Agree with all your points and that’s why I established a position in PRU over the last half of the year. One interesting thing is the fund flows into the GDX have been consistently strong vs the GDXJ in 2018. In the past when the speculative juices really get going in the market the GDXJ has been the vehicle of choice for many traders, although I’m not sure if it ever really recovered from the rebalance event in 2017.
The dilution to fund Yaoure is baked in I guess with the warrants. The company is probably assuming decent conversion but it’s still very much an open question with the share where it is.
I’m quite happy for them to keep Yaoure in the background and just focus on steady production and debt repayment for another couple of quarters.
PRU Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
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