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Gold/Mining/Energy : Inmet Mining.$$$$$$$$$$$ -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (39)	7/26/2003 11:04:26 AM
From: Stephen O	Read Replies (1) \| Respond to of 42

INMET MINING (IMN : TSX : C$7.45) - BUY - 12-MONTH TARGET PRICE: C$9.00 Greg Barnes Comment: Inmet reports second quarter results Inmet Mining reported earnings of C$0.11/share for Q2/03 compared to earnings of C$0.02/share in Q2/02. With the weakening US dollar, included in Q2/03 results is C$2.0 million (or C$0.05/share) in foreign exchange gains from US dollar denominated debt. Excluding this gain, earnings came in at C$0.06/share, right in line with CCC estimates and slightly higher than consensus estimates of C$0.05/share. Compared to the same quarter one year ago, earnings were higher because of higher sales volumes at Pyhasalmi, lower operating costs at Troilus and a higher gold price. Compared to the second quarter last year, Inmet had a lower realized zinc and copper price in Q2/03. While Inmet was able to benefit from the weaker US dollar in its US dollar denominated debt – all of its operations had a negative impact on earnings from the weaker US dollar. Estimates for 2003 and 2004 adjusted lower reflecting our estimates of slightly higher costs in our model for Cayeli and Troilus. 2003 EPS has been lowered to C$0.39 from C$0.57, CFPS estimate for 2003 declines slightly to C$1.67 from C$1.74. Our target price has increased to C$9.00 from C$8.25 based upon our NAV and a 4 times multiple to 2004 CFPS; BUY recommendation maintained.