drastic oversell pe very low

mkt has overdone this

despite zinc mkts consolidating, pem's outlook is good

assuming china bull stays intact, PEM has about $1.20 in cash per share. Additionally it has about 70-75c eps forecast for this year. It has slated Potosi and Flinders deposit to increase its zinc production next year(2008). These will take time to ramp up but when operating will positively impact on the earnings. Mkt is pricing PEM ($3.80-1.20-0.73) , assuming 0.50 cents eps in future years at about 3.74 p/e ratio vs mining sector of about 8-9.