MCR 0.00% 65.0¢ mincor resources nl

MCR Mincor earnings soar

  1. 25,374 Posts.
    lightbulb Created with Sketch. 2
    I will likely sell on the announcement due this week, 30.5 may well become support to get back on retrace.
    john



    sourced by Bigfoot @Ozestock





    Mincor earnings soar
    Date 3/9/2002
    Author Michael Weir
    Source The West Australian -- Page: 33.
    Western Australian-based junior miner, Mincor Resources, has released its latest profit results. After booking a $A2m profit for the year to 30 June 2001, 12 months later it has recorded a net profit of $A9.3 on revenue of $A63.5m, a 288% rise over the previous year. Its pre-tax profit was up from $A4.1m to $A15.2m. Mincor purchased the Miitel nickel mine from WMC for $A38m in early 2001, but its debt, which reached its highest point of $A32m in December 2001, was down to $A22m at the end of June 2002, and has fallen still further to $A10.9m in the two months since. Macquarie analyst, Ian Prentice, says the profit result was lower than expected, but he expects the next full-year profit to be double the latest result.


    Macquarie Financial Services
    Mincor Resources NL
    2 September 2002
    www.macquarie.com.au
    Stock: MCR
    Price: $0.28
    Market Capitalisation: $54 million (fully diluted)
    Current Valuation/Price Target: NPV $0.41 per share, 12 month share price target $0.40
    Recommendation: S/T Outperform, L/T Outperform
    Risk Factor: High
    Event: Net profit of $9.3 million reported for FY02
    Details:
    • The net profit of $9.3 million was lower than the forecast $12.5 million due to higher than predicted
    depreciation/amortisation charges and royalty payments.
    • This result was based on a full years output from Miitel and about eight months output from Wannaway, with
    revenue of $64 million (8,635t of Ni in concentrate) delivering EBIT of $17 million.
    • Net debt as at 30 June was $5.3 million ($16.9 million cash and $22.2 million debt), however accelerated
    debt repayment since balance date has seen the debt position reduced to $10.9 million, with net debt now
    reportedly close to zero.
    Impact:
    • This result comes despite lower than budget output in the March quarter plus a protracted production ramp
    up at Wannaway in the December quarter. With both operations performing well (and a forecast increasing Ni
    price) it is expected that the 2003 profit will be double that of the past year placing Mincor on a PE of 2.4x.
    • The cash generating ability of the project is highlighted by the accelerated debt reduction, with a high
    probability that Mincor will be debt free at the end of the current financial year. This should enable Mincor
    to begin making modest dividend payments in the 2004 financial year.
    • Mincor is now in a position to aggressively pursue exploration of the project area and has stated that it
    intends to be drilling continuously throughout the current financial year, with initial targets being Miitel North
    and a conceptual third lens target at Wannaway.
    • The S/T and L/T outperform recommendation is reiterated with positive exploration results (plus a potential
    ore reserve increase) expected later this week.
    Ian Prentice
    (08) 9224 0701

    Sorry about the pdf text grab layout below

    Posted on the MCR website
    Macquarie Financial Services
    MFS Research
    SHARE DATA EARNINGS STATEMENT
    Share Price Issued Shares 169.1m Year ending 30 June 2002A 2003E 2004E 2005E 2006E
    Share Price / NAV Market Cap. $47.3m
    Year End Net Cash $(1.9)m Sales revenue $m 63.7 87.7 92.5 91.8 64.4
    Major Shareholders Kumba International BV (34.8%) + Other revenue $m
    Recommendation S/T Outperform L/T Outperform Total Revenue $m 63.7 87.7 92.5 91.8 64.4
    - Operating costs $m 29.6 39.0 43.3 40.8 32.6
    RESERVES/RESOURCES - Royalties $m 3.5 4.4 4.6 4.6 3.2
    - Depreciation / amortisation $m 10.4 13.1 12.2 11.5 9.3
    Miitel Nickel JV 76% (as at 30 June 2001) - Exploration expensed $m 1.3 - - - -
    - Writeoffs $m - - - - -
    Miitel - Reserve 0.80Mt at 4.13% Ni (32,900t Ni) - Corporates / other $m 1.5 1.5 1.5 1.5 1.5
    - Resource 0.91Mt at 4.65% Ni (42,400t Ni) EBIT $m 17.3 29.7 30.8 33.4 17.8
    Wannaway - Reserve 0.49Mt at 3.03% Ni (15,000t Ni) Net interest $m (2.2) (1.2) (0.4) - -
    - Resource 0.52Mt at 3.39% Ni (17,700t Ni) Earnings Before Tax $m 15.2 28.5 30.4 33.4 17.8
    Redross - Reserve 0.48Mt at 3.19% Ni (15,400t Ni) Abnormal items $m
    - Resource 0.35Mt at 5.01% Ni (17,300t Ni) Tax expense $m (5.9) (8.5) (9.1) (10.0) (5.3)
    Minorities $m 0.0
    Mariners - Resource 0.20Mt at 3.84% Ni (7,800t Ni) NET PROFIT $m 9.3 19.9 21.3 23.4 12.5
    PRODUCTION CASHFLOW STATEMENT
    Year ending 30 June 2002A 2003E 2004E 2005E 2006E Year ending 30 June 2002A 2003E 2004E 2005E 2006E
    Miitel Nickel JV 76%
    Production Operating surplus / (deficit) $m 28.0 42.8 43.1 44.9 27.1
    Ni in concentrate 000 t 8.63 10.90 10.17 9.62 7.84 Forward sales $m
    Cu in concentrate 000 t 0.85 1.10 1.28 1.20 0.92 Interest received $m 0.5 - - - -
    Co in concentrate 000 t 0.17 0.22 0.25 0.24 0.18 Interest paid $m (2.3) (1.2) (0.4) - -
    Taxes paid $m (0.0) (4.3) (8.8) (9.6) (7.7)
    Costs Other $m
    post credits US$/lb 1.72 1.96 2.48 2.53 2.47 Operating Cash Flows $m 26.2 37.3 33.8 35.3 19.4
    Cash Costs US$/lb 1.72 1.96 2.48 2.53 2.47 Capital expenditure $m (14.9) (9.9) (3.3) (4.1) (4.6)
    Sustaining Cash Flows $m (14.9) (9.9) (3.3) (4.1) (4.6)
    Depreciation & amortisation US$/lb 0.29 0.32 0.34 0.34 0.34
    Total Costs US$/lb 2.00 2.27 2.82 2.88 2.81 Exploration expenditure $m (1.5) (2.0) (2.0) (2.0) (2.0)
    Purchase of investments $m
    Realised Ni price US$/lb 2.72 3.50 4.15 4.00 3.38 Sale of investments/PP&E $m
    Gross Margin US$/lb 0.71 1.23 1.33 1.12 0.57 Discretionary Cash Flows $m (1.5) (2.0) (2.0) (2.0) (2.0)
    Drawdown of debt $m 7.4 - - - -
    ASSET VALUATION Repayment of debt $m (9.7) (14.8) (7.4) - -
    Proceeds from issue of shares $m - - - - -
    $m $/share Dividends paid $m - - (3.4) (3.4) (3.4)
    Miitel Nickel JV 76% 71.5 0.38 Financing Cash Flows $m (2.3) (14.8) (10.8) (3.4) (3.4)
    Exploration 7.2 0.04
    Cash 9.0 0.05 Net Cash Flow $m 7.4 10.6 17.8 25.8 9.4
    Debt (10.9) (0.06) Opening cash balance $m 9.5 16.9 27.5 45.3 71.2
    NET ASSET VALUE (fully dil.) 76.8 $0.41 FX gain/(loss) $m - - - - -
    Closing Cash Balance $m 16.9 27.5 45.3 71.2 80.6
    ASSUMPTIONS Closing debt balance $m 22.2 7.4 - - -
    Closing Cash Net of Debt $m (5.3) 20.1 45.3 71.2 80.6
    Year ending 30 June 2002A 2003E 2004E 2005E 2006E
    US nickel price $/lb 2.72 3.50 4.15 4.00 3.38 BALANCE SHEET
    US copper price $/lb 0.69 0.76 0.94 0.91 0.90
    US cobalt price $/lb 8.6 6.95 7.00 7.00 6.51 Year ending 30 June 2002A 2003E 2004E 2005E 2006E
    Exchange rate US$ 0.52 0.58 0.62 0.63 0.63
    $m 16.9 27.5 45.3 71.2 80.6
    Fixed assets $m 29.3 39.1 42.4 46.5 51.1
    SHARE PRICE CHART Other assets $m 25.8 20.0 20.0 20.0 20.0
    Total Assets $m 71.9 86.7 107.7 137.6 151.7
    Borrowings $m 22.2 7.4 - - -
    Other liabilities $m 24.9 30.0 30.0 30.0 30.0
    Total Liabilities $m 47.1 37.4 30.0 30.0 30.0
    Shareholders' Equity $m 24.8 49.3 77.7 107.6 121.7
    EPS (cps) cps 5.5 11.8 12.6 13.8 7.4
    PE (x) x 5.1 2.4 2.2 2.0 3.8
    Operating CFPS (cps) cps 15.5 22.1 20.0 20.9 11.5
    Operating CFR (x) x 1.8 1.3 1.4 1.3 2.4
    Sustaining CFPS (cps) cps 6.7 16.2 18.1 18.4 8.7
    Sustaining CFR (x) x 4.2 1.7 1.5 1.5 3.2
    Dividend (cps) cps - - 2.0 2.0 2.0
    Yield (%) % - - 7.1 7.1 7.1
    June
    $0.28
    0.69
 
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