PDI - Predictive Discovery

[Sean K]

Such a shame these guys are digging near a monkey park. If it wasn't for those primates, this would be worth triple, or more. Who knows. If in Australia it would be shaping up to be DEG like.

They almost need to stop exploration and go to BFS on what they've got and then negotiate the transfer of Aldi bags to whoever is running the shop at the time to get a mining licence. Until there's some clarity on that, they're a question mark. How will they even get financing to build a mill when the government says you can't mine it? Alternatively, they're going to keep drilling in the hope that in time, and Aldi bags, the gov will be just like all other governments when they see $$.

 

[bk1]

They keep finding decent grades of gold (in my opinion) but to no avail.
The grades that WAF intend buying from B2GGold are underwhelming but a different species of primate are just rolling up to buy into it.

 

[Sean K]

They keep finding decent grades of gold (in my opinion) but to no avail.
The grades that WAF intend buying from B2GGold are underwhelming but a different species of primate are just rolling up to buy into it.

It all comes down to betting on the gov agreeing to an exception to the rule, ostensibly based on an environmental risk assessment saying that a mine in that particular area will not affect the chimps, plus anything else on an endangered list in the park. I imagine green groups who have an interest in the area, and chimps, will run a pretty tough campaign against a mine. Who knows who could get on board to say it's too much. The UN, Dave Attenborough, Prince Charles? My bet is on mitigation and $$ will win, but it's not a long term bet I'm willing to make while there's other opportunities in countries with less coups, and less chimps.

 

[finicky]

The grades that WAF intend buying from B2GGold are underwhelming

The acquisition that WAF made is I think about 45 kms from Sanbrado and an operating mill. That changes the value of the asset

 

[Sean K]

Quarterly report out. And Annual.

All looks fantastic. ?

Zero mention that they're drilling in a monkey park. ?

 

[Sean K]

More significant results, extending the mineralisation at depth, and the grades are excellent over very good widths. When you look at the cartoons they have a significant amount of gold under the pit shell that's not in the MRE. The next upgrade will already be significant and it's just getting deeper. Will obviously become an UG operation into the future.

Interesting note at the bottom of the first page that the MD and CEO are in Guinea having tea with the government / coup leaders, presumedly to sort out if they can mine, and/or how much that's going to cost them.

This is almost too good not to be in, but I'm scared of monkeys.

 

[Sean K]

I've tossed a coin on the monkey situation and heads came up, so I'm taking a high risk initial punt on this mob. I think it's going to cost them an arm and a leg to get a mining permit, but it's just too valuable.

I had to re-read the last Sprott report regarding the monkeys to get at least a half warm and fuzzy to push the button.

 

[greggles]

PDI share price hitting new highs today, mostly on the back of a bullish gold price. Getting through 25c was a big deal for PDI. I suspect we'll see 30c fairly quickly now, as long as gold remains bullish.

 

[Sean K]

PDI share price hitting new highs today, mostly on the back of a bullish gold price. Getting through 25c was a big deal for PDI. I suspect we'll see 30c fairly quickly now, as long as gold remains bullish.

Would be nice if it held above 26c. The head honchos were in Guinea a couple of weeks ago speaking to the Dept of Mines and Environment to try and deconflict / manage a way forward for potential development. I imagine a few Aldi bags were pushed under various tables. The market is probably expecting some sort of announcement as to how those talks progressed. Could be a big moment for PDI holders if there's a definitive answer / path forward to mining. Or, not.

 

[Sean K]

No update on the monkey situation yet but some more very good drill results out extending the main deposit further at depth. Every 50m deeper adds about 150K ounces, or thereabouts, according to the MD I recall from a briefing at some stage. So, it's approaching 4Moz au now. Can they dig it up....

 

[Sean K]

Ann out. Mineralisation continues well below the initial MRE into what will be UG mining area.

No mention of the monkey discussions in-country that were going on a month or so ago. That's disappointing and poor comms from the MD since they made a tizz about it.

 

[Sean K]

New research note from Sprott out after the recent deep drilling results, confirming potential for 5m oz au and UG mining.

No mention of the monkeys.

 

[Sean K]

This could go either way next year, depending on a decision with the monkey park. If they get some sort of guarantee from whoever is in charge that a mining concession may be granted then that risk reduction could see them significantly re-rated - happy with the Sprott target. I think gold will break out at some stage in 2022 as well which will have Sprott raising their current forecast much higher. However, the risk is that the greenie activists, who dug up the story about the conservation area in the first place, gain support for a mining ban. That would be disastrous for the SP, the future of the project, and for the entire company.

 

[Sean K]

I think there's some bots out there that have a 'sell at 27c' algo in them.

 

[Sean K]

This could go either way next year, depending on a decision with the monkey park.

This is huge. It seems they're going to be allowed to continue development and build a mine by the looks. Game changer.

Dumping a few Aldi bags at the MESD has done the trick.

 

[bk1]

" Provision of supplies to UNNP staff
Ongoing provision of supplies as above"

All's well in the world, for some. It's a gold mine alright...

 

[Sean K]

Seems like the belief that the monkey park was not going to be an issue is factored in to the current SP. I thought this was still a significant country risk and any confirmation or positive news from the government that they can keep working towards a mine would cause a huge change in sentiment. But, nope...

Sprott didn't even raise their valuation by reducing risk.

 

[Sean K]

I think there's some bots out there that have a 'sell at 27c' algo in them.

View attachment 135265

Threatening the bots at 27c again. I thought the monkey news would have been enough to have that level wiped. One day perhaps. As long as the diagonal line is respected the odds are it breaks one day. Maybe...

 

[Sean K]

I thought she was going to get there today, hitting 28c at one stage, but nope, even with POG having a good 24hrs. I'm cautiously optimistic this triangle breaks up in the short term, unless POG crashes.

Fundamentally though, longer term, we're looking at over 4m ounces for the next MRE, just what's behind the 4 is a question. Most of the additional ounces are coming at depth at the moment. Perhaps if one of the nearby deposits can firm up into something substantial, who knows.

If you do a simple $ per ounce for a MC and range it between $150-200, you get a pretty decent MC projection, well above todays price.

Maybe there's still a significant monkey and coup discount.

 

[Sean K]

Further assays into the deeps at NE Bankan. It's not closing off at depth any time soon by the look. Not sure how much deeper they keep going before putting out another MRE. It's estimated by Sprott that they're adding 5koz/vm with this drilling.