ok once again will get into the debate lets assume copper has fallen 30% on average and assume that production was not at full capacity for the entire quarter (so gross up by 20%) and assume that operating costs increase by the same 20%. know we know there is still some production expenses to be incurred in getting the new ball in so assume the development expenses are half next quarter then the operating cash flow (with the announcement that development is being paired back upon review) should look something like this: revenue 61.14M production costs (55.2M) exploration (4M) development (6M) Net operating cash flow (4M) now this is baseline unless we think copper is going to fall further. looking at the historical inventory levels, we appear to be at the top and assuming we see the fall off in production as mines start to close off the back of neg margins and also we experiance an increase in demand in china as a result of falling prices then the only way would be upwards. interested in comments on my assumptions above. overall at EBITDA, this is still $6M per quarter and with interest is still positive cash flow once exploration is pulled to a halt and development costs reduce to 0 after june
PNA Price at posting:
18.5¢ Sentiment: LT Buy Disclosure: Held
