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PanAust Ltd (PNA). Gold, copper and silver miner PanAust has made a convincing return to profitability in the first half on the back of increased sales and higher average prices, particularly for copper.

The company booked $US105.3 million in first half EBITDA and gives outlook guidance of $US220–240 million of EBITDA, assuming the December-half copper price stays at $US3–3.25 a pound.

The $1.7 billion Australian miner, which has assets in Laos and Thailand, says its strong result was driven by the solid performance of its flagship Laotian Phu Kham mine. Managing director Gary Stafford has said that he expects the improvements to continue.

The newsletters are besotted with this company, saying PanAust is a leveraged stock ideally situated to start closing the gap on the spot copper value.

In the pipeline for PanAust is its Ban Houayxai gold-silver project, due to be completed in early 2012 as well as an upgrade for Phu Kam, with a review to be completed this September for announcement in the December quarter. Other recent announcements include the discovery of a continuous zone of high-grade gold at its Tharkhek prospect in Laos.

PanAust also has its eye on Chilean miner Codelco’s Inca de Oro deposit, and the president of the Republic of Chile is expected to consider the proposal this month, newsletters say.

With the market for copper concentrate remaining tight, secured sales agreements on favourable terms for most of its production to the end of 2012 and an enviable pipeline of projects, the newsletters see PanAust as a “pro-growth, pro-new world” investment prospect.

* Investors are advised to buy PanAust shares at current levels.