debt refinance, page-6

Agree that this may be causing investor anxiety. But having discussed it with the company, I strongly believe that it won't be an issue.

PNA's debts are as follows:
• Seven-year (commenced last year) project facility of US$185m with a syndicate of banks led by ANZ Investment Bank. This facility is fully drawn with an obligation to meet a principal repayment schedule of around US$30m/yr. No requirement to refinance.
• Subordinated debt facility of US$80m with GSJBWere. This is a one year facility put in place in early 2008 to fund PanAust’s accelerated exploration activities for 2008 and other working capital requirements. Discussions are currently underway into refinancing this facility with completion expected in early 2009. I understand that a number of other parties are also interested in participating.
• US$50m equipment lease facility – long-term facility secured against the mining fleet. No requirement to refinance.

At current copper prices, PNA has no issue paying down principle on its project finance, servicing other facilities and probably still has cash left over to allocate to exploration/expansion of cash generating assets (i.e. PK).

I don't know what the magic copper price figure at which PNA won't be able to meet these obligations is. However, fair to say it is significantly below current prices and much lower than most of the industry - particularly the small or mid cap producers.