This is from FOCUSED on the SH site...
Glad I was able to attend todays meeting re the Iberian acquisition.
Here's the quick and dirty...
Joao Manuel impressively handled some very tough questions from a significant investor that felt the deal was between 'freinds' and proper dd wasn't completed. I felt reassured after the discussion that we are acquiring a legit property after a thorough dd process which involved 3 major law firms to ensure no claims were outstanding -- this property is expected to have 3 million inferred oz's.Our cost is essentially for 10-12$ per ounce, substantial discount! Drilling/exploration has already commenced and the expectation is to have feasibility and work plan in place within 12-18 months.
Short term risk -- approx 2/3 of the 50million shares issued to Iberian shareholders are immediately free trading. These shares are at a cost of approx .35 to Iberian Shareholders, certainly incentive enough to sell and move on. 1/3 of the shares are held by insiders and who have signed a pool agreement which prohibits them from selling shares for 12 months.
Personally I am hoping to see the share price back in the low 60's so I can double my position.
PDI will soon be awarded the Inmet contract for the construction of roads and various buildings required for their project. The government should be issuing an approval of the environmental impact study in September. With respect to the PDI spin-out, due to the recent dilution the share distribution structure will likely be revised , still on track for 2012.
Moving forward expect Joao Manuel to be the face of PTQ - it seems like the board fully understands that Fifers past has been a dark cloud hanging over us and has deterred serious analyst coverage. A large-scale promotional campaign will be taking place over the next 2-3 months; road show, advertisements, engaging brokerage houses etc.
Based on our production profile we should be trading in the 2.00-3.00 range!
After todays meeting and observing the boards commitment, there's not doubt in my mind that we will be trading multiples higher over the next 2-3 years - exciting times ahead!
