sp tgt for pna

from morgan stanley city of today, pls DYOR...thx....

PanAust Limited (PNA.AX)
Green light for Ban Houayxai
Development approved by the board X PNA has announced that the Ban Houayxai
project has received management approval, with commissioning targeted for the
December quarter 2011. The project is expected to produce ~100kozpa of gold
and 700kozpa of silver, with steady state production anticipated from the March
quarter 2012.
No real changes X Key metrics have been delivered within range of our
expectations (summarized below). Management expects that at current copper
and gold prices, project funding can be delivered from PNAs expected cash
flows. The only real change is the inclusion of a SAG mill upfront. This lifted the
milling rate, but also the cash cost due to more consumables/power. However
increased milling rates and mine life offset the higher cost from an NPV basis.
Our NPV on Ban Houayaxi is $70m.
Keep the Buy X While the approval of this project comes as no real surprise, it
represents an incremental positive and should support increasing confidence in
future growth options. We continue to see PNA trading at attractive value at
current levels, and maintain our Buy recommendation and A$0.70 target.