RE: RE: PMC correct all along ? Red Kite closing is key, then we will need a quarter reported after close so institutions can understand how the B/S cleaned up, as well as a quarter of free-cash-flow. Then we are not a penny mining stock anymore
Don't underestimate the fact that companies like goldcorp, B2gold, eldorado are back at Summer-12 lows and are slam dunk buys here if you are a fund manager that think that gold has triple bottomed at $1550. PTQ is not a slam-dunk buy yet but we'll know after production and cash flow released for current quarter (FQ3)
Another thought is that if I was Red Kite, I would want the aggregate revenue securitized against my loan so it may get interesting drafting how that would work in light of the planned PDI spin out. Maybe PDI needs an offtake price they buy at from PTQ so PTQ earns an incremental margin on the aggregate sales that functions as security for their loan, then PDI still gets a 50% margin for example.
What I am trying to get at is maybe PTQ sells PDI the aggregate for a cost above their marginal cost of extraction and waste dumping, and they structure this so that PDI still gets a strong margin after purchasing from PTQ.
The deal is close to $75M in cash if there is no crushing that is to be performed by PDI. If Inmet just wants blasted rock then we don't need processing equipment. If we need processing equipment then the deal is less than $75M in cash.