@gosouth If you look at the half year presentation the company doesn't expect anything from MIDAS until FY18. So a lack of earnings from MIDAS is in line with what the company has said.
EPS is a bit tricky to compare, particularly between 1H and 2H, because of the large increase in the number of shares on issue and the timing which affects the weighted average number of shares in the calculation as well as the seasonality of earnings which are pretty heavily weighted to 2H.
By my calculations if earnings in 2h17 are the same as earnings from 2h16 EPS for FY17 will be 5.3c. To get 6.3c across FY17 we need $1.63mil NPAT above 2h16 (33% on 2H16). I don't think this is as big a stretch as the market has assumed it is. But even if it is i think it's just short term and largely down to the large increase in shares on issue.
One important thing for me going forwards is that management now expect to be able to fund acquisitions largely through operating class flow. This should mean no more large dilutive share issues and any stagnation in EPS (if it occurs) will just be a small bump in the road.
Is there any reason you may think growth for PGC may be challenged over the next 3-5 years?
PGC Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
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