Price of lead and zinc continue to fall to point were PEM...

Price of lead and zinc continue to fall to point were PEM producing at a loss.

Cash will start to erode and if the price does not recover for some time then the company could be in trouble IMO.

Pasminco went the same way years ago. Was the worlds biggest zinc producer, was trading on a PE of around 2 to 4 and appeared to be a good buy until they shut up shop.

Having said that, I do not think PEM will follow the same path as Pasminco as their cash backing should save them, however I would not be surprised to see 52 week lows this week.

von.