News: Pacific Niugini director Peter Cook in $235,000 share purchase

Australia's next gold producer Pacific Niugini (ASX:PNR) recently raised $4.9 million through its 1 for 4 rights issue priced at $0.05.

In a vote of confidence in the company's operations, directors put their full support behind the raising.

Peter Cook, non-executive chairman, acquired 4.7 million shares in the issue for $235,400, and now holds 23.5 million shares and 2.3 million options.

This fact that Cook is putting his own money in is significant.

Cook is also the executive director and CEO of Metals X (ASX:MLX), a $470 million capped stock.


Operating Costs A$900 an ounce

Commissioning of the Nicolsons CIP plant (nominal capacity of 150,000tpa) is nearing completion.

The current mine plan provides an initial four years of production at the anticipated 30,000 ounce per annum, with potential for resource and mine-of-life growth.

All in sustaining costs (AISC) for Nicolsons are forecast to be A$900 an ounce, and with the price of gold over A$1570 an ounce, this provides significant margins.

These margins will allow Nicolsons to be cash flow positive in Q4, 2015.

The company also has a hedge book of over 15,000 ounces at A$1568 an ounce.