A rough/quick look at the value proposition for a potential...

A rough/quick look at the value proposition for a potential acquirer here.

- Free cash flow at $1300/oz = ~$180 million/yr
- Assume a 12 year LOM (likely to be more than that) , and you get ~$2 billion total profit generation for the project.

-$2 billion total profits minus $300mill cappex and say another $100mill ongoing cappex/maintainance over LOM leaves you with $1.6 billion in free cash flow generated.

- So if an aquirer was to pay $600mill for PIR today ($1.81/share or 60% premium) , they could still be looking at potential profits of close to $1 billion over LOM, but likely more than that in reality as the MRE and LOM expands.

Not a bad value proposition. Spend a billion to make a billion.

Question is:

1. who has that kind of $$ to spend at present
2. would the board accept an offer that low ? given that the POG could go much higher and the resource much much larger.

Interesting time for goldies , especially PIR.