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Pan Australian Resource has published encouraging results for the June quarter.

As explained results don't matter until corporate matters are decided, unchanged from our previous explanations.

Production for the year is expected at the upper end of guidance.

Copper and gold miner Pan Australian Resource (OTC:PNAJF) published its Activities Report for the June quarter on July 15. The reported operational data confirms our bullish assumptions summarized here, but for the moment success at the mines does not matter until further information is released regarding the takeover offer by Guangdong Rising Asset Management, or GRAM, as explained in the same article.

This takeover offer is mentioned only briefly in the latest report repeating that "the company has established a data room to allow GRAM and other interested parties to undertake due diligence." For the moment valuation remains tied to the standing offer by GRAM to acquire all of the shares in the company for A$2.30 per share (or US$2.13), which is not supported by the company's board.

Nevertheless, we note that the company reported quarterly production of 16,547t of copper for cash costs of $1.36/lb and all-in-sustaining costs of $2.46 at the Phu Kam mine; and 24,734 ounces of gold at cash costs of $699/oz and all-in sustaining costs of $998/oz at the Ban Houayxai mine. These numbers are in line with the estimates given in our article. The company expects total production for the current financial year to come in at the upper end of guidance ranges.

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