comparisons and further questions, page-51

Hi folks

Lets revisit the assumptions (and knowledge of the project) that the recent Investec Report stated back in July 2010.

This way we get a little more objective as we can all get off track with our assumptions.

Investec stated that the recent upgrades (at that time) to 108MT at 66%;

"significantly reduces the resource risk"

and;

"Project economics now extremely robust"

Further on through the report Investec state that PLV meetings in Japan mid year with 'end users' were;

"very well received"

Further to those comments we get a further insight into those end users as;

" Pending closure of Cockatoo Island (18 months) increases the significance of PLV for 'certain end users'

I'd suggest the strong interest is from the neighbours folks.
The availability of that shiploader will/may coincide with the target date for enviro approvals before March 2012.

The 'agreement' to secure that shiploader however could happen at any time.The relationship with Cliffs (Cockatoo) means its a given.

What does this mean?

Well it means PLV can get DSO from the Isthmus and get it to Cockatoo and start production/sales earlier.

"..enabling sales prior to the completion of PLV's own facilities"

Investec go on to say;

"Continues to be strong end user interest in this project with management confident they will be able to secure an agreement leading to the partial...or total funding of the project cost with minimal shareholder dilution."

These are strong words with a clear message of intent from end users and management.

Investec go further in identifying catalysts for improved sentiment;

"Ongoing upgrades/Isthmus DSO....Native title agreement (which they state will be done Dec Qtr 2010), access to Cockatoo Island shiploader and corporate deal to partially or fully fund the project.."


Now as we go over those above comments it is easy for one to see Tonys/PLV's confidence...particularly in getting the operation up and going before many of its IO peers.

The Cockatoo shiploader at just 5km away gives PLV early mover advantage imo and obvious synergies to perhaps 'current' end users in that project.

Why wouldn't those end users concerned want to shore up PLV interest ASAP?

Thats where the PLV confidence comes i'd suggest...only guessing of course, but hardly need to be a rocket scientist to see the possibilities/synergies here.

The end users know the IO..its the same ore body. The process should be seemless in relative terms one might think.

Of course since those bullish comments from Investec the resource has dramatically increased again and no doubt so too will their valuation as a result of that.

They spoke of the upper end 200MT 66% target....i'd suggest shortly the resource will not only exceed that number, but will certainly necessitate a much higher valuation...

..particularly if we assume the catalysts for further valuation/de risking of project that Investec themselves mention will perhaps have been finalised.

So folks excuse me for being bullish. Its just that I see much much more than a share price anchored 12 months ago on a project a fraction of the size it is now...and will be.

40 cent placements?

We will see.