Can't agree at all EL , " only the majors can produce copper below that" [ ie 90 cents]
Would be happy for you to name these phantom majors not reliant on large credits from other metals and still viable at 90 cents
90 cent production is simply way below being sustainable by most copper producers in todays cost structure.
For those who have been on site at Phu Khan you would appreciate the new world class state of the art plant built ahead of schedule and on bugget earlier this year by a top management team and mine project manager Fred Hess [$241m , which would have cost $450m plus in Australia]
PNA is operating on some of the very lowest operating costs of any world producers:
6 cents Kw hydro power within 20 km [in a 2 metre annual rainfall] , check out the Chilean producers at 20 cents Kw [low rainfall hydro with its uncertain reliability as witnessed this last 12 months with drought]
The lowest diesel costs from S-E Asian suppliers with company owned haulage fleet backloading all fuel and other consumables after delivering concentrate to the port in Thailand
Labour costs amongst the lowest of all copper producers . Cat 777 haulpack drivers paid $us238 month [4 times a policemans wage in capital Vietiane] ....Australia $90-130K per annum.
On top of this low cost structure is PNA's huge location advantage on the doorstep of the biggest copper consumers in the world and within days steaming distance to major smelters from India to Japan.
IMHO ,PNA will be one of the last copper producers still viable if most of the other world producers had to close up shop.
Re the cr*p scaremongering regarding company finances ; the ANZ facilities are long term ; the $80m as restated yesterday is not a problem and can, if need be, refinanced before July next year.
Those that know will also be aware of the huge potential upside with the gold/silver deposit at Ban Houayxai,35km away, with up to 4.5oz gold equivalent per ton , that announcement put out 18/4/08.
The downrampers and shortsellers have been allowed to crucify this company which has foreword sold 90% of 2009 production of 65,000 ton copper at a world low production cost of 90 cents lb.
Suggest people do some serious research here and put plenty of these shares in the bottom draw as one of tomorrows can-do copper/gold producers presently being given away. Cheers
PNA Price at posting:
8.7¢ Sentiment: LT Buy Disclosure: Held
