Just a bit of forward looking into the Annual Report. BHP, Rio & Xstrator been the major customer of BLY, their annual report posted last week could really offer a insight to BLY's 2009 revenue. Based on BHP & Rio reports, BHP & Rio reduced their exploration cost by 50% and 60% respectively in the first half. However, BHP is still targeting to spend 1300million by the end of this fiscal year (Jun/2010), which is the same amount of money they spend in 2008/2009 fiscal year. That is more than 75% of spending to be done within the H2 period. Although Rio didn't came out with a figure, but you would assume they more or less on the same path.
Prediction:
55%-50% Decrease in Revenue = -0.01 to 0.01 EPS
No dividend this year, possible hint of reducing units of equity (a merge 2:1 maybe)
Very stronge & positive outlook for H1 (Because they already know), Cautious outlook for H2, but still relatively upbeat.
Highlight on the current debt situation is very encourage, with almost no debt to pay for until 2012 (I remember, correct me if I'm wrong).
- If the report came out similar to what I mentioned above. 0.345c-0.35c is bargain right now. Median term target: 0.40c - 0.45c.
Cheers
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