latest broker recommendation

Hi All

Not going to let go of any of my holding, fully committed $$$wise to PNA after adding to existing by taking full allocation at SPP and another big chunk last week after pullback.

Thought some may be interested in latest WHTM recommendation released today, brokers record is a hold at .18 on 20/01/09 and .14 on 4/02/09, buy at .18 on 16/02/09 and 12/03/09 and latest is below.......


Since mid February PNA price has doubled as financing fears have receded and the copper price has continued to climb. Our DCF valuation is $0.34/share and our target price based on a 40% discount to the average of 7.1x 2010 earnings and 5.3x 2010 operating cashflow is $0.33/share.
Following imminent revisions to commodity price forecasts, our target increases to $0.38/share (unchanged $0.34/share DCF valuation) although this is largely due to the lowering of the applied discount from 40% to 20% to reflect improved equity market conditions. Recommendation
downgraded to HOLD with <10% upside to target remaining.

March quarter C1 cash cost of copper production after by-product credits was US$0.70/lb. This compares with guidance for the 2009 year of a cash cost of less than US$0.90/lb. Better than forecast precious metal credits
(US$700/oz, US$10/oz) have assisted.

The quarter’s average performance fell short of the stellar performance achieved in February (US$0.62/lb) and January (US$0.68/lb) due to a planned four day shut-down to reline the ball mill, and three days of unscheduled stoppages due to a faulty mill motor which was replaced.

Total copper in concentrate production for the three months to the end of March was 13,150 tonnes, together with 10,446 ounces of gold and 87,022 ounces of silver in concentrate, plus 5,890 ounces of gold in dore. Note that
the gold dore is treated as a by-product credit in determining the cash cost of production.

With 2009 copper production targeted at "more than 65,000 tonnes", production will need to lift over the balance of the year for this to be achieved. This may prove to be a stretch despite PNA pointing to higher metal recoveries to concentrate through the balance of the year. Copper
recovery has been in the “low 60s” year-to-date due to the ore having high pyrite and kaolin content but is expected to increase to the “low 70s” for the balance of the year. The head grade is also expected to be very slightly
higher over the balance of the year. The severity of the wet season from April to Sep may also have some bearing on the outcome.

March quarter EBITDA for the Phu Kham operation was US$33.2m. PNA's March quarter NPAT was US$13.5m. Financial performance is exceeding our expectations, primarily due to the higher than forecast copper price. The net cash cost of production at US$0.70/lb was slightly higher (US$0.01/lb) than our forecast.

At today’s EGM shareholders voted in favour of issuing 75m 10.5c strike options to GSJBW as part of the cost of rolling the US$80m working capital facility. Pan Aust does not expect to have to issue the second tranche of 75m options which will be triggered should the facility be outstanding beyond the end of July. Shareholders also approved the Feb 2009 placement of 147.1m new ordinary shares.

Cheers
DYOR