should pem buy back shares with hedge fund, page-28

Jabbar,

I think you'll find that the currency drop from US98c to 91c will have a large impact on the US$/lb zinc cost of production and the revenues gained (in USD) and it seems you have neglected to account for this in your model.

For instance, in Aussie dollar terms, PEM gains 10% more for each dollar of sales. Similarly, with a lower oil price, one would expect that going forward, costs may be reduced.

This currency change has a significant impact on the Beltana stockpile value and income, as it is not subject to a great deal of ongoing costs of production and can be sold on spot for US$.

I don't have enough spare time to really go into the whole thing, but I would say that the recent reversal in the AUD/USD rate is only going to be a good thing for PEM. It increases substantially the income in AUD from the unhedged currency, for both hedged and unhedged zinc.