Again had to find this by visiting their...

Again had to find this by visiting their website.
http://www.consminerals.com.au/

Brokers Bell Potter put out a report "Earnings and Dividend Upgrade" 14 October quotes
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Earnings and Dividend Upgrades sp $1.72

Summary
We have upgraded our FY05 earnings and
dividend forecasts for Consolidated
Minerals based on the continuing strength
in manganese prices and the positive
outlook.
We have increased our 12 month price
target to $2.14, which equates to a
forecast FY05 earnings multiple of eight
times and approximately 1.2 times our DCF
valuation.
Matthew Ward
��[email protected]
CSM ASX 300
We are forecasting FY05 operating cash
flows of nearly $60 million that will fund:
�� An expansion in manganese
production from 0.6mt to at least
0.8mt including a comprehensive
exploration programme at a total cost
of $15 million.
�� Ongoing exploration at Coobina
targeting an extension to the mine life.
�� Growth strategies to expand and
diversify production with a specific
focus on carbon steel minerals.
Investment in Portman
Consolidated has acquired a 14.8%
interest in Portman, a WA based iron ore
producer. Its investment is currently
worth over $55 million and includes an
unrealised gain of over $10 million based
on the current Portman share price of
$2.18.
News-flow
We expect positive news-flow over the
next six months from:
�� Exploration results from an $8 million
programme focused on Woodie
Woodie (manganese), Coobina
(chromite), Mindy Mindy, Mt Finnerty
(iron ore) and Nepean (nickel).
�� Expansion of manganese production.
�� New manganese supply contracts.
�� Double digit manganese benchmark
price increases.
�� Potential entry into the S&P ASX 200.
Recommendation and Valuation
We are retaining our ‘Buy 2’
recommendation and have increased our
12 month price target to $2.14. This
represents a multiple of eight times
forecas t FY05 ear n ings and
approximately 1.2 times our DCF
valuation, which is common with other
resource companies at this stage in the
cycle.
Key Points
�� We have increased our FY05 benchmark
manganese price growth forecast from
3% to 13% as a result of ongoing
market tightness. This is due to robust
global demand underpinned by strong
growth from China combined with
supply constraints caused by a lack of
mine, rail and port infrastructure
investment in recent years.
�� Our forecast FY05 net profit of $51.3
million is now more than double FY04
net profit of $25.1 million. Key drivers
are strong manganese and chromite ore
prices as supported by the company’s
comprehensive currency hedge book
with approximately 85% of FY05 US$
revenues currently hedged.
�� Forecast adjusted earnings per share of
26.8 cents is 89% above the previous
year and equates to a modest price
earnings multiple of 6.4 times at the
current share price.
�� We are forecasting an increase of 63% in
fully franked dividends to 13.0 cents per
share (FY04: 8.0 cents). This represents a
7.6% fully franked yield at the current
share price.
�� Return on equity is forecast to increase to
a very robust 44% in FY05 based on
further margin growth.
�� The balance sheet remains strong despite
the implementation of growth strategies
and regular dividend payments.