comparison with oxr

FYI, A message I posted on ozestock.com.au earlier today in response to a question by ronstieb...

Hi ronstieb,

I know of no up-to-date brokerage cover...good question...I shall put it to Gary Stafford.

How does it compare with OXR...I had real issues with this comparison when a few months back PNA was trading at 24c.

Here is my current thoughts on a comparison...

We are now a few more months closer to the completion of the BFS...so the elapsed time makes the current sp more reasonable as we are that much closer to production.

PNA looks to have a very impressive copper resource and I feel a lot more comfortable with this comparison with OXR. Remember copper is where the real profit will be found.

I expect PNA to have very similar production costs to OXR. OXR has stated in can mine the copper for 37c lb...with copper selling at 137c lb that means a margin of $1 lb.

OXR and PNA have indicated (OXR is more advanced in its drilling program) that they have more than 1m ton of copper each so what valuation fits either company.

ANSWER: considerably more than either have today.

One area where the comparison cannot be very easily made is in terms of the gold resource. OXR has over 3.5 m oz PNA thinks it may have over 1m oz. This point warrants some consideration but not a huge dilution.

OXR is now a mature medium-size company which will be incorporated in the ASX top 100 at the end of this month. As a result, it will gain increased instutional support. It also has diversified into other projects and other geographies including Prominent Hill and Chatree.

PNA is still a one project junior with its gold and copper resource to prove up.

In terms of sp growth...PNA has all the running to make like OXR did in the last 2 years. I would not be surprised to see PNA up say 250% over the next year whereas I see OXR up say 100% over the next 12 months.

I hold approx 708,000 PNA and 80,000 OXR