ANM 0.00% 5.5¢ advanced magnesium limited

overvalued???, page-2

  1. 86 Posts.
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    has anyone seen this????

    Leighton may be involved in AMC resurrection

    Australian construction giant Leighton Holdings said there was a 50-50
    chance the company would be involved in attempts to resurrect Australian
    Magnesium Corporation's (AMC) mothballed light metals project.

    The Stanwell plant in central Queensland was put on care and maintenance in
    June after AMC and Leighton failed to reach an agreement on a fixed
    construction cost.

    Leighton chief executive Wal King said on Sunday Leighton recognised the
    risks of the Stanwell plant, but had not ruled out future involvement in the
    project.

    "There will, I believe, be a revised business case established and it
    depends then on that business case and the possibility of getting a
    cornerstone investor to support the project," King told Channel Nine's
    Business Sunday.

    He said while Leighton was not currently involved "to any great extent" in
    Australian Magnesium's revised plans for the plant, he believed there was a
    50-50 chance it would be.

    In the meantime, King said Leighton had learnt from its mistakes in the past
    year and was aiming to produce at least a 20% return on shareholder funds.

    The company last week reported a 17% drop in its 2002/03 net profit to
    $140.01m, including $40m after tax write-off of Leighton's investment in
    Nextgen Networks.

    Nextgen, which went into receivership in June, was responsible for building
    Australia's third-biggest fibre optic cable network after Telstra and Optus.

    King said Leighton hoped to increase its focus on defence contracts and was
    eyeing off the Australian Submarine Corporation (ASC) as a possible entry
    into that market.

    "We have a great future in front of us," he said.

    "We believe that from time to time we'll make mistakes...but we believe
    going forward we can produce at least 20% return on shareholders funds," he
    said.

    18 August 2003
 
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