Ok well I've just woken up to read the report (overseas time difference) and reading the report I cant justify the share price as it closed today.
Keep in mind today market was down copper was down and friday people locking in positions, so whilst I didnt expect PNA to make a run which is almost impossible in the current market conditions regardless of announcement I also didnt expect it to be so sold off.
The company is still moving along nicely hitting targets and costs coming in under productions, the basics seem to be all there, the management have their heads screwed on and are tightening their belts in Q4.
Even at 1.8plb theyre still making money and the original business model priced copper at less than that, no one for certain can forecast price of copper in the future, whilst at least in the short term it looks to be dipping a lit further (so maybe people are pricing that in now) Though sometime after the chinese new year people or when this subprime mess blows over people will need to stand up again and continue to build their projects and develop their countried, and so theyre going to need copper again.
I take what I read in the media very lightly, words are often twisted to sell outrageous headlines to get more readers, I read an article in the age last week, "market savaged again" and yet it was only down 20 or so points.
Before the markets went down almost every major broker house had a buy recommendation on pan based on solid fundamentals, the fundamentals havent changed here in my opinion, If you look closely at pan's feasibility study theyre gone into this with a long term view , bottom line theyve done their homework
If I was a betting man i could be very rich in a couple years by buying now. I'm already holding a massive chunk at the moment and will buy more when i see price of copper trending up again.
have a good weekend all :)
PNA Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
