Ann: Highlights of Half year Results December 2014, page-12

FY 14/15 NPAT estimate: $60.8 M
FY EPS: $0.308 (A$0.394 @ A$1.28 to US$1)
Share price: A$0.86
EPS: 2.2

So the sp could rise by 3x or 4x from here and still have a lowish EPS with further progress expected in the next full year starting in July.


I am not so bullish on this stock. Yes the NPAT is impressive. Cashflow from operations was strong - US$36m up 50%.

My concern relates to "capital , exploration and development activities" expenditure which were also $36m. Yes, US$1.3m debt paid down, FX adjustments on cash meant the ending cash balance was the same as the start.

There is little clarity of the operating cash flow will continue to fund "capital , exploration and development activities" expenditure, and at what point will the benefits if any flow from those expenditures?

If those expenditures reduce and/or $ (cash flow) benefits flow from the historical expenditure, then I agree this is a strong buy.

I will sit on the sidelines on this - however it is a stock worth monitoring.