While PGI chugs away in the background getting the Las Lagunas plant fine-tuned, I can't help but be excited by the potential of this company.
Assuming that the Albion process is proven to work to specified Au/Ag recoveries and costs, the following aspects of PGI look very compelling:
* Exposure to a rising gold price AND very low operating costs provide a significant buffer against a falling gold price (PGI would be one of the last ones standing, and still making a healthy margin, if the price of gold dropped back under US1000)
* Potential to acquire other refractory tailings resources cheaply and process using the LL plant or build a new plant based on the same design (PGI are already looking to acquire new resources as such)
* Value of IP developed at LL -- which could be applied globally. Just think how many tailings dams there must be worldwide that contain significant amounts of gold as a result of inefficient mining practices.
* Exploration -- concessions in DR to be drilled before too long look promising.
All in all a very exciting little company still trading at a low forward valuation. We just need to get LL up to speed and cashflow stabilised and most of the above should fall into place thereafter. BJ sounded confident of progress when he replied to my email last week, so we'll see how that is reflected when we finally get an update.
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