review of 4d and half year accounts

Well well.

It's taken a while but finally we get some important facts. IMO thanks Deloitte!

1. Who is Ms Wang, and what are her connections?
Looks like she is the cousin, mother, niece, sister, daughter of the GM of Rizhao, our main customer and the major reason behind selecting Timeone/WEG as PLV's business partner. This little bit of information may have been beneficial for shareholders to have nearly two years ago when Timeone/Rizhao was first brought onto the scene and we were all asked to vote on the transaction.

WEG and Rizhao have far more negotiating power now it is known they are lated. IMO I'm sure the off take agreement was threatened to be pulled if WEG didn't get their 50% back.

I wonder why WEG wanted this relationship to be kept secret from the market prior to the vote on the JV?

2. What is the 'real' value of the Cockatoo project that was acquired?
It appears nil, based on the current NPV, hence the full impairment of the mining asset. IMO, to have an impairment so soon after the asset was acquired the DCF must have been pretty far in the red. It does make you wonder what numbers were used by PLV when we were told that the project 'as it stands' would be cash flow positive. Doesn't look like it unless the new reserves are found. I thought this was upside, not the only hope for the future to make Cockatoo a viable standalone operation.! Auditors wouldnt allow an over impairment if the NPV was positive, that's just as bad as an under impairment.

3. The high cost of short term loans, seems like the $2.4m loan that is interest free incurs a 'fee' of about 35% of the loan amount, or $860k. Steep cost of borrowing. It also doesn't look like these costs of finance were booked to the 'finance costs' in the PL, where are they?

4. Reinstated JV and back dated to August 2012. Signed 7 Feb 2013, backdated 5 months.
Seems a little rich doesn't it, this decision has directly cost PLV shareholders about $6m which we owe to WEG.

5. The real cost of acquiring cockatoo isn't $Nil
Based on the disclosure some $4.3m has had to be paid, and it wasn't stamp duty or inventory. The stamp duty had been expensed in the PL and inventory isnt an asset that has been acquired according to the disclosure. So what is the payment for? We were originally told that the only 'cost' to acquire the project was the rehabilitation cost, which was to be incurred only when the project was as the end of its useful life.

I believe this differs to what we have originally been told.

7. A settlement fee was paid to ICA to get them to stand down during the 'negotiations' regarding pecking order of security holders. How much was this?

8. GNR, now our largest secured creditor and board member. Seems to me that PLV had just jumped from the fat into the fire. GNR would I have no interest in PLV meeting their delivery targets. One slip and in come the receivers and managers - game over. I remember mentioning it his as a technique to takeovers a while ago.

9. Funding required, about $20m.
Given the short time frame to raise this capital, the markets and the heavily indebted balance sheet of PLV, I don't think us shareholders will be offered cheap stock to help out. looks like someone is going to get offered a good deal to kick in funds quickly, it's taken months and lots of fighting to get this far with GNR!

Given WEG can't seem to raise cash themselves ( and PLv owe them $6m anyhow), further presales would be good, but everyone needs to get in line. PLV's production rate isn't that high that all presales can be paid back quickly. If anyone is going to cough up $10-$20m it's not going to be at a premium.

High five board, nothing like running it down to the wire after a long suspension to go to the market to raise capital. Most block builds/ placements are done at a weighted average of a fixed number of trading days before the raising, depending on the trading on the opening week or two we all could be heavily diluted come the finalisation of the raising - if done in the open market.

A disappointing read all in all, l I can't believe now we are only finding out information that we should have had prior to voting. Does anyone else feel ripped off?

Once again we are left to wait for the further announcement regarding what dilution is to be made to shareholders. I'm still reserving my thoughts regarding recouping losses based on incorrect or incomplete disclosure.

Poor capital management, poor choice of partner and poor transparency in communication.