Reason why I believe PGM has huge potential • Firstly I am...

Reason why I believe PGM has huge potential

• Firstly I am bullish on Gold with a falling US dollar I believe gold will be the next big metal play, with money pouring out of the greenback big funds will look at gold as there hedge. This will mean POG (spot price of gold) will continually rise, which will mean gold producing stocks and speculative gold stocks that aren’t producing but are sitting on in ground gold will be re-rated.

• For PGM what does that mean from my analysis PGM has the lowest IGV value of any of the gold stocks. Other non producing gold stocks on the ASX have an average IGV of 3-5% PGM currently has an IGV of 0.06%.

• IGV is calculated as below (note that below is based only on PGM’s 6 million gold project not all the other goodies which could be worth as much or more)

o Shares on Issue = 37,000,000
o Ounces of gold = 6,000,000
o Spot prove of Gold = 730/per ounce
o Current share price = 0.80
o % IGV = (share price * shares on issue) /(ounces of gold * spot price)
o % IGV = 0.68%

• Now here is why it gets exciting if gold starts getting interest from fund managers two things happen
o 1: POG increases
o 2: How a company is valued drastically changes companies get re-rated to up to 10% + of IGV. Lets not get too excited and say some one sniff sout PGM and it gets re-rated to its peers which are trading at between 3-5% IGV what does that do to the share price

• Re-rating the stock to 3% IGV gives a share value of $3.5 dollars using current spot price
• Below is an analysis showing what the share price would be worth based on higher IGV note this is not taking into consideration an increase in POG OR all the other in ground goodies which could well double the figures below.

Shares on issue 37000000 37000000 37000000 37000000 37000000 37000000 37000000 37000000
oz gold 6000000 6000000 6000000 6000000 6000000 6000000 6000000 6000000
spot price $ 730.00 $ 730.00 $ 730.00 $ 730.00 $ 730.00 $ 730.00 $ 730.00 $ 730.00
IGV 0.07% 3.00% 5.00% 6.00% 7.00% 10.00% 15.00% 20.00%

Per share $ 0.08 $ 3.55 $ 5.92 $ 7.10 $ 8.29 $ 11.84 $ 17.76 $ 23.68