Will Malin REALLY add Value?Dynacor (v.DNG) has been operating a 160 tonne per day mill in Peru for the past 2+ years. The stock traded in the 20 to 40 cent range until mid september when the stock took off and is now at $1.11. Based on Market cap this would translate into a jump for PLE from current levels to about .17 or .18 cents (all things being equal).
Sure there are some differences .... North vs South Peru, PLEhas a Peruvian partner and supposedly has a source of ore, whereas DNG had trouble initially finding ore to process. Head grades will be different of course and capacity is also different, PLE has 100 t/d, DNG has 160 t/d. Ple also has copper supposedly.
Bottom line, Without knowing what grade of ore is being processed, it will take several quarters of increasing (or consistent) production before anyone with deep pockets becomes interested in PLE if all they have is a mill. In the short term the only benefit is potential cash flow which will eliminate or at least mitigate further dillution but will not amount to much sustainable increase in share price.
Until Guy gets permission to explore the properties, nothing much will happen because in the short term that is the only thing that will add value.