WMC

Last time we did a full review of WMC was back in issue 23 (Hold - $5.16). A lot of things have changed for WMC in the meantime, including metal prices, which on average are 30% higher now than they were a year ago. That means WMC was able to enjoy a very good 1999, and in the end saw net profit after tax for the calendar year jump 42% to $301m. That was even better than sales revenue, which was buoyed 22% to $2.09bn. WMC attributed its good fortune, not only to better prices, but also the completion of the heavy capital expenditure programs that had been carried out at Olympic Dam in SA and Phosphate Hill in Qld. This company knows how to buy straw hats in winter - it's now talking about an expansion of its gold operations at a time when gold still has a depressed feel about it. We're changing our recommendation to ACCUMULATE closer to $6.60.