A tad old guys and sorry if its already been posted, but yup...

A tad old guys and sorry if its already been posted, but yup like EL has already said, more and more liking what they see in PNA.

Quality in PanAust package
Staff reporter, 4 May 2009
UBS has become the latest investment bank to cover emerging Lao copper-gold miner PanAust, with the successful commissioning of Phu Kham operation highlighting four things to like about the $A650 million capitalised company.

Asset quality, cost profile, the ever present “exploration upside”, and corporate appeal make up the quartet of positives for UBS.

“While we wouldn’t classify the Phu Kham orebody as ‘world class’ due to its mine life, it does compare favourably to other global copper-gold porphyry deposits from a grade and cost perspective,” UBS said. “The deposit comfortably sits in the first quartile of global porphyry deposits on a copper equivalent grade basis.

“Life of mine production from Phu Kham is anticipated to be approximately US90c/lb. Subsequently, based on UBS copper price forecasts, the operation generates strong margins over its life.

“The company’s tenement position in Laos remains largely unexplored. Subsequently, we believe that future cashflow put back into exploration is likely to yield additional discoveries of both copper and gold deposits.

“With the mine successfully commissioned, expansion opportunities available and a location on China’s doorstep, we believe the Phu Kham orebody holds significant appeal. Additionally, with no substantial shareholders, the company has an open register.”

In terms of market risk, PanAust’s outstanding debt facilities figure as an obvious issue.

PanAust has an outstanding facility of $US80 million payable to Goldman Sachs JBWere before the 31 March 2010. However, if any funds from the facility are still outstanding at 31 July 2009 then the company has to issue 75 million options. UBS believe this facility will be refinanced through debt or equity (or a combination) before the onerous terms are triggered that the end of July.

PanAust, which currently produces at an annual rate of about 60,000t of copper and 60,000oz of gold, has, like many of its peers, enjoyed strong support in recent week, and closed Friday valued at $A820 million.

Cheers
Mx.

PS Hi Python gezzzzzzzzz mate taken you long enough lol. to come over here, where you been :-)