still broker confidence

Hi all,

Yesterday BBY came again with an update on FMS company research.
Good to see they still believe in the potential of FMS.

Highlights:
-target price unchanged at 0,15 A$ , NPV 0,21 A$.
-limited sp downside and FMS is one of the most leveraged stocks in the market to a possible rail and port deal.
-Calculations referred to IOH selling 106 Mt to RIO in 2011 for 0,30 A$/t and a 2% FOB revenue royalty. FMS has 273 Mt reserve, worth A$82M analogue to IOH . Royalty would be worth more or less A$200M.
If one would take the whole reserve of 917 Mt, it would generate a value of A$275M or A$0,15/sh.
-low start up costs; 5mtpa demanding Capex A$325M. Cash opex A$21/t FOB.
-second stage 15 mtpa would demand A$800M additional Capex
-Infrastructure deal more likely due to latest developments; would be huge positive for FMS.

Let's hope on a breakthrough coming weeks/months !
I prefer an infra structure deal and development to operator, giving the most potential for us.