In addition to the cost of operating the mine you need to also take into account the costs of constructing the plant and developing the mine site to access the ore (how much overburden needs to be removed).
If PVM's gold is complexed with sulphides then there are additional costs associated with the construction and operation of the plant (extra processing). That is why oxide ore is more highly valued. I think that is one important issue that VL is talking about.
The higher the initial costs to develop the more funds you need to borrow and raise from shareholders. Implication is more dilution of shareholders and bigger gold hedge to satisfy the banks.
loki
PVM Price at posting:
91.5¢ Sentiment: LT Buy Disclosure: Not Held
