2012 , page-2

Hello Rhys
I think there are a number of reasons why the market is disenchanted with PEM.

The company had a chance to raise funds for a long period of time last year; they didn't and when fears re Europe resurfaced they had to raise at 42 cents per share with significant dilution of existing holdings and a significant impact on eps.

I have concerns whether the company is being run for the benefit of shareholders, or whether it is simply a vehicle to deliver metals to China. There has been a significant amount re-invested in exploration and little indication when shareholders will see some of the benefits.

All metal prices for PEM are down. The high level of zinc stockpiles is not encouraging, although the company continues to talk of a supply deficit.

Costs appear to have edged up.

It is hard to see the bright side just at the moment and it will take more than buying volumes to increase imho. Nevertheless the next quarterly should be interesting.