Ann: PMI Announces Interim Order For Merger of Eq, page-99

re: Ann: PMI Announces Interim Order For Merg... asf

There are some 430m shares and options and at end December 2012 CAS125m cash (ie around 30 cents cash backing).

PVM has over 4m ounces at Obotan at an average grade of 2.2 grams/tonne, which is way higher than PRU average grade at Edikan of 1.2 grams/tonne. Its cost of production will be lower than most large miners. The main negatives are needing $80m to clear overburden for the pit, plus the high tax regime of Ghana (which of course is what PRU also faces there).

If this were 2011 then PVM would be trading at over $1.50 because it is also seen as having the potential to develop another mine within a reasonable period.

However, circumstances have significantly changed since then, including higher taxes in Ghana, instability in some west African countries, higher costs and fear about the POG heading south.

PVM is a punt for me, and I would not be betting my life on the goldies. It is a question of risk v rerward I am willing to take given where the share price is now.

GRY is a solid asset with poor management, while PVM has got both a very good asset and solid management.

MacBank, (Australia's vampire-squid) worries me having seen them draw the blood out of some other goldies. However, MacBank backed them when PVM was unloved back in Canada and helped them get funds in Oz, so they have been helpful in the past. I think PVM will be able to get funding at better rates than what MacBank has to offer.

loki