expanding on the sell recommendation

I feel like some members are saying that i am downramping without any substance. So i should set the record straight.
A negative view is not the same as downramping.

This is the sell recommendation
http://www.thebull.com.au/articles/a/33249-18-share-tips---19-november-2012.html

It is not my recommendation but i share the same views.

PNG is not cheap to explore and set up a mine.

Currently IDC has less than 15m left.

Lets look at the last 3 quarterly outflows vs estimated outflows (All in the cashflow quarterly).

March 2012 spent 6.8m, estimated June 2012 quarter spend 6m
June 2012 spent 9.5m, estimated Sept 2012 quarter spend 6m
September 2012 spent 9.7m,estimated Dec2012 quarter spend 7.8m

Dec2012 quarter spend ?? (pending)

This is the reality of PNG, it is going to be very costly. Company has constantly run over their estimated amounts. With the cash balance it will not last long especially in doing a DFS and will 100% look for funds next year from the market.


Do not forget where you are in the cycle. I can't predict the future but neither can you. Just a differing view and i don't think anyone can deny the fact that this company will have to issue a lot more shares before a DFS is completed. Be prepared for dilution. Good luck holders, hope IDC becomes the exception.