Today's email on Precious Metals Australia Limited Some...

Today's email on Precious Metals Australia Limited
Some Companies can be reborn!

October 28, 2005
Precious Metals Australia Limited ASX: PMA

How much can Windimurra make?…..

Investment Summary
PMA is re-commissioning the Windimurra vanadium mine. PMA has current cash reserves of A$33 million with no debt and the mine has approximately A$50 million worth of infrastructure and plant and equipment in situ.
The feasibility/optimisation study is expected to be completed in mid 2006 with production to commence by Mid 2007. PMA’s pre tax profit is forecast to be approximately A$41 million based upon the 8 year average of $20.8/kg for ferrovanadium and our other assumptions made. The current ferrovanadium price is US$60/kg. Our assessment is that for every USD above $20.6/kg
average used in our forecast, PMA should receive an additional A$4.7 million pre-tax profit per annum.

Attached is a research note. For those that can not open it they can download it from the below link.

Click here to download the research report



CAPITAL DETAILS
ASX code PMA
Share Price A$1.20
Shares on issue 64 million
Options on issue* 14.9 million
Cash A$33 million
Market capitalisation A$77 million
*12.9 million exercisable at $2.00 before Dec 05, 1m exercisable at 15 cents before Nov 07 and 1m options exercisable ranging from $1.30
and $2.25 before 2010.

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