PanAust Limited (PNA)

By Jason Fittler

PNA is a copper and gold producer with interests in Laos and Thailand.

The company is headquartered in Brisbane and owns a 90% stake in Phu Bia Mining Ltd, a Lao-registered company.

The Company’s major asset is the 2,636 square kilometre Phu Bia Contract Area located in the Lao PDR. PanAust's interests in Laos are held via the Lao-registered company, Phu Bia Mining Limited (PBM).

The Government of Laos has exercised a right to acquire a 10% interest in PBM. PanAust owns the remaining 90%. The Lao Government acquisition cost will be funded through its 10% share of future dividends paid by PBM.

Within the Phu Bia Contract Area, lies the Phu Kham Operation which comprises the Phu Kham Copper-Gold Operation and a Heap Leach gold operation. Production of copper-gold concentrate at Phu Kham commenced in April 2008, transforming the Company into a copper concentrate producer.

PNA has been trading in a primary up trend since January 2009.

The long-term up trend line was broken in January 2010 showing the trend is deteriorating and losing momentum. Current price action is very close to the significant support/resistance around $0.42 and is the key level to watch.

The RSI indicator has reached oversold territory suggesting a rally is likely to unfold in the near-term. A bounce from support will confirm the RSI signal and will trigger a buy signal.

The initial upside price target is toward the $0.55 - $0.60 area.

Overall, as long as support at $0.42 holds our view on the stock remains positive.

For more information on PanAust Limited (PNA) please call us on 07 4771 4577.