Always like it when a major says - take a chill pill we will take over from here.
It is easy to see why they would want to earn their interest. Large low grade deposit, but it runs from surface and a gradual dip. This means they can start getting a cash turnover pretty quickly. I would assume that they would use the same techniques of extraction used in the large porphry mines of south america etc. Essentially by the sound of it, it is just a huge earthmoving excercise.
Being near to surface it is worth the risk for Xtrata to get it to the point of hitting the go button. If the copper price and gold price stay up, then they will probably proceed to production ASAP.
With 357million shares on issue I can see why this one is in a holding pattern from now. But I would suggest that if everything goes smoothly for them then and the metal prices stay robust, then I would say that their is only upside with this one. I would even go so far as to say a slight decline in metal values would still hold some rather nice upside here.
This one is a bottom drawer investment stock for mine.
Have not done enough research on it though, but would assume due to Xtrata saying it want in, that they have already done that.
IMO
PMH Price at posting:
0.0¢ Sentiment: None Disclosure: Held
