re: Ann: Phoenix to stage development project... Kinzu, you gave...

re: Ann: Phoenix to stage development project... Kinzu, you gave MYG as an example of a company with a higher irr that did not receive finance and PXG by implication of having an IRR of 30% would be even less likely of obtaining finance. I had a closer look at both companies DFS and notes that:

MYG's deflector project had a reworked DFS released in Sept 2013 with an IRR of 50%. However (and you may not have known this), this was at a gold price of $1550 AUD. NPV at 8% was 100 million. Total ore reserves 442000 oz

PXG on the otherhand, has ore reserves of 1036400 oz. NPV at 8% (this actually needs to be clarified as states 6% elsewhere) is 260 million at gold price of $1500 AUD. IRR at $1500 AUD is 46%. The higher no. of ounces in reserves equates to a much larger profit margin with rising gold prices.

Obtaining finance is not about finding someone to invest 90 million into this company. Its about finding a bank that is willing to lend that money being assured that PXG can pay it back with interest.

You are right about the gold price. Everything hinges on that. If gold price can hit 1600-1800 AUD in one year (and I definitely think it can), finance should be no problem. The NPV at 1800 AUD is somewhere close to 500 million.