RE:RE:RE:Pathetic SP reaction compared to other producers GG, actually based on Q1 numbers production by PVG is something less than 900 ouinces per day. Another two weeks and we will have Q2 numbers and present indications are that they will be similiar to Q1.
However given the recent strength in POG, perhaps it is time to put some ideas together as to future cash flows. Lets assume that by xmas all the necessary mill/ mine upgrades have been completed and milling rate is 1.4 million tonnes per year. Lets assume that head grade averages 10 gram.......it may be more and it may be less . That equates to 420,000 ounces annually or 407,000 ounces making an allowance for 97% mill recovery.
At an assumed revenue of $1350 per ounce , Thats $ 550 million cash flow or $ 1.5 million daily. , Costs. of mining are $250 per tonne.or $350 million annually. Thats an annual "profit " of $200 million. Debt repayments will probably be around $90 million per year , leaving $110 million. With 181 million shares outstanding thats around 60 cents per share.
Assume the P/E ratio gets to 25, the same level as KL today. That computes to a share price of $15.
So investors today have to ask themselves are they prepared to wait 5 years for a SP of $15 or are there better opportunities in say , KL or elsewhere.
Now POG is the wild card here. If it goes to say $1500 everything needs reevaluating but going back to $1200 would dramatically influence these numbers as well.