PMI GOLD CORPORATION PMVGF

PMV cheap in here

[taylor1988]

Compared to other development stage juniors. The Feasability Study will be important but if Obotan is a 100k oz / yr operation then there will be serious upside from these levels. A $250 M enterprise value fully diluted for a company with cash flow for 2013 of over $100 M dollars is amazing for a producer. Obotan could easily be the next Perseus in 2-3 years but at a higher grade if Kubi continues to put out great results and should re-valuate to the $500 M range or $2.00 a share at some point in 2012. Just comparing TXG and PMV you can see the great discount PMV holds to other development stage peers. Torex Gold is in Mexico with a 3 Moz Resource at 3.0 g/t au that will be upgraded to 5 Moz by X-Mas and has a Feasability Study underway. PMV also has 5 Moz of gold but at 2.5 g/t au and has their Pre-Feasability Study underway. I believe PMV and TXG to have quite similar production profiles but expect PMV's production to come in a little lower. Regardless Torex trades at a $600 M market cap and PMV at a $250 M market cap. For another idea of how cheap PMV is - look no further than GYD (Grayd Resources) who was bought out by Agnico Eagle last month. AEM paid $280 M for GYD or $225 / oz based on 1.3 Moz of gold and a PEA indicated 110,000 ozs of production per year. PMV will likely be producing at the same run rate as GYD but is trading at a $50 / oz valuation and is a development stage peer ahead of GYD as they are working on Pre-Feasability rather than a simple PEA. Picked up some PMV today and will add on further weakness, the share price should never have been trading as low as it was.