The reason I like this stock is because of the amount of money they'll be earning from March, 2004 after they've commissioned Stage11 at Dikulushi.The calculations are-
Stage11 based on 250k tonnes/pa throughput-$Amil REVENUE: 19k tonnes Cu @US$1770 @ 0.66ER 50.95 1.9mil ozs AU @ US$5.00 @ 0.66ER 14.40 TOTAL REVENUE 65.35 Cash costs @ US$0.40/lb @ 0.66ER 26.18 Net smelter royalty @ 6.25% on Cu receipts 3.18 Interest 9% on $A15mil 1.35 Deprec & amort $A25mil over 6yrs 4.17 Head Office costs 2.45 TOTAL COSTS 37.33 Net Profit before tax & minorities 28.02 Less: 10% minorities(before HO costs) 3.02 Net Profit/pa(with no tax to pay) 25.00
They'll also be treating 100k tpa lower grade material that'll earn them at least another $5mil/pa.