PNN - Power Minerals

[56gsa]

Well done Rafa - you got yourself a nice 5 cent dividend!!

Dividend Distribution
Based on the financial results for the year ending 30th June, 2007 the Directors of PepinNini Minerals Limited are pleased to announce the payment of a fully franked special dividend of five cents per share to all shareholders of the Company. The record date to determine dividend entitlements will be 10th December, 2007. The dividend will be paid on 17th December, 2007. In accordance with Company policy to reward shareholders for their investment in PepinNini Minerals Limited the Directors believe shareholders should share directly in the financial success of the Company over the past year. The dividend payment will not significantly affect the Company’s cash reserves which will be approximately $30Million after the dividend payment At
the current share price it represents an attractive return and may assist some shareholders to invest in more shares in the Company if they so wish.

There's a hint of desperation with PNN's attempts to lift the sp - first it was the announcement of a buy back that they don't seem to have used at all - now its the dividend sweetner...

but we are seeing some action on the uranium front... although 2010 is a long way off!!

Crocker Well Uranium Project Update
The management company for the Sinosteel PepinNini Joint Venture Alliance has instigated a number of actions to facilitate the rapid development of the Crocker Well Uranium Deposit in line with its strategy to be in production by early 2010.
• An experienced Uranium Process Manager, Mr Andrew Querzoli, has been employed to oversee the development of an optimum process to extract uranium from the Crocker Well ore.
• An experienced Uranium Exploration Geologist, Mr David Rosewall, has been employed to manage resource definition drilling at Crocker Well and investigation of nearby uranium prospects. David has previously been employed by AREVA, Heathgate Resources and Cameco Australia.
• Discussions have been held with consultant groups and South Australian Government Departments to establish guidelines and a timeframe for the development of the Crocker Well Uranium Deposit.
• Metallurgical tests aimed at improving the previously reported recoveries for processing the Crocker Well uranium ore have been commissioned with ANSTO and Amdel Laboratories. A 200kgs bulk sample with an average grade of 750ppm uranium has been collected from the mullock heaps beside historic shafts at Crocker East deposit and is currently undergoing metallurgical testing at the Adelaide laboratory of Amdel. Another 150kgs composite sample of core from a recently drilled borehole at Crocker Junction deposit has been submitted to Ansto at Lucas Heights in Sydney.
• Independent resource consultants Hellman & Schofield have been commissioned to upgrade the current JORC compliant uranium resource at Crocker Well from an Inferred category to an Indicated and Measured category.
• A drilling contractor and two drilling rigs have been secured to commence drilling programs in February 2008. Resource definition drilling will be undertaken at Crocker Well and at least five other prospects in the vicinity of Crocker Well will be investigated with substantial drilling programs.
• Adelaide based URS Australia Pty Limited has been appointed to commence the Regulatory Approvals and Environmental Impact Statement (EIS) work for the Crocker Well Uranium Project. URS is the world’s largest engineering design services consultant group and operates in more than 30 countries with an annual revenue of over $US4.4billion. The Adelaide based URS division has had extensive experience in uranium regulatory approvals and the preparation of EIS documentation particularly within South Australia. It is expected that the Regulatory Approvals and EIS will take approximately 18 months to complete.

 

[Rafa]

Very strange.... What the hell is a non producing company giving dividends

I am wondering whether this mob has so much money at their disposal they don't know what to do with it.

I still beleive this has the potential of being the next Uranium mine in SA, but what is the point of giving money away when they would need that money later on to build the mine

 

[reece55]

Very strange.... What the hell is a non producing company giving dividends

I am wondering whether this mob has so much money at their disposal they don't know what to do with it.

I still beleive this has the potential of being the next Uranium mine in SA, but what is the point of giving money away when they would need that money later on to build the mine

Rafa
It's actually sensible - they have franking credits to distribute, why not distribute them because otherwise they will be locked away forever....

Cheers

 

[PBH]

Rafa
It's actually sensible - they have franking credits to distribute, why not distribute them because otherwise they will be locked away forever....

Well done Reece. Couldn't have said it better myself.

I think PNN is a little star that's really about to shine. Just looked at the latest news from the Cigar Lake project, and things over there are still pretty much a mess, with projected startup times continually being pushed back as they gain insight into the extent of the flooding problem.

This bodes well for uranium prices for the short-medium term, prices PNN most likely will be able to take advantage of given that they're so close to actual uranium production.

 

[Rafa]

Rafa
It's actually sensible - they have franking credits to distribute, why not distribute them because otherwise they will be locked away forever....

Cheers

hi Reece,

its obvious i don't understand how the company structure and tax treatments work in regards 'franking credits to distribute'... if you have a minute or two, would love an explanation... cheers.

on other matters, 2010 is not that far away to have a producing mine... The have everything going for them at this stage... strong u price and demand, solid asian backers, plenty of cash and seem very chummy with the SA govt.

 

[Rafa]

Is this what you mean by passing on franking credits...
I didn't realise we had this in Oz... only in Canada...

The Federal government has a role to play here too.

One of the secrets of Canada's success has been a flow through share (FTS) scheme.

Because exploration companies have no income, when they spend money on expenses that would be tax deductible for a company with income, they build up tax credits.

If they find something and develop a mine they can use these tax credits to reduce their tax.

However, most exploration companies don't find anything and so their credits disappear into the ether.

An FTS scheme allows these credits to be passed onto shareholders (almost like a franking credit).

This makes investment in exploration companies more attractive to investors and makes it easier to raise money.

Such a scheme is estimated to cost only $250 million over 4 years - beer money in a $17 billion a year surplus.

The Canadian results have been outstanding. Ours could be too.

I am told that in last year's budget deliberations, Resources Minister Ian Macfarlane had arranged with the Prime Minister to have FTS included in the budget.

The story goes that when the PM went out to do some media, Treasurer Costello took the opportunity to scuttle the plan.

The new Labor government has talked about a flow through scheme. They should act quickly to implement one.

 

[Rafa]

What the hell happened to PepinNini today...
haha giddiyup...

No news driving the stock, but its well and truly off its lows now, need a few more days of price action to confirm the opinion that its found its base and its on the way up...

Interestingly at the same time MTN falls to levels not seen for a while...

MTN has always been the next U mine in SA (AGS excluded of course)... but PNN has a more 'minable' deposit... and some very wealthy backers. Could this be the changing of the gaurd...

 

[Mousie]

Just punters buying up for the divvy me thinks. It had a rather predictable drop today. The race is still on to be the next SA miner...

 

[56gsa]

PNN interesting at these levels...

• still no action on their buy-back scheme but potentially can come in to underpin the shareprice - maybe at $1?...
  
• Also with about $30m in the bank, another $11m committed from Sinosteel for exploration => market cap of under $70m now looks a bit on the low side considering they also have JORC for almost 20m lbs uranium...
  
• made some small purchases recently...

PepinNini Minerals has acquired 51% of the share capital of Eagle Gold Mines Limited for a total cost of AUS$5.5million. Eagle Gold owns the Peak Hill Gold Project including the Fortnum Gold Mine processing plant and a JORC compliant Indicated (670,000 ozs) and Measured (1,900 ozs) Resource of gold with an additional 335,000 ozs classified as Inferred. PepinNini Minerals has also entered into a Farm-In Agreement to explore for iron ore in seven tenements held by Eagle Gold in the Robinson Range area of Mid West, WA.

PepinNini Minerals Limited has entered a heads of agreement with Australian Gold Holdings Limited (AGH) and its subsidiaries Uranium Capital Limited and Goldrox Limited to acquire eleven tenements in north Queensland. Subject to due diligence on the tenements PepinNini will pay AGH $150,000 and issue 900,000 shares in PepinNini Minerals Limited for the tenements. The acquisition will significantly increase the area currently held under exploration tenure by PepinNini in North Queensland and is consistent with the Company’s strategy to target uranium, gold and base metal mineralisation in the region

 

[shinobi346]

I must have missed that while trawling through announcements today. Seems like a good mix... Uranium, gold and iron ore. QLD still seems very unfriendly towards u explorers so its good to see PNN branching out into other metals in this region.

 

[james99]

shinobi - it has excellent state support and if there is a new mine allowed then it is thought that PNN will be offered that opportunity ahead of others. Futher, nothing like the prospect of a recession to make a state open up support for new industry and the state's energy demands are increasing rapidly with population and infrastructure growth. It is, frankly, grossly oversold, but such are the current global market sentiments ...

I disclose holdings.

 

[oldblue]

I stumbled over this company recently and like what I see. Can anyone tell me the origin of its unusual (inappropriate?) name?
I notice a major shareholder by the name of Pepin so I guess that's part of it.

 

[panikhide]

It's looks like PNN has finalised its recent share buyback. The company bought back and cancelled 1 500 000 of its shares for around $1.3 million (which is about 90 cents per share) - see recent company announcement.

 

[panikhide]

Up 20% so far today, but on low volumes. There has been no company announcement today - does anyone know if there has been any news to spur this spike in the share price?

It looks like we have seen the bottom and are moving into a bullish trend given the hammer and inverted hammer patterns we have seen over the past 2 weeks.

Remember when PNN was trading above $3?

 

[The Gman]

I do remember when it was trading above $3 and still wish I'd sold then. There was no real basis for that price and I can't see it reaching such heights again in a hurry but it was an exciting ride. Once again there seems to be no news driving the price rise, but I'll be happy if we go for another ride.

 

[56gsa]

Not big volumes but PNN like a lot of junior u3o8 stocks is showing signs of life again - with a good day tomorrow we might see the 21 MA move above the 63 MA for the first time since June07! If it bounces of support at 85, fib suggests a possible target at $1.15/$1.20

Not sure if they have finished the buy back - they have cancelled 1.5m shares, but still have another 1.9m to buy if they want to.

Has been spending its cash on all sorts of odds and ends projects... at the same time progress on the Crocker Well U deposit and Musgrave seems to go slowly

PNN was very good to me in the run up to $3, may be worth a dabble given the buy-back to some extent places a floor under the share price (as does the current cash position compared to mkt cap of ~$60m), although can't see it reaching those levels again given the reduced exposure to investments with the Sino sign-in...

 

[panikhide]

Once again another spike in the share price (up 15% so far today) but on low volumes. There has been no company announcement today.

 

[ivanb]

Anybody know what's happening here? Not alot coming out from the company. I'm guessing it's just the level of risk that's being factored in but what about their application to develop a mine.

 

[lows_13]

Up 42% today, something must be brewing in the background
Plenty of money in the bank, feasable study has been submitted, JV with Sino Steel. This company is well placed in the market, unlike many others running/out of funds due to the credit crunch.
Your looking at the next uranium mine in Australia

 

[prawn_86]

Your looking at the next uranium mine in Australia

LOL so out of all the co's that are trying/close to being able to start a mine what makes this one so special?