hey guysran the figures ala fedexpress and can easily back the...

hey guys

ran the figures ala fedexpress and can easily back the 100cps EPS estimate - in fact that is a conservative estimate............................

................ran the figures based on zinc price $1.85US and came to the conclusion that WITHOUT taking the hedging into consideration and with a NET PROFIT MARGIN (NET PROFIT/REVENUE) OF 30% i got an EPS of 140cents!

So taking the hedging into consideration, theyll obviously make less than the 140cents - lets say around the 100cps EPS to be conservative.

thats Unbelievable!

Plus, zinc price should go up to the $2 mark:

we all know that LME stockpiles going down and it looks like will hit 100,000 in the next few weeks!

Anyone holding zinc stocks right now wont sell!

We're all waiting for $2US/LB Zinc +/LME stockpiles to 100,000, so the psychology of the market would be to hold if not buy until those two psychological levels are hit!

P/E on 100cps is still only 4

Obvioulsy LONG TERM we'll have to use a lower zinc price for future cash flows, BUT, by then, PERILYA will have found more zinc/lead, will have more mines running including the copper of course!

So we may have to use lower prices than these for future discounted cash-flows, but production will definately grow by quite a bit to offset this effect

thats why at P/E of 4 , and with a growth profile, if you havent gotten on board there must be something wrong with my research???

Again:

* zinc price heading to key psychological level of $2

* LME stockpiles heading to key psychological level of 100,000

* think about it - these are the levels we all collectively think 'should' materliaze???

* EPS 100cps conservatively - will be more if zinc price higher

* company has a growth profile

* company has $160mill in bank to fund the growth - its a cash-cow!

* output will thus be higher in the long-term to ease the effect of lower long-term prices on EPS

At P/E of 4, you can still get in for the very long-term id say.