Replies to post #4978 on Petaquilla Minerals Ltd. (fka PTQMF)

[mjkiii]

Latest from Panama, todays paper:
Business & Economy

FAIR VALUE
Petaquilla Minerals Ltd, the company
JOHN E. MELILLA
[e-mail]

OPINION

The Petaquilla mining exploration project, one of the largest in the country, much talked about in the media, but it really is very little disclosure that is on the company that operates, Petaquilla Minerals Ltd.

Before presenting a general stock market report on the activities of this company, it is important to note that the comments made in this column is not under any circumstances represent an investment recommendation, or buy or sell and that only reflected my views fully independent of this newspaper or the company I work for.

Also, the article does not intend to issue an opinion on the viability or otherwise of the project or its various environmental issues related to exploration.

Petaquilla Minerals Ltd. (PTQ), holding company registered in Vancouver, Canada, is principally engaged in the business of mining and mineral exploration in Panama. Has approximately 125 million shares and is listed on Canadian stock exchanges (ticker PTQ), United States (PTQMF) and Germany (P7Z).

Currently, the share price of PTQ is CAN $ 0.96 and in the last year has been as low as $ 0.21 and as high as $ 1.21 recently, with a clear trend upward. Their total debt is $ 76 million, which recently refinanced a large part to very favorable terms.

The granting of the draft Molejón contains a total area 842 km2 and proven reserves by over 500 thousand ounces of gold, yet there are estimates as high as 1 million ounces.

Since 2010 the company began marketing of gold and silver after the stages of exploration and empowerment of the plant, and currently more than 100 thousand ounces of gold per year. Based on an average extraction cost $ 600 an ounce, according to their published information (www.petaquilla.com), PTQ must generate cash flows quite attractive, given the historical price of gold higher today ($ 1.369 / oz.).

However, to date, the company has not reported earnings, not uncommon in the beginning of a mine.

Finally, some risk factors for PTQ may be unexpected increases in operating costs, penalties for environmental offenses and the lack of a national mining code, among others.
The author is a financial adviser

[Mantequilla]

Mj-What i meant was that Cat is buying Bucyrus witch makes excavating machinery -- hydraulic shovels, drills and belt systems -- for mining gold, cooper coal, iron ore and oil sands. Being that they've been in Panama for the past few years, maybe the minning business is going to explode bigger than we think..again, just a thought. Since i rarely post, thought i would pich in, even if its a crazy usumption..

[acanuck]

I think this is huge for Panama and Caterpillar!
This will create probably thousand of jobs for locals.
It will also supply Molejon and Cobre with the skilled operators and Mechanics that are critical.
I was wondering how we would maintain enough skilled workers once construction starts on Cobre. This should help.
There will be lots of well trained operators for our other baby PDI as well.
Caterpillar buying out a huge mining equipment manufacturer and competitor will help them grow much stronger in Central America. This training and distribution center will be huge 100 hectares.
How many B/millions of dollars worth of equipment will it take to build and then operating the forth largest copper mine in the world?
Great day for unemployed or underpaid Panamanians.
I wish I could afford CAT shares.
Should be a good long play

[Implanting]

I think I have asked this question in the past and don't recall getting an answer, so I'll ask it again.

PTQ may be fine for workers at the gold mine until Inmet begins hiring for their copper project. Will there be enough experienced workers available for both PTQ and Inmet when their mine opens?
It stands to reason Inmet may poach our workers in the future. I know the areas the mines are in are not highly populated. Are they going to import workers? I would think there might be some competition going on there for workers. Inmet is going to require thousands of people to run their mine.

What's your take on this issue?