strengthening again, page-7

re: research report BlackOil, thanks for that - great report. Strong cash flow, PE expected for 2004 of 9, headed to PE of 4 in 2005. 27c base valuation (currently 23.5c) using very low average nickel price $US 12,500 per tonne. Lots of room for re-rating of AUZ imho. Do I hold - you bet!

To quote: -

"Intersuisse’s current base valuation of AusMines of $0.27 assumes realised average nickel prices well below the current market level and only incorporates modest values for the company’s other assets – its prospective tenement position at Blair, and its large West Musgrave exploration interests.

Year to 30 June 2003 A 2004 E 2005E 2006 E
Revenue1, $m 0.1 12.7 30.8 32.1
EBITDA2 ($m) (0.3) 6.1 15.3 15.7
Reported Profit ($m) (0.7) 4.6 10.7 7.0
Earnings per share (¢) (0.6) 2.6 5.7 3.8
Price/Earnings Ratio n/a 9.2 4.2 6.3

AusMines has cash of about $2 million, (about $0.02 per share) with the prospect of strong cash flow
occurring from Q2 2004. Unlike long lead times for greenfields exploration projects and projects
without existing underground access.AusMines is set to capitalise fully on the current and expected strong nickel price, currently around $US 17,000 /tonne."