Looking at the SENS announcement on 6 November 2015, they stated EPS would be ZAR6.86 lower than 2014, making anticipated EPS for 2015 of +/-ZAR26.50? And this announcement was before the possible ZAR blunder in December. Would this mean then that the current PE is +/-1.1?
The market is discounting the current spot iron price. There production cost was $43 but this will have dropped as the Rand has lost 20℅ and they have shelved high cost production together with a slew of workers! Took a batch below R30 as I said I would.
By the way - KIO Never stated that her earnings would be R6.86 lower... She said "at least R6,86 lower..." since R6,86 meets the 20% profit warning threshold set by the JSE. She will probably make a fat loss. Her PE will probably turn negative - these are high rewards, high risk plays! You will find recent spot FE prices in numerous articles just- do a search - to get an up to date feed - you will need to subscribe to "Platts" or some something like it. http://www.mbironoreindex.com/Stub/30679/60-Fe-Iranian-Fines-Index.html
Thanks Threshold. Agreed on the high risk/reward, took a stab at some OTM warrants when KIO was trading in the mid-R20s. Done well so far, but will be interesting to see what results they publish on 9 Feb.
I bought this morning at 3550 only to see it drop a few % and then rebound very nicely. I picked up a big buy divergence on this when I was doing some research on this last night,including the monthly chart if I'm not mistaken, so I think it has still got legs.
Nice little run. IMO, if H1 2016 current iron ore price and exchange rate stay the same, H1 2016 results may top that of H1 2015 (based on the H1 2015 presentation, showing est. EBIT movement based on exchange rate and iron ore prices). Anyone have a different view?