We need the share price up to at least $2.00 when they go looking for the $250m to develop the mine otherwise there will be a fair amount of shareholder dilution. One way of moving the share price up is to increase both the reserve and rsource as much as possible by Q3/Q4 when they seek funding.
The project looks robust given that the grades are far better than what PRU has in Ghana, and they have used a conservative $1300 for the POG.
The stripping cost is high.
PVM is one to add on a major pullback once they have sought the funding, or if you believe the POG is going to rocket up, which may lift all the goldies including PVM.
We still do not know what the new tax regime will be in Ghana.
loki
PVM Price at posting:
$1.07 Sentiment: LT Buy Disclosure: Held
