CST 7.23% 7.7¢ castile resources ltd

Howdy FG, you could be fairly close, shame we have to resort to...

  1. 987 Posts.
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    Howdy FG,
    you could be fairly close, shame we have to resort to just guessing with no real guidance given.

    Lets say your guess of $9.1 million EBIT(revenue about $35million?)is reasonably accurate that would mean the second half comes in at $6.3million. Annualise that to get a fairly current earning rate and that's $12.6 million or an EPS of 13c and a present (not hysterical) PE of 23 assuming little tax is payable.

    Just for fun let's then assume a rather modest 70% increase in revenue 09/10 to $60 million at which stage economies of scale should kick in quite strongly and 30% of revenue drops to the bottom line as NPAT.
    That's say $18 million after paying a fair slice of tax, an EPS of 18.5c and PE of 16 on the present shareprice.

    That should give a rather nice fully franked dividend?

    regards, EB
 
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