The Investment Doctor
Long/short equity, value, debt, base metals

PMI Gold - Hunting For Gold In Africa

(Editors' Note: This article discusses a micro-cap stock. Please be aware of the risks associated with these stocks.)

Introduction

In this article I'll discuss PMI Gold (OTC:PMVGF), an advanced stage gold exploration and development company getting ready to start construction at its Obatan project in Ghana.

In this article I'll provide a general overview of the company's main project, make a sensitivity analysis to calculate the different cash flows based on different prices of gold. This will lead to my investment thesis at the end of this article.

As two thirds of PMI's market capitalization is underpinned by its cash position of in excess of $100M, the downside risk is relatively limited. On the other hand, there's a...

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