Shouldn't the calculations be as follows : - annual sales of 8MT - margin of $ 70 MT - annual gross margin of $ 560 less interest $ 60 M - Net margin $ 500 M, GBG share $ 250 M - Less admin o/heads of say $ 20M - Net profit bef/after tax of $ 230 M/$161 M - EPS on $ 161 M / 1248 M shares = $0.129
Based on long term sales of 16 M, EPS should be slightly more than double as interest and o/heads should remain fairly constant.
I believe the forecast EPS of $ 0.051 takes into account a ramp up period or allows for a softening in iron ore prices but whichever way you look at it, if they achieve a full year target sales of 8 MT, EPS must be more than the forecast of 5.1 cents.
GBG Price at posting:
31.0¢ Sentiment: LT Buy Disclosure: Held