CSM consolidated minerals limited

new growth exploration blue sky

  1. 301 Posts.
    CSM share price is supported by low pe for a well managed company with several years of high growth and high yield based on Board policy of payouts to benefit shareholders.

    Expect good half year profit based on selling price increases this will be followed by higher profit from increased production which comes on stream from this month.

    As the share price is conservative on pe and yield there is nothing built in for exploration success (from several Nickel prospects) and a new arm to the business model once there is evidence of exploration success.

    I raise this as it is different to how the market prices and puts a market cap on many purely exploration companies that have no earnings and little cash. Usually the inevitable need for additional cash is satisfied by a new issue diluting existing shareholders. Still the market ascribes a very high market cap to such companies.
 
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