Metal Australia

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

DALE MILLS

-------------------------------------------------

-------------------------------------------------

88807153

-------------------------------------------------

-------------------------------------------------

CORPORATE REPORTING

-------------------------------------------------

(FIN2FIN)

-------------------------------------------------

-------------------------------------------------

METALS AUSTRALIA LIMITED (MLS)

-------------------------------------------------

-------------------------------------------------

SEMESTER 1, 2008

-------------------------------------------------

LECTURER: LIZ DUNCAN

-------------------------------------------------

DUE DATE: 08/05/2008

-------------------------------------------------

Number of words 1500

-------------------------------------------------

-------------------------------------------------

Table of Contents

OVERVIEW OF METALS AUSTRALIA (MLS) 3

METALS AUSTRALIA LIMITED DAILY HIGH SHARE PRICES FROM 3/10/2008 – 14/4/2008 4

MARKET CAPITALISATION 5

DIFFERENCE BETWEEN SHARE PRICE AND SHARE VALUATION 6

METALS AUSTRALIA DIVIDEND POLICY 7

DEFINING PRICE EARNINGS RATIO 8

METALS AUSTRALIA CAPITAL STRUCTURE 9

VALUATION OF METALS AUSTRALIA USING A NON CONSTANT DIVIDEND GROWTH MODEL 11

REFERENCES 13

OVERVIEW OF METALS AUSTRALIA (MLS)

Metals Australia Ltd is essentially an Australian - based mining company listed on the Australian Securities Exchange under the symbols “MLS”. Metals Australia principal activities are the exploration of mineral deposits and investment. The company’s is currently focusing on zinc and nickel exploration in Western Australia. However, the company is in the preliminary stages of uranium exploration of Namibia. This area has shown...