summary - why so cheap

PGI
Market cap 100M

will pour gold in around 2 weeks and ramp up to full production in one or 2 months.

They will produce 69000 Ounces of Gold and 6300000 ounces of silver a year in full production
Mine life 6.5years
Mine cost $90M to build
debt is 37.5M
Cash costs after silver credits are forecast at $331
136000 ounces hedges at US$1321
No tax is payable
Govt gets 25% of profits once first 90M is repaid to PGI
Company forcast that after 18 months will have generated 100M free cash flow after paying off all mine debt.
Project to generate 312M net cash during 6.5 years
Poject will generate 44.5 cents per share net cash over 6.5 years
Project is a simple scoop up tailings and re-process project, no large overburden removeal costs or underground development costs

If that was the only project PGI it would be a steal but they have several very profitable future projects which can be funded from cash flow to grow the company into what they hope is a 250,000 ounc producer

The investor presentations are very good. Lots of detail, much more than most samll stocks provide.

What are the risks

Cash costs are much higher than $331

This would come about only if grade and recoveries failed to meet previous test results.