HI TTC,
Yes true if you were a trader you would be locking in your profits at this stage. However this would only constitute 'the lucky few' of PEM's shareholders.
If you are a long term believer and have been following the stock for a long time (as you are no doubt have) it would be highly unlikely your first purchases (and hence average price) were in the low forties.
That said, the true 'proof of the pudding' will be PEM's operating costs over the next 9 - 12 months, now considering the buffer of the favorable hedging has been cashed in, which hence exposes PEM to a much higher AUD/USD currency and lower Zinc prices. (ie their loss per pound will have been increased in return for cash up front)
One cunning thing they have done is by cutting Zinc production to only 55,000 tonnes (from 95,000ish) but keeping lead production to 50,000 tonnes, the lead credits (which reduces your cash costs) will be much higher per pound of Zinc produced.
However one would have to wonder about the long term ramifications of doing this as you would no doubt be depleting your lead resource much faster than your Zinc. (and also mining the crown jewels - ie high grade resources while you are getting the lowest price for them). The reserves revision and asset write downs will be very illuminating on this point.
Good luck to all PEM's holders (and to you TTC), I'll be following their cash costs very closely which will determine whether they are worth buying (too much uncertainty at this stage)
Cheers
J.
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