In terms of the content of the announcement it did not contain...

In terms of the content of the announcement it did not contain too much detail on the trader or the pricing, but the comment on C1 costs was positive.

One further significant point not obvious from the release was actually doing an agreement at this point in time. The exact details have not been provided but by way of background, treatment and refining charges (TC/RCs) have recently started to move north.

According to Maccas and other metal observers the current rates were 50 & 5 moving to 70 & 7 following the collapse in the sulphuric acid market price. Furthermore, what usually happens when base metal prices tank there is a surplus of concentrate and the smelters get selective. They push up the TCs/RCs just when the producer is feeling the pinch on the spot metal price.

With today's announcement PNA may have locked in competitive TCs/RCs before they rise further-which most players also predict.

A hidden plus?

Cheers,TAS