PWK - Project Runway Update 2

PWK announced today it had moved a step closer to undertaking the planned construction of the undersea cable known as Project Runway aimed at increasing Australia's international cable capacity. The main points of the announcement were:

* Firstly PWK has put a price tag on the project at $200m.

* Secondly that an expression of interest (EOI)has been sent to interested domestic and international parties to solicit firm commitments. Further to this that PWK has already commenced negotiations with key parties and is now engaged in contract negotiations with those parties.

* Thirdly that an initial marine survey has been conducted ahead of schedule enabling regulatory planning to begin in collaboration with consultants and governments in several countries.

Also of note was Managing Director Bevan Slattery's remarks about current capacity constraints in the Australian market which costs Australian providers more than 1,000% more than in the US. The $200m price tag is more than PWK's current market cap and is going to entail a significant capital raising on PWK's behalf. Once again management's ability to execute is paramount and since they have consistently delivered on their promises over the last two years I'll stick with them for what should be an interesting journey. PWK shares closed up 10% at $3.25