Business Description:
PanAust Limited (PNA) is a copper-gold miner with operations in South East Asia and has a portfolio of organic growth projects in both commodities. PanAust is headquartered in Brisbane with its operations in Laos, Thailand and Chile.

Strategy Analysis:
PNA seeks to grow organically via development of its portfolio of copper and gold projects. Management expects a more than doubling in copper equivalent production from around 60,000 tonnes a year to nearly 140,000 tonnes by FY15. Successful development of the Phu Kham and Ban Houayxai mines in south east Asia adds credibility. PanAust reported NPAT up 46% to US$69.4m for the half-year ended 30 June 2011. Revenues from ordinary activities were US$297.1m, up 32% from the same period last year. Diluted EPS was 11.64 US cents compared to 7.99 US cents last year. Net operating cash flow was US$114.41m compared to US$80.75m last year. No dividend was declared. Significant operational achievements for the first half of 2011 include: the production of 124,438t of concentrate containing 30,213t of copper, 27,268oz of gold and 257,885oz of silver at an average cash cost of US$0.99/lb, net of gold and silver by-product credits (C1, Brook Hunt Convention); and the completion of the acquisition of a majority interest in the Inca de Oro copper-gold project in Chile.