I guess this C1 cash cost is a kind a cushion and I expect to see it will raise significantly for the non Offshore miners (mine operations in Australia) with all regulations coming (new mining tax, carbon tax, etc...)
PNA is seen as a diversified Copper company, with operations mined in Asia and Chile. I have no doubt PNA C1 cash cost will be maintained at the lower end with credit for Gold, Silver and potential molybdenum.
IMO, going through previous GFC, PNA management has been playing a great role by minising potential risks associated with high Capex for future projects. Like Inca De Oro in Chili, there are potential for Oxide and molybdenum components but I guess these will be executed at later stage as extra required Capex will be fully funded by stage 1 of the operation:
"Inca De Oro Copper-Gold project (Analyst site visit June 2011) report": - Defer Oxide processing and possibly defer molybdenum to reduce initial capital intentisity
Cheers,
PNA Price at posting:
$3.00 Sentiment: None Disclosure: Held
