quarterlies out..., page-7

Given that I started buying PDN at 7 cents, I am well aware of their history. However, there is a huge difference between then and now.

WMT already have some outstanding tenements, and they have cash in the bank. While they can, and perhaps should, scan the horizon for giveaway bargains, they should also protect their capital, otherwise everything will be null and void when they go broke.

Protection of the capital should be their number one priority, to enable them to survive this current financial crisis. If an absolutely irresistable bargain were to come up, AND if it ticks all the right boxes as far as due diligence, assets, costs, debt, cash burn, proximity to production, etc etc, THEN yes - they could certainly snaffle the bargain.

But that should not be their main focus - they need to concentrate on converting their existing potential into reality. They need to get Tanzania and Georgetown up and running and head for production.

Or of course - get taken over themselves...!

If you were a predator on the scale of BHP or similar, then yes, searching for underpriced bargains right now would be a smart thing to do. But WMT's $20 million in the bank won't last long if they spend it. And I don't know about you, but I really don't want another share issue to dilute the already-weak SP, or any other means of raising cash because they need it desperately.