half year results

Dear Lilac

Always appreciate being asked for my comments.

I am very pleased to say that the half year results well exceeded my expectations and those of all analysts.

Gross profit was $42 M above the top of my range of $60-80 M.

Dividend was 0.5 cents above the top of my range of 6-12 cents.

Costs were 83 cents per lb below my estimate. Although not exactly low, I am very pleased given the truly ordinary first half year production.

(Hopefully, nobody will accuse me of spruiking the stock now given I was low on everything.)

We should now see a significant upward revision on all analysts targets which will auger well for the share price.

Given that we will probably see $200-250 M in the second half we are in the sub 4 PE range at the current price which makes it the cheapest stock in the ASX 200.

I was a little surprised that the share price came off yesterday but I would not read too much into it. The share is definitely heading for much higher ground this half.

Regards Eos