Ann: Quarterly Report 30 September 2014, page-146

Adriano
I agree their are corporate costs and interest costs and when ever I make a calculation I include them. And you 15M is too high . Real number is closer to 10M

I am only concerned with the net cash margin as cash is all that counts. And I make my calcluation's as follows

1. I add up all the cash items in the P&L which gives you 18667K from the last half report.
2. I get the actual interest paid from the report which was 2791K
3. I add 1 and 2 together to get 21458 for all cash costs
4. I will add 500K for capita
5. So I now have 21958
6. I will divide by 52
7. I now have a company wide weekly cash cost of $844
8. I will now use this number in my calculations for costs

So at 850 a week I would calculate weekly cash flow as (850*(1275-35) - 844 = 210K per week.
At 1000 I would get 396K per week

I have deducted $35 from the hedged gold price for hedge transaction costs. I am not 100% sure of this as I dont know if the hedge at 1275 is a gross or net number so I have used worse case and assumed it is gross. The previous hedge was at 1358 and net was 1320.

What I conclude fom this is that PGI cannot meet it's revised Mac Bank re-payment numbers without the notes or the Chinese investor placement or some other cash injection. However PGI are probably only short 2M so it's not a huge issue but it still needs to be solved before new investors will get interested

So in the short term the re-financing is the number one issue.

Once the re-financing is complete then shareholders can relax a bit more and look forward to the next project.