us india deal good for pen, page-21

GFRANKB..., your not reading my comments right, So i will clear it up for you.Perhaps you can understand it in this manor.

If they are currently cash burning 1 million a quarter,then the up and coming drilling programme scheduled for September 2008, which will require more expenditure, thus the 5 million cash in hand will be good for 12 months from now....after that , what do you expect them to operate on,? the smell of an oily rag. They will need to raise more "working capital" in 12 months time.
Where that may come from is up to PEN management.

I personally would prefer that it is achieved through a private placement to professional investors at say for arguments sake,10c based on the JORC drilling results , and thus the shareprice around this time is trading close to 10c. This would underpin the hypothetical scenario of 10c/share.

The there is the point of the issued capital which may need to be addressed either before or after BFS. i WOULD perfer they consolidated following the completion of drilling out of LANCE, so that way they have a JORC resource, a consolidation of shares and something to take to the wider market to promote the next 2 years leading into possible production in 2012.
I would expect that they may look at this early 2010 (pure speculation)Sometimes consolidation is necessary especially with 1 billion on issue. Short term it wont help the shareprice but over the long term it will make it more attractive.
We all know that the issued capital will increase as they raise more funds via placement to cover additional expenditure and BFS timetable (mid 2010)



CIAO JAM