Hi Folks Always happy to read different views on a stock. True...

Hi Folks

Always happy to read different views on a stock. True it has been a tough few months for PGO. But I stand by my own research on the company, so the share price is not worrying me right now. All the fundamentals remain good. It has just got a lot cheaper.

I think the criticisms of PGO could be about expectations. If you invest in a small to mid-sized near term miners then you accept a higher level of risk but the possibility of greater return. If some people here want to get exposure to current US POG they should be buying some of the bigger miners such as NCM, RMS, etc. (But you will find the share price pretty accurately priced - it is much harder to pick up something that is undervalued). The share price of a near term miner may go up on rising USPOG but there are other risks that are far more pressing such as financing, plant construction and start up, etc.

If you go through the basics then you got
1. good experienced management,
2. good tenements with plenty of potential to increase the JORC,
3. plus a nice drill for equity program,
4. plus plenty of cash on hand.

You can add up the total JORC resource yourself and work out the AISC etc, and do that work. I like the strategy of using Coolgardie in WA as a quick start up to fund Mount Bundy and further exploration. WA is always a good place to invest in gold mines.

So I have not read one single criticism of any substance, other than the share price is struggling. That last criticism is based on a misunderstanding of what happens with smaller near term miners. In fact the contrarian investor in me thinks 'great' - the more unloved a good stock with great fundamentals is the higher the reward when it turns. I am not being unrealistic - it may not come off but that is what investing in this sector is all about. Higher risks but potentially higher rewards.

cheers

ece