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Playfair Mining Ltd V.PLY

Alternate Symbol(s):  PLYFF

Playfair Mining Ltd. is a mineral exploration company based in Canada. The Company’s main business is the acquisition, exploration and development of natural resource properties. The Company has interests in various properties in Grey River Newfoundland, Rostvangen-Kvikne-Vakkerlien Project (RKV Project), Folldal Project and Osterdalen Project. The Grey River property is located adjacent to the fishing village of Grey River (population of approximately 350 people) on the south coast of Newfoundland. The property consists of nine mineral claims (1,750 hectares). The RKV properties cover 201 square kilometers (km2) in a mining area about 100 kilometers (km) south of Trondheim by road. The RKV Project covers three Besshi-type Volcanogenic Massive Sulphide (VMS) copper mines (Rostvangen and Kvikne), a nickel-copper deposit (Vakkerlien) and over 20 additional known mineral occurrences. The Company acquired exploration rights on the approximately 216 km2 North Osterdalen Project.


TSXV:PLY - Post by User

Bullboard Posts
Comment by ruminatingon Jul 05, 2012 2:24am
269 Views
Post# 20083395

RE: RE: RE: RE: RE: Grading

RE: RE: RE: RE: RE: Grading

Well certainly make informed decisions.

It is my understanding that PLY is not structured for advancing resources to production; that they only have acquired properties to define the resource and then sell to others. Without production there is little chance for income other than government grants for resource definition work, or further equity raises based on the prospects for the sales of those assets.

China is the elephant in the room for tungsten resources.

They essentially control the market based on their resources and requirements. They have the most companies engaged in mining, processing and refining tungsten. They are interested in acquiring resources abroad, because like every nation they don't want to solely use their local resource because tungsten is a strategic mineral needed for defense and other industrial products that may be affected by political or global economic crisis. Europe and US are still in the game for those uses along with former Soviet countries and emerging industrial powers in the Middle East and south Asia are putting pressure on market from a demand POV, so there is certainly a potential demand for securing good deposits of Tungsten for the longer term, though right now there is no "shortage" of APT or other tungsten products. But that doesn't necessarily mean every tungsten play is a good investment.

PLY has good resources that they defining. There are other companies that have good resource bases and some have income streams because they are in production, but production also means depletion. All companies have costs. Most companies have capital build up from equity raises which are the stocks that we're buying. The question always is: will the equity build before the costs erode that equity. Right now the price of ferro-tungsten (tungsten-carbide) is historically at all time highs and growing. The price for APT and mine concentrates is also near historic highs, though recently they have pulled back from historic highs with uncertainty over whether they'll rebound or slide lower. PLY is a bit more speculative than some alternatives like MLG and NTC which have proven mid to high grade reserves and that are benefiting from the current high prices. WOF is poised to benefit from the prices, provided they complete their funding plans and can get their mine operating efficiently and their plans for smelting and upgrading the products work out as planned. Aii is able to generate income from their holding, but the longer term growth is in doubt because the margins are low based on current grades. There are other players planning to or already entering the market.

Who is likely to buy PLY's projects? And what will they pay?  

For the short term, yes personally I think there are better investment potentials elsewhere, with less risk and more chance of spiking stock prices. When those prices soar, then I'd be inclined to take some profits and look around to see who is still in the game and, if well caplitalized, is their stock undervalued in relation to prospects for buyouts etc.

 

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