I have just read the announcement. It is not dis-similar to OZL, who are spending $135m to maintain production at current levels. PNA is spending $110m to maintain tonnes (a small growth of 5,000tpa is not the reason for doing it).
If this was not done, PNA would see declining tonnage outputs as the Cu grade fell.
So what planet are the brokers/analysts on? If PNA does not spend the money, they get a downgrade for declining tonnage and if they do spend the money they get a downgrade.
I read this as good news for PNA, and dam the brokers.
HT1
PNA Price at posting:
$3.75 Sentiment: None Disclosure: Not Held