Jump to content

ESS - ESSENTIAL METALS LIMITED


ShareCafe

Recommended Posts

  • 2 weeks later...
  • Replies 43
  • Created
  • Last Reply

Top Posters In This Topic

IMO an EXCELLENT announcement yesterday.

 

Why?

- ESS indicated automation would be a primary growth driver for the business going forward

- Automation revenue in last FY was approx 2 mil from memory

- this announcement says that essa has secured a 7 mil automation contract (subject to pre-acceptance testing)

- ESS have indicated in the past that automation is a higher margin part of their business

- to me this seems like excellent delivery on a key growth strategy.

- Revenue for last FY was 23mil

- Before this announcement revenue is indicated to be up 35% this FY

 

I'm thinking about buying some more at these levels....a nice little growth story going on here, surprised the SP only increased by 5%.

 

 

 

The announcement...

 

The Directors of Essa Australia Limited (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“EssaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ or the ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ) are pleased to report that the Company

has made favourable progress regarding two of its strategic business development initiatives.

Essa previously stated with the release of its 2006 financial results that it intended to target and pursue

growth opportunities in a number of key areas including:

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ further geographic expansion in growth markets overseas, especially Russia; and

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ growth in laboratory automation equipment, a new developing market with favourable long term

industry trends.

Essa is now pleased to announce that, through its Russia distributor, the Company has been awarded a A$1

million order to supply a complete sample preparation system to a gold mining customer in east Russia. This

order is indicative of both the potential of EssaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s products in the Russian resources sector and also the

acceptance of these products in such a rugged environment.

Ongoing sales are expected, with Essa offering continued support to its distributor and developing a suitable

supply chain in Russia for the CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s wear parts. Increasing EssaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s recurring revenue base in this

manner is also a stated growth objective of the Company.

In the key growth area of laboratory automation, Essa advises that it has secured the supply of a $7 million

laboratory automation system to a world leading laboratory group. The system is to be supplied during 2007

and is subject to pre-contract acceptance testing due for completion in May 2007.

This exciting development is the result of extensive design work over the last 12 months in conjunction with

EssaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s automation partner, FLS Automation of Denmark, to produce a versatile modular laboratory

automation system which can be offered to a broad spectrum of end users.

Link to comment
Share on other sites

  • 3 weeks later...

In reply to: stockpanther on Saturday 09/12/06 10:42pm

One month later and a good 7 months away from actually bagging any full year results, we are already ahead of your 60cps, with a close at 63.5cps (so much for having cashed in on the best part of the pricing discrepancy http://www.sharescene.com/html/emoticons/wink.gif ) .

 

I have taken profits on a few at 62.5cps, but already that looks like a mistake with such fragile sell depth.

Link to comment
Share on other sites

  • 4 weeks later...

First half result out at $1.55m NPAT ($1.85m EBIT) - well up on their Dec forecast of $1.5m EBIT. Currently trading at 65cps. If current performance continues for second half to take NPAT to $3m, ESS will be on a P/E of 9.5 again.

 

Not bad for a share with 48% growth in revenue, 114% growth in NPAT and a sound balance sheet.

Link to comment
Share on other sites

  • 1 month later...

In reply to: Lizard on Monday 05/02/07 10:01am

Hi Lizard

 

"Ten Bagger Quarterly" (out yesterday) gave ESS a great rap, valuing is share price at $1.10, a substantial premium to today's openining price of 62.5c.

 

Cheers

Link to comment
Share on other sites

  • 1 month later...

In reply to: monoply on Wednesday 18/04/07 07:20pm

Thanks Monoply. I just got back from holiday and the price was a pleasant surprise. Had been starting to think the "great resources vacuum cleaner" was back to hoovering up all the capital out there.... http://www.sharescene.com/html/emoticons/cool.gif

 

Link to comment
Share on other sites

  • 1 month later...

In reply to: monoply on Thursday 24/05/07 04:18pm

Nice little boost for the share price. Though I'm surprised at how much of a boost, since I would have been disappointed if they'd come in at less than $3m NPAT for the year...

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...