"The things that's concerning me is the financial report. Based on current burn rates (and I believe with all the drilling planned and the ramping up with 2 additional rigs coming online in Feb and March spending will accelerate) the tank will be dry before we get to the drilling planned for Karoo mid-year"
Estimated expenditure for the next quarter is ~3.29 mil. (see pg 3 of the quarterly cashflow report) So at the end of April they will have 4.94 mill remaining to take them into the following quarter.
By the end of April we will have a clearer idea if the June options will be exercised or another avenue needs to be taken.
With the JORC due by mid year it is anyones guess as to what the share price will be by end April. It would not surprise me at all to see the price between 6 and 10 cents and the 6 cent options being exercised. There are also 10 and 15 cent options with a 30/06/2010 expiry date which could come into play if the SP really takes off. Could we expect the best news to be kept until closer to this time? I believe we will see a constant stream of good news over the next 5 months with the SP continuing its march upward until we finally have the JORC at the end of June. cheers DYOR....but I like what I see :)
PEN Price at posting:
4.9¢ Sentiment: LT Buy Disclosure: Held
