So much yet so little. This is an indication how MS can promise the world over and over again. Q2 2008 it should have been up and running.
SolidCap Research North American Equities Mining Fair Value : US $ 4.49 Market Price : to be quoted Simba Mines Inc June 6, 2005 Company Research Trading Symbol: SBAMF Report Update View �EWe initiated coverage of Simba Mines Inc, through a report dated January 30, 2005. In this update we highlight two points; one, the rapid pace of the project implementation and two our revised forward earnings estimates. We have upgraded the stock given these two factors, while retaining our perception and quantification of risk. Simba Mines Inc, a Canadian mining company, holds 80% equity in the copper mining license covering the Cachoeiras de Binga area, covering 3615 sq. km in Angola, through its wholly owned subsidiary Sociedade Mineira Simba Jamba LDA. The prospecting license begins in January 2004 and the life of the mine is estimated at 25 years. A substantial amount of work has already been done and the company is racing along with operations a couple of months ahead of schedule. We are optimistic that the tankhouse will be commissioned by Q2 2007 and will run to full capacity from Q2 2008.
Key Data Estimates 2007 2008 2009 2010 EPS (US $) NA 0.49 0.27 0.39 PAT (In millions) -0.02 8.92 4.91 7.07 EPS Growth NA -45% 44% Operating Margin 55% 55% 45% 42% Net Margin NA 21% 13% 13% PE (Justified) NA 9.23 16.77 11.64 Dividend Rate Nil Nil Nil Nil Dividend Yield Nil Nil Nil Nil L T Debt/Equity 0.33 0.33 0.33 0.33 EV/EBITDA (times) 15.53 4.09 5.58 4.28 Fair Value/ Share ($) 4.49 Price Target ($) 5.02 Firm Value US $ (mn) 93.97 FCFF ($ in Millions) -2 -13 -14.30 15.63 CoE 14% 14% 14% 14% Earnings Forecast 2007 2008 2009 2010 Revenues (Mn $) 11 41.8 37.4 52.8 Revenue growth 280% -11% 41% Growth in unit sales 280% 5% 50% 4-year Revenue growth (CAGR) 56%
CVI Price at posting:
1.6¢ Sentiment: None Disclosure: Not Held
