new year potential , page-4

Westpac says ...
* Our valuation is $3.55ps. Long term assumptions are US70c/lb lead, US90c/lb zinc and US$10/oz silver.

* We use an A$/US$ foreign exchange of 0.80 and a 10% discount rate.

* PEM’s share price has languished since the tragic death of an employee in January. We believe the company should re-rate as production returns to normal levels and a second cashflow stream begins from Flinders.

....and they are conservative.

Future earnings are expected to yield a PE under 3!!! Has around $200m in cash! Market cap just over $500m. If there is a better buy please tell me!!