PNA is way up there in terms of low cost and efficiency. No wonder the Chinese, as rumour has it, tried them first before turning to OZ Minerals. I reckon they were sent packing by the PNA folks, and left in no doubt that any overtures would be treated as HOSTILE.
OK. So they are good tough miners.
But as money managers I feel they leave a lot to be desired. Their huge debt is not under control. We are being asked to vote a whole lot of options to G-Sachs at this AGM. This for no reduction in the loan. Just more cream for G-S.
The whole question of financing a big project always needs to be undertaken in a controlled way, with the board calling the shots. This is hardly the case here, with the board being dragged along rather painfully by the nose. Some very ruthless bankers are calling the shots. Not a good look.
The board are culpable for not having reduced debt when the share price was $1.30. I doubt we will ever see that price again. Nor $1. I am selling at 50 cents - if it ever gets there.
Bearing in mind all the above, I suppose G. Stafford does deserve his big new swag of options? The ones we have to vote on at the AGM. Convince me.
This company is entirely dependant on the PO Copper. But the Chinese are having so much fun stock-piling Cu at bargain-basement prices, they wont need to buy much when their economy takes off again. The long anticipated rise in the POC may not happen.
I have been a long term PNA investor for 4 years. Right now the stock is being played with by traders, bless 'em.
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