Yes certainly a good announcement. PK is looking like a solid mine for another 10 years at least. I liked the comment regarding cash costs in the announcement.
"C1 cash operating cost per pound of copper are expected to reduce by more than 5% as the quantum of increased metal production more than offsets the relatively modest increase in unit costs."
I am currently catching up on a few miners to see where some value may lie, haven't seen any value for a long time but its starting to be more apparent.
BH should help stabilise the SP somewhat.
As far as a DCF NPV valuation goes using the following assumptions I get $3.94 per share.
Assumptions:
PK C1 $1.00 lb BH C1 $650 oz poc $3.00 lb pog $1400 oz pos $20 oz WACC 9.88% Stay in business Capex 7% of Revenue Tax rate 30% Yearly expl. 20m
PNA Price at posting:
$2.69 Sentiment: LT Buy Disclosure: Not Held