moving forward, page-10

Reichman I view cap raisings in a few ways. Simplistic, but that is the way I like it...

Firstly (and extreme cases).
If a company is clearly in financial difficulty and in dire need of capital injection to merely survive then this would potentially mean negative implications. We have seen plenty of this recently and in the past.

Secondly.
A company needs to merely consolidate debt to place tohe company on a more solid financial foundation or to expand via aquisition. e.g. Gold company getting rid of hedging to take advantage of higher gold prices or as in HST to expand world wide.

Thirdly.
A company is expanding positively and requires additional funding, without actually aquiring debt as such. This is well suited to PEN atm. PEN has no debt and this will keep it that way for now, at the same time providing ongoing funding for all expansion activities.

In particular with PEN I draw attention to the latest information, and I speculate here. PEN indicated that both Ross and Barber can be advanced to BFS stage. Potentially this may be what PEN are about to do and there are major positives in doing so, if in fact this is going to occur.

By advancing Ross and Barber to BFS, Jorc status would occur as would confirmation of viability to potential investors to advance to development.

I have no idea what they will actually identify as the purpose of the funds but I doubt very much if it is merely for working capital. They have enough for what they have planned for the immediate future, unless of course they are planning on a large drilling campaign in the newly aquired areas of Lance.

The other very possible reason is the expediting of Karoo. If it is the expediting of Karoo look forward to some excellent announcements on resource upgrade.

No matter what I see this as being a positive move in the advancement of PEN, albeit via further inevitable dilution. PEN remains undervalued regardless and time will display this.

I can only see positives come of this for the medium to long term. Short term the traders will possibly once again enjoy themselves no doubt, go for it I say...for very selfish reasons ;)