Pender Street Capital Corp V.PCP

Conversation with Company

[texasripper]

Conversation with company 
I spoke with Mr. Phillips (Corporate Development & Director) for about 35 minutes, he is very well spoken and energetic. The feasibility studyshould be done sometime in quarter 4. This property has had 3 FS on it in the past, the most recent being in 2001. At the time 40 dollars was the price of rock phosphate and the production cost of this project comes in around 60 dollars per ton so it wasn’t economic at the time. Now we are at 182.50 so that changes all of that. 
They are currently looking at 2 million tons per year but that can be upgraded based on the FS. They will be producing Rock Phosphate only, just like SGGV. They will not need to do very much processing at all at the rock is graded out at 29.9% and the industry standard for selling the rock is 31-33%. The rock will be mined with a dredge as its in a water area. They will transport the rock to port via a slurry, which is a cost savings. 
The estimated capex on this mine is 280-300 million dollars. This will be financed by a combination of off take, world bank investment, and the remainder will be traditional financing. Hoping for an off take of 30-60%, World Bank of 10%, the remainder bank financing. Nothing firm yet, but there has been a lot of ‘tire kicking’ in regards to an off take. IR will be handled in house. He is about to hire a person to do this, but he stressed that he didn’t want to go with an outside firm. 
We talked at length about the need for greater market awareness. He is working to involved analysts at this point, says he has contacts at the brokerages and banks as well. He wants to get coverage for PCP soon. They are going to be ramping up the marketing effort soon. 
He told me that when they are in the country they deal directly with the prime minister and the president, no red tape. It’s a Portuguese speaking country that still has strong ties with Lisbon. Said the government is headed in the right direction. 
Actual 'true' float of 150 million shares or less. Feasibility study already under way.. This will be a prime take out candidate very soon as well...!