no brainer, page-25

Whee another thumbs up, someone likes me!!
Hi NK
In reply to your post.
“The amount of shares on issue is somewhat a minor negative,”

The amount of shares on issue is not a problem as has been rightly pointed out. A simple consolidation could fix that.
It is the ongoing issuing that I am talking about. If just the current bonus shares plus Global plus any further placement shares (the Co can issue up to 15% pa without SH notice thats More than 80 million year) etc were issued within 2 years, total issue would be close to 2 billion.
So to explain hypothetically, if you were to buy 1x10c share when total issue was 1 billion, and sat on it while another billion shares were issued your 10c share has lost half its value via dilution.
Anyway ….
“Tell me, are you going to be concerned with the shares on issue when PEN are churning out $65 million a year in after tax cash flow in less than 2 years.”

As the eggs are still being laid I really think it a little premature to speculate on chicken numbers….
Don’t forget we are mining a finite recourse, and PEN has a lot of acreage to explore. Methinks the drilling rigs will be busy on current tenements for many years. I would hope most surplus funds would go into further exploration, developement, proving up, plant maintenance and expansion. Karoo will not be cheap to setup and run. (I hope there is not a new lot of Admin. on fat salaries plus million dollar bonuses). I expect it will be a loooong time before dividends can be expected.
Personally I think PEN would probably be better off to quit Fiji and concentrate on what it has secured experts for. As stated in earlier post IMO Political stability will be a prerequisite to gold recovery there.

Yes NK totally agree with you re. DYL. I Have a fairly serious DYL holding too. Paladin holding 20% of DYL (paid over 50c. for some) and Director/infra-structure sharing put DYL in different category to PEN. Comparing DYL and PEN stages of development on an apple/apple basis though, IMO PEN will be quickly and seriously revalued when JORC released mid year.
Enjoy whats left of weekend, no doubt there will be a lot of interest/nail chewing when market opens tomorrow. Can’t wait!
Cheers