Panterra PGI (was EVG) Gold producer (soon) and Explorer South America

[Joshuatree]

Doctor Cowie from diggers and dealers has released an update on PGI. Mkt cap re $82 million s/p up 1c to 15.5c so far today. 12 month target 35c with first gold and silver pour in next quarter from derisked tailings dam project(just scoop it up and dump it in the mill(no mine) and ex gold hits in its various exploration projects.

Excellent management with BJ having a big stake in shares and hes converted most/all of his oppies already. One director has as many shares as BJ ,not sure re others.

PGI is fully financed and doesnt need the opppies to be converted but i do:). Gold costs are $312 oz !! with 65,000 oz AU and 600,000 oz AG a year with the first LL project using the Albion process. 5.1 million tonnes @ 3.8gm AU and 38.6gm AG tonne (from da tailings).

A feasibility study on another project Azuay underway with production of 95/100,000 ox AU expected to commence first quarter 2014. 300km2 of exploration concessions in Dom Republic , Ecuador.

[steve fleming]

I mentioned NWR the other day (which is dominated by NZ shareholders), well PGI is another up and coming gold producer that has a NZer as its major shareholder (John Dentice)

Good to see NZers getting some good exposure to some quality gold companies.

[Joshuatree]

Are you in too steve? We can make you an honary kiwi:). PGI is commissioning its plant as i write . Great times ahead methinks and derisking big time.

[steve fleming]

Are you in too steve? We can make you an honary kiwi:). PGI is commissioning its plant as i write . Great times ahead methinks and derisking big time.

I am actually already a kiwi!

I don't hold EVG yet, but consider it pretty cheap given imminent production.

i.e. market cap of $100m while the NPV of Las Lagonas is $150m. So all the other EVG projects (which are of a reasonably advanced stage) you are getting for free. So I agree, some nice upside ahead!

[Joshuatree]

Action today Steve, good volume of shares and price finally lifting off the ledge.Leaky ship? News of commissioning and first gold pour close i hope.

[drillfix]

Edit Joke :P

[Joshuatree]

Ha ha Like your kiwinternational humor looks like its prob dripped/seeped down a drill hole over 2 years with no invasive fraccing:).

PGI has announced today an enhanced forecast increase of 32% to FCF and 72% increase to NPV from $158 mill to $272 million and thats based on a conservative gold price. It comes due to the realization clarification re taxon their project.This is ex news tempered by a 1 month delay in commissioning the mill due to rains ,but you have to expect delays on start ups. The road ahead looks great and ever derisking.Disclose ,been holding since 8c.

[Joshuatree]

PGI today corrected the NPV increase to $218 million at a 10% discount rate at a price of $1400 oz. Still a good increase,and a presentation out today.The albion process although used for many metals ,this is a global first for Gold. There are prob many more tailings dams in the area and globally that this process will work for.PGI being the first mover and with a lot of knowledge gained I'm predicting there will be a lot of people watching this commissioning and a lot of potential ops,JV's etc opening up for PGI.

[OutToLunch]

Looks like PGI are "all systems go" now with the announcement that the processing plant has been completed and dry commissioning has been done too. So long as there are no snags in the move to full production capacity, surely this has to be a compelling buy with cash costs confirmed in the low $300s per oz?

[Joshuatree]

Agree OTL. Unfort the market is indifferent atp to anything gold toothy. Rerate will happen but not overnite. Patience of a rock with constipation?

[OutToLunch]

Yep, patience needed. But with successful commissioning (a major milestone) achieved, production getting underway now & the prospect of a dividend next year, 18c should be a pretty good medium term investment. I've got a small handful of these stashed away.

[Joshuatree]

Im holding heaps, re 25% of my net worth. sold 200,000 into the news @18.5c after my BSM disaster , not too far away from being free carried;got in quite early. If it drops to 17c will top up again at least. Whats it going to take for you to enter Steve Flem? Having the CEO we have (with a huge holding) is compelling enough for me let alone all the other stats and facts, with risk reward now massively weighing on the reward side, yeahhh!!

[Joshuatree]

P S theres a good summary of PGI by poster mdc on H/C Yest. Save you many hours of research and lays it at your feet. cheers

[JBmurc]

P S theres a good summary of PGI by poster mdc on H/C Yest. Save you many hours of research and lays it at your feet. cheers

Yes good reading PGI has very large growth prospects ...see if I can get a few at 17.5c

[OutToLunch]

Yes good reading PGI has very large growth prospects ...see if I can get a few at 17.5c

You've probably got a good chance of that... so far, Mr Market doesn't appear to give a monkey's that PGI is about to hit the ground running. If I had some $ spare I'd be adding more at these levels too.

[steve fleming]

Im holding heaps, re 25% of my net worth. sold 200,000 into the news @18.5c after my BSM disaster , not too far away from being free carried;got in quite early. If it drops to 17c will top up again at least. Whats it going to take for you to enter Steve Flem?

Haha....holding too many under-performing goldies at the moment Josh!

While i like PGI, not too keen to take on another one until a bit of life returns to the sector

[Joshuatree]

Know what you mean Steve.Bit of a move up today in goldies. My others PIROA and TRY holding well my explorers ROL ,ELT down just a little. Ive bought back/topped up in to PGI today at 16.5c . Quarterly out today. cheers

[JBmurc]

Haha....holding too many under-performing goldies at the moment Josh!

While i like PGI, not too keen to take on another one until a bit of life returns to the sector

yes very dead holding my lot ...wouldn't mind a few more PGI @16c the profits numbers will drive it soon enough

[JBmurc]

some good interest today wished I had so more funds 16-16.5c don't think we will see sub 20c one gold production starts

[JBmurc]

PROCESS PLANT NOW OPERATIONAL, LAS LAGUNAS GOLD/SILVER PROJECT, DOMINICAN REPUBLIC,
PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), advises that processing has commenced at its Las Lagunas gold/silver project in the Dominican Republic.
High grade refractory tailings from the Pueblo Viejo mine (3.8 g/t Au, 38.6 g/t Ag) are currently being fed to the Albion/CIL process plant at around 30% of the planned throughput, which is expected to increase to 50% next month. Full production of 70,000tpm should be achieved by September 2012.
The first gold pour will occur after carbon in the CIL tanks has fully adsorbed the precious metals from the cyanide solution within the tanks, after which the metal will be stripped during a batch elution and subsequent electrowinning/smelting process, to produce 15kg bars of doré. The doré will be made up of approximately 10% gold and 90% silver. First doré production is expected by mid June 2012.
Weekly production will be air freighted to Geneva where it will be refined prior to delivery of gold and silver to a London Metal Exchange warehouse for storage or sale. The first sales proceeds should be received in July 2012 and build up progressively over four months to an income of around US$9 million per month after refining costs (at a gold price of US$1400 per ounce and a silver price of US$28.00 per ounce).
Subject to meeting production targets, the Las Lagunas project is expected to generate free cash flow of nearly US$100 million within 18 months, in addition to repaying Macquarie Bank’s US$37.5 million project loan.
Under its profit sharing agreement with the Dominican Republic Government, the PanTerra Gold Group will recover its investment in the project to 30 June 2012 of approximately US$90 million after which the Government will receive 25% of the operating profits. No Dominican income tax will be paid on profits, and at the above bullion prices the project could generate around US$300 million of surplus cash over the next 6.5 years.
Mr Brian Johnson, Executive Chairman of PanTerra Gold said that additional working capital was being arranged to cover unforseen problems during the ramp up phase of the project without significantly increasing dilution.
End

[OutToLunch]

"...an income of around US$9 million per month after refining costs (at a gold price of US$1400 per ounce and a silver price of US$28.00 per ounce)"

So PGI are heading for an estimated gross income of US$108m/year compared with the current market cap of $96m @ the current share price of 15c. So long as the production process doesn't strike too many snags in the ramp-up phase now under way, this sounds pretty good...

[JBmurc]

"...an income of around US$9 million per month after refining costs (at a gold price of US$1400 per ounce and a silver price of US$28.00 per ounce)"

So PGI are heading for an estimated gross income of US$108m/year compared with the current market cap of $96m @ the current share price of 15c. So long as the production process doesn't strike too many snags in the ramp-up phase now under way, this sounds pretty good...

yes and they have 6yrs min in place with good upside to discovery more feedstock for the CIL plant

[OutToLunch]

Check out the movement in the gold market.... meanwhile, PGI have started production and are just weeks away from their first gold sales, with their latest revenue forecasts being based on a gold price of $1400. None too shabby at all. :)

[Joshuatree]

Outsatanding value amongst all the goldies albeit a little more risk than say SLR. I sold a small portion of my very big holding %wise of my portfolio @ 18.5c and buying RED to spread things a bit;fantastic value there as well.

[JBmurc]

Check out the movement in the gold market.... meanwhile, PGI have started production and are just weeks away from their first gold sales, with their latest revenue forecasts being based on a gold price of $1400. None too shabby at all. :)

esp when the gold price keeps heading up and oil is down near 20% should help keep costs down and profits very high ....I understood in time PGI were happy to pay divies

Another TRY in the making imho... paid 1.28 now over $4 and pays divies ea year

think PGI could well move the same percent wise

I'm gutted I didn't buy more at their recent lows should be past 20c in no time

[JBmurc]

Got to love the fact PGI have on the Azuary project on the backburner....



Scoping Study outcomes from 100% PGI
Total Development Costs: US$87 million
PGI Equity: US$27 million
Mining Target: 4.0 million tonnes
Project Life: 12 years
Annual Mining Rate (after 12 months ramp up): 300,000 tonnes
Head grade: 11g/t gold
Average Annual After Tax Profit (Project Life): US$41.6 million
Average Annual Cash Flow (Project Life): US$44.6 million
NPV Project (10% discount rate, USD AUD parity): US$180.3 million

[Joshuatree]

Love the fact that at this s/p Azuary and other projects are for free..!!

[OutToLunch]

An excellent announcement out from PGI today. Their processing plant is running at 80% capacity and should be at 100% within a couple of weeks, well ahead of schedule. Nice to get a positive surprise. The share price starting to show signs of life but is it possibly being held back by June tax-loss selling? Looking forward to the first pour early next month anyway, the current share price doesn't seem to reflect the fact that PGI are about to start shipping off gold and silver to the tune of around 9 million USD per month.

[Joshuatree]

Yes almost too good to be true ,no glitches to speak of during commissioning so far!!!! .Until gold rerates strongly goldies and PGI unloved despite great announcements. The mkt is numb.

Im sure i can sense shadowy cool cricket greats loitering with intent nearby.:cool:

[OutToLunch]

Yes almost too good to be true ,no glitches to speak of during commissioning so far!!!! .Until gold rerates strongly goldies and PGI unloved despite great announcements. The mkt is numb.

Im sure i can sense shadowy cool cricket greats loitering with intent nearby.:cool:

Well the market reaction reminds me of the sound of crickets... and sod all else. This one is well and truly off the radar, even though they're well and truly about to "show me the money" (and there was a hint of a dividend by the end of 2013). BJ mentioned to me a couple of weeks ago that the TSX requested an update on the status of Las Lagunas, which he was due to send to them last week. So we should be seeing some progress with the TSX listing shortly too (he said the process of gaining a listing had proven to be "painful").

[JBmurc]

Yes PGI is such a great buy with whats coming going forward the market will wake

[Joshuatree]

Great announcement by PGI today commissioning of mill ahead of schedule. Another few months before nameplate and testing all complete. Usual little probs like wrong prop size in tanks and baffles not big enough .And from BG himself first pour "prob this weekend". Price drops to 16c on a mkt down day,. last i looked

[Joshuatree]

First Pour today for PGI. A GLOBAL FIRST using Albion process for GOLD and Silver extraction. All we need now is to find out actual recovery rates and costs. PGI is processing a tailings dam @ re 3.8gm AU tonne plus silver. It will be in the lowest cost group for production est re $330 oz.

[Joshuatree]

Looks like a great finish for PGI settling @17 to17.5c on ex vol nearly 8 million traded. Onwards and upwards with our newest producer just when Gold is looking sexy again.

[JBmurc]

great buying at these levels with the cashflows looking forward ,really like the other high grade exploration project to be the next major earner for PGI longer term..

In the mean time not all that much longer before we see monthly production top 4000-5500oz a month round 7-9.5mill gross + some 1.2-1.6mill in silver sales ....likely operating costs- 1.3-1.7mill (rough est)

not going take many months of those cashflow to wake the market up

disc-brought more @15c

[Joshuatree]

Hi JB ;the last update was 14th/09 so reckon another cant be far away. Pretty range bound at the mo and until we get defintive news re commisioning probs being sorted i cant see us going anywhere. Its a great story (and re 23% of my holdings) and despite thorough testing of the albion process in Aus ,on this bigger scaleand it is a global first; they have got some aspects of design wrong hence a bigger this and diff shaped that, temps not high enough etc. So patience required re recovery rates and costs etc

[trackers]

Managed to get some of these at 14.5c after a fairly patient wait, looking forward to mill commissioning news in a couple weeks... these guys should be on a forward P/E of 1 soon enough, producing at ~$400 an ounce. Sweet

[JBmurc]

Finally starting to move ..looks like full production before the end of next month....such a low cost producer / with hedging in place ....one of the safer small cap producers round

[trackers]

Yep good de risking today. About to be in full production with "robust numbers"... Pretty happy; if gold price holds up I'd expect to see a decent swing upwards with confirmation of the mill upgrade and full production

[SCHUMACHER]

hI Guys been a loooooong time since i posted here must be 4 years, anyway bought into PGI at 15c and looking forward to the numbers stacking up now they are ramping up to full capacity over coming months

regards SCHU

[JBmurc]

hI Guys been a loooooong time since i posted here must be 4 years, anyway bought into PGI at 15c and looking forward to the numbers stacking up now they are ramping up to full capacity over coming months

regards SCHU

yes it has ,,,, good to see you have come back with a great purchase ....full production should see us move towards the 20c IMHO
esp when the market see's the profits numbers with the low costs

[Joshuatree]

Have to remind myself with commissioning like this delays and mill probs are par for the course esp with a first in the world with the Albion process used on gold. The same amount of gold is waiting in the tailings pond. Another cash raising maybe. Hope Mac bank are tolerant too. My other main goldie RED having probs as well but sentiment upwards at the mo. My plan is IF i do make a motza out of these two, monies will be invested in much safer div stocks. getting too old for this path ,but hey never a dull moment and may topup PGI but no rush, 6 weeks for the new part with ball Mill running at 50% anything could happen before the share takes off like an E-Type Carrot(Carat:)

[JBmurc]

Have to remind myself with commissioning like this delays and mill probs are par for the course esp with a first in the world with the Albion process used on gold. The same amount of gold is waiting in the tailings pond. Another cash raising maybe. Hope Mac bank are tolerant too. My other main goldie RED having probs as well but sentiment upwards at the mo. My plan is IF i do make a motza out of these two, monies will be invested in much safer div stocks. getting too old for this path ,but hey never a dull moment and may topup PGI but no rush, 6 weeks for the new part with ball Mill running at 50% anything could happen before the share takes off like an E-Type Carrot(Carat:)

Yes PGI , CVR my two gold producers I'm invested in ,,,,so not a happy camper at all.... my explorer PXG investment is keeping me sane i the PM market that I've been so bullish on for the last 7-8yrs I haven't done all that well out of it for being right....
hindsight I should have just brought Silver bullion instead of leveraged money to invest in the likes of PGI not only do I have to sit on a paper capital loss of late but also come up with the funds to pay my monthly interest costs arrggg.....

even though I gutted with PGI,CVR I'm very confident Gold/silver are about to start the next major bull move past $2000 onwards to 2400-2500 imho ....

[Aaron]

I feel you pain JB. I haven't been following you but have made a couple of punts in gold mining speccies. CVR and PGI. My investment in CVR is bigger and Kazakastan feels a lot further away since the trading halt. POG has held up well but that doesn't matter if the mining companies can't extract it from the ground.

[JBmurc]

I feel you pain JB. I haven't been following you but have made a couple of punts in gold mining speccies. CVR and PGI. My investment in CVR is bigger and Kazakastan feels a lot further away since the trading halt. POG has held up well but that doesn't matter if the mining companies can't extract it from the ground.

Thats right BDG,MON,NAV,CTO are just a very few perfect examples of gold miners that held so much promise and commanded large market values in their good days of accepted profits that never happened and left S/H poorer for there holding...

like yourself I decided on CVR & PGI from the aspects of great value low market values to peers ,, soon to be producers with low projected costs per oz $400-600per oz and could see 200-300% return to move into fair values ...If they could deliver the results,,, so far they have fell short ..can they get back on track
now thats the 64million dollar Question

It's going be a very make or break from me with these to ....before May 2013(when my short term 4.99% loan comes due) ...plan to see some growth in least one or both to help pay down some debt

[Joshuatree]

I still believe PGI will get thru their commisioning probs ok and a rerate will happen. Same with RED another very low cost producer. I also hold CVR but not so confident with this one, Heres hoping we have our day in the sun.

[JBmurc]

I still believe PGI will get thru their commisioning probs ok and a rerate will happen. Same with RED another very low cost producer. I also hold CVR but not so confident with this one, Heres hoping we have our day in the sun.

Yes PGI should see a turn round within a month IMHO back to mid teens etc great buying if you can get them @ 11c

CVR most likely won't be back on the ASX for well over a month early 2013 and most likely many S/H will want out asap 1c-1.5c etc if the Cap raising is a steal for the insto-fundies .....personal at this stage I don't care if they raise @ 1.5c I just want them back listed again and working on get the production back online asap....have seen many goldies go into suspension to never come out thanks to debt issues.....even if they have to take the outstanding shares to 1billion i.e 3million AUD raised gross 1.5c..........Gold/silver is looking good for another crank @ 2,000oz in 2013 ...we see the likes of PGI , CVR setting down some solid production numbers the S/P will re-rate mutiables

[Joshuatree]

Good announcement from PGI today. " Modification of the dredging configuration was completed before xmas allowing feed to the plant to be delivered at up to 80% capacity" and " replacement ball motor has arrived and will be installed next weekend."

S/P up 1 c today to 13.5c re 900,000 shares . Wont be long until name plate (re 65,000 oz year) with current mkt cap re $92 million and a lowest cost operator re $325 oz.

[JBmurc]

Good announcement from PGI today. " Modification of the dredging configuration was completed before xmas allowing feed to the plant to be delivered at up to 80% capacity" and " replacement ball motor has arrived and will be installed next weekend."

S/P up 1 c today to 13.5c re 900,000 shares . Wont be long until name plate (re 65,000 oz year) with current mkt cap re $92 million and a lowest cost operator re $325 oz.

yeah great news PGI will boom in this year IMHO such fat margins ....

[JBmurc]

PROCESS PLANT UPDATE – LAS LAGUNAS GOLD/SILVER PROJECT, DOMINICAN REPUBLIC
PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), advises that the Albion/CIL process plant at the Company’s Las Lagunas gold/silver project in the Dominican Republic is now running at its design throughput of 100tph.
A replacement ball mill motor has been installed, with the mill comfortably handling the grind of coarser refractory tailings from the Pueblo Viejo mine currently being fed to the plant. The existing motor, which is still under warranty, will be rewound so as to achieve nameplate capacity and then serve as a spare.
Anticipated income for the past six months has been significantly reduced, primarily as a consequence of design/manufacturing issues with major equipment, and the Company is investigating the prospect of claims for compensation against several suppliers. Loan repayments to the project financier have been rescheduled to commence 31 March 2013 which will assist short-term cash flows.
With the regrind section of the process plant (ball mill and ultrafine grinding mill) now operating to design capacity, technical staff can concentrate on fine tuning the three other important circuits of the plant (flotation, oxidation, and CIL) in order to optimise gold and silver recoveries.
Updated forecasts of project cash flows and profits will be established after the plant has been running in a steady state for about four to six weeks.

[Dej]

Why the dip today?

[Joshuatree]

Have a read on H/C. Big shareholder getting out. Various interpretations of PGI meeting yest re getting to nameplate, panic by a few,DOUBT. Meeting with MAQ Bank coming up asking for extension.Gossip etc . Xstrata and another co possibly being sued by PGI. it goes on

[Dej]

Have a read on H/C. Big shareholder getting out. Various interpretations of PGI meeting yest re getting to nameplate, panic by a few,DOUBT. Meeting with MAQ Bank coming up asking for extension.Gossip etc . Xstrata and another co possibly being sued by PGI. it goes on

Are you holding or selling? If you dont mind me asking.

Disc: Holding

[Joshuatree]

Holding since before 2011 when i started this thread. Turning into a nailbiter ;hoping for a potboiler followed by a Box Office Hit ,with popcorn, longlegged usherette with a torch and a tray of Harvey wallbangers

[Dej]

Holding since before 2011 when i started this thread. Turning into a nailbiter ;hoping for a potboiler followed by a Box Office Hit ,with popcorn, longlegged usherette with a torch and a tray of Harvey wallbangers

You and me both, has the potential to do that, all it takes though is some bad news to come out about any of the information you mentioned and it may start a sh*t storm though!

[JBmurc]

Brilliant just what I need with Cvr,s troubles
Getting smashed by these start up producers
Qtr report will be interesting

[OutToLunch]

Brilliant just what I need with Cvr,s troubles
Getting smashed by these start up producers
Qtr report will be interesting

Tell me about it. Yet again I am getting my arse nailed to a tree. Next time I think I've found a good buy I'd probably do better to just short it instead. :(

Anyway, hopefully Brian has some end-of-tunnel light for us in the quarterly this week...

[Corporate]

What's happened with PGI fellas?

[OutToLunch]

What's happened with PGI fellas?

Hi C,

In a nutshell, we've had commissioning problems --> delayed revenues--> potential cashflow trouble. We're all but there as far as getting to production goes, but it's going down to the wire, or so it seems. The main threat to shareholders at this point in time is the possibility of an equity raising at a rate unfavourable to existing holders. My hope is that BJ might be able to pull together some short term debt funding, given the fact that most, if not all, of the production hurdles have been cleared or are about to be. If the Albion process works for gold and silver recovery as it looks like it might, the potential for PGI to process tailings elsewhere at a nice fat margin could be significant. The IP involved would be valuable too.

We've just got to get there first without running out of cash....

[Dej]

Thoughts on the quarterly?

http://www.asx.com.au/asxpdf/20130129/pdf/42cn173j47zk97.pdf

And the price drop is somewhat explained by the 'aggresive' sale of 2+mil shares by someone in the announcement.

[Joshuatree]

Thats what i said;" big shareholder getting out". JID on H/C once held re 57 million shares.

[Dej]

Thats what i said;" big shareholder getting out". JID on H/C once held re 57 million shares.

Sorry! :scared:

[Joshuatree]

PGI about the only Goldie to rise today.Was tempting so tempting to average down today on BDR ,MML,KCN, RED ,but im in too deep in Gold stocks as it is; stuck in the mud with the tide out, watching thousands of lil eyes on stalks watching me.

[steve fleming]

I think it is going to be interesting to observe how some of these emerging producers, who have relied on post GFC financing, have been well and truly screwed over by their financiers, as they move into production and no longer can capitalise their interest charge.

MBL's effective interest rate for financing PGI is 23% plus there is all the gold revenue they have to give up to MBL through royalties and price participation agreements plus dilution via options etc,

This is definitely not specific to PGI, more a general comment on the lack of attention investors often pay to these financing terms during the development phase - it's only when they start producing and prepare an income statement that they wonder where all the revenues have gone.

I heard Tony Locantro on YMYC the other day get caught saying that he thought MBL providing finance was a positive for a stock - the other panelists pretty much laughed at him, and he ended up agreeing that the likes of MBL are pretty much just like La Jolla but with a more respectable name.

[Joshuatree]

Youre so right Steve .MAQ are like the sword of Damocles hanging over PGI's head.Its going to be a close run race for PGI getting its op to optimum name plate pricing and recovery and Maq turning the screws and MORE dilution. Not a happy camper here.

[Dej]

From a TA point of view, looks like PGI is improving! MACD wise

[Joshuatree]

Yes thank Heaven;well actually mainly due D&D Diggers& Drillers recco to all their clients yesterday to buy.

[Dej]

Yes thank Heaven;well actually mainly due D&D Diggers& Drillers recco to all their clients yesterday to buy.

Good to know why, but doesnt matter for us holders :D

[Dej]

What you expect (and hope) to see in a progress report today - not much of a SP motivator though... got some serious boundries to cross at 12cps

[JBmurc]

19 February 2013
Registered Office:
55 Kirkham Road Bowral NSW 2576 Australia
PO Box 846 Bowral NSW 2576 Australia T: 61 2 4861 1740 F: 61 2 4861 7665 Email: admin@panterragold.com
PERFORMANCE OF PANTERRA GOLD’S LAS LAGUNAS PROJECT CONTINUES TO IMPROVE
PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), advises that operations at its Las Lagunas gold/silver project in the Dominican Republic continue to improve with the first half of this month seeing plant feed, gold and silver grades, grinding circuit performance, and flotation circuit recoveries, now being close to meeting design targets.
Over the next two weeks, the Albion oxidation circuit is expected to reach design levels, and the following two weeks should see CIL recoveries substantially improved.
Head grade of plant feed for the past two weeks has averaged 4.0 g/t (target 3.8 g/t) for gold and 44.1 g/t (target 38.6 g/t) for silver.

[Joshuatree]

Albion and CIL circuit still the gremlin imo. Plus mac bank renegotiation schedule ; the screws willbe turning. Kookaburras post the most accurate on H/C. Still worries me; not a definitive out of the woods statement, dragging on and on. If it gets to 12 again today im shifting a small % to other smashed Goldies.

[Dej]

Albion and CIL circuit still the gremlin imo. Plus mac bank renegotiation schedule ; the screws willbe turning. Kookaburras post the most accurate on H/C. Still worries me; not a definitive out of the woods statement, dragging on and on. If it gets to 12 again today im shifting a small % to other smashed Goldies.

Almost every goldie has been smashed - what ones were you looking at? If you dont mind disclosing!

[JBmurc]

Yes still not out of the woods but where on the path

[OutToLunch]

Albion and CIL circuit still the gremlin imo. Plus mac bank renegotiation schedule ; the screws willbe turning. Kookaburras post the most accurate on H/C. Still worries me; not a definitive out of the woods statement, dragging on and on. If it gets to 12 again today im shifting a small % to other smashed Goldies.

Agree that we're not out of the woods, but to be fair to PGI they haven't been able to optimise the downstream end of the plant at full capacity due to mechanical problems at the upstream end. Now these are sorted out, I expect the rest of the optimisation should progress smoothly (assuming that the initial processing late last year is easily scalable to full production rates). I'm quietly confident that we're on the right track now, but the next month will tell us whether that confidence is well placed or not. Re. Mac Bank, Brian tells me that they are still supportive of PGI in reply to me putting that question to him recently. Why would they screw PGI now when they're so close to meaningful cashflows?

[Joshuatree]

Because thats what lenders do.Mac are no diff to La Jolla. 23% effective int rate atm plus hedging , royalties etc. Im not really up on the loan/ funding stuff, just going on other peeps comments who i respect, e.g. Steve Flem, JID on H/ C etc.

[Dej]

Cut some of my holding today - will try reenter when the goldies are bottoming.. still think its got some way to go and PGI isnt being hit as hard as some others (yet)

[trackers]

Picked up a few in the last couple days @ 9.5c...Couldn't believe my luck! As soon as recoveries go up, as expected in the very near term, we'll be all good in my opinion. Slow derisking in process

[Joshuatree]

Ihope its at the bottom; im feeling mauled, keelhauled and under ored atm.

[JBmurc]

Ihope its at the bottom; im feeling mauled, keelhauled and under ored atm.

Yes as with many goldie s these day ...sold my lot 10c - 10.5c ....and a larger lot of rms pretty much over this sector at the moment .... Only holding Cvr now....loaded to the gills In oil&gas shares.... Won, t take much for me to buy back in PGI the right ann

[Joshuatree]

annoucement just out. Promising ,but more dilution, no consistent run of mill figs, yet suggestion $1million worth of production a week, how are mac bank negotiations going re extension. Arrrgh

[trackers]

Picked up a few in the last couple days @ 9.5c...Couldn't believe my luck! As soon as recoveries go up, as expected in the very near term, we'll be all good in my opinion. Slow derisking in process

Standing orders normally kill me but by some miracle I got out at 10c today... Hope they can sort out this shale asap.

Thinking of pulling the trigger again, ridiculous low sp

[Joshuatree]

Great escape in a cape, Trackers be Nimble, Trackers be quick. One needs to think what The good Dr is going to say on D&D, prob RAMp,Ramp Spank your plank and if so you could make a good trade. Me have too many to try a trade. Good luck

[Joshuatree]

Looks like the bottom is firm (: for the mo. D&D said a few common sense things to calm the followers, now the slow climb out of this hole without being hit by falling offal, wheelybin contents or a little used exercycle.....Im sure i can smell a rose.....sniff sniff... def not violets.

[Joshuatree]

PGI is hitting nameplate at last , i think its a slow climb out from here, but need crampons on and resilient shield up.

[JBmurc]

PGI is hitting nameplate at last , i think its a slow climb out from here, but need crampons on and resilient shield up.

Yeah for sure going be one of those shares we will talk about years from now how oversold it got on really just start up teething problems
most miners go through

[JBmurc]

PanTerra Gold (ASX: PGI) expects its Las Lagunas gold-silver project in the Dominican Republic to be running at nameplate capacity from this week as the company continues to work on optimising recoveries.

Gold and silver in the form of doré bars valued at about US$0.9 million were shipped to refiners in the first week of this month.

Total value of production for April is expected to be between US$3.5 million and US$4 million.

Monthly income should rise to around US$6 million per month by June 2013 with a target of US$7 million to US$8 million per month when the plant operations are fully optimised during the following quarter.

PanTerra’s monthly cash outflow for project operating costs, financing costs, and overheads, has stabilised at about US$2.5 million per month.

Brian Johnson, chief executive officer, said that now the company’s operations and cash flow were steadily improving, the primary focus would be on securing additional feed sources for the Las Lagunas plant.

This will be done from either within the Dominican Republic or from outside the country to extend the six year life of the project.

Subject to grade and metallurgical characteristics, concentrate produced from mining of refractory ores could be transported from distant locations.

This remains a commercial proposition for gold and silver extraction, utilising the existing plant and infrastructure, particularly while projected average operating costs remain in the US$350 to US$400 per gold ounce range.

The estimated Net Present Value (NPV) of the Las Lagunas Project is currently estimated to be about US$173 million, based on a 10% discount rate and an average gold price of US$1,400 per ounce.

The estimate takes into account overheads, financing costs, royalties, government profit share, and hedging commitments.

The NPV will be substantially higher if the project can source additional feed.

PanTerra held around A$7.5 million in cash at the end of the December quarter 2012.

[JBmurc]

PGI march Qtr report out ---gross profit running round 2mill per month currently with outlook of substantial increases in profit's in Q3-Q4
-
-Gold operations will be running fully optimized july/aug
-Exploration will kick back in gear Q4

-Going from the numbers given they will end Q3 with 2.5-3mill cash on hand (so hopefully no more CR needed going forward)

-PGI pays no TAX for the first 70mill of earnings

[JBmurc]

good to see PGI are cashflow positive even at these lower rates that will get much better Q3-Q4....
latest ann backs this up--“Approval of Additional Capacity to Issue Shares” has been withdrawn from the agenda of the Company’s 2013 Notice of Annual General Meeting. The meeting is to be held on Friday, 24 May 2013 at 10.30am.

PGI uses the Albion Process to extract the Gold the only one in operation, they are also be the only ones with the experiance on how to make it work....which going from announcements look to be on track to get costs right down to the lowest worldwide ...300-500....not going be hard to find more gold reserves when you can run much cheaper than old forms of production

Overall from what I've been reading and seeing of late I'd say at least 50% of ASX PGM producers will hit the wall at lower gold prices if not even at current prices,,,how many ASX producers do you know making profits currently NST,TRY two I can think of but then you have
RMS,KCN,NAV,RED,AYN,CCU,KMC etc that failed to make a profit or or operate on slim margins......PGI going in the right direction SP will follow

[JBmurc]

Nice 16% move today sounds like DD did a positive report on PGI ..talk of 20mill per Qtr production of Gold/Silver and outlook on feedstock to take mine life past 10yrs


From DD report-""At the current pace, the company expects to produce metal worth up to $20 million during the next quarter. This is realistic, and would see annualised profit of $55 million per year. When that is achieved, you can bet your Aunt Nelly that the market cap won't be $58 million. The share price deserves to be multiples higher than the current level by then.'''

[Joshuatree]

Yes and great to see it didnt sell off its high by much at the end ; a good sign in a trashed sector, phew there is life in the panther yet:ohmy:

[JBmurc]

well brought back in again 9.1c and trying to buy bigger chunk 9.2c think we will see 10.5c+ before the months over ...gold 1415 also a bonus

[Ricky99]

just need a report shortly after the end of the month to say that they got the 13-14mil and then the quarterly cashflow to show it and we will see a steady price appreciation.

[JBmurc]

Albion Oxidation Plant Upgrade Nearing Completion at PanTerra Gold’s Dominican Project
PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), advises that installation of larger agitators to the Albion oxidation tanks at its Las Lagunas project in the Dominican Republic is proceeding, with two out of the five rectifications complete. Chemical reactions in these two tanks have increased significantly with raised temperatures and improved oxidation levels.
The Company expects a positive step change in gold and silver recoveries from the downstream CIL circuit once upgrade of the oxidation process is completed around the end of this month.
End

[JBmurc]

4621



Bargain Buyers coming in now..Sellers running low

[Joshuatree]

Thats a handy app/chart JB; clear even for me. Where does it come from? cheers JT. Expectations of positive news re agitators and rickys report might bury them:drool: says i hopefully

[JBmurc]

Thats a handy app/chart JB; clear even for me. Where does it come from? cheers JT. Expectations of positive news re agitators and rickys report might bury them:drool: says i hopefully


Yeah is good way to view the orders in place is called a Depth table got it from my ASB securities account

[Entrep]

http://cb.iguana2.com/netwealth2/depth/pgi

Change last three letters to any ASX stock code you want.

Depth is easily manipulated though.

[JBmurc]

Looks like it's going take to PGI to prove the below statement --before we get valued anywhere near fair value...

It is anticipated that revenue for Q3 will be in the order of US$18 to US$20 million followed by further increases in Q4 with continuing process optimisation. All up operating costs including financing costs, royalties and head office overheads attributable to the project are running in the US$7.5 to US$8.5 million range per Quarter.

[JBmurc]

ASX Announcement
16 July 2013
Registered Office:
55 Kirkham Road Bowral NSW 2576 Australia
PO Box 846 Bowral NSW 2576 Australia T: 61 2 4861 1740
F: 61 2 4861 7665 Email: admin@panterragold.com
UPDATE, LAS LAGUNAS GOLD & SILVER PROJECT DOMINICAN REPUBLIC
PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), advises that expected improvement to the efficiency of the oxidation process at the Company’s Las Lagunas project is being achieved, following the replacement of undersized agitators to the five Albion oxidation tanks.
Since completion of the upgrade on 4 July 2013, adjustments have been progressively made to increase power draw to each agitator and to decrease slurry densities in order to maximise oxidation of the refractory ore before entry to the CIL circuit.
Residual sulphide content in the slurry has dropped from 7.5% on 9 July 2013 to 4.3% on 15 July 2013 and will progressively decrease toward the target of 2.5% over the next week with further plant optimisation.
Thereafter, gold and silver recoveries should increase substantially.
Recent falls in gold price will not affect profitability for the next two years as all production during this period will be sold into the existing hedge book at approximately US$1300 per ounce. Subsequent sales will be at the then prevailing spot price.
End

[JBmurc]

Glad to have brought more @ 7.7c on the 4th.....aways the way when the anti-gold crowd crows the loudest BUY,BUY the best PM producers round.... PGI up 36% in 18 days

[Joshuatree]

Yes on a roll at last. Hope to hit my sell price on a few .

[JBmurc]

Well some holders not happy on Qtr report many production issues did hit numbers but many have been fixed with the latest carbon is currently being installed and within the next week the upgrade to the flotation circuit will be complete, which will be the last part of the upgrade, then round 3 weeks for things to settle down tweaking for recoveries to be maximised...MD is currently on site working on getting everything 100% ....rome wasn't built in a day ...PGI day in the sun is coming IMHO should be a nice Xmas present for S/H that buy at these levels

overall PGI is the only Gold producer in the world running this new tech with least twice the processes than old style leach pads etc production PGI are working on getting the recoveries much higher currently running below half of goal 2.6g p/t...yet they still made a million dollar profit ...we get double the recoveries (news of late shows of good outcome from process tweaks)

then you have a Sector that's bumping on it lows ....the stage is set

Disc-doubled my holding 7.5c

[Joshuatree]

Mate hows your timing. Announcement just out, share price jumps. Recoveries of gold within 7% of target and silver above! Curious whether you spoke to brian?:)

[JBmurc]

Mate hows your timing. Announcement just out, share price jumps. Recoveries of gold within 7% of target and silver above! Curious whether you spoke to brian?:)

No I see one of the guys on HC were talking with him ....Yes for once very good timing I really loading up @ 7.5c great support level
controlling over million shares in PGI av low 8's

Today the company has said that the performance of the Albion/CIL process plant has improved significantly following recent plant upgrades to the Albion circuit, and the introduction of highly activated carbon to the CIL circuit.

Recoveries of gold from both the flotation circuits and the CIL circuit are within 7% of target and trending upward. Recoveries of silver from the flotation circuit are within 4% of target and exceeding target from the CIL circuit.

The Las Lagunas project involves reprocessing 5.137 million tonnes of high grade refractory tailings at 3.8g/t gold and 38.6g/t silver from the Pueblo Viejo mine.

Pilot plant testwork has demonstrated expected recovery of 435,000 gold ounces at 2.6g/t and 3,955,000 silver ounces at 24.0g/t, over 6.5 year mine life utilising standard CIL plant together with Xstrata Technology’s Albion oxidation process.

http://www.proactiveinvestors.com.au/companies/news/46524/panterra-gold-closes-in-on-target-recoveries-at-las-lagunas-46524.html

[JBmurc]

Good move from gold silver prices watch PGI move today wouldn't be surprised
To see the teens once again ... The new technology is working , profits will rocket from
We were producing 6-7koz gold per qtr new upgrades will near double that ..best of all costs
Will near half overnight

[JBmurc]

PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), advises that Mr Zach Casley has been appointed as Chief Executive Officer of the PanTerra Gold Group.
Mr Casley is a graduate of the University of Queensland, with a BSc (Hons) in Geology. He is a Fellow of the Australian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists.
Mr Casley has 20 years’ experience in the mining industry in a range of open pit and underground operational roles, both in Australian and overseas. This included senior roles at Lihir Gold Limited’s (now Newcrest Mining) Lihir Gold Mine in Papua New Guinea, Newcrest Mining’s Cadia Valley operations in Australia, and MIM’s (now Xstrata) Mt Isa Mines. Subsequent to this, he was the principal of a geological consulting company. Immediately prior to joining PanTerra, Mr Casley held the role of Associate Director with Macquarie Bank, involved in mining finance and investment.
Mr Casley has been engaged through his private company, Minegeo Pty Ltd, on the following terms:
Base Salary: $400,000 per annum, subject to review 31 December 2014 and annually thereafter

[Joshuatree]

Big Vote of Confidence in the Albion mill process being now sorted, probs solved, exploration excitement ahead and a steady rerate in s/p.

Time will tell
Feels like ive been sandblasted down to the marrow with this PGI experience. I need a 3D Printer.

[JBmurc]

Big Vote of Confidence in the Albion mill process being now sorted, probs solved, exploration excitement ahead and a steady rerate in s/p.

Time will tell
Feels like ive been sandblasted down to the marrow with this PGI experience. I need a 3D Printer.

Yes think we aren't far away from a massive re-rate maybe not this month but before the years out the market will get the news to show PGI has a massive Growth path in place .....Just down the road from PGI Gold plant you have a gold explorer Goldquest thats looking to prove up resources to on sell the projects to producers. With drilling results like 231m @ 2.4g/t gold, 47m @ 6.90g/t gold & 0.94% copper and 34m @ 10.49g/t gold & 1.87% cu......Can see the likes of the new CEO being a smart moving with the right connections>>

[Joshuatree]

Update out
4th qtr $5 million in sales re $2.5 million in op costs
1st qtr next year est $6 million sales a qtr
A bit lighter than earlier est but certainty and upside ahead me hopes.

[JBmurc]

Update out
4th qtr $5 million in sales re $2.5 million in op costs
1st qtr next year est $6 million sales a qtr
A bit lighter than earlier est but certainty and upside ahead me hopes.

What we really need is "All in operating costs" as I don't think they are giving us that still got to be a few mill profit per Qtr ...

Now from current sales and hedged gold price they look to be producing 3787oz au eq per month at operating cost of $2.5mill or $657per oz

Now going from forecast "Q1 14" planned production will increase 20% or 757oz au eq to just over 4500oz au eq per month(54koz per ann)
-Target Production was meant to be 85koz p.a so some way to go

[JBmurc]

doing the numbers the market values PGI 58mill going from forward plan costs given and the fact the new CEO will want to outperform est.
PGI should well make a gross profit over operating expenses of 40-50mill ....

[JBmurc]

Yeah brillant from the DOC that had PGI a BUY @ 20c and now after falling all the way to 6.5c is now a SELL.(no doubt after selling all of their shares)...my mate gets their newsletter etc I've read a few they also do the "Daily reckoning" there picks have been very poor yet many still listen and follow their advice ....I would love to see PGI come out with a great announcement in the short term "Qtr report coming out soon ...
I personal can't see me selling on the DOC's advice
-Why appoint a new CEO to the tune of $400K a year, plus incentive shares, if we are only going to be a marginal producer
-spend over 100mill on the plant/process ....
-the Fact is PGI is moving at a snails pace to many investors but is still getting better results every Qtr .....First Qtr 2014> 6mill gross less net costs 2.5mill =3.5mill gross profit (whats the bet they'll bet it,,a smart 400k CEO would want too )

from HC-paul good post on where we are at (personal think Gold/silver will rise from here the latter being a big driver as unhedged for PGI ...also recoveries may well improve .etc)

The recent announcement of revenues only reaching 6M a month in 1Q14 is significantly below expectations being only around 70% of their original plan.

At 6m a month revenues are enough to meet expenses and pay off their loans over the 2 years but not much more. Also cash generated in years 3 to 6 would be enough to justify the current share price.

So the downside is
1.They are unable to meet the revised forecasts.
2. In the short term unhappy investors selling out
3. Gold falls dramatically pushing all gold shares down

Their is still plenty of upside that can come from
1. Exploration
2. JV's leveraging off the Albion IP
3. Obtaining follow on feed to extend the life of Las Lagunas past the remaining 6 years
4. Beating the recently released forecasts.

[Joshuatree]

Like your glass half full attitude JB; heres hoping. Not sure if the $3.5 million gross profit is right as there is admin, exploration and other costs not included imo. The doc got the boot from D&D btw; new broom and all that.
Whats another 6 months to me if thats what it going to take to make good coin; trying not to let that stale tree shaking holder thought stick.:sleep:

[JBmurc]

Like your glass half full attitude JB; heres hoping. Not sure if the $3.5 million gross profit is right as there is admin, exploration and other costs not included imo. The doc got the boot from D&D btw; new broom and all that.
Whats another 6 months to me if thats what it going to take to make good coin; trying not to let that stale tree shaking holder thought stick.:sleep:

Yeah for sure only gross profit from mining operations --will look over the qtr see what are admin etc is running at

[JBmurc]

-Well looks like the DnD lemmings came out today and sold in a major way ..funny how even in the sell recommendation DnD stated how PGI was doing well and was surprised why market didn't reacted more favorably ....well today just shows how weak some holders are that if a tipster tells them to sell at likely long term lows you should jump to it ....personal I just soaked up another 220k taking total holdings to 1.5mill av 7.4c happy to wait to mid next year for 7-8mill per month operating profits(on the back of higher PM prices) and new resources to extent the 6yrs of production should see us back in the teens

--4th oct Proactive investor Aussie----
Investors have a clear goal to look forward to in the next three months with new chief executive officer Zach Casley mapping out expected improvements to production in that period.

Guidance is Q4 2013 revenues of US$5 million increasing to US$6 million in Q1 2014.

We expect PGI share prices to track this production growth with the current share price of $0.076 offering a good buying opportunity.

http://www.proactiveinvestors.com.au/companies/news/48789/panterra-gold-guidance-us50m-revenue-per-month-from-las-lagunas-48789.html

[JBmurc]

4908


Well yet again S/H letting fear rule .......Having a look at the last Qtr report PGI admin runs round 530k per month- mining costs 2.5mill
revenues 5mill rising to 6mill Golds hedged 1320oz USD for the next 20-24months but the Silver isn't so revenues could be lower going forward if the PM continue downwards but shouldn't be massively thanks to the Gold hedge ....current market value of PGI 46 mill AUD..(or round good PM explorer price range)

So from what we know PGI should be making just under 2mill per month in profit from operations rising closer to 3mill (no tax till PGI has made 70mil back in plant costs)

Est p.a - we should see round 20-24mill 2013-14 rising to 30mill+ 2014-15 .......and yet they keep on selling

No sector is ever cheaper than when nearly everyone expects it to continue falling forever!

[Joshuatree]

Thanks JB. Heres hoping the stale holders (not me atp:mellow:) and tree shaking settles this week and rationality comes back.

[JBmurc]

Thanks JB. Heres hoping the stale holders (not me atp:mellow:) and tree shaking settles this week and rationality comes back.

Yes Massive sell off from the DnD sell recommendation(along with general PM sector weakness) some 13mill so far ,,,but as we know for every seller there is a Buyer so once the Fear subsides from the sector and some common sense comes about on PGI forward cash-flows/ costs per oz Sub $700 should well see the sellers out-numbered by smart Buyers

[JBmurc]

4909



Thanks JB. Heres hoping the stale holders (not me atp:mellow:) and tree shaking settles this week and rationality comes back.

Yes Massive sell off from the DnD sell recommendation(along with general PM sector weakness) some 13mill so far ,,,but as we know for every seller there is a Buyer so once the Fear subsides from the sector and some common sense comes about on PGI forward cash-flows/ costs per oz Sub $700 should well see the sellers out-numbered by smart Buyers

[Bobcat.]

17m shares traded these past three days - good volume of course can be indicative of a pivot (e.g. PEB.NZX last Friday). Yes, at 6c this stock is now looking attractive.

BC

[JBmurc]

17m shares traded these past three days - good volume of course can be indicative of a pivot (e.g. PEB.NZX last Friday). Yes, at 6c this stock is now looking attractive.

BC

yes we should be looking round a P/E of 2 maybe less if we see higher Silver prices or lower admin/mine costs etc

PGI biggest issue to many is the fact of the small resource giving us only another 5-6yrs of production what we need to see is extension of the life of the Las Lagunas project through exploration, acquisition, joint venture, or toll treatment of refractory ore from within the region....some time soon would be a great wake-up call to the market

[JBmurc]

Well surprise surprise more selling pressure called up the company waiting on a call back from Brian Johnson likely tomorrow ....


looking through the old ann report interesting para's-from BJ

In addition, I am sure PanTerra Gold’s original business model of taking its experience with the Albion oxidation process to the substantial market for the treatment of refractory ore will pay dividends. The Company is already in discussions on three prospective commercial arrangements that would benefit from its Intellectual Property in relation to Albion/CIL operations, and activity in this area will be accelerated in the second half of 2013.

The Director General of Mines in the Dominican Republic has advised his support for leaving our processing plant in place following completion of the Las Lagunas project and utilising spare capacity in the existing tailings dam to allow continuity of operations. Access to suitable additional plant feed in the region, through exploration, acquisition or joint venture, will extend plant life beyond six years. At this time the plant will be fully depreciated but have a replacement value in the order of US$150 million.

[JBmurc]

What we really need is "All in operating costs" as I don't think they are giving us that still got to be a few mill profit per Qtr ...

Now from current sales and hedged gold price they look to be producing 3787oz au eq per month at operating cost of $2.5mill or $657per oz

Now going from forecast "Q1 14" planned production will increase 20% or 757oz au eq to just over 4500oz au eq per month(54koz per ann)
-Target Production was meant to be 85koz p.a so some way to go


Adding admin adds another $150 per oz to costs = $807 per oz USD hedged price 1320 per oz

Then project financing costs = $500k per month adding another $130per oz($937oz)...another 31.5mill of debt to go or just over 5yrs of repayments till the 100mill+ CIL/Albion plant is paid off...

be good to see the plant performance when fully optimised before the years out ..from my numbers above that should see round 1,800,000 nett profit per month after all in costs & debt repayments

[JBmurc]

Qtr report out 1.6mill loss .... pretty gutted yet again plant issues " one of the newly installed Albion agitators failed" then a second agitator failed last week and the supplier was directed to conduct in-situ testing of weld connections to all agitators....the project suffered a second failure of one of the newly installed Albion agitators, which has been adversely impacting production in October. As at the date of this report all five Albion agitators are operating and oxidation efficiency is improving. However, recent ultrasonic testing of weld connections has evidenced flaws that will require remedial work on four of the five agitators during Q4 which will probably reduce previously anticipated production.(Gezz it worse than watching the Hoffmans....)

Throughput was significantly reduced in September due to one Albion tank being offline for a significant period due to a failed agitator, and the impact of a major plant shutdown (five days) to implement pipework changes to the flotation circuit, which are expected to improve recoveries.

Not easy getting the World's only Albion oxidation process for recovery of precious metals from refractory ores sorted to run without issues ....maybe 1Q 14 we will finally be 100% at operational targets

During the quarter, 5,761oz Au and 50,454oz Ag were shipped to the refiner, a decrease of approximately 13% for gold and 23% for silver over the previous quarter.

The Company is still confident of meeting recent guidance on revenues and costs by the end of 2013 but the current quarter will see reduced revenues on those previously anticipated.....don't expect any major turn-round this year

I see Nil exploration for this qtr...

Overall rubbish qtr but still some positives longer term (Now a late 2014 hold for me will trade to increase holding)

-PanTerra Gold has appointed a new Chief Operating Officer who will commence with the Group in early January 2014. The appointee is a highly experienced hydrometallurgist with extensive experience in the oxidation of refractory ores who, together with the author, is extremely confident the Albion process can be made to work at close to original targets with further refinements and optimisation..

-"The manner in which tailings are being redeposited should provide dam capacity for plant operations for over 20 years after the current processing is completed in early 2019."
This is a significant change in long term capacity. Previous news had said that mine life was restricted to a maximun of 15 years where now it is 26.5years(6.5 + 20) as the tailing disposal is the ultimate production restriction...

-A plant feed thickener Contract were awarded in the last month of the quarter, and civil works have commenced. The purpose of the plant feed thickener is to provide further capability to optimise feed
density to the plant..

On 21 August 2013, the Company was granted the exploration concession for the Fuerte exploration area. This was the first exploration concession granted by the Government to any applicant in the past 32 months.

[Bobcat.]

JBMurc - I agree that once this company gets its Albion agitator issues sorted, they are well placed to survive the current bear market in Gold.

I'm thinking of coming in tomorrow morning, after today's quarterly update has been absorbed by others and the panicky sellers have dumped their holdings.

I see its forward gold sales total 30% at $1320/oz with 102,000oz yet to be delivered and the remaining 70% unhedged. Are you able to confirm their all-in cash costs?

BC

[JBmurc]

Adding admin adds another $150 per oz to costs = $807 per oz USD hedged price 1320 per oz

Then project financing costs = $500k per month adding another $130per oz($937oz)...another 31.5mill of debt to go or just over 5yrs of repayments till the 100mill+ CIL/Albion plant is paid off...

be good to see the plant performance when fully optimised before the years out ..from my numbers above that should see round 1,800,000 nett profit per month after all in costs & debt repayments

This is what I come up with but is going from their forecasts which haven't been meet on ramp-up yet so currently their cost are high per Oz

....getting absolutely smashed I'd say including tomorrow we will settle down 20% putting market value round 35mill and I was close to selling at a 5k profit in the high 9's not long ago !!!!!!

[JBmurc]

PGI closes at 4.4c values company at 33mill AUD !! More tomorrrow ?

personal think they will break even for the last qtr of the year ....2014 the maker breaker for PGI ......I read somewhere the PGI plant replacement cost would be round 150mill USD ?

--well unlikely to hit Q4 13 numbers with the plant issues now Mr Casley--
Mr Casley has budgeted for revenues in Q4 2013 from gold and silver sales from the Las Lagunas project, at an average of US$5.0 million per month, rising to an average of US$6.0 million per month in Q1 2014.
Direct operating costs remain on budget at approximately US$2.5 million per month.

just doing some numbers going from Q3 PGI sales were averaging 3mill per month going need 60% increase to make Mr Casley's forecast Q4

[Bobcat.]

I'd have preferred PGI's bad news to be digested by the market for a day or two before the POG spiked, but that was not to be. Nonetheless, I'm coming in on this stock, expecting it to open at 4.8c.

Like JBmurc, I too believe that given the POG is now well above 1300USD, any price below 5c on this stock is good value. Their Albion agitator problems are well understood and undergoing repair. I would say that the worst is behind them.

BC

[JBmurc]

I'd have preferred PGI's bad news to be digested by the market for a day or two before the POG spiked, but that was not to be. Nonetheless, I'm coming in on this stock, expecting it to open at 4.8c.

Like JBmurc, I too believe that given the POG is now well above 1300USD, any price below 5c on this stock is good value. Their Albion agitator problems are well understood and undergoing repair. I would say that the worst is behind them.

BC

Well we hope the worst is behind us going be flat Short term IMHO Gold price may add few cents but for me a bottom draw for the next 6 months min at which time I hope PGI "1Q 14" shows a major 60% min increasing in PM production and a strong 5-6mill nett profit for the Qtr.....best we may get this Qtr will be an update on plant performances likely DEC the CEO stated the plant performance would be fully optimised within the next three months....then the Qtr stated issues for least the start on the agitators so we likely to see another 3mill month this October but should increase to 5mill in december ...


-From ann. MAY 2012---

Subject to meeting production targets, the Las Lagunas project is expected to generate free cash flow of nearly US$100 million within 18 months, in addition to repaying Macquarie Bank’s US$37.5 million project loan.
Under its profit sharing agreement with the Dominican Republic Government, the PanTerra Gold Group will recover its investment in the project to 30 June 2012 of approximately US$90 million after which the Government will receive 25% of the operating profits. No Dominican income tax will be paid on profits, and at the above bullion prices the project could generate around US$300 million of surplus cash over the next 6.5 years.
Mr Brian Johnson, Executive Chairman of PanTerra Gold said that additional working capital was being arranged to cover unforseen problems during the ramp up phase of the project without significantly increasing dilution.

[JBmurc]

Good post on HC is quite right from "hunterjoe"

Yes, there has been a lot of setbacks in this albion process.
But, remember this is all new. This project is still in the ramp-up stage of the project.
This process was NOT bought of the shelf. This process is being developed as the project progresses.
All these faults & malfunctions of devices from this project will be analysed for developing a better process for future developments.
This information increases the Intellectual Property value.
Do your own research, have a look at the process & ask yourself - are they extracting gold.
If answer is yes, then it is the tweaking of the process that needs attention...

---He is dead right and I think we are seeing that in the SP Fearful sellers happy to dump their load down to 4.2c at one stage (Good buyer there BOB) against Buyers that understand it's still in a prolonged Ramp up which likely we are seeing the last of the tweaks n issues....Great time to be Buying IMHO

[JBmurc]

brought a few more 4.5c on close.. think we'll see a bounce soon enough back too ...5-6c (on the back of stronger Gold/silver prices)

http://panterragold.com/site/projects.php
New Target for 2014 -58,000oz au eqif

well worth reading ----from this report we see PGI planned to be producing 75,000oz au eqif
http://www.albionprocess.com/EN/downloads/TechnicalPapers/Albion%20Process%20Update%20-%20Alta%20%202012%20%20(3).pdf

[Bobcat.]

Can anybody open the announcement this morning re PGI's rectified albion agitators? I get an "Invalid color space" processing error.

I would say it must be good news given that bids/offers have a pre-market cross up 5% at 5.3.

Please post the announcement if you can get to it.

Cheers,

BC

[Joshuatree]

The co who supplied the agitators are sending specialized welders and new shafts from USA to fix it for good for free by the sounds of it.

[Bobcat.]

The co who supplied the agitators are sending specialized welders and new shafts from USA to fix it for good for free by the sounds of it.

Thank you JT - the market sure does like that news - up 14% just this morning.

JB - are you around? Pleased you bought into this stock at 4.5? I am (@4.6). Oversold IMHO and it looks like the market is providing a justified bounceback (I have a target of 7c but depending on the POG movements tonight may well hang onto it longer).

BC

[JBmurc]

Thank you JT - the market sure does like that news - up 14% just this morning.

JB - are you around? Pleased you bought into this stock at 4.5? I am (@4.6). Oversold IMHO and it looks like the market is providing a justified bounceback (I have a target of 7c but depending on the POG movements tonight may well hang onto it longer).

BC

Yeah great to see some sense just shows how the FEAR ruled there for a bit many holders selling out for major losses was heaps of Negative talk "will soon halve BAH BAH" glad I backed myself and loading up under current SP 4.5c and 5c av. 6.8c way we are going could well be back in profit on the right ann..

[JBmurc]

well for once I was right (been awhile!!) sold some today 33% profit for a 7 day hold


brought a few more 4.5c on close.. think we'll see a bounce soon enough back too ...5-6c (on the back of stronger Gold/silver prices)

http://panterragold.com/site/projects.php
New Target for 2014 -58,000oz au eqif


well worth reading ----from this report we see PGI planned to be producing 75,000oz au eqif
http://www.albionprocess.com/EN/downloads/TechnicalPapers/Albion%20Process%20Update%20-%20Alta%20%202012%20%20(3).pdf

[trackers]

Nice JB, I nearly nearly pulled the trigger in the 4's too but couldn't work out what to sell to get them, sigh

[JBmurc]

2014 looks likely to leave many marginal Goldies hit the wall,, PGI looking good to have a much better 2014 being all about improving the new Albion tech ..we get to designed levels of recoveries will certainly help bring down costs .hedging in place worth 1470oz AUD currently..also shouldn't be hard to get more refractory ore feedstock for cheap



PanTerra Gold Limited
BREAKTHROUGH FOLLOWING XSTRATA TECHNOLOGY ON-SITE REVIEW OF LAS LAGUNAS PROJECT
Key points:
 Technical review completed by Xstrata Technology has determined a significant increase in the efficiency of the Albion oxidation circuit can be expected with modifications, at a modest cost
 Original design recoveries and revenues are reasonable targets in Q4 2014 following the proposed modifications
PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the “Company”), is pleased to advise that Xstrata Technology, provider of the Albion oxidation process, has undertaken an in- depth on-site operational review of the Albion circuit installed at the Company’s Las Lagunas process plant in the Dominican Republic, the results of which are outlined below.
Xstrata Technology Review Findings
The report concludes that the Albion circuit can only be expected to achieve its designed level of oxidation of the refractory ore by adding a sixth oxidative leach tank and insulating the existing five tanks. These measures will increase retention time and reduce heat loss, respectively, resulting in increased chemical reactions and oxidation efficiency.
This should result in gold recovery through the Albion/CIL plant increasing substantially from current levels. The additional tank will be installed by mid-2014 at a cost of approximately US$1.5 million.
Status of Current Operations
The Las Lagunas process plant has been running consistently since September 2013 but at lower than budgeted recoveries due to inefficiency of the oxidation process, and reduced feed.
Gold production for the December 2013 quarter will be approximately 7,300 oz Au (66,000 oz Ag). Revenue for the December 2013 quarter is anticipated to be approximately US$11 million1
1 The Company has gold hedging in place for 98,000 ozs of production at approximately US$1,310/oz
1
PanTerra Gold Limited – ASX Announcement 24 December 2013
Outlook for CY2014
Production levels (and revenue) are expected to increase in the first half of CY2014 from sustained operation of the plant at its design throughput. Significant production improvement is expected in the second half of 2014 due to increased recovery rates following completion of the proposed Albion circuit modifications.
Gold production for CY2014 is anticipated to be approximately 45,000 oz of gold and 372,000 oz of silver, resulting in revenue of approximately US$64 million after Government royalties. Operating costs should be maintained at approximately US$30 million for the year.
Financing Update
The Company has commenced discussions with its lenders to reschedule project loan repayments to reflect forecast profitability. The Company expects these discussions to be satisfactorily concluded in February 2014.
Mr Brian Johnson, Executive Chairman of PanTerra Gold, said that he and his co-directors were pleased that the Albion technology providers have agreed and finalised a strategy to improve oxidation and resultant recovery of gold and silver.
With the proposed plant modifications, and forecast production and project profitability in 2014, the Company should finally gain the traction needed to explore other development opportunities, including extending the life of the Las Lagunas project with an additional source of feed.
End

[JBmurc]

ssued Cap: 770M
Top 20: 42%
Market Cap: A$32M
Cash & Investments: A$5.9M
Project Debt: US$41M

Analysis

Achievement of key milestones is expected to increase gold production to 45,000 ounces in CY2014 and over 58,000 ounces in CY2015.

Silver production should increase to over 372,000 ounces in CY2014 and over 480,000 ounces in CY2015.

Now that PGI has done the hard yards and ensured the Las Lagunas plant is in operation, there are significant opportunities for PGI to:

- Identify and secure additional feed for Las Lagunas plant from the Dominican Republic as well as identify and secure additional feed from within the region which could be concentrated and shipped to Las Lagunas for processing.
- Identify and acquire stand alone projects where experience with refractory ore and Albion process give PanTerra Gold a competitive advantage.

Achieving milestones in the next 12 months would render PGI's current market value of $32 million as small change

[Bobcat.]

sp lifting nicely today - up 10%. Influenced mainly by the past few days' lift in the price of Gold, I suppose. Or is there something else in the wind(?)

Discl: still holding (following JB's lead on this one).

[JBmurc]

sp lifting nicely today - up 10%. Influenced mainly by the past few days' lift in the price of Gold, I suppose. Or is there something else in the wind(?)

Discl: still holding (following JB's lead on this one).

Yeah Gutted I did put my funds into PGI the other week round 3.7c ....sold out 4c instead brought SOC 13.5c which hasn't really moved
still tax-loss selling coming up in MAY ....goal was to ride SOC till then

[Bobcat.]

http://www.asx.com.au/asxpdf/20140319/pdf/42nhb8kpljx42j.pdf

Latest presentation states 100koz hedged at $1,320 USD. Not good. That's over two years of production with a ridiculous revenue cap...what were they thinking?

Also, less than $7m in cash, but $41m in debt against a market cap of $35m.

I'll be selling out after the next lift in the POG.

BC

[Joshuatree]

Unfort a lot of stale holders (me included) thinking the same thing. Negotiations continuing with MAQ Bank who prob forced the hedge earlier. Broke my own rule re avoiding Pioneers (they are the ones which get the arrows in the back). And to think at one point i was making more money than i ever have on anything else plus being a mega megabagger on the options as well which are now practically worthless., life ahead was looking sweet. yes... Timing... .....Sa La Vie , live , learn , love.

[Joshuatree]

Quarterly out PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01512843) slight improvements. head grade back to normal since this report. Stumbling on , hope springs. Negotiations with third party for loan sounds favourable. tanks insulated and operating temps higher. 5th tank finished in july. Next quarter SHOULD see increases in recovery grade and performances.

[OutToLunch]

A positive research note posted on HC (http://hotcopper.com.au/post_single.asp?fid=1&tid=2252169&msgid=13355392#.U3RKCSjHIXg) this afternoon. However I'd expect some tax selling to hold PGI down until the end of next month, after which hopefully we might see a better performance pending the outcome of plant mods and funding arrangements.

PGI is right up there on the risk/reward curve... but sentiment towards PGI is generally negative which makes for a relatively cheap entry point with multibagger potential... IF things work out....

[trackers]

Looks good OTL, revenue ticking along at about +18% on last quarter

[Joshuatree]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01518690) Production Trends improving. shipments of dore running at $1million a week!.

[OutToLunch]

Excellent news. Happy to have picked up a few more at 3.9 last week. :cool:

By September or October we'll know how things are looking beyond the commissioning of the additional tank, and hopefully by year's end we'll have some idea of what stabilised revenues will be looking like.

I have a nagging question about using imported concentrate at the LL plant -- will it be suitable, or will the process need to be tweaked to account for differing chemistry in the feed cf. what is currently going into the LL plant? I don't know, probably a red herring, but something to keep in mind.

Three boxes to tick from here:
1. Get recoveries up to design levels
2. Get Macquarie Bank off their back (refinance elsewhere)
3. Secure additional feed for the LL plant <--- and confirm that it is suitable for processing

Then shareholders should be amply rewarded for their patience with a share price multiples of where it is at the moment. Hopefully within the next year... which isn't very long, all things considered.

[Joshuatree]

Don't we have to do a $5 mill cap raise by 30th sep as well as find $5 mill finance or am i wrong there?


In the annual report "Mac Bank's amended repayment schedule requires the Group to undertake the following:
- Increase working capital by A$5 million by April 2014 and
- Issue A$5 million of additional equity by 30sep 2014

And Revised schedule and terms , which follow, have not been reflected in the 2013 financial statements
Repayment date US$

April 2014 1,500,000
30 June 2014 3,500,000
30 th sep 2014 4,000,000
31 dec 2014 6,000,000
31 march 2015 6,000,000
30 june 2015 6,000,000
30 sep 2015 6,000,000
31 Dec 2015 2,000,000

The requirement of a cash sweep to be paid to Mac bank of 75% of surplus cash until loan finance reduced to US$20 million

Mac bank own 40 million plus shares 5.2 %

[Joshuatree]

Great update out today!! PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01521192) Modification of thicknesser completed

Dominican GOVT supports concentrate Imports. Environmental approval process commenced

Negotiations underway with US invest banks to effect a $US Note issue around Sep to consolidate all bank debt and shareholder loans within 1 facility term will be 4 or 5 years ,no principal payments

Investigation of the potential acquisition of known refractory resources in canada and nevada are continuing.

[OutToLunch]

A very promising announcement out yesterday, suggesting that the Las Lagunas plant modifications may have done the trick as far as recoveries go, though we need to wait and see how things are looking after the plant has run at 100% capacity for a while (currently throttled back to 80%). Early indications though are very encouraging and PGI *may* have reached the turning point that long-suffering shareholders have been waiting for.

[Bobcat.]

Yes, the sp got a nice lift to 4.9c before someone sold down to 4.4c towards the end of the day. The way I'm reading it, we have a foot confirmed at 3.7c and a knee at just above 4c. Onward and upward from here. Last month, management revised downward slightly their forward guidance but yesterday's news is confirmation that their new technology is over the hurdle and now proving itself as capable of delivering real value long term. Good news indeed.

Discl: Holding and now in the money (finally!)

[JBmurc]

By mid year we could well have a much different PGI for one a much higher SP ....it could well all come together
---Major Chinese investment + Contract/Investment 1moz+ of clean refractory concentrate + merger asset deal

PGI's hard work in the Albion process may well pay off 10 fold as suitors fight to get PGI to treat and J.V refractory projects....here's hoping PGI get the right value adding deals for S/H's to finally see a northward bound SP


Disc-Holding 100k PGIDA

[JBmurc]

Up 18% today on light volume...looking forward to decent amount of volume buying looking at the PGI shares on offer ...