Good morning, some interesting facts.
Interesting article and I'm sure the writer is not a big favorite of the company or our chairman. Board has been very quiet with the three I now have on ignore, but seems to make more sense.
Turning to the article I think the following points should be made:
1. FQM seems to have more problems not related to Panama, with the exception of the bond issue, that has occupied their rather thin and lean management team. Their work in progress plans have actually identified larger savings to be made than were originally hoped for in their previous statements. Some 'analysts' may suppose differently, but they are wrong.
2. PTQ may or may not produce 40,000oz. AuEq. in 2014. However that is well below the current budget and is not supported by any management member. Several posters herein have called for a cessation of gold production above what is committed to in various agreements until the price returns to a higher level. Of course the offset is to maintain good will and a full work force. At $1,200/oz the company is very profitable with low production costs.
3. Richard Fifer is well known world wide as the 'father of mining in Panama'. Actually there are dozens of web sites telling his story in many countries, particularly in Iberia, Australia, and China. He was recently made a Caballero de Guadalupe by the Spanish Crown and Catholic Church in Spain for his good works.
4. Promoting is probably not he best choice of word but the Chairman and BOD are definitely moving forward with the PDI subsidiaries that will be far larger than Molejon. All of that is old news and has been included in many corporate presentation over the last three years, along with detailed plans and photos. The Lifestyle Project as it is called herein below, does depend on the development of Cobre-Panama, but not on FQM.
5. Richard Fifer does not own a large tract of land around any mine. Yes, there will be housing, stores, schools, shopping center, hotel, and infrastructure to support the 25,000 (not 5,000) direct and indirect employees, and their families, surrounding Cobre-Panama. Houses will be sold and not just rented. Again pictures of the buses, planned infrastructure have been shown for several years in the archived presentations. FQM also has some photos of such developments at their other locations around the world.
6. Richard Fifer draws a normal salary for his position. However, it might be mentioned that Petaquilla is just one of eight companies from which he is compensated by the individual Boards of Directors setting his salary, and in fact is well known to donate to foundations and charities far more each year that his salaries. So other than to raise a point for class envy, Petaquilla salary set by the board is not an issue or a concern for him.
7. The financial condition of Petaquilla while still a concern and an issue to be addressed, has improved greatly this last quarter. In addition, 33,772,848 warrants and options expire over the next thirty days reducing dilution exposure significantly.
WHILE THIS ARTICLE REFERENCED HEREIN ABOVE SHOWS SOME BIAS, IT IS VERY USEFUL AS A POST SINCE IT PROVIDES THE OPPORTUNITY TO SET THE FACTUAL RECORD STRAIGHT, AND UNMASKS THE PREJUDICE AND AGENDA OF THE STOCKWATCH BUSINESS REPORTER.
The Lifestyle Project is still very long term depending on the pace of development of Cobre-Panama. That hinges more on FQM and its relationship with Panama. Only thing certain is that Petaquilla will be there from the beginning to the end in my opinion.
