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PNN - Power Minerals

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If you read the announcement carefully it states that the deal with Sinosteel was put together with help from Austrade, surely this will give it an advantage when it comes time for Government Approvals.

Definately worth grabbing some and holding for a while as stated in earlier company releases that they plan to have the Uranium Projects ready to go by April in anticipation of the change of the Labour Government "three mine policy"

The deal with Sinosteel gives them a large financial input plus strong ties to the Chinese Economy.

The incoming money from the deal will kick off a very active exploration period for the company with an increase of drilling and news over the next six months.

Also remember in the scoping study for the Crocker Well and Mt Victoria Uranium projects a price of $39.50 usd per lb was used the price is now 30% higher at $52 lb and forecast to rise to $70 lb by end of 2007. This rise in the uranium price now confirms a viable mining operation even without the expected resource increase when drilling begins.

So don't miss the boat now only 49 million shares available.

Alot of newsflow expected from the company over the next 6 months
 
good article in the business section of todays Sydney Morning Herald worth a read, the announcement and associated press coverage will certainly put the spot light on the company and lift its profile among investors
 
just a few extra points found from the blanket media coverage on the joint venture agreement

the deal seems to have significant support from the right people in the SA Government

Sinosteel is a Chinese State owned company

With the right approvals mining should commence in 2 years time

With the limited exploration done so far confidence is high that the resource can easily be doubled

Based on the current uranium price $69 lb australian dollar price and resources of 14,850,00 lb they are sitting on $1 billion dollars worth of uranium not bad for a company with a market cap of $27 million

already own 80,000 will top up first thing in the morning :)
 
I need some input here. My reading of the gizzards tells me there has been a lot of 'chinese whispers' in the lead up to this announcement -buying on rumor and now there's selling on fact - with late rushins this morning looking like getting burnt (for the short term at least)? I might sit back and wait for this to stabilise somewhat...gee I'm chicken ****!
 
Archinos said:
I need some input here. My reading of the gizzards tells me there has been a lot of 'chinese whispers' in the lead up to this announcement -buying on rumor and now there's selling on fact - with late rushins this morning looking like getting burnt (for the short term at least)? I might sit back and wait for this to stabilise somewhat...gee I'm chicken ****!
Click to expand...

Sounds sensible to me Archinos. Prices touching their all time high. I'd be patient and watch a little more.

MOU will fuel interest but there's 3 months (possibly 5) before a decision is made.
 
Just to let you all know PNN started forming a Pennant Up yesterday and today I have the target at 80 cents. If someone could tell me how to stick the graph on the system I could show you the Pennant formation. ;)
 
Please find the graph and feel free to comment
Regards
Davo
 

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This one seems to be missing out on the recent u3o8 upsurge... looks like they spent a bit of their extra cash from Sino on a glossy annual report

Maybe people waiting to see outcome of negotiations with Sino - still a JORC 6000 tonne U deposit with BFS saying marginal at $39/lb would suggest even if Sino doesn't sign - @ a potential $100/lb this would be picked off by someone else?

will be watching to see if volume picks up cause this could be rapidly re-rated if there's anything positive leaked about the $40m investment from Sino (more than PNN's current mkt cap)
 
well - i wouldn't say i've been eating any of yogi's astro stuff - but volume did appear today on this one... not a lot but there never is much - now looking to see if it breaks free of its all time high in the low 70s...
 
I believe the next drive for PNN share price is the Masgrove nickle project. Watch out if they do find something!
 
Appointed new GM to establish Adelaide - Philip Sutherland with strong connections to SA Govt as CEO of Sth Aust Chamber of Mines ...

on the face of it the move sends a signal that things are tracking well with Sino approvals and they are getting serious about putting in place approvals for development of u3o8 mine in Sth Aust
 
Finally!!! PNN joins the u3o8 frenzy today ... sellers are getting thin

IMO this really would need to be a primary candidate for next U mine in Oz(assuming Sinosteel deal goes ahead)... not the biggest resource but in SA and with Sino backing would have resources to develop
 
from the BFS:
costs estimated at $29 / lb of U
capital cost to mine $160m
proposed mining of 585tpa of U (total JORC inferred resource of 6400t)

At current prices this gives them annual rev of $65 m and payback period of 2.44 yrs

First decision date for Sino is 8 Dec - but with U outlook you'd think they'd still be keen - altho this also depends on Australian approval process

At any rate you'd think this would be of interest to others if Sino doesn't come thru.
 
wot i like about PNN is its steady as she goes, step by step, with dec 8 deadline approaching - with 2mth extension option - situation couldn't be better for positive outcome... but not sure wot oz govt approval processes involve

anyway at market cap of not yet $50m looks cheap compared to AGS - its rival @ first Oz new u3o8 mine

waiting for some +ve news..
 
can anyone answer this question... why does PNN still fail to attract big volume??

The story is above but if Sino do agree to come in as JV here are some numbers - correct me if I'm wrong...

Shares: 66m (I have taken total number - incl 10m unlisted options - rather than number on issue - is this right? - being conservative anyway...)

Current Mkt Cap - 66m shares x 1.10 = $73m (COMSEC says $31m)
JORC resource = 6740t = 14.8m lbs
Current EV = $4.88

If Sino comes in they want 60% of u3o8 deposits - i have assumed this will mean issuing them shares so they have 60% of total company (again conservative) - assuming same SP that would change things to...

New Current Mkt Cap - 164m shares x 1.10 = $180m
New EV = $12.2 (with additional $30m in bank from Sino)

If Sino comes in you'd think PNN would be on par with AGS as a potential producer (although admit a much smaller deposit). AGS's EV is about $25 atm I think? Thus PNN SP should be $2.20 to be equivalent.

Now both AGS and PNN EV's do not take account of their other projects (Sino will help PNN develop these as well). Also both have potential upside from more drilling on U deposits (one could argue AGS more so perhaps)

But still... for the expected decision on 8 Dec about Sino's involvement PNN still looks underpriced? Or have i missed something?

I'm thinking decision may be to take 2 month option before Sino commits ... hopefully its not to pull out :eek:

thoughts??
 
David01 said:
Please find the graph and feel free to comment
Regards
Davo
Click to expand...

David Seriously what you have drawn isnt a Flag structure.

The pattern is simply consolidation after the spike moves.

Its pretty normal. Be careful when charting not to read into a chart that which is not there.
 
Hahaha.
Just noticed the chart above was back in September.
Didnt recognise it as its not one I've traded.Should have by the looks of it.

Current chart doesnt need much analysis in a nice strong trend moving from breakout to breakout.

Just as they should!
 

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