Ann: Appendix 3B and S708A Notice-PGI.AX, page-8

Jumpstart your numbers a are way out. For starters their are no preference shares, What we have 3.3M(now 3.2M) of shareholders loans that can be converted at 10 cents per share or paid in cash at the election of the loan holder. So that is 32M shares not 3M. A percentage wont convert but the stronger the share price the more chance of conversion. As Brian has at least 1M of those loans he will convert but those shares wont be for sale. So I guess somewhere around 15M shares that will be in weak hands come Dec

Also the loan holders have to Dec 31 to decide if they want shares or cash so the most likely outcome is that most of these shares will be converted late Dec.

I would suspect Long term shareholders are adding to their holdings or some new long term investors are entering. I definately dont subscribe to you conspiracy that Camif and friends are manouvering for a takeover next year. If Camif really wanted more shares they could have simply not re-financed our loans and forced us to pay dividends and repayments in shares on the convertable note. Instead they let us out of our obligation to pay then 73M shares so that we could pay them cash.

Camif have no interest in taking over PGI. They would only do this as a last resort to try and salvage some of their investment. If PGI are doing well then Camif will just tag along for the ride and most likely sell down their holding as the share price rises. My view is that CAMIF have many more shares than they really want to hold and will definately be sellers in a higher price environment . CAMIF are bankers not venture capitalists

If you look at the current situation their appears to be no long term downside unless gold falls significantly. But the upside is huge if they can prove up the small plant model in China as this small plant model could be replicated in many sites around the world over time.
This coupled with bringing in concentrate in first half 2017 would enable them to produce the cash in Las Lagunas to enable them to actually fund a small plant which will then give them more ash to add a further small mine.

All of this indpendant of using Las lagunas as a concentrate processing centre post 2020 which will then bring the Canarc concentrate back into play with a 2022 timeline.

So I have joined all the dots in their correct sequence.

So what announcements are we looking for.
1. The first one will hopefully be a concentrate deal before year end for comencement in 2017.
2. The next is that the China partner has got approval to add a flotation segment to produce concentrate.
3. An the moment the Chinese company start construction of that flotation updgrade we will know they intend to build a plant in China.

It is still going to take more patience but by Mid next year we will all be celebrating or still stuck in the current situation looking for the first breakthrough project