Analysts are still far apart on MIM's bottom line potential, predicting earnings of between A$103.6 million and A$180 million for the 1999/00 year, although most agree the catalyst is rising world copper prices.

Wilson HTM now expects profits of A$120 million, up from $90 million, Hartley Poynton A$102 million, previously A$99 million, while Macquarie Equities has forecast A$133 million.

Merrill Lynch sees a profit of A$148 million, BNP has estimated earnings at A$161 million, while Salomon Smith Barney is the most optimistic and has pegged profits at A$180 million, using a copper price of US$0.90 a pound.

Having fallen to a low of $0.61 a pound in mid-March, copper now fetches around $0.79 a pound. The upbeat reassessment follows better-than-expected cost reductions in the core copper, lead and zincoperations at Mount Isa in northwestern Queensland, and recapitalisation of the Mount Isa copper complex.

Copper output at Mount Isa is scheduled to nearly double to 250,000 tonnes by the end of next year. Unit cash production costs for copper cathode have fallen to $0.45 a pound from $0.70 three years ago.

MIM reported a net loss of A$50.1 million for the the year to June 1999 after posting A$80 million in profits the previous year. The 1998/99 result included a A$12 million abnormal loss.

MIM chief executive Nick Stump recently told analysts in New York that a "back-to-basics approach" in mid-1995 focussing on mining and targeting the core commodities copper, gold zinc, lead, silver and coal led to the disposal of nearly A$1.9 billion in non-core assets.

The proceeds - from the disposal of interests in Asarco in the United States, Nordeutche Affiniere in Germany, Cominco in Canada and Highlands Gold in Papua New Guinea - were redirected to more capital efficient brownfield expansions and developmentof new long-life, low cost projects, Stump said.

A key new asset was the Alumbrera copper and gold mine in Argentina, a low cost operation 50 percent owned by MIM. Peter Mangano from Salomon Smith Barney said MIM's share price could rise to A$2 within six months as demand for copper picks up in Asia, Europe and remains steady in the United States.That is nearly a third higher than MIM's peak so far this year of A$1.57 and compares with the A$1.33 share price on Friday afternoon. Macquarie Equities analyst Neil Watson rates MIM as an "out-perform" stock.

"The cash costs for copper are down and they are finally getting the operations to work to potential," Watson said. Brian Sheahan of Morgan Stockbroking said he will revise his profit forecast up from A$99.9 million."MIM is keeping operations simple and standardised and this will flow through in terms of improved recoveries and higher production," he said.

Wilson HTM analyst Corey Nolan is forecasting Mt Isa copper EBIT to exceed A$100 million within 12months, up from a loss of A$34 million in 1998/99.Another analyst differed with his colleagues, saying he has revised his profit forecast to A$126 million down from A$132 million following the four month delay in production at Queensland's Oaky North coking coal mine, due to problems with deteriorating floor and roof conditions. He said the delay would bring cut production at the underground mine by up to 500,000 tonnes from an expected seven million tonnes.

"That's a big wallop. It's hard to replace that in our earnings even with the upgrades that have occurred." MIM said effects of the delay will be cushioned by drawing on stockpiles and increasing the yield from its other collieries.