Post from somebody who attended the AGM, Tiggles, Rob ? : “from...

Post from somebody who attended the AGM, Tiggles, Rob ? :

“from the AGM I attended in May, Brian Johnson explained that working with a $1200/oz gold price and with fulfilling the requirements of the hedge, PGI expected to make an operating profit of US$20m for this financial year (which is the calendar year) and from that apply US$10m to the debt.
PGI expected to pay off all of the debt over the coming 2 years.”

If POG can average $1,300 (currently at $1,365) this would suggest operating profit of US$25m pa meaning the debt of ~$30m could be paid off in 15 months in theory. Unfortunately the Camif 1 loan looks to be structured so that a maximum of only $4m can be paid out early with the loan of $6m required to run the full distance until end of Dec 2018.
Assuming they have sufficient cash in hand now to pay out that $4m the quarterly repayments would then be in the vicinity of $667k leaving them with the capacity to pay out all other loans within a year or so.

Jump

Your list of PGI’s crap decisions seems to include many issues outside of their control while you have missed the elephant in the room. How smart do you think it was to do the opposite of every other mining company on the planet and process the low grade ore first ?