is psv a take over target

Here’s a comment from Hector on The other financial chat room forum whose name were not allowed to mention bu who'se initials are SH. He’s posted before & seems to have some insight into the fundamentals.



Replies: 263
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In reply to: dayz on Thursday 25/10/07 02:23pm


Cashflow has been negative due to high cost of production and some hedging still left to sell into. With the higher gold price PSV can take advantage and sell at spot prices. Current quarter is still churning through lower grade ore before getting to the better higher grade stuff. THere have been some good exploration results of high grade but the company has had to pullback on exploration budget. $26m raised recently keeps the cash tin okay but they really have to be hitting 200,000 oz pa to get over the current hurdles.
There have been several companies that have had a look at PSV
It is a clear target for any company that wants to add 200,000 next year to their own current production profile. It is very cheap. The market cap does not even reflect the cost of the plant let alone the gold reserves and production
Tight trading range at the moment and the risk looks to be to the upside in this gold environment. Most likely it will be taken sooner rather than later

H


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