classic example cheap xstrata t/o sphere, page-5

The pitfall with PLV is that IMO the resource is too small when compared to it's CAPEX atm. With a potential 20% improvement in an incated resource for Stage 2, the CAPEX is still high when compared to others. Has geographical advantages plus the locals are onside - big plus. The problem when measuring it's future is that perhaps CAPEX will increase perhaps in line with long term iron ore prices. An offtake is necessary perhaps plus a white knight along with boom conditions. Has still a hope but at c. $50m, it's about right when compared to others at its stage of its business cycle and plan at Stage 1 PFS. OPEX is pretty good - they need some very positive exploration/drilling success - an updated resource model is the key in the medium term. They will have cash issues within the next 3 - 6 months. Just my thoughts.