How long can they continue producing at a loss? The merger approval is due for completion at the end of July but will it actually go ahead? $0.50 would mean $0.17 for CBH. Could happen depending on zinc and lead price.
Believe it will definately go lower than current price and $0.50 could be about right.
What is current cash backing, about $0.45? Whatever the figure it will be dropping everyday until the commodity prices improve.
Remember Pasminco were the worlds largest Zinc miner but because they were undiversified the zinc price killed them. Towards the end they were trading on a PE of about 2-3.
Okay while they have cash, but how long will it last?
Von.
PEM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
