Peak Discovery Capital Ltd V.PEC

RE: Insider Buying

[MiningMonster]

Coffin,
Don't we all wish your promotions were accurate.  They bought $250,000 combined not $2.5 million as you say.  They will likely issue a lot more than that in stock options at these levels.
They had $40 million in cash August, minus ($20 million liabilities), net $20 million.  They are spending approximately $3.5 million per month x 3.3 months= ($11.5 million).  That leaves us with approx $8.5 million today.  The company stated they will not have any drilling activity until May of 2012.  Assuming they are saving $1 million per month in drilling they will be spending 2.5 million per month with no drilling over the next 6 months, ($15 million).  The rig is still under contract just not operating. 
Currently they have around 4 cents per share after liabilities 8.5mil cash / 200mil shares = .0425,  they will require almost double this amount to even get them to next May.  They will need alot more to actually drill the next target even with a JV agreement.
So I think they will run out of cash by early next year, so they will unfortunately have to conduct a distressed financing in the meantime.  If they raise min $20 million at 10 cents that will bring us to 400 million shares O/S, and that will only allow for one more exploration well before we are out of cash again.
That's why I don't agree that it will rally from here, the financial situation is too weak and there are no catalysts to change it any time soon, they will need cash even with a partial carry on further drilling which so far they have not found the JV interest.  Unfortunately, that is reality. GL