the original business case

What everyone seems to forget is that the original (May '06) business case (if my memory serves me correctly) for Phu Kham was based on US$1.50ish copper, US$450 Gold and US$8 Silver. Of course there have been some cost increases across the board. But if PNA have managed their business well, they should have been able to keep a lid on most costs and even at $1.50/lb copper, with the higher gold and slightly higher silver credits, should still be cash flow positive (just not as positive as it was when copper was at $4), which is a lot more than can be said for many of PNA's peers.

The Sep '08 qtr results will be very telling and it will be nice to see if my theory is correct. Otherwise it is a hold/buy and hold and wait until the inflation the EU and US Fed is creating works its way into the system and starts driving up the prices of all commodities.