Hi GuysThere appears to be a lot of angst and gnashing of teeth...

Hi Guys

There appears to be a lot of angst and gnashing of teeth on the PLV threads. PLV is a company I keep an eye on and will certainly invest in when funds are freed up from elsewhere, hopefully in the not too distant future. Especially if current prices persist.

The company has just advised that it hasn't been able to complete its 'best case' fund raising initiative in the time frame allowed, and will fall back to a pre-advertised 'base case' position. ie It will raise fewer funds via a SPP, regroup, then pursue its Big Picture objectives at a more opportune time.

As far as I can tell the fundamentals for iron ore and the amount of iron owned by the company remains the same as was the case last week, and the next 6 months could see both an escalation in demand for iron ore and an increase in resources owned by PLV after the next drilling program is concluded.

Despite the angst and disappointment, the outlook for the company, and the sector, are still extremely bright.

After all, Jim Rogers has recently called for a 20 year commodities boom.

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LINK:
http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=14139

IMO, what we are seeing with PLV is a temporary set back, in part caused by restrictive time lines imposed by the company itself. And fair enough too as it has to have certainty in the way it manages it finances and its company objectives going forward.

There is now an opportunity to re-group and to move onward and upward into the fluctuating fortunes of a continuing bull market in iron ore. Certainly new opportunities will become available and the company conitinues to be in a position of strength with ownership of vast quantities of a valuable resource. Although an opportunity hasn't been consumated, nothing much has really changed with the iron ore still needed, and still profitable to mine and export.

While it might be disappointing, for those who had banked on stupendous trading gains in double quick time, the bumper profits anticipated for PLV still have every chance of being realized.

A review of strategy is all that is required IMHO, not a "tossing out the baby with the bath water" attitude with a "lamblasting of the MD" thrown in for good measure, as some here are want to do.

Who knows, drawing a line across the current funding opportunity and withdrawing to a Base Case position, might motivate those interests who have missed out on the opportunity to get involved. Certainly, iron ore resources of the quality of PLV's aren't all that plentiful and readily available at the current time!

Cheers
Nev
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