grossly oversold, page-10

71c4

You said

"just a few thoughts out loud, i think its all over for pir, 1.76gt is not worth digging up, so basicaly pir have some cash in the bank and and exploration target, cant see why the geology would change along strike so theres a fair chance the ore will pinch in and out there aswell, grade and drilling results where what made pir"

Not true.

This is silly thinking, but I can understand your concerns.

I am in CGX which has a large and profitable operation in Philippines and its average grade is 1.2 gms/tonne, and has a capitalised value of around $1 billion while PRU's large resource/reserve is only around 1.2 to 1.3 grams/tonne and it is capitalised at around $1.4 billion (from memory). There are other successful operations of low grade ore (I think RRL in Australia is one). Check out your facts, or you will confuse yourself as well as some other uninformed readers. What it means is higher cost of operation and larger plant (and its associated costs) relative to what is required if you have a 3-4 gram/tonne operation.

Check out GRY - average grade of only 2 gms/tonne (see their latest presentation).

Check out AMX - average grade of 1.6 grams/tonne at 0.5 gram/tonne cut off (detailed in their recent presentation) for a total resource of 2.2 million ounces. At a cut-off of 1 gram/tonne their resource falls to around 1.9 (?) million ounces at an average grade of 2 grams per tonne.

We have 822k ounces (660K belonging to PIR) at average grade of 1.76 grams per tonne and the resource is growing, and will continue to grow. However, we no longer have the cost advantage over other goldies to differentiate our company from other west African players.

If PIR finds more gold, which I feel sure they will, then they can either become a producer or be acquired. The resource has intrinsic value if it is large enough and can be mined economically. The mid and large miners are looking to acquire juniors with sufficient ounces because they can mine the deposits and have the cash to set up the plant.

I suggest you ring the company and talk to the people there about the issues that concern you. Be prepared with lots of questions.

I also suggest you get some professional advice to help you decide what to do with your shares. The road back to where the share price was just a few weeks ago could be slow (I think).

I also hate what has happened.

I may decide to hold, sell or buy more PIR shares or options - I know not which I will do, but it will be in the context of a range of factors and not solely on the basis of the resource upgrade.

Good luck and I hope you find peace. The market is often very cruel. Just think of those people caught out in the Opes Prime stuff-up around the time of GFC. They really lost heaps of money, generally without being at fault.

loki