CII – CI Resources | Aussie Stock Forums

Thanks Bushman for the CII thread.

I have been buying CII mainly for 3 reasons;

– They are a Phosphate Producer.

– They are actively looking for further Phosphate opportunties.

– They have a 38% interest in Phosphate Resources who produce 700,000tpa. Last half they had revenue of $37M, resulting in a nett profit of $2.9M.

My rough workings for this year are:

700,000t P2O5 * $350t = $245,000,000

Costs $36M*2*15% = $ 83,,000,000

Gross $162,000,000

Tax @ 40% $ 72,000,000

NETT $ 90,000,000 *38% = $34,000,000 for CII

Now with 73M shares that equates to 46.5 eps.

Please note this is very rough and I would be happy to have input as I keep shaking my head thinking I have done something wrong. I also allowed an extra 15% in the costs over last years.

I have emailed the company to try and find out if sales are at a contracted price or spot, but I have not had a reply yet.

Also the mine life is 5-7 years and it looks like this will not be extended, but they are appealing it.

It is tightly held with the top 20 holding 84% at Dec 2007.

I am interested to hear other comments as this ones seems to have fallen under the radar to some extent.:D

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