allegiance major shareholders approached, page-37

OK. I will post a normal post and good investing.

ASX:AGM re: Could the AGM sp reach $1.40 by March 2008?
Post #168142 by: Vayama

The answer to your question all depends of the price of nickel.

Currently the price of nickel is US$15lb or US$33,000 a tonne.

My calculations, based on a PE ratio of 8, made very early this year are as follows:

EPS of 9 cents at US$16K nickel price = share price of 72 cents.

EPS of 16 cents at US$23K nickel price = share price of $1.28.


EPS of 23 cents at US$30K nickel price = share price of $1.84.


EPS of 33 cent at US$40K nickel price = share price of $2.64.

Current the price of nickel is around $30K a tonne. BHP Ravensthorpe will commence producing 50,000 tpa at the same time as AGM starts producing.

At US$30K nicle price AGM can still earn 23 cents EPS which on a PE ratio of 6 = $1.40 share price or on PER of 8 = $1.80.

Therefore, at current nickel prices AGM can reach $1.40 by March 2008.

My numbers are supported by the 8 August 2007 Shaw Research Broker Report on the AGM website, which forecasts 9 cents EPS at a US$15K per tonne nickel price and the May 10 2007 Fox-Davies Capital Limited broker report, which forecasts 22 cents EPS on a US$35,422 per tonne nickel price.

__________________________________________

When a hen has eight or ten or twelve eggs, over which she has properly brooded, the wish arises in her heart, 'O would that my little chickens would break open the eggshell with their claws, or with their beaks, and come forth into the light in safety!' Yet all the while those little chickens are sure to break the egg-shell and will come forth into the light in safety.