"We have been surprised by the recent selling in our shares over the last few days because analysts are forecasting a net profit of somewhere between $80-110 million for FY07".
Comment: Say last year's profit is $94 mill.
188 mill shares and 7 mill 08/10 unlisted options.
Current prie: $3.74. E/S say 94 mill/188 mill =50 cents.
P/E: 7.5.
However, for the year starting 1 July 2007, SMY expects 20,000 tonnes of nickel, compared with 13,225 tonnes for the past year.
The increased production ought to make up for any lower price IMHO.
"Assuming strong nickel prices continue and we can increase our production to that 20,000 tonnes per annum target, we should be able to maintain a healthy margin, make good profits and pay dividends. And by increasing our exploration expenditure and increasing mine life, we expect to create a strong and sustainable business for at least the next 10 years".
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.
SMY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
