Replies to post #13445 on Petaquilla Minerals Ltd. (fka PTQMF)

[Implanting]

I would agree with your points and I wouldn't think PTQ should have issues with borrowing money or getting further credit as long as the POG stays reasonably high, but I still have my doubts about how much gold these people can produce going forward.

They have themselves doing a minimum of 120K oz. for fiscal 2013 and to my thinking that's going to really be a strech from what they're doing now. When the fourth ball mill starts contributing to production is anybody's guess, I wouldn't expect it to be operational before Q2, so even if it's operational by that time, Q1 will suffer. I'm also very skeptical of what the HL is going to bring to the table. I know that's being expanded, but will it be enough to pick-up the slack? We'll see I guess. I think what they do with the HL this quarter will be very telling for how successful it really will be going forward.

[Lojiko]

What if someone was depressing the share price because they wanted more shares? What you said about the market depressing the SP if it anticipates dilution reminded me of the following from the latest PR:

The principal portion of the Loan Agreement is convertible at Deutsche Bank's option into common shares of the Company at a conversion price equal to the five (5)-day volume weighted average price of Petaquilla's common shares on the Toronto Stock Exchange immediately prior to the effective date of the Loan Agreement plus a 15% premium.

If DB and the powers that be wanted a lot of PTQ shares, all they'd have to do is keep the five (5)-day volume weighted average price low ahead of the deal. They know better than us when the deal will go thru, so it wouldn't be difficult for them to time it. Volume has been higher than average for three days now, with no upward movement, which suggests to be that the volume isn't being generated by Matlack listing us as a strong buy.

There are too many variables to pick one out without more evidence, but if PTQ wanted to pay off the principal plus 15% ($6.9M) with common shares, it would be to DB's advantage to keep the price low. PTQ @ $0.50 gets DB a lot more shares (13.8M shares) than PTQ at $0.75 (9.2M shares).