Fortunately PTQ is very profitable @$1,300/oz.
The settlement of all issues regarding land,access, and aggregate sales with FQM, that was accomplished last year in FY 2013, guarantee a diversified FCF for years to come. Low grade or high grade ore makes no difference, as it is the low cost of production and capacity that actually generate profits. With a very low cost of production, Petaquilla has a very enviable place in the market. The addition soon of the very high grade ore from Spain will make us even less susceptible to vicissitudes of the market. Barrick Gold announced this week that they will shutter 12 of their 27 mines because of costs of production. As the supply diminishes in the market place PTQMF looks even better with its sustained growth. Whether or not the short term share price goes up or down is really irrelevant to investors, and of course out of control of the company.
