trading on a pe of 4, page-3

Whilst I have no respect for the Macquarie resource analysts given they are usually wrong, based on their forecast, PEM's forward PE ratio is 10.



A very disappointed Macquarie Bank - long-time champion of the stock - has cut its FY08 earnings forecast by 63% and FY09 by 39%. The analysts now expect a $4m loss in the first half.

Macquarie also points out that there is a risk its current zinc price forecast is too high. The analysts are working off a second half average price of US$1.55t when spot is currently US$1.05t. Adjusting to spot would shave another 14cps off the second half EPS forecast. Adjusted full-year EPS currently is forecast at 21.1cps.