I think you may have sold a tad early or perhaps that should read quite late, as the Feasibility Study Results for Tabba Tabba were released to the market in 18 Feb 2014. I'm sure you will find all the revenue, capital costs and EBITDA numbers are there. Of course some things may have changed such as exchange rates and the cost of mining services, however I would think most would be in our favour and allow for a higher EBITDA. I would be interested to hear your thoughts after reading it. Cheers.
I'm also quite certain that a commencement of mining and a EBITDA of $18M in the first year will be more than enough to trigger a re-rate. After all, cash is king as they say.
On a general note, I again find it amusing that as soon as the general sentiment swings back to euphoria we find ourselves despairing again. Given that environmental aspects in regards to a commencement in mining are often the most stringent I would have thought that receipt of the permit would be a cause for celebration.
In any case, for those with with an investment horizon greater than a couple months, I would think it still is. I believe you'll find that the issue of the works permit will pave the way for the remainder of permits and approvals to fall into place very quickly.
With the revenue that we will collect from Tabba Tabba as well as the experience to date, Pilgangoora will go much more smoothly. Add to that we still have Strelly and Pinnacle Hill yet to explore and the total tonnage on books will be much higher as we near the end of the year. With an existing off take as well as a potential 5 off take partners I really can't see why people are getting so worked up. Progress is being made and the foundation is being laid for what will be a sucessful and may I say very profitable explorer miner.
I think the following article would be of interest. It relates to Equinox Resources which started as a company with a market cap of $5M, faced difficulties due to the stagnant environment of the time, a 5 month delay in commencement of mining due to a transformer fire in the mill as well as the GFC. You would have to feel sorry for those that sold early out of nervousness considering that Barrick Gold eventually purchased the company offering $8.15 per share, valuing Equinox at $7.3 billion.
I'm unsure how long many have been investing however I feel that some of you are expecting too much from the spec sector. Sell, hold or buy, it's up to you however i feel this to be worth a punt.
PLS Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
(20min delay)