prudent hedge protects against market turmoil

I wonder how many of today's sellers are aware of the terms of PAN's hedging arrangements. It was over $40m in the black as at June this year and effectively places a floor under the company's profitability over the next two years, despite the collapse in base metal prices.

The company is trading below its NTA today, despite the MD's statement in the recent Annual Report that 'the company’s financial position is extremely sound with no bank debt, significant cash on hand, in-the-money hedge book, and strong forecast cashflow with the production ramp up.'

The 12% divvy - if maintained - would be nearer 20% if today's SP low persisted. That would represent a most impressive return pending the market's return to its senses.

There is a tendency in the current pessimistic market to tar all resource companies with the same brush when a bit of research can turn up some gems amidst the slag heaps. In my view, PAN is one of the "good 'uns" whose prudent hedging should see it weather the storm well.

What do others think? Is bearish sentiment simply too strong at present for fundamentals to be a factor?

All rational contributions appreciated.

DYOR

Gupper