1. Disco StuThanks.Bottom line is that the mine is a goer, but...

1. Disco Stu

Thanks.

Bottom line is that the mine is a goer, but that $5/share figure that some poster was predicting is a long way off, unless we get POG at over $3000/ounce and costs and taxes do not rise when they have the second mine operational in 2017.

I am hoping that one of PVM's current exploration areas results in a major deposit that could be developed as a mine ahead of the Keegan deposit, which may require a lot of capital unless they have a smaller plant to first mine the higher grade stuff there. That would just further dilute the remaining ore reserve.

Have a look at Keegan's website for its various proposals to develop their deposit to get an idea what may be involved in terms of $s and size of operation. The merger announcement suggests to me that they have scaled down the original Keegan plans in order to reduce capital costs - but the details are not fresh in my mind.

2. Elze

I am both weary and wary of the goldies!!

And I agree that one could (perhaps should) exclude the Keegan cash component from my valuation, although in reality the share prices of explorers such as Keegan are very depressed because the market anticipates significant further dilution when in fact that should not be an issue going forward for them (except for a final top up just prior to production in 2014 as commonly occurs unless they borrow any extra funds needed).

My valuations are just wild guesstimates, and people should work up their own set of figures to help them decide what they want to do with their shares. If the POG tanks badly then so will the share price of all the goldies including PVM.

loki