You're only allowed to fall in love with a stock if the fundamentals are there. Some figures on Stage11 assuming a throughput of 250k tonnes/pa and a start date of 1Jan04 $A mil P&L(2004) 19k tonnes Cu @ US$1725 @ 0.66ER 49.7 1.5mil ozs Ag @ US$4.50 @ 0.66ER 10.2 TOTAL REVENUE 59.9
Cash costs @ US$0.40/lb @ 0.66ER 25.4 Net smelter royalty on Cu @ 6.25% 3.1 Interest 8.5% on $A15mil 1.3 Deprec & amort $A25mil/6yrs 4.2 Head Office costs 2.5 TOTAL EXPENSES 36.5
Net Profit before tax & minorities 23.4 Less: 10% minorities 2.4 NET PROFIT (with no tax to pay) 21.0
Assumes Kapulo doesn't kick in until 2005. MARKET CAP: Issued shares at 30 June,2003-175.8mil @ 13c 22.9 Options,convert notes-29.7mil @ 4c 1.2 TOTAL MARKET CAP 24.1
So they're selling at a p/e of just over 1 times next year's earnings.
