PNA 0.00% $1.84 panaust limited

hi crazy1 - future financing

  1. SCD
    3,438 Posts.
    *** I should like to take this oppoertunity to share some coments that I made to Crazy1 ***

    Hi Crazy1,

    I think a more realistic valuation for the current development of the company is late 20s. By June 2007 my valuation puts the company at $1 but there are many key milestones that the company needs to achieve along the way to underpinning my valuation.

    Nice to see PNA trading through 19c today but where and when can we expect a correction before it launches towards the late 20s!!!

    Of course, I reserve the right to increase my valuation as and when further exploration defines greater resource and / or new deposits. Keep a close eye on extension drilling at the gold deposits and any news on KTL in the north. Both of these could have significant impact on future valuations.

    On the structure of future financing for the Phu Kham deposit, here are some thoughts....

    1. Look for news that PNA has put in place a SMALL debt financing arrangement with 3 banks. This is not being done because the company needs $5m or $10m but, rather as a facilitator to organising a more significant arrangement in Q3 / Q4 2005 for the Copper Gold mine.

    2. Moreover, the company does not need to put in place the total finance at the back end of this year as the construction activity will extend over approx 18 months. Therefore, I expect any share placement not to be activated until sometime in 2006.

    3. The company is looking at several very different options for financing the Phu Kham mine so debt financing and share placement may not be the only routes to raising the necessary funds.

    4. How much the gold mine revenues impact the financing requirements and the amount of financing needed for Phu Kham Copper Gold Mine is not clear at this time. PNA expects to achieve 1.7 g/t, 2mtpa and 90% recovery from the gold mine over the next 12 months. These objectives together with a variations in the gold price (will we see US$500 in 2005) could reduce the finance needed for Phu Kham.

    Much more I could say but I must close here. I hope these thoughts help to answer your questions.

    Kind regards


    SCD
 
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