target $7.75, page-26

half year report disappointing here is summary of half year report:

Net Profit of $52,899,000 for the half year, a record for Excel Coal and an increase of
116% over the prior corresponding period;
• Fully franked interim dividend of 13 cents per share to be paid in March;
• Coal sales tonnage up 26% and coal production up 12% compared to the prior
corresponding period;
•****** Further cost increase of some $30,000,000 for Millennium. Total over-run of
approximately $65,000,000*****;

• Good progress with Wambo open cut expansion, rail loadout and rail loop;
• Development of Wilpinjong underway, following Project Approval and Mining Lease;
• Net Profit guidance for FY 2006 revised to a range of $95,000,000 to $100,000,000. *** Only 43 mil profit for second half.

HUGE blowout in Millenium - cost from 95 mil to 160 mil -what are they doing ? God knows what Wilpinjong will cost at this rate. Sell down to low $7, market is still being generous at this stage in my opinion. PE predicted = 15 @ profit = 95 mil and eps = 48c, however since 150 mil profit was previously predicted, at this rate 95 mil looks overly optimistic. Lets hope Millenium can get up and running soon, but then there is port problems to worry about. Gearing is up to 33%.
Zen, no date for 13c div given as yet.