RSG – Wish I’d Bought more, Although maybe Pantoro (ASX:PNR)


Has rallied 30% since I mentioned it in late March – Now sitting around 80c

Although I am kicking myself as I saw it at 25c in January and thought it would go lower

which in hindsight was a dumb thing to try and time the market and should have started accumulating at around that point as it looked like an undervalued buy

with the Gold price continuing its steady climb – most likely due to the uncertain economy  I think there is still a bit of juice left in the RSG tank to get it to $1 which would be a 4 fold gain from when I first saw it ….Doh

anyways Pantoro

ASX:PNR look like a good gold producer that hasn’t made a significant run – quite speculative

its lows have been around the high 4 c and is sitting around the 9c mark which is around the 50M Mkt cap region

Recent high grade finds have boded well for future production and current quarterly production is in the region of 4000-5000 Oz per quarter = 20 k Oz per year

Cash Costs sit around the $1200 which is good for margins when the AUD gold price is over $1600

the expected initial plan was the 30k oz/yr for the first 4 years which looks to be on target

expected Profit would sit around the $10-12M – which puts the price/earnings between 4-5 which could increase depending upon how the Gold price charts

maybe keep watching




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