Ann: Quarterly Report as at 30 June 2015, page-12

What we all have to remember is that PGI are & were always looking for a loan to get rid of MBL!. By cashing in the hedge at $8.5M can reduce loan from $23.5M.
Having to only pay $4.5M up until May 30, 2016 means this gives PGI breathing space to save $ & look for an alternative lender for about $14.5M.
I believe PGI financially will be better off with this deal. The key is the monthly payments of 4.5M/9 months = $500K. Therefore, if PGI can reduce costs down to 7.5M & loan month payments will give total expenditure of $9M/quarter.
If you use previous quarter sales of approx $12.5 M for the next 3 quarters, this will give ($3.5M x 3) = $10.5M in the bank.
The down side of the report is the timing & scheduling of permits to allow for the import of the concentrate. Surely with the original planning to import the concentrate there would have been consideration to what was needed to import the concentrate.
This is a major stuff - up missing this major KPI. Now having to wait 12 months & up to 18 months to import the concentrate is a joke!!!!.
In the mean time PGI with the saving from the monthly payments need to concentrate on finding material locally in DR to process through the plant now & will not have to worry about importing problems.
Surely, PGI can multi - task at once on developing feeds of ore outside DR & inside DR. This way looking inside DR now PGI can increase revenue which will increase the SP.
With my rant, I still believe PGI is a buy.