comparable valuations

I was just reading through PNA's announcement regarding the capital raising and the cornerstone investor (gram), not trying to dowmramp PNA, but if my figures are correct when the deal is completed PNA will have 2,930 million shares on issue at the last price 39.5c PNA will have a market cap of AU$1157mill and still have debt with the gearing ratio of 18.9%.

Compare PNA's assets with that of Sepon, Sepon produces more copper and gold with a higher margin, Sepon mines the khanong orebody with grade of over 5% copper and produces a final product of copper cathodes (with cheap hydropower)
whereas PNA's Phu Kham, mines .8% copper which will decrease to .6% copper, and sells it as concentrate.

Before PNA holders get their backs up I am not trying to denigrade PNA but to show just how much Sepon is worth, I am not fully up with PNA's current and future prospects.


When you consider that what we are being offered for most of OZ including Sepon copper and gold, Century the worlds second largest Zinc mine that will soon be 'profitable at any Zinc price', Golden grove, Rosebery, Avebury, Dugald river, and the canadian assets is only AU$200-300 million more than the enterprise value of PNA after its cap raising.

I think this is a resonable comparison to show just how undervalued the assets we are being asked to sell are.

Have a good think about it if you are considering voting YES.

Cheers Grant

the above is opinion only and written without prejudice.