low operating costs, page-15

Hangseng,

Agreed, although for the amazing mining sector not really sure where the action really starts to slow down because it is also a function of the whats going on with the company.

The company value(market cap)is a key metric and given you have an investment, then your investment is the same regardless of whether there are 200M or 1B shares. Your investment will grow/decrease depending on the +/-% growth of the company value as reflected by the share price.

I must admit though I do like to think of PEN @ $1.00 and have been looking at what it would take to get there or near it. I really like what I see when you combine Lance and Karoo.

In the meantime the market is valuing PEN on its potential to JORc up its target of 76M lbs at Lance. The recent upwards movement in the share price is indicating confidence in that occuring and there is a lot of upside yet to come on the runup to PEN announcing its maiden JORC resource in Mid 2010 and more so as it adds to it in the second half of 2010. There is however value from other information and process to be added and I refer to the Production Design Increase announcement and the value it adds is:

a. Gives high confidence that Pen will not only define 76Mlbs of Jorc compliant resource but also well exceed it.

b. Doubles the Cash flow on current uprice

c. Reduces the operating cost/lb and Increases the %Margin

d. Hedges against downward movement in the uprice.

IMO this value will be added slowly just as the low cost of operation will also add value at some point. It will certainly be fully added once the JORC is announced and added to.

AS you have also signaled HS, there are many good times and a lot of value adding ahead.

regards jj