Gold miners Sorry guys but I have been a bit under the weather with either a flu bug or a food problem on the plane. I feel like a leaking Nigerian pipeline (MMT Joke)
I came back feeling very good about my visit and got the bad news on gold coming out of the plane. Now, for everybody that is surprised about the share price maybe they did not notice that gold had one of the biggest drop ever and that all miners got crushed so why should PTQ be spared?
Here are a few value numbers based on 6 month and 3 month charts:
Newmont MC $16B down 39% (6 Month) Down 27% (3 month)
Barrick MC $17B Down 52% (6 month) Down 48% (3 month)
Yamaha MC $8B Down 41% (6month) Down 35% (3 month)
Gold Corp MC $22B Down 37% (6 month) Down 26% (3 month)
Petaquilla MC $70M down 41% ((6 month) Down 37% (3 month)
So, Petaquilla is just in line with the big boys and in the case of PTQ it includes the big drop after the failed takeover.
For all of the people that think that Petaquilla has a "management problem" or a "reserve problem" the numbers seem to show that it is more like Petaquilla has a "gold problem"
One could say it is a good thing that we have PDI with a potential revenue of $150M over the next 3 years ($100M from FQ $50M from others) BTW I think the numbers from FQ could go much higher and I mean much.
2 short notes and I will have more later when I recover:
Q3 was better than I expected. February was the only month at full production. December was almost nothing January was mill rebalancing. Q4 will be better and Q1 2014 should include the heap leach. Remember that PTQ is a very low cost producer.
Very impressed with the asset and the management in Spain. Really top people. However, it is a restart of 2 mines (yes 2 mines), it will cost money they will have problems as any project like that does and I do not expect any ore shipped to Panama before mid calendar 2014.
More to come later.