"Perceived poor results". This is not an issue of perception but reality. Look at the losses earned for the last 5 years. There is history- the Sept Qtr is not a one off. Look at capex forecasts Vs actuals as well over the years.
KM costs were supposed to be $35/lb at June 2012? Past statements and delivery of promises conveniently forgotten in this case.
The losses are draining cash. If the company spends $450m in FY 2013 and earns $350m this means more cash out the door and an additional interest bill to foot.
PDN is a high cost producer (the big players have a C1 cost < $20/lb). It is hanging on for dear life but exposing itself to spot prices in the current U2O8 cycle with its position on the cost curve is dangerous.
A simple question. At what stage does PDN need to earn a profit? I think we are there now. A $200m loss in FY 2013 is not going to be able to be withstood by the company in my opinion.
"Perceived poor results". This is not an issue of perception but...
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