OZL 2.68% $9.97 oz minerals limited

potential profits for 2010

  1. 2,900 Posts.
    lightbulb Created with Sketch. 171
    Based on OZ minerals latest presentation for 2010 and based on the following assumptions (inputs):-

    -average copper price of $3.35/lb
    -US/AUS 0.89cents
    - 100 -110 KT/pa of copper (Take 105000 Tonnes)
    -C1 Costs of 0.85 - 0.95cents/lb (take 0.90c/lb)(for 2010 ONLY)
    -corporate costs of $47million
    -exploration costs of $20M
    - Other costs of $23M
    - Depreciation/amortisation (assuming 9 year life)=$115 M p.a
    - 3150 Million shares
    -Assume neutral currency movements (zero nett effects)


    Revenue = $869 M
    Operating Surplus (R - C1)= $636 M

    Profit before depreciation and tax = $636M - 47M-20M-23M = ======$546 M


    Nett Profit (after tax and depr) = ($546 M - 115) x 70%

    Nett Profit = $301 Million


    EPS = 9.6 cents per share (using 15.9 as P/E average) would conservativley give a SP of $1.52.

    However if you consider the free cash flow for next year only. Oz minerals will produce a free cash flow of $546 million, as deprec. is a non cash deduction and there is no tax for next year (due to recurring losses).

    This will enable OZ minerals to provide a dividend of about 2.5-3 cents per share for the second half of 2010. (using 45% Payout ratio. IF it chooses to, however I would prefer them to use the cash to grow the company organically.



 
watchlist Created with Sketch. Add OZL (ASX) to my watchlist
(20min delay)
Last
$9.97
Change
0.260(2.68%)
Mkt cap ! $3.232B
Open High Low Value Volume
$9.87 $10.05 $9.85 $26.37M 2.642M

Buyers (Bids)

No. Vol. Price($)
1 1821 $9.95
 

Sellers (Offers)

Price($) Vol. No.
$9.97 13976 3
View Market Depth
Last trade - 16.10pm 03/06/2020 (20 minute delay) ?
(live)
Last
$9.99
  Change
0.260 ( 2.73 %)
Open High Low Volume
$9.87 $10.05 $9.87 301886
Last updated 15.59pm 03/06/2020 (live) ?
OZL (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.