Nyanzaga FID was never really in doubt imo, so was more of a box ticking exercise rather than the decision ever being subject to what PRU might or might not do re PDI.
PDI starting to look expensive now with close to a $AUD 1B MC with plenty of remaining project risk to go along with it. Technically looks like a great project, but it depends how badly PRU want or need the oz, and what price they're willing to pay for them. Considering PRU acquired Orecorp for $270M, can't see them paying close to a billion to acquire the rest of PDI they don't currently own, plus capex funding of $600-700M to build the project.
We're fortunate to be able to self-fund the Nyanzaga construction. So for JQ to be willing to plunge us back into debt or cap raise to acquire PDI would seem out of character, and at odds with the share buyback and (slowly) increasing dividend policy. I'd be happy holding a 20% strategic stake in PDI.
PRU Price at posting:
$3.23 Sentiment: Hold Disclosure: Held
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