same post I might add that you began by pointing out the importance of a ‘winning culture’ whatever that is, but give up and sell out sure don’t sound like winning to me. Sounds more like whining!

1. Irvine was mentioned in regard to the volume not the high grade. Our current operation being Cockatoo is High Grade - No question.

2. ‘Port Access. This has been a big selling point for PLV since its inception that has not been proved up to be relevant to adding value for shareholders.’
– Port access on its own is not going to change anything but it eliminates a lot of headaches that other miners or potential miners have. It reduces expenses which inherently adds value.

3. ‘PLV are producing on Cockatoo only because it was a production facility before they turned up and took it over. They are producing based on others work before them to get it into production.’
- I can get you set up in an Excavator and tell you what I want accomplished but in a short space of time you will stuff it up unless you know what you are doing. A good operator anticipates problems before they arise and the job just magically seems to get done. Is it good luck - No, its good management. A little premature I will admit but time will tell on this point. Their resumes certainly look good!

4. ‘Stable jurisdiction? True.’
- This is a very important point that the Chinese investing in mining companies are looking for because once again it eliminates problems that companies with plenty of blue sky have hit and ultimately failed because of.

5. ‘Low cost producer. For how long? Till the 'existing' ore runs out?’
- Herein lies the dilemma. Buy in before we know for sure how much longer we have to mine Cockatoo at these prices or wait and buy in when the resource is proven up and the price has appreciated accordingly. Thats the nature of investing isn’t it?

You wrote 'Its production status has not added value where it counts - on the shareprice.'
- This is a short term trend that occurs when miners transition from explorer to producer but maybe not long term.

Sartori – let me enlighten you :) I don’t have a problem with you bagging management on things that they can change. The fact that apart from Tony they have little skin in the game is something that they could and should rectify post haste (that statement is made without knowing anything about their personal finances which is fairly presumptious). However SuperTim tells us that this is being attended to so it should be on the shortlist. IMO all senior management and Directors should own a minimum amount of stock if they want a job or a place on the board. Its wonderfully motivating...