question the falling sp, page-127

Hey Guys, heres a question....what sort of PE ratio would you expect AXIOM to have if they were mining profitably in 2 years time with Isabel and San Jorge both in full swing, paying a dividend and fully JORC 20 years mine life+++. I would have thought a PE in the region 0f 10-15 would be fair.

Now IMO if AXIOM can get both tenements into full production and shipping 4-6 mt even at a Laterite ore price of $30 US, by my calculations (after deducting royalties, opex, capex and tax) they should be turning a net profit of around $60-70 m US, then deduct 20% to KB and we'd be looking at a Net of $50M US convert this to AUD @1.3 = $65m AUD x PE 10 = 650 million MCAP.........xPE 15 =975 million MCAP

Theres obviously alot of assumptions here and it may never get anywhere near this, but it is conceivable that one day if Isabel is granted and in the right Nickel price environment that Axiom could reach these levels and possibly more, let me be clear that i'm not making any prediction of future SP as its quite likely there will be more dilution down the line to get this up and running.

happy to hear comments for and against this, as im trying to establish whether this is a reasonable way to value a mining company (once its at full production) and whether other investors would be using a similar method, maybe my PE is too high and need to factor in the sensitivity to commodity prices and the higher risk.

Cheers