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By Zacks Small Cap Research
20 hours ago
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By Steven Ralston, CFA
Last week on February 17th, Petaquilla Minerals (PTQ.TO) and (PTQMF) filed second fiscal quarter results for the period ending December 30, 2013. Gold equivalent production declined 67.0% sequentially from 9,452 ounces to 3,120 ounces despite an easy comparison. Mining operations continued to be disrupted from the reassignment of some mining and crushing equipment towards the efforts to make timely deliveries of aggregate to the Cobre Panamá copper project. The requirement for increased capacity is necessary since lower ore grades are being processed now. Management expects the mining and process operations to be re-balanced during the course of the third fiscal quarter. Management also cited general maintenance of the Molejón processing plant was conducted during most of the month of December 2013 as the cause for the lower gold production. However, articles in Panamanian newspapers report that a labor protest concerning non-payment of wages by Petaquilla Minerals to its employees was occurring during December, which would have been also a factor related to the lower-than-expected gold production and aggregate revenue. In addition, the average realized gold equivalent price declined 5.0% sequentially to $1,247 per ounce. The company again drew upon inventoried bullion and sold 4,852 gold equivalent ounces. Sequential revenues from the sale of gold equivalent ounces declined 53.4%. Revenue from the aggregate business was $4.58 million, representing a 42.6% decline sequentially. The company reported a loss of $10,971,380 (or $0.05 per diluted share).
The operational disruptions contributed to the continuing inability for Petaquilla to fulfill its gold and silver delivery obligations to Deutsche Bank. The company and Deutsche Bank continue to negotiate an agreement to resolve the situation. In addition, the company’s working capital deficiency continues to expand.
On February 12th, an article in PanamaAmerican.com stated that Petaquilla Minerals entered into a mediation process to settle dispute with Minera Panama S.A. (First Quantum). Prior to First Quantum’s acquisition of Inmet, Petaquilla Minerals and Inmet signed an agreement for the delivery of aggregate materials and screened rocks with a total value up to $100 million over a three-year period. News flow appears to indicate that First Quantum is not adhering to the agreement, and the situation has entered into mediation. Management’s announcement of an expected material event may be related to the strained relationship between First Quantum and Petaquilla Minerals.
We maintain our Neutral rating despite the loss of mining rights to Lomero-Poyatos, an increasing working capital deficiency and lower-than-expected gold production. There is value in the gold and silver deposits at the Molejón mine and surrounding environs, along with the well-designed and functional processing plant. Management’s announcement that a material event is forthcoming may serve as a catalyst to reverse the deteriorating circumstances at Petaquilla Minerals.
Read more at http://www.stockhouse.com/companies/bullboard/t.ptq/petaquilla-minerals-ltd#ER3eQzzf7opBIMmr.99
I was just on you tube going over interviews etc involving PTQ. I will tell yah, it sounded like a great story a few years ago up until last May when they were still feeding specific info about what the company has done and where the company was going. Knowing what I know now......it was all smoke and mirrors. Even an investor who was thorough in completing their DD would not be able to determine the route this company has now decided to take. To date, I am still not exactly sure.
In fiscal 2014 we were to be a 100 000 oz producer. I will say it again if I said it to fast....100 000 . That will never happen, and why not.......who knows because its a secret. And lets not forget the corp presentation. That thing hasnt been updated sine early Dec 2013....brutal.
And seeing that will still own LP, what the hell is going over there. I can only assume that since we have no money, we are not doing much.
This deal must be fantastic because we are in the green for one penny so word must have got out. Who could hope for any more ?
Correct. However, get ready for the following scenarios...
1. This will not turn out as well as some people expect.
2. This will turn out well and we will all be very happy......doubt it.
3. This will be a mediocre deal, yet people will say "just wait another year or two for things to turn around" which is total horse sh$t.
Thats all we do around here is wait for the heavens to open up, yet this stock is dead money right now, and has been for a while.
The reality is, is that we have to hope for a deal because currently we are not cutting it as a gold producer on its own merits.....plain and simple.
What exactly happened to the gold production anyhow. We were full steam ahead doing well (sort of) and then all of a sudden we hit a brick wall. Are we to blame our lack of production solely on us supplying FQ ? Are we to blame it on the falling, now rising price of gold ? Are we to blame it on the shut down for maintenanace? What other excuses can we can come up with to support our lack of production and how much longer is it going to persist before we get back on track.....if EVER ?
Just curious
Based on recent trading patterns I dont believe that this is the be all to end all of deals. I also dont think it will be wrapped up by the end of the week either. I dont care about a cash payout of sorts, I am just looking for the SP to go up so I can get out. Sadly, after this deal comes down the pipe, I will probably still be under water because IMHO it wont be that great.
Gold is up, TSX is up......we have a deal looming and wait for it..........we are down.
WTF
Here is the bottom line...no pun intended......we are ALL here to make money and one way or another, be it this deal or what have you, I wish everyone the best of luck. We appear to be in bed with a giant, so one would believe that if they aren't crushing us, they can only help us.
And in regards to the lack of movement of the SP...i cant figure that out. i have biotechs and when investors are awaiting FDA approval on a product, the stock will generally rise closer to the date in question. When the approval goes through, the SP launches then recedes after the profit takers step in.
I guess we shall see.
Yeah, but remember they are planning to have this deal completed by the end of this month.....nothing is carved in stone.
Then why would FQ even do a deal with us.. I mean if I were FQ, I would just wait for PTQ to close their doors and then move in. I am hoping the deal is more than what you propose....we can only hope. Good luck.
Its funny about the public interest of this deal.....the sp is flat and talk on this board where people have their money invested is also flat. I have seen this board lit up on lesser important "stuff"
LTS....what are your personal thoughts about what this "major material event" will actually involve....
1. a sale of all assets / properties in Panama ?
2. land rights to access the copper ?
3. a sale of a portion of the property that FQ requires ?
4. larger aggregate contracts for a longer period of time ?
5. some type of joint venture beneficial to all involved ?
You are 100 percent bang on. Generally, when news comes to the surface such as this after the speculation is over, investors REACT to the news. Once again, they will generally start to purchase knowing/hoping / expecting the deal to be good for all vested individuals. Remember the inmet deal and what happened in regards to the SP?
I guess well will have to wait until the end of month to see what exactly the deal is.
Bob....remember, there is a distinct difference of that of a basher and someone who is pessimist after having their nuts roasted on a fire time after time.
So what ever happened to us getting along great with FQ ? People around here were so happy to see Inmet gone and FQ move in because it would a pleasure to do business with them......oh really. If they are required to go to an arbitrator, that means the opposite......they cant agree !
What????? That the SP will go even lower today ?
I had to ask.
What else is new dude....
Thats another point of interest....who has said that the giant (FQ) wants or need us. All that is speculation on this board. Do they need our property or don't they ? Do they need our permission to ultimately access their lands/ port. And if they do, is it really that big of a deal ? No facts, just talk on this message board about hypothetical situations that never seem to evolve into anything tangible.
Even though PROGAFA seemed to be right on numbers in the past, any fore sight / projections that he mentioned faded away into the darkness....just like the SP. Give me proof that there were deals in the past. Up until now its all smoke and mirrors.
.....well that about sums that up. Just in addition, the TSX has been performing well and the price of gold has bottomed and has had a slight upward bounce, and yet we suffer. Now mind you, gold is no where it once was, however even when gold was high, it really didn't influence the SP as one may hope for. I would have thought with the TSX pushing forward, it would help us, but once again I am wrong. Nothing ever goes my way.
I get that JAl...the fact that they don't want to discuss it, but I disagree with it. However, other well managed companies give both good and bad news to their investors because they are open and honest. We can't keep hiding in the dark. It just pisses me off. I kick myself in the ass for staying this long but now I am forced to ride this out. I can't wait to see this quarters numbers....I will probably barf up a lung.
MJ...FOR YOU...
Here is a question specifically for you...when will reality set in that this bunch of roses doesn't smell very pretty ? How can you always be so positive ?? If it smells like SH@T, it generally is SH@T.
The reason I am still here...and I don't mind telling you is that I am in the red like most around here....Im not waiting for the pot of gold at the end of the rainbow so to speak anymore...I am waiting to break even, then I am out. I have wasted too much time and effort....and yes that solely falls on me.
IMO, this company is mismanaged and does not have their priorities well thought out, let alone enough money.
We are running out of excuses quarter after quarter. If they ever pack up, fall into bankruptcy, or what have you, what will you say then....that we gave it a good try ????????
Dont get "news" confused with posters personal opinions. Even when posters like Diji would post stuff, it was never substantiated at all. From what i can recall, it was his opinion. There were no facts...once again rumors. He, along with others speculated based on company performance in the past, however, our performance is in the toilet. Even by your own personal opinion, this quarter will be worse then last.
If this is true, i believe the company is OBLIGATED to explain this to its current / future investors. You state that the big boys are in the know and have no worries....maybe so, however Im pretty sure they don't like to see RED everyday.
Are we going to be a mid tier player down the road or are we in the aggregate business. Last time I checked we were in the gold digging business with PDI on the side.
We also differ on the dissemination of PRs. Lately, the required PRs are to do with quarterly results. In my opinion there are no other PRs because there is nothing to say that is worth telling other then we are going backwards, not forwards as one would think.
How about a CC explaining what the hell is going on.....are we now fully operational across the board...how about heap leaching being up thirty percent like once mentioned....are we going forward with supplying FQ in stead of digging....question after question. And lets be honest if we can, IR will only disclose what they choose to see fit putting aside the logistics of what they can legally say? You cant tell me that there is nothing worth while other than the required quarterly reports.
Well, I can't argue with you on that. With NOTHING come down the pipe, none of these "rumours" coming to any type of fruition that will benefit us, it will almost be certain that if we suck this quarter YET AGAIN, we will tumble.
Maybe it will be the day traders and the small guys dumping as MJ states, HOWEVER, the little guy now controls the SP and it will sink. If we are only to blame the "small guy" for controlling the SP, then we have and are in trouble because if people have forgotten, we suck right now.
We are not helping ourselves at this point...there have been no NEW large investors step in, no new over the top developments, no new mother lodes located, no new large investors.....this stock is stale. The larger investors have been here for some time, and in my humble opinion are riding this out like everyone else. Yes, maybe they have used DCA to lower their initial investment but I really don't care about that. I can remember when the PP holders bought in at $1.00 years ago..........
Without having MY ear to the ground like apparently some HERE, people are not sure what the hell is going on, which causes confusion and in turn perhaps panic. Everyone can read the public reports but sometimes investors need / require more. Last time we read the public reports, it made us look like we had egg all over our face.
MOST OF OUR time having discussions on this board has to do with rumours, slamming each other, or slamming the quarterly reports because they are so poor. WHEN WAS THE LAST TIME THAT WE HAD REALLY GREAT NEWS, THAT WE AS INVESTORS WERE TICKLED PINK ABOUT ....that's what I thought. ????
This board has not been lit up with positive talk that was actually factually based in a very long time.
Because no one cares. Plain and simple. Or perhaps, the rest of the world is just out of touch with what has transpired and they are out of the loop at this point. Same old same old.
So, I just checked SEDAR and I know that this is a surprise....but there is nothing there as of yet. I guess they have up until this week to submit. Anyone want to make a bet that things will not be submitted on time yet again.
I think I have finally come to the realization that there are no deals, nothing in the works.....it just has been a pipe dream for the few months that the rumours have been cycling around here.
The only true thing we have to wait for / rely on, are the quarterly reports and I think we all know that they won't even compare to the distant past.
Have you ever seen that cartoon back in the day with Chester and Spike...just curious
The only way the truth will come out about this alleged shutdown is the quarterly report.....then we shall see who was right and who was wrong. However, if we stopped production to support the aggregate then that is a different story. If that is what happened, then our production numbers will suffer yet again.
Well, it appears that we are still on schedule in becoming a mid tier producer as well as PDI being spun out. I just checked PTQ's website and it hasn't been changed in over two months so everything must be good. If things weren't going well, i am more than positive we would be informed.........right ?!?!
Less than two weeks before we hear something.
Well at least First Quantum updates their shareholders about updates. They actually take questions and attempt to answer them as best as possible. Now, saying that, Petaquilla did a hand full of conference calls and hardly answered any questions. Now, PTQ doesnt even do them any longer.
Are we learning any lessons here ?
Or maybe, there has been nothing noteworthy going on for the past year to advise us about .well, there has been, but it has all been negative !
Another 8.6 million warrants about to expire in a few days. That is a fact . Will it make any difference......no. Carry on.
Why does everyone think we will know soon ? That is what I dont grasp. Wait another month...wait another month...wait another quarter.....and it goes on. What makes this time any different. We hear rumors on this board and we eat it up....why...because it gives us hope and at the present time, that is all we have.
We have zero comms from management. We have Zacks, a reputable company apparently publishing false info according to MJ. We have a corp pres that is dated Dec 2013. All we have is old, outdated info which is apparently incorrect.
Am I mad at posters...no. However, making a prediction is different then posting alleged facts that they think they know are true, when in fact they never come to fruition.
BEST POST IN A VERY VERY LOOOOOOOOOONG TIME !
Temporary setbacks !!!!! Dude, you seriously need to go back and re-read all of YOUR posts both here and on SH. If you honestly think that these turn of events are temporary, then you are in dire need of help. You already posted several times that we are doomed !!!!!!!!! Make your mind up because you are making me dizzy.
Well MJ....there you have the FACTS....I hope you don't choke on them.
Well that didnt work.......folks, you need to go onto Zacks website and look at the article which is dated the first week of January 2014. It is 15 pages long and informative....READ IT !!!!
You also need to read WADEs posts on IHUB.....this isnt looking pretty anymore.
In regards to number 2........you want proof, then go and read Zack's report about how we were down graded BECAUSE WE LOST L.P. Perhaps that isn't good enough for you ? Once again you are wrong. Do you ever become tired of posting inaccurate information ?
I would attach Zack's article, but I will let you do it yourself. However, I bet you already knew it existed because you know everything that is going on with the company........HA ...NOT !
What did a wise man once say on this board....it goes something like this... " Anything under a buck is a steal ". Too bad we haven't seen a buck, give or take THREE YEARS THIS MARCH !
Agreed, I don't know. I only know what I have done.
Zero, zippo, ziltch, nadda.....thats a big fat no. I will try to CALL today. Hopefully, they paid their phone bills
I find it strange that no one else other than MJ has had contact with PTQ...or at least that are willing to share the info that the Company is releasing about LP, or why the road was closed, etc, etc.
If I receive an answer, I shall share it with the board.
DOES anyone remember this....I wonder how much all of this cost. .???
Vancouver, BC - May 14, 2013: Petaquilla Minerals Ltd. and its wholly-owned subsidiary, Petaquilla España S.L. (collectively, "Petaquilla" or the "Company"), announces that it has commenced construction of a mine access ramp at its Lomero-Poyatos Project in the Andalusia region of Spain. The ramp will initially be used for bulk sampling, resource expansion through drilling and infill drilling.
Since completing the titling process for its Lomero-Poyatos Project on November 14, 2012, Petaquilla has also:
Engaged in a drilling campaign of over 20,000 metres;
Completed a twin drill program to upgrade the existing National Instrument 43-101 ("NI 43-101") resource estimate from inferred mineral resources to a measured and indicated basis;
Prepared for dewatering the mine, including conditioning the 300-metre deep Renato Tap;
Advanced towards a NI 43-101 compliant feasibility study through resource upgrade work, environmental impact study, mine plan and all other requirements;
Constructed a project office building;
Improved project internal roads, infrastructure and communications channels;
Adopted personal protection measures in preparation for the initiation of mining activities; and
Implemented key environmental protection measures, including the protection of native flora and fauna.
The start of ramp construction initiates the development of the third mining project, and the second in the province of Huelva, in the Andalusia region in the 21st century and the first gold project centuries after the first gold mining occurred in the Andalusian Pyrite Belt. When Petaquilla acquired the Lomero-Poyatos Project, a former sulphide (pyrite) mine, in 2011, the mine had been inactive for approximately 20 years and the Company plans to restart mining.
The Lomero-Poyatos Project, a poly-metallic massive sulphide deposit with a NI 43-101 inferred mineral resource estimate of 6.07 Mt averaging 4.25 g/t of gold, 88.74 g/t of silver, containing 0.83 M oz. Au (please refer to the Company's news release of May 25, 2012, for inferred mineral resource estimate details), comprises 13 concessions totaling 176 hectares.