Now Running ? by naomi not

[barry_1]

What ever the merits of this share,its obviously the "in thing"at the moment.Actually one of the better gold small caps,who knows it might top 250 cents?

[klapka]

The only gold share I hold, large or small. It had to break out of that tight trading band eventually. It has a lot going for it, a lot of potential.

[#3]

what potential? It has tiny assets and a bit of platinum tailings - last time I checked? Its current value lies in its cash generating capability, which it pays out in dividends. I see no long term future for this stock? Admittedly I stopped tracking it ages ago

[#4]

based on the reserves and lastest sens news, long term(15-20 years) is a definite

[Pepi]

Even Simon Brown says PAN is the only gold share he will buy. Skaaptjop, take a look at their gold cost to mine per oz as well as their new Phoenix Plat mine coming on line year end 2011.

[partridge]

small mines are holes in the ground with a crook stadning over it ( alledgedly) This is a well run business. Its cheap and the issues of theft seem to have been dealt with/are being dealt with. I think its got good prospects over the next 5 years.

[#7]

OK, I am still going on memory here - but Phoenix was a tailings project, meaning they were reworking existing mine dumps and extracting the platinum that got left behind. PAN owns the barbeton mines, which admittedly are good cash generating operations, but if memory serves, they don't have much else. Last I looked at it, it did not have much more than 7 or 8 years life of mine, so I found it difficult to justify anything more than an 8 times PE - so I stopped tracking it. But if they have ramped up their LOM, then sure, go for it. I am just struggling to see how they can go from 8 years to 20 years on the same asset, so maybe they found new gold somewhere?

[SimonPB]

'if' I was to buy a gold miner :)

[SimonPB]

they now got some exploration assets in Mozambique they likely to list seperately .. also got real plat assets these days .. but at the end of the day every gold mine ends up just being a hole in the ground ..

[#10]

They have had those exploration assets for ages - and so far the things have proven wortheless. As for their real platinum asset - 12000 ounces per year forecast? - that is also nothing - maybe 1/20th of what a mid tier producer is targeting, and it hasn't even started yet. Ask anyone who has tried to invest in platinum startups (like myself - with Platmin), they cost megabucks, and nobody ever hits their forecasts. So PAN is back to its barbeton mine again as its value driver. Wich is a great cash cow - I give them that.

[Harathke]

You can tell that most of you guys dont understand PAN. It is not how many ounces a mining company produces that matter, but how many PROFITABLE ounces. Also, PGM retreating tailings is low risk compared to expensive rubbish like Platmin etc that need to go deep below the surface for "hopefully" PGMs. Yes, 12,000oz is not much when compared to a mid tier PGM producer, but look at it on a relative basis. PAN is smaller than those loss-making mid tier rubbishy PGM players & PAN is actually profitable. Size is not what you are investing in, but profitability and future profitability. Barberton is a cash cow. Etc etc. Just a bit tired of all this rheotoric about ego figures like ounces and size, when profits are all that matters.

[#12]

Ja, I hundred % agree with you that PAN oustrips most miners in profitability - it is a great stock in that sense. The problem I had with it is its sustainability. At the time I stopped tracking, it had a life of mine in Barbeton of around 8 or 9 years. Currently, on their own website - their barbeton reserves are probable at 661k ounces. They mine 100k ounces per year - so they have a life of mine of 6 years. OK, so they have resources of 2000k, but there is a big difference between resources and reserves. Now why would I pay anything more than a 6* PE for a stock that has only 6 years of life? As for tailings, sure, it is a low cost extraction - and a high margin. But it is not proven, Platmin is an opencast mine, and its woes are similar in nature to the challenges Phoenix will face. There is always a big difference between what a bankable feasibility study says you can extract, vs what you actually do. So to invest in PAN, you have to believe that a) there more than 10 years of life left in their mines (because they are at a PE of 10), AND that their other projects will eventually replace the gold operations, and maintain the EPS.