hey cashed, thanks for the plug, I will pass on my resume soon
Have to agree though, PNR is not doing itself any favours marketing wise, though of course, what matters most is what is happening on the ground.
Cheers for the link
@wassa (and Joel?). In any case, the brief interview is very illuminating!
Paul starts out discussing the balance sheet of the company (though... I think the implication is in regards to June 30) with PNR being in a new position (I am paraphrasing) of being basically debt free ($18m still to go) with
"a cash balance approaching $100m dollars and it really gives us the ability to go in and do all of those development things that we have wanted to do with the project (Norseman overall) from the time that we acquired it and we're well funded to do that, and the great thing is that operations are generating strong cashflow so that everything that we do should be funded from our ongoing operations and we should continue to build that cash balance at the same time".
I cannot emphasise how packed full of information the paragraph contains (plus near the end of the video where he reiterates that we will see "some really positive cashflow out of the operation this quarter".
Before the last raising, PNR had around $60-62m in debt, $46m in cash/bullion. So net debt of around $14-16m.
The capital raising was $100m. Now they have $18m owing.
Paid down $42-44m in debt.
Funding the Scotia U/G (perhaps they have spent $5m to date).
Less the costs of the raising ($5m)
I get roughly $92m cash, with $18m owing.
But Paul believes they will soon have $100m or more. While a $10m cash build is not amazing, for PNR... it is.
I liked Pauls discussion around their targets for the drilling, I think I needed to hear him say 6g/t feed into the plant to really have it sink in....
Obviously they are not going to achieve this in the near term, but... perhaps a 2 year target... a very different matter. 6g/t feed is going to be incredibly profitable if ever achieved (200k+ p.a with the current mill configuration), but... that is far into the future. I am just excited to know they are actually making money and.... that Paul genuinely believes that the cash pile will build even with a large drill program ongoing, plus... steady development at re-entering the Bulleen decline, though this will not be a speedy development like Scotia U/G.
What is important is that once they have the infrastructure in place, they can drill from U/G and potentially add incremental ounces through the Bulleen decline.
Interesting that the Geo team have been very clear, about what they don't plan to target in the near term, which clearly shows they see better returns in the near term, closer to the plant.
Slightly off topic, but PNR do need to be more upfront about any revisions, as
@hotcongo rightly points out, the most recent guidance had been for, so either PNR are trying to be more conservative and give themselves more wiggle room, or... there has been cost creep. Though if you use the 10%+-, you get around $1710-2090 AUD.
PNR is sitting on an E/V around $480m.
As to what PNR is going to do with it's... sudden change of fortunes with it's large cash position, only time will tell (for me logically, it should be used to ensure PNRs LOM plan is bulletproof and development of the mining area's are 2 or 3 steps ahead of where they need to be.
I am neither adding nor selling, but... then I already hold a good sized holding, as it's still very early days to be 100% sure that PNR has changed it's spots.
Good luck to all holders.
