Market cap is around $12.4 million on 55,000,000 shares and some oppies. Far East Capital is very actively supporting the company and underwrote a recent placement to raise $1.8 million. The stock is tightly held and is now breaking out of a substantial consolidation pattern.
Far East is heavily into U shares and PDM has a number of U prospects in Northern Queensland in the Mount Isa area East and North of Mary Kathleen. One of the areas is ex-ERA and PDM have reported significant U results from sampling as well as visible carnotite (yellowcake) in rock considered a host for roll front U over a considerable area. Results from U sampling are due shortly.
PDM also has a tunsten project that is located near Canberra that hosts a very shallow 35 meter deep JORC resource rated at about 350,000 tonnes at 1% tunsten. PDM has done substantial work on the property and identified a large number of drill targets that they expect to boost the tunsten resource to over 1,000,000 tonnes of ore. They have already drilled some of the targets away from the central deposit early this year (results expected very shortly) and are drilling on extensions of the main deposit in the next few weeks. They claim that they can get a pre-tax profit of $16,000,000 per year for five years on 1 million tonnes. Capital expenditure would be about $15 million to develop an economic mine and sell a 65% concentrate. Operating costs are very low. See their website for more details.
At a market cap of $12.4 million and cash of +$2,000,000. U get a very tight stock with some hot U prospects in Queensland and a potential mine thrown in for free. The Australian did a write up on PDM last weekend i am told. PDM is extremely cheap at these levels and the technicals look extremely promising, at 22-24 cents the stock is trading near its highs and has the potential to trade much higher on news of succesful tunsten drilling and U assays from Queensland. Far East Capital has been very astute in picking undervalued U stocks. PDM could easily support a valuation of +$20 million just on the current status of its assets based on valuations in its peer group.