Stavely Minerals Ord Shs T.SVY

Primary Symbol: STVMF

Metals & Mining Industrial Metals & Minerals

Stavely Minerals Limited is an Australia-based mineral exploration company. The Company is focused on the exploring for copper, gold and silver at the Stavely and Ararat Projects in western Victoria, and nickel, copper and cobalt at the Hawkstone Project in west Kimberley, in northern Western Australia. The Stavely Project, covering an area of approximately 1,000 square kilometers (km2) over the prospective Stavely Volcanic Belt in western Victoria, includes a 100% owned retention license RL2017, 100% owned exploration licenses EL6870, EL7347, EL7921, EL7922, EL7923 and EL7924 and the Black Range Joint Venture license EL5425. The Ararat Project comprises a retention license, RL2020, covering an area of approximately 26km2. The Ararat Project is located on part of the western margin of the Stawell-Bendigo Zone, which is part of the western Lachlan Fold Belt. Hawkstone Project covers an area of 1,100km2 over prospective stratigraphy in the west Kimberley, in northern Western Australia.

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Stavely Minerals Ord Shs > SVY, ESN, HNL

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Comment by Godfather1on Apr 26, 2013 4:11pm

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Post# 21307409

RE: RE: RE: RE: RE: RE: RE: RE: RE: SVY, ESN, HNL

This is what the BMO analyst had to say about SVY after the Q4 2012 results:

Savanna reported Q4/12 diluted EPS of $0.04, including a roughly $0.06 loss from an impairment charge. Excluding this, EPS of $0.10 matched our estimate but was below consensus of $0.14. On an operational level, results were still light as EBITDA of $27.5 million was short of our estimate of $33.8 million. Consolidated revenue of $168 million was actually slightly above our forecast of $162 million. Contract drilling revenue was $120 million versus our estimate of $122.8 million as fleet-wide utilization of 51% matched expectations. Service revenue of $48.8 million surpassed our forecast of $38.9 million as slightly lower hours were more than offset by higher-than-expected average revenue per hour. This miss was primarily due to shrinking margins, which were 24%, below our estimate of 30%. Increased repair and maintenance, as well as high retention costs in anticipation of a busy Q1/13 were key drivers of the poor margin performance. Lower taxes and depreciation provided an offset at the bottom line.

We view SVY shares to be reasonably valued at current levels of 5.4x 2013E EBITDA. The company continues to make inroads in its international expansion plans and has done an admirable job of upgrading its rig fleet. That said, our expectation is that a stagnant North American rig count and an absence of positive catalysts will limit valuation expansion over the near term.