Hi firsova. Couple of points.1. Doubling EBIT to $1.3 million...

Hi firsova. Couple of points.

1. Doubling EBIT to $1.3 million brings EBIT back up to 2010-2011FY levels (see 2010-11 annual report) when the share price was averaging around $0.35.

Significantly however, the net profit announced in 2010-11 was $851 million, so the EBIT in this years report may be similar but net profit as indicated by the quarterly report will be around 1/3 of the 2011 result.

2. ROE is usually calculated by dividing net profit by shareholder equity. It's a bit difficult to estimate given the capital raising but using last years total equity of $6.45 million and cash net profit of $335,000 (given there was no significant asset disposals the net profit in the annual report may be similar to this cash profit figure from the quarterly) the ROE is 5.2%.

I prefer to use net profit rather than EBIT to value a company and will wait for this from the annual report. I suspect it will be somewhere between $300-$400,000 but that's just a guess.