Always a lot of estimate work goes into arriving at NPAT figures but I've got 2H12 NPAT of $14mil to give 2012FY NPAT of $19mil. It looks like the operation/NPAT in Dominican Republic is forecast to be flat in 2013 unless average copper prices are higher so all the improvement needs to come from Broken Hill operations. I'm forecasting 1H13 NPAT of $22mil with similar production of 33mt of zn but with an improved margin of 37c/lb(after by-product credits) and for 2H13 NPAT of $33mil with increased production of 43mt of zn at a margin of 45c/lb(after by-product credits)with a full half's contribution from Potosi/Silver Peak where mining/processing costs will be lower. So now I'm only forecasting 2013 NPAT of $55mil which means a PE of 4.5 currently. They should in fact generate more cash than this as the depec/amort charge will probably be higher than the actual capex spend this year.
PEM Price at posting:
29.5¢ Sentiment: LT Buy Disclosure: Held
