Plateau Energy Metals Inc. PLUUF

Research from someone smarter than the idiots posting here.

[Right80%]

I must say, there are some very dumb idiots posting stuff on here. They read some other hacks posts and think they are smart.... You guys are just so miserable and its comical to watch. Get the facts before you start on rants. The vast majority of people that use these boards all think you're idiots and I'm sure if you weren't trolls sitting behind the alias of a computer screen you wouldn't act this way. Get your 3 brain cells together and shut up........................................................................ It doesnt cut and paste clearly so its not perfect as far as start and ends of paragraphs. However this is a proper analysis of what is ACTUALLY HAPPENING. 


We place our Plateau Energy Metals rating and target Under Review from BUY and C$2.70/sh, pending further information from management and the Peruvian Government as to the status of PLU's concessions. We do not change our project valuation, and ultimately believe this administrative issue will be resolved to the spirit of the law. That said, while uncertainty exists, we expect some downward pressure on the stock.
News on 1 of 32 disputed Macusani concessions has emerged. One concession has apparently been deemed invalid in a surprise decision from the Mining Council (a panel of arbitrators) within Peru’s Ministry of Energy and Mines, according to a weekend blog and confirmed by management. The Mining Council sided with an earlier INGEMMET (mining regulator) decision, on the basis of "payments were made outside of opening hours", despite being paid on the due date. Fees were for penalties because of under-spending on claims. Management says it demonstrated to the Ministry that they have lived up to the obligations on these 32 concessions, and that the Ministry had agreed formally late on July 2, 2018. Payments were not made until later that day on 2-Jul-18, as PLU waited for confirmation from the Ministry that it did have to pay penalties. Erring on the side of caution, it was decided to start making payments for all of the 32 concessions while waiting for the formal Ministry resolution. Most fees (19 receipts, 60% of concession area) were paid before 4:30pm close, the rest just moments after (three receipts, 40% of concession area) during a single bank trip.  
Issue stems from country-wide PricewaterhouseCoopers review. PWC concluded that exploration expenditures on 32 PLU concessions going back to 2005 (even before some were acquired by PLU) were not sufficient to keep them in good standing. Management says that it subsequently proved that it has actually spent in excess of requirements and that there should be no penalties. Also, according to management, the Ministry agreed, but written confirmation didn't arrive until late in the day on the due date, 2-Jul-18.
Various remedies are available. PLU believes that this is the outcome of administrative procedure and that logic is flawed. Management is adamant that it was not required to pay any penalties; the Ministry agreed and made an unfortunate formal resolution late in the day that led to all of this confusion.
PLU down 18% before Friday's halt. We await 1) decisions for other concessions; and 2) what this actually means for any disputed and invalid concessions. Management believes this is a step in the process, and that the issue could be rectified by the Ministry itself. That said, we expect further pressure on PLU until the issue is resolved. And news may be slow given that Peru is in the midst of national public holidays and the Pan American Games are being held in Lima. 
Little project impact thus far...while remaining details are pending, the first concession represents 3 MM lbs (<3%) of 124 MM lbs of total U3O8 resources and no Li. All resources are located outside of the 70 MM lb 2016 PEA area. 
…but precedent is set. We now expect similar results for all receipts that were paid after 4:30pm on 2-Jul-18. This may place uncertainty on up to 40% of the 32 concessions under dispute. We do not know which concessions cover resources, particularly those included in the U3O8 PEA or pending Li PEA. But even if a few concessions are impacted, mine schedules may be affected.