example of company with large issued capital

Ive just been looking at PNA (Phu Kham Copper]Gold Operation in Laos)Before some say "well its not a U company" im just drawing comparison to a company that is a low cost operation (in their chosen field) with similiar issued capital, which they have not bothered to consolidate the shares after 3 years + of production

If you go back to December 2008 PNA,s shareprice slumped to approx 8c off the back of very poor copper prices around $1.80-2.00/lb and the overall GFC crisis/situation. Since then all comodoties have bounced back considerally and copper is back to well over $4.00 /lb and since PNA is a very low cost producer of copper, not to mention gold) the profits started to roll in based on great economies of scale.

Albeit PNA is a producer whereas PEN is not there yet but gives some idea of a rising comodities price and what it can do for a companies profits if they are a 'low cost producer" as is PEN based on PFS/DFS numbers.

I suspect that PEN have a much higher IRR (internal rate of return than PNA -(IRR is a rate of return used in capital budgeting to measure and compare the profitability of investments, also called the discounted cash flow rate of return )
This will weigh in PEN,s favour PEN also have a possible bigger in-situ value than PNA,s copper and gold project combined..dont know for sure but assuming PEN have 100+m /lb U at lance and 150 m /lb u at Karoo =250m /lb u308 x $75/lb (contract price = 18 billion value) think PNA is 7 billion???
Purely speculative chaps!!

As the price of Uranium increases we gain a higher return on investment and a steady increase in NPAT (net profit)

The way the U spot price is currently behaving we could easily see PEN enter into long term contracts with the utilities of around $80-90 /lb u308 wouldnt that be great for the shareprice. Lots of external catalysts for an apreciating shareprice over and above the companies progress

Here are some current numbers from PNA

Latest share price $0.865 as at 08:46:06, Friday 07 January, 2011 (AEDT) Buy $0.880 Sell $0.860
Open Previous close $0.865
Volume Turnover
Day high Day low
52 week high $0.910 52 week low $0.400
Dividend CPS 0.00 Dividend yield 0.00%
EPS 3.93 P/E ratio 22.01
NTA 23.00
Market capitalisation $2,556,227,911.68
Margin lending ratio 50%

As you can see they have a margin lending ratio of 50% and a NTA of 23 and a P/E ratio of x 22 earnings

Not so long ago PNA was also a penny dreadful stock hovering around the 8c mark....

some food for thought!!

Cheers MMM