Fascinating discussion about FQM buying PTQ.
Here are some factual considerations:
1. As you posted herein FQM is struggling to get long term financing for the $2.5 Billion short term loan the needed to pay Inmet stockholders in accordance with the offer.
2 Everyone who follows the news must be aware of the huge cap/ex expenditures that Zambian mine and smelter are requiring, especially now that the government is taking a bigger cut, and the other entity has been brought into the mix.
3. While the Cobre Panama Engineering Report is fast becoming moot as the plant site, power plant, camps and most other things are being moved, the size of the operation is not changed. With the new reserves proven within the Minera-Panama concessions the mine now has a life of over forty years running at full capacity.
4. Those who have studied the 1960's UN reports and have some geological understanding of the batholith throughout Cobre Panama would come to the conclusion that there is a very large amount of copper on Petaquilla's concessions. Several of those deposits have been discussed publicly and investors are well aware of the value.
Inasmuch as there is no access, land use, or any such issue between PTQ and FQM; inasmuch as FQM has committed to the Panamanian Government that they will not pursue PTQ in a HT manner; inasmuch as the vast majority of stockholders know the value of the assets; it is difficult to see a scenario where a majority of PTQ shareholders would sell off at an 88-92% discount. Much less would it be feasible for FQM to want to commit to a large purchase of reserves that would not be touched due to capacity constraints for 40 yrs.
More likely I believe is that down the road a few years you will see FQM join PTQ in an attempt, working through the Catholic Church in David, to secure an agreement with the natives to develop Cerro Colorado. The Chinese have already inquired about shipping that ore through Panama City to Asia. They have also indicated a willingness to build a new port to the west just for such a purpose.
In the meantime, the huge reserves that are being drilled in Panama at the targets both on Minera-Panama and Petaquilla concessions assure plenty of AuEq. for Petaquilla. Digi was kind enough to reveal the plans for the new 5,000,000 to heap leach pad. I believe that will give us something near 6,000,000 tons of pad capacity, or as he stated 35,000oz./yr. at a very low cost.
The g/t numbers from the new 43-101 LP report and the g/t that will be coming out of Portugal, (still can't pull up those pictures in my I-Box), combined with the higher ore grades under the aggregate should put us well over 200,000oz. annual rate AuEq. by calendar 2015. In the mean time it is just continued steady progress.
Petaquilla is doing very well and life is very, very, good.
