PDI - Predictive Discovery

[Sean K]

Here Comes the funding for takeover of PDI.
Mick

It's going to be interesting to see what they're doing. It's a bit strange really. They had $30m in the bank at Xmas.

If PRU are intending to TO they'll have to ask for an allocation sufficient to keep their 19.9% or thereabouts.

DFS isn't till the end of the year so they should only need enough to comfortably get through that.

But, why not PRU just say, hang on, here's $1b and we'll cover the light bills for you.

 

[mullokintyre]

It's going to be interesting to see what they're doing. It's a bit strange really. They had $30m in the bank at Xmas.

If PRU are intending to TO they'll have to ask for an allocation sufficient to keep their 19.9% or thereabouts.

DFS isn't till the end of the year so they should only need enough to comfortably get through that.

But, why not PRU just say, hang on, here's $1b and we'll cover the light bills for you.

So why do they need the capital input?
Are they going to make their own takeover bid for another smaller player?
Do the directors all need new mercs?
PDI may well be playing games to maximize the bidding for itself.
Issuing shares to the main players, not including PDI just to foster some competition?
Surely they PRU board and management must have someone on the inside at PDI?
The problem for PRU is that the quarter just completed was probably their peak, and production will fall off during the year.
Costs are slated to increase, production falls off, so the cash flow will decrease.
The market will not like it and their share price will react accordingly.
Acquiring PDI will not change the falloff in production for PRU.
The PDI deposits, while good, are not at a stage that they will be able to offset the falls in their own mines, the timeline is just too far out.
So if PRU was going to make a bid for PDI, they should be the ones raising capital now to issue shares to the PDI holders.
I am keeping out of both of them, too many unknowns, and the risk reward profile does not fit me well.
Mick

 

[Sean K]

So why do they need the capital input?
Are they going to make their own takeover bid for another smaller player?
Do the directors all need new mercs?
PDI may well be playing games to maximize the bidding for itself.
Issuing shares to the main players, not including PDI just to foster some competition?
Surely they PRU board and management must have someone on the inside at PDI?
The problem for PRU is that the quarter just completed was probably their peak, and production will fall off during the year.
Costs are slated to increase, production falls off, so the cash flow will decrease.
The market will not like it and their share price will react accordingly.
Acquiring PDI will not change the falloff in production for PRU.
The PDI deposits, while good, are not at a stage that they will be able to offset the falls in their own mines, the timeline is just too far out.
So if PRU was going to make a bid for PDI, they should be the ones raising capital now to issue shares to the PDI holders.
I am keeping out of both of them, too many unknowns, and the risk reward profile does not fit me well.
Mick

PRU and the other top 4 holders could take this over anytime they like.

Maybe they got together at the pub recently and PDI got word of it.

And now, PDI want to create a blocking stake for a higher bid.

But, I'm sure they just need more money for some better morning teas.

I was happily out a while ago which paid for some Christmas presents but I'm afraid to go back to WAf Coup Central right now.

 

[Sean K]

Wouldn't have expected the Lundin family to invest in this if they didn't think it get the go ahead. Although, I think I said that about Rule and SVL too. Up 9% on open close to ATHs again. Around 29-30c has been a wall.

Does this dilute PRUs holding by 10% ish?

 

[mullokintyre]

Wouldn't have expected the Lundin family to invest in this if they didn't think it get the go ahead. Although, I think I said that about Rule and SVL too. Up 9% on open close to ATHs again. Around 29-30c has been a wall.

Does this dilute PRUs holding by 10% ish?

View attachment 192539View attachment 192538

Thats a poke in the eye to PRU.
The players must be confidant, no discount to vwap etc, just the closing price.
Great for the stock holders, except PRU.
With over 90 mill in banks after this placement, thats a lot of money to throw at a PFS and mine plan, even allowing for some extra drilling.
Got me puzzled as to where this is heading.
Need to see the PFS and get a handle on CAPEX.
Mick

 

[Sean K]

Thats a poke in the eye to PRU.
The players must be confidant, no discount to vwap etc, just the closing price.
Great for the stock holders, except PRU.
With over 90 mill in banks after this placement, thats a lot of money to throw at a PFS and mine plan, even allowing for some extra drilling.
Got me puzzled as to where this is heading.
Need to see the PFS and get a handle on CAPEX.
Mick

Looks like getting the Lundins and Chinese on board is a good thing.

PRU's investment in the 20s is looking good, but not sure if they're in the box seat to take it out now. It's also getting more expensive to do so.

 

[mullokintyre]

Looks like getting the Lundins and Chinese on board is a good thing.

PRU's investment in the 20s is looking good, but not sure if they're in the box seat to take it out now. It's also getting more expensive to do so.

View attachment 192582

The big owners apart from PRU may be persuaded to offload their share at the right price.
After all, at some point in time, the PFS and capex will become real.
Will they want to stump up more cash for a share placement to pay for the eventual mine?
I am still staying out of both PRU and PDI.
I have made some good profits out of both, fo me its time to move on.
Mick

 

[Sean K]

The big owners apart from PRU may be persuaded to offload their share at the right price.
After all, at some point in time, the PFS and capex will become real.
Will they want to stump up more cash for a share placement to pay for the eventual mine?
I am still staying out of both PRU and PDI.
I have made some good profits out of both, fo me its time to move on.
Mick

Blackrock in particular will have done extremely well out of this if it continues to hold above the great wall of 30 cents.

I'm also staying clear, due to the current political issues, but watching closely as I have been for a few years now. Just checking the RSG chart makes me steer well clear of the buy button. It was a good trade while it lasted. Happy to be out and not worrying about a rogue General in a poorly fitting red beret pumped up on khat.