re: Ann: PanAust to acquire majority interest... I will firstly qualify by saying that I have no mining or mining analysis experience. The below just the first thoughts of an armchair investor who has watched the company for five years as an investor.
Imho this looks like a well suited acquisition by PNA. You can't get such an asset at a good price if you are just going to do the obvious, what everyone else will with it, you have to take a different angle on it. This is what PNA has done, leveraging off its experience, expertise and cash generation capability.
What type of company would be better suited to this type of asset that PNA? And very close to home base to closely manage, and resource well.
Not bothered by the grade, IF PNA are happy with the mineralogy then I am sure the low strip ratio adequately compensates.
Looks about the biggest bite a company like PNA could safely take, but with PK hopefully being a 90 kt pa low cost producer during the capex phase quite financially doable. The bonus is the huge resource relative to the mining concept, allowing future growth for PNA beyond the 100ktpa.
I like it, appears a well considered, somewhat bold, move by our patient disciplined and capable management.
EL
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