Petaquilla Minerals Ltd PTQMF

Fifer Can Sell Snow to the Eskimos

[wwadehammer]

Based on past company PRs, there's 392,000 ounces of gold left at Molejon.  Have to sell it cheap (at today's spot price that's $1,080 an ounce.  If cash costs are $800 an ounce (Wild Ash Guess) then cash profit would be $280 an ounce.  Have to produce much more per year than they've ever done (100,000 ounces per year).  Best year was 82,000 ounces I believe.  Good thing they repaired that 4th ball mill (ha ha).

Assuming Fifer can produce 100,000 ounces a year (No one believes that except the suckers that gave Fifer the $18 million) then potential cash flow would be $28 million per year.  Based on that, the suckers get $12 million a year from the gold sale or $36 million over the three years.  Doubles their money if Fifer delivers plus they get small change on interest on the loan.  So Fifer will have net cash flow per year of maybe of $16 million per year or $48 million over three years to keep the remaining creditors at bay.  My guess is that is about what Fifer still owes to creditors, so maybe the debts are all payed off at the end of three years, except for the $18 million loan Fifer just negotiated.  Even if everything goes right (fat chance) there's nothing left for the stockholders   Maybe Fifer will keep producing for the fourth year to get the remaining 92,000 ounces of gold left  at molejon and payoff the $18 million.

Great deal for Fifer as he buys time hoping the price of gold goes up big time in the next three years and he gets all his salary and perks.  What a guy.  Anyone staying with stock is betting gold will go up big time in the next couple of years.  If it doesn't, the stock is worthless.  If you're betting gold rebounds, then almost any other junior mining stock offers better potential at much less risk.