All, lets not lose sight of the fact that base metals are...

All, lets not lose sight of the fact that base metals are cyclical in nature, as are the fortunes of the companies that produce. The key here is to de risk the business such that one can see out times such as being experienced with lead and zinc; which incidently are back at their 05/06 price. One could conclude that PEM beleive they have a startegy in place to achieve exactly that -

Cash,
Hedge Book,
Delayed Capex,
Prudent Opex model coming into play,
Product diversity - Copper.

One could be critical that they did not move quick enough on the latter 2 points. I like most on this thread have lost a packet on this one. "Worst Stock" is the catch cry.

But there will be another day -

Abstracted from The Australian

Zinc prices have taken an unexpected downturn in mid-2008 compared to the other key ingredients in steel making. Despite China's booming steel trade, zinc mining companies such as Perilya, CBH Resources and Zinifex are struggling to come to terms with the metal's drop in price from 2006 highs. Other steel-making ingredients such as iron ore, coking coal and manganese have experienced unprecedented price growth, and many expected zinc to follow suit. Some mining companies are diluting their reliance on zinc in response to the slump. Analysts believe long-term prospects for a recovery in zinc prices are good, as there is little new supply coming onto the market and demand for steel will only grow from developing countries