potential cash injection of $27.7 million, page-8

"I must say, I would much prefer to see Pen put Karoo on hold,(as good as it is) Imo, they need to be totally focussed now on conserving capital for Ross and Barber alone. Once up and running and producing, they can then use their own profits from them, to bring Karoo back into focus."

This will be a first but I disagree with you NKLEX. Proving up both Lance and Karoo is a de-risking factor IMO. As I indicated earlier (albeit erroneously in calcs), PEN could potentially go Lance alone by doing one more good cap raising and then consolidate the shares.

By this stage Karoo would have been advanced significantly without any further delays and Lance would still be the cashflow source to develop Karoo. Also keep in mind Karoo is part owned by a Sth African organisation (required in SA), they too will have to come up with their share of funding.

By expediting both simultaneously there is no delay and it will make PEN extremely attractive to additional funding through a cap raising or alternate means.

How attractive will PEN be displaying Jorc of 76M/lbs at Lance and potentially 150M/lbs at Karoo? I dare say extremely so.

I think their strategy is quite simply sound risk management. I like to think way outside the square and in terms of risk vs reward, in this aspect I am aligned with PEN management.