Over the past month I've increased my holding in PGO to it now being the largest weighting in my portfolio. There has been a significant increase in interest since the 16th of June now leaving very little on offer up until 7 - 8 cents market depth, in my view this will end up consolidating over 6 cents with the next price target 9 cents by the end of the year. With the amount of large buy orders that's gone through over the month from June 16th its not hard to see that people with deep pockets want to accumulate the shares sub 5 cents and its tightly held relatively to the amount of shares on issue.
My view on Gold right now is we will see some medium term volatility with gold trending lower short term back down into the range of $1250 - $1240 per ounce then will see a substantial increase after October if the US don't raise interest rates more than 2 times this year, with the DJI at all time highs now almost 10 years after the GFC, uncertainty in the economy and their debt ceiling we might see the useful analytical technique of Dow Theory analysis being in use as a predictor of what's to come.
PGO is a great buy sub 6 cents, with the real value going to be returned to the investors that are prepared to wait out short term volatility until the company can develop Mount Bundy, short term concerns for me are the costing's for the toll treatment on their Coolgardie operation and what ASIC they can deliver to fund Mount Bundy, highlights are when Mount Bundy is in operating the first 3 years of production are from the 100 % indicated resource category while the remainder 4 - 9 years are included at 80 % indicated and the potential for more exploration upside on their tenements.
PGO Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
