PNA issued an upgrade on October 26 in forecast EBITDA for FY...

PNA issued an upgrade on October 26 in forecast EBITDA for FY 2010 from $220-$240 million announced in August to $260 million. This was based on a copper price of $3.75 (now around $4; Gold at $1100 (now $1400) and Silver $16.50 (now around $26. Production was also forecast to exceed earlier projections (and included 3 quarters already completed).
Net profit after tax for the first half was $US53.2 million on the back of EBITDA of $US105.3 million. Assuming a similar ratio between net profit and EBITDA it would appear PNA is heading for a FY net profit of around $130 million (givong it a P/E around 10). If the current prices are maintained for copper, gold and silver EBITDA should be substantially higher than forecast on October 26.
Forecast 2010 production is 65kt copper, 55koz gold and 500koz silver. PNA forecasts that by 2014, annual production will be 100kt copper; 200koz gold (making it a very significant Australian gold producer) and 1 million oz silver.
Seems to me based on current P/E around 10 and massive forecast increase in gold and silver production as well as significant increase in copper production this company is significantly undervalued. Its actually trading marginally below where it was when it announced recent upgrade.