I can't see Inca being assigned much value by analysts at this point so doubt the delay has caused this strong sell down - beyond removing a growth option.
PK and surrounds certainly appear to be a solid cash producer for the next 10 years and beyond. After playing around with some numbers in the quarterly it looks very feasible that at a poc above $3.30lb and pog above $1550 oz BH and PK combined can produce close to $200m in mine cash profit over the DH.
After allowing for Maintenance Capex that has been running close to $60m a full year, Finance Costs, Head Office, Exploration I still believe PNA will generate close to $140m in fcf over the next 6 months.
It looks like value to me but I held off buying more yesterday to see if a dip lower is possible.
Overseas Copper focused miners appear to of held up better than our own over the last 2-3 weeks for example Freeport McRoran is 10-12% above its recent lows.
Alot of effort and billions of dollars go into making the market efficient, however human nature works to make it inefficient.
Long term I am happy to build a position in PNA. PK and surrounds are a nice engine room for the business to grow as long as Copper stays above $3-3.30 per lb.
PNA Price at posting:
$2.22 Sentiment: LT Buy Disclosure: Held
