what happened to pmh today, page-3

patience plays a key part today's price action was a combination of two things:

1. the selling being done by those weak hands who bought into PMH on the first Ann Mason announcement. Those weaker players used yesterday's announcement to get out of their positions at break even, or at a small profit.

2. Possible disappointment that the announcement yesterday did not relate to the divestment of the company's uranium assets.

PMH holders need to remind themselves of a couple of things:

1. The company just made announcement stating that after completing a SCOPING STUDY, it has a project worth NPV of US$1.73 BILLION (over $2 BILLION AUSTRALIAN). And mind you, this is only using a copper price of $2.24/lb.

Now JHird makes some valid points, that to get this project off the ground a major player may need to stump up with the bucks and may even ask for up to a 90% stake. Now last time I checked, 10% of $2 BILLION is $200 million. This is a miles away from PMH's current market cap.

2. The company STILL has an excellent suite of URANIUM assets, which IT IS GOING TO SELL to another company, and will result in PMH SHAREHOLDERS RECEIVING FREE URANIUM SHARES as part of the deal.

Just because the announcement yesterday didn't relate to the uranium assets, is no cause for saying that this divestment is not going to happen. Nothing has changed.

The fact of the matter is, that the company was working hard to get the uranium deal through before the end of November, which may have brought the 60cent options in the money. The reason this didn't happen, is because PMH is trying to secure a uranium tenement in the US from a private company, and include this as part of the overall uranium package to the prosepctive buyer (likely to be a UK uranium company). Given that the US company is a private company, the process is somewhat longer than if they were public. Be that as it may, THE COMPANY IS VERY VERY CLOSE TO SECURING THIS URANIUM DEAL FOR SHAREHOLDERS, AND IS LIKELY TO RELEASE NEWS OF THE DEAL AND PACKAGE TO SHAREHOLDERS IN JANUARY NEXT YEAR. This will result in a windfall to PMH shareholders.

3. There is still the Blue Rose copper project which is a good chance of getting to production in the near future.

So when considering all of the above, do I personally find it perplexing as to PMH's price action yesterday? The short answer is YES.

The long answer is that none of the positives have changed. The company is going to reward shareholders with its uranium assets, and yesterday's announcement only just CONFIRMED any possible speculation that the Ann Mason project now becomes economic in today's current resource environment and copper prices. It even allows for copper prices to come back by half of current values.

There is a write-up on PacMag in December's edition of RESOURCE STOCKS magazine. I suggest readers take a look if they are not convinced.

Any weakness in this stock represents buying opportunity, and 60 cents will be a distant memory once the market has grasped what has gone on yesterday, and what is going to happen in January when PMH's uranium assets bring back some value.

P.T.