RE: Strange pricing.17 Jul 2019 16:18
Unlike people like you I do some research and look into the shares that I invest into.
1. PQE already has one plant
2. The last PQE presentation confirmed that they were going to be setting up a second plant this year. They can't efficiently process ore from PR Springs at Asphalt Ridge. There is a load of kit at PR Springs waiting to be used.
3. Valkor have said that they will fund a 10,000 bopd plant before end 2020 at a cost of up to $20mil. This is not a PQE plant: Orslega confirmed this directly with the CEO. So that is 3.
4. QEM want to have their Vanadium resource in production this year; they can't do that without a plant. So that is four.
5. Steve Byle who owns Valkor owns oil sand assets in Alabama and Trindiad & Tobago: that is your fifth.
No ramping, it is what is called analysis. Do I really need to link to each and every one of the public statements re the above? If maybe you read something occasionally you would get the hang of this research and analysis thing? The deal with Valkor was that they would pay $2mil for each plant: $1mil up front and $1mil on first production plus a 5% royalty and have it in production by end 2020. To achieve that, they will already have to be doing the initial work on where to site the plant and a mining plan.
In the meantime, I hope that when the SP starts to move you haven't increased your position and regret it bitterly.
The only complaints we can have with PQE is that although the technology has worked all the way through they didn't have enough engineering experience. The consequence is that they are about 1 year behind schedule.
DYOR (bit of a waste with your type I know but nonetheless.....)
PS the royalty on a 10,000 bopd plant at current prices is about $11.3mil pa. BTW a royalty is not the same as a profit share (you might want to look that up). On a PE of 9 that means a 10,000 bopd plant at current prices is worth $101mil to PQE.
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