RE: RE: RE: RE: PTQ visit Not too sure about the price but the plan as advertised is to issue one share of PDI for 4 shares of PTQ. PTQ would retain 25% of PDI. Shares would not be public immediatly but you can turn your shares in for cash. Puplic offering will be 1 year or so later. Details will be in the communication to shareholders.
The interesting part is what will PDI charge PTQ to do the work at the mine now and other mines in the future.
Where do you want the profit to go?
PDI is working now on some Inmet projects like the bypass road. That is well advanced at least as much as you can see from the chopper. There is plenty of work for PDI to do even after some of the canal expansion construction tails off after 2014
The big revenue for PDI will be for the aggregate supplied to Inmet. That's a lot of money.
PD is pretty booked up for at least the next 2 years.
Inmet has issued about $4b worth of contract. FQ thinks they can do the work for a lot cheaper but there are a few things you should realize:
FQ has no experience in the country
FQ has not experience for a mine that large
Panama has very low unemployment rate and a low number of qualified mining people. Inmet has done extensive work to handle that with training and import of qualified people.
A lot of the contractors contracts have breakup clauses and FQ has no idea of what the amount is. In an hostile takeover you do not have access to the data room.
It is very strange that FQ has not been on site unless they did that in the dark of the night.
I thought the FQ deal was a done deal and I am not so sure now.
GTLA