A projection of revenues this year of ca A$50mn would seem reasonable based on what we know. That compares to A$27mn last year. With all extra revenue due to prices, the only cost that is obviously affected is tax @25%. NPAT would then increase from A$9mn to A$26mn. As I mentioned, while auctions are the largest single revenue channel, there are grounds for believing they are a means of disposing of the company’s least valuable, bulk product. Retail and private buyers will yield better pricing. So A$100/Pearl in September could understate the true average price. A caveat is that we are only one quarter through the FY, prices are unlikely to be static for the rest of the year - although of course the market fundamentals and commentary haven’t suggested a reversal anytime soon.
ATP Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
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