should pem buy back shares with hedge fund, page-18

Jabbar22,

Your post is full of mistakes....

1. PEM does have $77M in cash. Fact. Yes, $25M is held in performance bonds, but it is still an asset. Yes, $10M of their debt is due to be paid back, but this is for assets. Remember, we have not included their machinery, plant etc. So you are only taking have of the debt/asset balance sheet. So if you want to play that game, NTA is $1.14 a share.

2. PEM is currently borderline profitable. You are forgetting their hedging (both currency and metal), which is $80M in the money. Your hedging maths is laughable. Hedging doesn't effect their Net cash costs. It effects their sale price. Re-read the quarterly. Average sale price is $1.04. Costs is $1.01.

3. Would you like to re-do your maths and ask this question again? Your not an accountant are you?

4. You seem to ignore the put options of 38,701T at $2,186US in 09, or the 16,246T Zinc in 09 at $3,768AUS. Or what about the 2010 hedges of 14,710T at $3,276US or 11,625T at $2,990US. If you are going to quote numbers, quote all of them.... Otherwise, you are trying to be deceptive.

5. CBH is currently $75M in the hole, and you say that they are in good shape? Why would notes holders convert to shares? There strike is nearly double the current CBH share price.

6. Yes, Toho have injected funds into CBH in the past... a number of times.... further dilution, proping up the company. PEM have funded themselves through profit mainly... I know what I prefer.

7. PEM don't need money. They have more than enough in the bank, and look to be free-carried on a copper mine.

8. How do you think they will go broke in 6 months? They have $80M in in money hedges?

9. CBH haven't got Endevour at break even..... just a plan to TRY to. Chances of that actually happening.... next to nil. PEM had better cash costs only 2 years ago, and will be back there shortly IMHO.

10. Beltana ore has already been mined and sitting waiting to be shipped. Given that TOTAL costs are 85c and the already part of these costs have been paid for already, the future costs of selling the ore is only about 60c, well below the current spot price.

11. Ahh no, PEM have over 10 years mine life in broken hill. Do your research. They also have high grade open pitable resorces in the area as well.

12. Yes, PEM have Mt Oxide as another asset to their bow.

Every point of yours is flawed..... happy to point them out to you.

I will also add one point..... If CBH is so robust and PEM so poor, why did PEM pull the pin on the 3 for 1 merger? Why did they CBH then panic and come back with a 3.5 for 1 offer?

CBH need PEM much more than PEM needed CBH..... PEM realised CBH was a sinking ship.....