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Re: PNA - Pan Australian Resources
Agree that they will be very profitable, in the 2008/2009 financial year.
Phu Khan copper-gold mine is just started construction & is expected to commence production around mid 2008.
The Phu Bia gold mine commenced producing in Oct 05 & was expected to produce in excess of 50,000 oz in the 06/07 year. However, they have decided to hold off mining the deposit at Ban Houyxia (45km away) & carry out further drilling to see if the deposit justifies a stand alone mine rather than trucking to Phu Bia. Instead they are mining the gold cap overlying the Phu Khan deposit which has much lower grades & will reduce the gold output & increase recovery costs for the year. Decisions on this & a new mining schedule are expected in the Dec qtr.
For this year the income will probably cover overheads & admin costs as well as contribute to the exploration costs, however, the company will strugle to be cash flow positive in the 06/07 financial year (depending on the price of gold).
On the positive side, the new Phu Khan copper-gold mine appears to be fully funded. When this comes on line in 2008 producing 52k tonnes Copper, 47k oz gold & 400k oz silver cash flow & profits look to be excellent depending on what prices you use for these. In addition, the Ban Houyxia gold deposit just keeps expanding & improving as they drill.
At the current price of 24c they have a market cap of $347mil & to my mind are cheap, but it may be some time before the market decides to rerate them. However, when they are rerated I think they will move quickly.
Maverick,
If you have some other info, would appreciate hearing it.
chris1983 said:
Agree that they will be very profitable, in the 2008/2009 financial year.
Phu Khan copper-gold mine is just started construction & is expected to commence production around mid 2008.
The Phu Bia gold mine commenced producing in Oct 05 & was expected to produce in excess of 50,000 oz in the 06/07 year. However, they have decided to hold off mining the deposit at Ban Houyxia (45km away) & carry out further drilling to see if the deposit justifies a stand alone mine rather than trucking to Phu Bia. Instead they are mining the gold cap overlying the Phu Khan deposit which has much lower grades & will reduce the gold output & increase recovery costs for the year. Decisions on this & a new mining schedule are expected in the Dec qtr.
For this year the income will probably cover overheads & admin costs as well as contribute to the exploration costs, however, the company will strugle to be cash flow positive in the 06/07 financial year (depending on the price of gold).
On the positive side, the new Phu Khan copper-gold mine appears to be fully funded. When this comes on line in 2008 producing 52k tonnes Copper, 47k oz gold & 400k oz silver cash flow & profits look to be excellent depending on what prices you use for these. In addition, the Ban Houyxia gold deposit just keeps expanding & improving as they drill.
At the current price of 24c they have a market cap of $347mil & to my mind are cheap, but it may be some time before the market decides to rerate them. However, when they are rerated I think they will move quickly.
Maverick,
If you have some other info, would appreciate hearing it.