Cheers for the Kippy. Paul continues to show more confidence, which... I am going to be a little unwise and directly link to the production success he implies they are having (which if backed up, should see some impressive revenue growth this quarter with the realized spot prices being incredibly good).
The extra 2 U/G mines sounds about right (with OK/Star producing around 40k p.a, Scotia Base case 60-70k p.a.... with future expansion possibly doubling to 120k+). At an average head grade of 5.5g/t, at 1.5mtpa..... hmm... that is getting quite exciting (1.5mtpa x 5.5g/t /31 * 0.93 recovery gets very close to 250k p.a).
The 2 year target is bold, but... PNR have the capital, so it's more about having the exploration prove up what they already have (basically convert some of the 5m ounces in the MRE) and then get into developing the extra U/G mines. Execution will be key, but... it would seem the U/G mining contractor is on time/budget so far.
While I am perhaps being greedy, I am still a little unsure why PNR cannot undertake incremental expansion of the plant throughput by accessing open pit ore (sure they want to eventually not use open pit ore, but... at today's spot price, I am confident it would be profitable.... they have the capital, so... what is the real reason this is not being undertaken?).
PNR Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
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