qtr will bring egg on the face

Hi everyone,

The Quaterly results from Lionore should come out in the next few weeks and this would really be an OUTSTANDING RESULT imho.

The result will bring Egg on the face of management and would stop the take-over from happening at such a low price imho.

Look at the following figures:


all prices are in US $$$ unless mentioned otherwise.


Totally unhedged for Nickel prices in US $$$
*1 QTR 06 profit $13.2 million (NI $6.68)
*2 QTR 06 profit $62 million (NI $9.09)
*3QTR 06 profit $148million (NI $13.24) (includes $25 million smelter break fee)
*4 QTR 06 profit$205 million (NI $15)




* 1 QTR 07 profit $370??? million (NI $19)?

the above estimate for 1QTR FY07 will give us an EPS of $1.70 (for the 1 QTR)

But this is not all because we had according to the last QTR some more Nickel stored away that was not sold.

Just wondering if LIM has now sold their outstanding inventory of 5158 t/Ni being nickel produced but not sold yet.

A nice extra income for the 1QTR imho.

Have a look 5158 x US$49000 =US$252.7 million.

If they would have sold this at the top close to its current high Nickel price for the Quater we should be looking at an extra US$138 million profit.

That would bring this QTR to around the US$508 million profit!!!!!

This would be double the last Qtr results and will be the trigger for any large holder to vote NO to this take over at such a low price.

If nickel prices would stay around the US$17/lb during the FY07 this company will make more then US$1 billion!!!!!

EPS for the full FY07 would be around the US$5.52 (NI @ US $17/lb) with this scenario.
Current share price of around A$18 could potentially double if the above would eventuate.

Good luck to all,

And for those who are holders of LIM

I advise you to vote NO to this take-over


jojo