RE: Reasons to invest PDZ6 Nov 2016 22:08
reasons to be cautious on PDZ:
Debiensko will need $mns to:
1. Prepare JORC Update
2. Start and complete Infill Drilling program
3. Complete Feasibility Study
4. Re-start Debiensko mine.
TRUE CASH WILL NEED TO BE INVESTED-FIND ME A RESOURCE DEVELOPER WHO CAN PROCEED WITHOUT SUCH?
B. Terms of profit share of Jan Karski with China Coal are obscure. But with CC putting up all the development capital, it is fair to assume they will extract a hard bargain.
EBITDA IS FORECAST TO BE $320MPA CC WILL WANT THE ENGINEERING CONTRACT AND LIKELY OFFTAKE AGREEMENTS AT AN AGREED RATE, WOULD IT BE BETTER IF NO AGREEMENT EXISTED? ANSWER--NO!
C. Jan Karski needs a Production License.--MERE FORMALITY, THE MINE IS STRATEGIC IN POLAND AND WHILST A PRODUCTION LICENCE WILL BE NEEDED I WOULD SAY ITS 99% CERTAIN
D. The shares have tripled in a short time period already.
AGREE AND AT THE PREVIOUS MCAP OF C£11M IT WAS COVERED BY CASH, OBVIOUS RE-RATE . STANMORE IN AUSTRALIA IS 8X UP THIS YEAR AND I COULD LIST TWENTY COAL STOCKS THAT HAVE HAD MULTI-BAG MOVES.
E. An equity placing cannot be ruled out to take advantage of current buoyant prices and growing investor interest.NOTHING CAN BE RULED OUT BUT THE CASH POSITION IS SOUND C£9M AND THEY HAVE THE BACKING OF A WORLD MAJOR.