Snagger , yes you are right .Three things need to happen . Firstly the funding , that they have been trying for five months to sort HAS to come through or it is game over . Secondly it needs to be at a viable cost extraction ( they will need more money as well to do this so another problem ) and thirdly the guys will have to deliver consistently on three ships a month , consistently which is an issue for them .
So if all these come together then yes it will trade multiples , easily . But they have had a long time to get funding sorted and they have not . What funding they have had in the past to get this far , they have been totally screwed on . We know the ore is there but how cheap is it to get out . Remember they have gotten their maths wrong big time before on this stuff . And they don't respond to questions so that doesn't make you feel warm and fuzzy .
Thirdly management need to suddenly have a complete change and deliver . The market simply does not believe all three can be done . So big risk , big reward .
Obviously , I do not think management are up to it . I do think WEG will fund them to stop them going under at some loan shark rate / deal so that will limit upside .
PLV Price at posting:
5.8¢ Sentiment: Sell Disclosure: Held
