PATTERSON'S gives it a 39c valuation updated in august up from 26c
current SP 12.5c gives around 60 million market cap recently sold down by profit takers from 17c gives a great buying opportunity
PGO is transitioning from a explorer to producer
they have a massive gold resource of over 1.4 million oz of gold
have new very experience board taking PGO in a great direction
4.5 million cash on hand
452 million shares on issue
1.500kms land holding
I will show you how undervalued PGO is when compared with a gold producer in MOY
MOY is 37c a share and market cap 300 million
has around a one million oz resource of gold
20 million cash
MOY is currently producing 80k - 85k oz of gold P/A
that compares to PGO 60k - 65k oz of gold P/A
Assuming PGO can add ounces to Coolgardie then potentially the Company could have two operating gold mines producing a combined total of well over 150koz pa.
PGO has a asset valuation of 238 million dollar's
will have a low capex cost with very high profit margin.
up to 50 million dollars free cash flow a year
which can be used for significant drilling in the vastly unexplored and under drilling holdings, could prove massive upside and add to there already large holding of gold.
the mine cost will be around 22 million which should be completely paid for in 22 months.
my short term valuation is 25c within 3 months
PGO Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
