Have been building a position over past few weeks after reading up on the fundamentals. Also spoke to the company and liked what I heard. A summary of where I'm at with my research and I welcome feedback/opinions.
Company tax rate in PNG similar to Australia. Royalties unknown as yet?
Cost of production will be very low and electricity from the PNG Forestry partner's Hydro would be powering trammels. Sufficient power available for 3 to 4 similar sized plants before they would have to upgrade hydro plants. Commissioning of first 1000 tonne per hour plant is targeted for November. Once running at optimum would immediately target additional trammels but that could take 6 months or so from commissioning. Company plans to be self funding and to get as many units up and running as possible. Approx 12 months to build and transport additional trammels. PNG is a maverick state and do have to expect delays but the rewards should hopefully be commensurate. Only awaiting enviro approval but no problems expected as only water used to process. First gold hopefully November 2012.
Biggest risk is sovereign.
Keenly awaiting assays...company states historical data suggests 0.3 grams per tonne but others in PNG suggest higher rates for alluvial operations.
PNR Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
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