Brent Cook Staying OnboardApril 8 Issue.
Exploration Insights ~ Brent Cook
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Brent is not backing down from PG being one of his top three picks of the year.
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His article points out that at every level, PG is better than the average of its peers.
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Let me quote the summary of the article.
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Quote:
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In summary, PG’s financial results and its ability to outperform its peer group is currently
dependent on its stake in South Arturo.
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The transition from the Phase 2 open pit to the Phase 1 and an underground mine (El Nio) during 2018 will require capital expenditures.
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Given its current working capital position and guidance for 85,000 to 95,000 ounces of gold equivalent, predominantly from its Mercedes underground mine, at an all-in sustaining cost
of US$800-850 per ounce, we think the company will still be in a healthy position at the end
of 2018 (~US$50 M), after accounting for the ramp-up at South Arturo.
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Therefore, PG may not require a return to the equity markets in 2018.
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Premier Gold CEO and Director, Ewan Downie, concurs as he is buying in the open market and exercised 125,000 options priced at C$2.75 on March 6 prior to the release of the fourth quarter results, which is a positive considering PG is currently trading at C$2.63.
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End Quote.
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RJ