Please dont see this post as being confrontational as it is certainly NOT meant to be.... more to the point I am very interested in your reasons for determining... "there are better opportunities out there".... but more on that later.
You feel the apex and opex diminish PVM's profit prospects to the degree where the Company's future is not exciting enough to retain you as a shareholder.
The grades are described as ..."One of the strongest Reserve grades amongst its West African Peers". Also, the "EV/Reserve oz is well below the average of its West African Peers".... ( therefore the current SP is cheap by comparison).
Taking into account the JORC compliant quantities and grades, the Pre-Feasibility Study concludes that the "PAY BACK" period will be 2.2 years .... based on a gold price of US$1500/ounce.
The current gold price is north of US$1600/ounce.
The PFS does ALL the calculations.... and the results appear to be quite marvellous. I imagine higher grades would significantly reduce the pay-back period, but the grades so far determined, low or otherwise, are strong enough to achieve the above result.
There is also a lot more to come, it would seem.
Vienna, your opinion made me initially doubt my judgement on this one.... and doubt is a dreadful liability to have in the share market... so I scurried back to check the details in the PFS.
I always require a clear perspective on things and as much transparency as possible, so when you state the grades are low, are you comparing them against other Companies out there whose share price has NOT ALREADY REFLECTED that aspect? You are heading towards "better opportunities" and I for one would be most happy if you would share the names of those Companies with me. The more the merrier when it comes to support for any Company.
The days are long gone when "ounces/tonne" prevailed. Now its "grams/tonne".... with a dramatically higher gold price.
All in all the reason for a Feasibility Study is to determine the metrics ....high grades, low grades, extraction costs, price of gold, you name it.... and this has been done.
If you would please throw a little more light on this I would be most appreciative.
Cheers, Bripoz.
PVM Price at posting:
92.0¢ Sentiment: Hold Disclosure: Held
