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Petaquilla Minerals Update 6/02/2010
Rapidly falling share prices can certainly make many investors feel downright nauseous. After all we are only human. I would like to help settle your nerves if you are worried about PTQ’s declining share price.
[note]I provided an update to my newsletter subscribers yesterday with the most recent information I had just received from Petaquilla. If you signed up for my free newsletter and are not receiving any emails, please check your spam folder.
For the benefit of new GoldStockMania.com readers just joining us, here is a bit of background. I did a Junior Stock Trading Card on Petaquilla Minerals (PTQ) on April 16th, 2010. If you have not seen it, then I would take a look at it as soon as possible. At the time I wrote their review, PTQ was trading around US $0.50 cents/share. Since my review, PTQ has presented quite a few buying opportunities and has dipped as low as US $0.35 cents/share yesterday.
I received word from their Investor Relations Representative yesterday that everything is still progressing as expected with their $70 Million dollar debt restructuring. They expect the debt restructuring to be completed soon. Unfortunately, I can’t provide an exact date as they did not provide me with one. The drilling at ODN are still ongoing at this point.
Here is the exact words from their message:
With respects to the debt refinancing, the lending institution is in its final stage of diligence and the company is expecting to finalize the matter shortly.
With regards to ODN we have drilled over 800 mts and are further defining a significant mineralized zone as announced previously. We are waiting for more results from our outsource lab to be able to announce a NI 43-101 compliant result.
Here is why I am adding some more Petaquilla shares this week:
- Petaquilla is producing over 6,000 ounces of gold per month!
- PTQ is getting closer to a cost below $600 per ounce.
- The debt refinancing is on track and will be completed soon.
- Updated NI43-101 resource is forth coming.
The market often acts irrationally in spurts, but long term the fundamentals win out. When the market finally wakes up, I feel Petaquilla Minerals is going to explode.
Due diligence is always in order when your money is involved, so please understand that investing in junior mining stocks is risky and there are no guarantees. The best we can do is take measured calculated risk.
And for the record, I have NOT received any compensation from Petaquilla Minerals nor has any of my relatives.
Related Posts:
- Petaquilla Minerals Financing Update
- Petaquilla Minerals Update – 5/10/2010
- Petaquilla Minerals Update 9-20-10
- Petaquilla Minerals Update 7-26-2010
- Petaquilla Minerals Update- 6-15-2010
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Disclosure: I have not received any compensation from Revett Minerals, Timmins Gold, Metanor, or Petaquilla Minerals. None of these companies are advertisers on GoldStockMania.com. I am extremely bullish on Petaquilla, Timmins Gold, & Metanor and currently hold shares.
Disclaimer: I am not a professional/qualified investment advisor. Readers should note I am not responsible for errors or omissions in this report. Also, I am not responsible for your trading decisions as you should do your own due diligence before making any investment decisions.
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Fellow investors, buy OGC!
Great risk/reward play, great upside, limited downside! It’s like getting a junior’s upside with the stability of a Barrick, well almost.
Will produce 250-280k this year, and will make around 750 USD per ounce!
The hedges are now gone, higher recovery and weaker AUD/NZD will make their Q2 report absolutely OUTSTANDING!
The stock is up around 50% since I recommended it on this blog some months ago… It’s still very cheap compared to its peers.
Hi Fredrik,
Thanks for the tip, I remember your prior recommendation on them. They have moved up nicely since then.
They are roughly $3.00/share at this point. What target price to you think they might reach? Also their cost per ounce is about $500?
So…who the hell_o is selling all these shares??!!!!! Or is this more like hedgie shortselling? It almost feels like a vendetta (?)…perhaps booted previous mgmt? I don’t get it…day after day after day of downward pressure. I’ve taken advantage of it to be sure, but this is ugly…jt
@jt
I can certainly understand how you feel. A falling share price makes most investors nervous. It is difficult to understand why the market moves in the way that it does.
There could be a number of reasons for the Petaquilla’s share price decline:
1) There has been a lot of funds selling stocks lately: PTQ could be suffering from a low tide.
2) Lack of information: PTQ does a poor job of reaching out to investors thus allowing rampant negative speculation to run wild.
3) Stock Market Correction: The stock market could be headed for a general correction.
4) etc.,
I think the better question to ask is, “Do I still have a good enough edge that makes this investment of my capital worth it?”
If yes, then I stick with it. If no, then I exit and deploy my capital else where.
So far I have yet to see any credible reason to exit Petaquilla. A falling share price is to be expected ( to a point ). I will post a brief technical analysis tomorrow since I have received numerous request about Petaquilla’s falling share price. I will try to determine the bottom and when we can expect a turnaround, so stay tuned for that.
I invest for the long haul, so day to day swings I have learned to expect as the part of the normal process of investing. I will only sell my stock in light of new information that warrants it. As long as I have good edge, I just dollar cost average down. If I loose my edge on a stock, then I exit the trade.
Disclosure: I picked up some more Petaquilla shares today. As always, do your own due diligence.
@goldstockmania
My (or rather the investors who recommended the company to me) target price for 2010 was 5CAD.
This must now be seen as very conservative since the cash cost will come down to maybe 470 during Q2 (higher recovery, cheaper diesel), and the facts that a strong USD/high gold price and a weakening AUD/NZD will be beneficiary to the company.
I’m as sure as one can be that the Q2 report by late July will take the market by storm and the the share price will explode. This company is still unbelievably cheap compared to its peers.
I just found out that the company will be included on the S&P TSX dold stocj index from June 21, which is a near future trigger.
Target price 2010 and gold@1200: 7 CAD.
Target price 2011 and gold@1400: 10 CAD.
Thanks Fredrik for posting this info and numbers on Oceana.
I must say, with hedges being removed, the amount of gold they are producing, and good cash cost, Oceana has a compelling story.
I will run some numbers on them as well and see what price target I come up with too.
With the kind of annual production they are talking, I wonder what kind of mine life they are looking at?
Does anyone else have an opinion on Oceana?
Gold stock index.
It would be interesting to get your analysis on the company.
Production was a bit low during Q1, but expect 260k for the year.
Reserves in NZ: 1.95M and improving, so maybe up to 10 years.
They also own a property in the Phillipinnes, Didipio, expect some news any day. They might sell or make a JV. Also 1.9M resource if I remember correctly. A sale would make them debt free and that would leave us with a money making machine with cf at 750 USD per oz.
Sure thing Fredrik! OGC will be the next Trading Card I write! Thanks gain for the tip.
J. Edwards