PDI - Predictive Discovery

[Sean K]

With the surge in gold prices, and the surge in PDI share price, I bet they go to market sooner than later.
PRU would no doubt participate given that the strike price for the CR will be at a discount to the SP, and they will have a fair bit of money to splash.
I am in for the short term play, don't know what will happen long term.
A nice 20% return will do me nicely.
Mick

Looks fairly safe to buy between these lines and not lose, or make, much money.

I don't think it's going to break through that red line without the Exploitation Permit and/or PRU buying it.

Downside limited while POG is going OK and there's no prospective coup against the coup.

Maybe the new MREs and resource conversion noted on the above slide before the end of the year could be a catalyst.

 

[mullokintyre]

PRU will surely make a bid for the rest of PDi it does not own.
PDI market cap today is $670 mill AUD.
Given PRU already owns $134 million woth of PI shares, that leaves $5 0 odd to spend to get the lot.
Allowing for a 20% premium brings it back to $670 mill AUD.
The latest PRU quarterly has PRU with 643 mill USD in cash and bullion, $84 mill in investments, plus USD300mill in undrawn debt.
So they could just swallow the lot.
Given they have been producing around 130 mill USD per quarter from their own mines. it would not take long to replenish the reserves.
Maybe they will wait until the EISA permit is completed.
Mick

 

[Sean K]

PRU will surely make a bid for the rest of PDi it does not own.
PDI market cap today is $670 mill AUD.
Given PRU already owns $134 million woth of PI shares, that leaves $5 0 odd to spend to get the lot.
Allowing for a 20% premium brings it back to $670 mill AUD.
The latest PRU quarterly has PRU with 643 mill USD in cash and bullion, $84 mill in investments, plus USD300mill in undrawn debt.
So they could just swallow the lot.
Given they have been producing around 130 mill USD per quarter from their own mines. it would not take long to replenish the reserves.
Maybe they will wait until the EISA permit is completed.
Mick

Mick, I think due to PRU's Sudan experience they'll want to reduce risk a little more, unless they are inside, which isn't at all impossible. They might know the results of the EISA and EP before the Mining Ministry does. SK

 

[Sean K]

I didn't think we'd see this @mullokintyre until the approvals were given. Just intraday, but looks positive.