current cash at bank dwindling before your eye

Both PDY and AGU are going to be running out of cash within the next 6 to 8 months possibly a lot sooner.

Firstly AGU must front up with $2m for the current drill program, what have they got in the bank? About $2m. Therefore they will be desperately looking for CASH very soon if not now.

PDY as follows.

Current cash is now down to approx $7m give or tack a few cents (refer AGM presentation)
Directors fees approx $500k pa plus
Current drill program $6m plus associated costs
Overheads below to name but a few say $700Kpa minimum
Geo
PA to Stokes
Receptionist
Rent
Airfares & accommodation
etc etc the list goes on

The merge with AGU is certainly not definite and can be structured in numerous ways so there is absolutely no guarantee they will merge therefore the additional $2m from AGU is certainly not a given and that will all be gone very soon anyway. AGU or its shareholders will have a massive tax problem depending on how the deal (takeover/merge) is done and this will need to be approved by shareholders in any event.

Next month PDY will probably be down to $5m and the longer they leave it the harder it will get to raise cash especially when you already have 2.4b shares and around 665m options out there.Therefore the only real option is a strategic partner. Hindsight is a wonderful thing maybe they should have grabbed the 3.3c offer when they had the chance.

Even if they are talking to the Chinese, Indians, American Indians, or the Pope it has no relevance because they all know the longer they leave it the more perspiration will be forming on the Directors faces and the less they will have in the bank making them slide in to desperation land and begging them (the incoming party) for help.

Too many people in the mix, the Directors of PDY and the Directors of AGU and the wheels turn so very slowly because of this not to mention the posturing of egos to go with it.

Even though the Chairman mentioned the legacy of the past has gone it still haunts them today with the greedy few who screwed the company with the piggy back options. How short sighted these greedy individuals were. They can give you all the excuse under the sun but they have screwed this company with their own selfish greed. FULL STOP!

I am a realist and all of you who think that you will make money here are dreaming because you have one very unhappy camper excuse the pun who is selling all his stock because he didnt get a seat on the board. And it doesnt matter whether the Chinese, The Red Indians or the Pope are buying the stock the fact of the matter is they will do a placement and your million shares will turn into 100,000 shares and you will have two tenths of zippity doda. And thats a FACT.

No cash flow no income and spending shareholders capital like the world is ending in two weeks the writing is on the wall in my opinion. My advice is cut back massively on costs, why drill hematite when you wont be getting it out of the ground probably for 3+ years. You know there is an absolute minimum of 800mt plus and everyone that has been on the ground knows there is so much more.

Concentrate on the corporate side of the company and get it all cleaned up before drilling to prove that you have billions of tonnes for what? The Chinese are not stupid they know there is a truck load more than the 800mt+.

Yes I have been wrong in the past but lets all wait and see.