PDI Timeline and Activities

Following the recent MRE, I thought I would do a bit of a review of PDI’s recent history which I have outlined below. Please note I have only included key events and not every individual announcement. I have been a holder since the 5.5c days and whilst I really like the deposits and understand the long game here, I can’t help but feel that the current management are significantly underperforming compared to other companies undertaking similar activities.

- On 30 September 2021, PDI announced 3.65m Oz MRE, exceeding market expectations and causing the share price to a close of 24c following the announcement. The September quarterly released in October indicated that the company had $23.9m in the bank at the end of the quarter.

- 12 October 2021, the Conservation area issue is announced and the share price drops to 17c as a result of the news.

Exploratory drilling at the sites continues with consistent results being announced consistently. The results push the share price back up to a close of 27.5c by mid-November.

- 1 January 2022 – Andrew Pardey is appointed Managing Director [salary package includes 2,650,000 zero exercise price options and another 1,000,000 options with exercise price 0.3476 exp Feb 2025]. Other directors were also given options as part of their updated salary packages. The share price closes at 26c.

- March 2022 Quarterly released 26 April and shows that the company has $12.9m cash at hand and no debt. The share price is 20c.

- 30 May 2022 the Capital Raise to sophisticated investors for $55m is completed and an additional SPP follows closing in July and raising an addition $2.9m, the share price falls from 19.5 to 18c during this period. Directors participate in the CR.

- 1 August 2022 updated MRE is announced 4.2m Oz, a 0.55m Oz increase since the previous MRE 11 months earlier. The Quarterly Report released 22 July 2022 indicates that the company has $42m cash in the bank as at the end of the June quarter so whilst I acknowledge that other activities have also been ongoing during this period including regional surveys and the commencement of ESG studies, this 550k Oz resource upgrade has cost $39.8m according to the companies own statements.

- December quarterly released 31 January 2022 - $32.4m cash SP 18.5c

- 6 Feb 2023 – Second update to MRE 4.2m Oz, no increase in overall ounces however 50% converted from inferred to indicated categorisation. The share price closes at 17c.

This all equates to $49.4m cash burned since the original 3.65m Oz MRE for a 550k oz increase in resource and 50% converted to an indicated categorisation, yes I acknowledge they are doing other things too that have drawn down their funds but the expansion of the resource was stated to be the one of the key uses of the $55m CR and the other activities being undertaken should yield significantly lower expenses than running 12 drill rigs based on my limited knowledge.

I couldn’t find any evidence of any directors buying shares on market during this period. And it appears that the share price has been in a downtrend since Andrew Pardey was appointed Managing Director to the point where the share price is now trading at a 40% discount to the closing price on the day of his appointment which is a pretty disappointing result. Maybe it's just a coincidence but seems unlikely.

As I stated at the beginning, I do like the tenements and the resource I am just curious as to any suggestions on how this could be turned around?

Personally I think that the company needs to implement measures as soon as possible to limit its cash burn. Focus on expanding NEB and BC in terms of both categorisation and volume, the other satellite deposits will still be there when the mine is operational and the exploration could then be funded by FCF, similar to EMR or ADT for example who have developed mines (noted ADT are still developing but will soon be online) and are then using the profits to explore rather than continue to dilute share holders.

Interested in other peoples thoughts but at the current rate I see more capital raisings coming sooner rather than later despite the companies promise to lower costs in coming quarters.