MLD: MACA Limited11 July 2011
Mining services company who's services include contract mining, loading and hauling, drilling and blasting, crushing and screening, and civil infrastructure requirements. Many of these services appear to be operation types, and as such contacts tend to be longer than construction based mining services companies. In fact, the average term of a project is currently approaching 4 years.
Listed in November 2010 at $1.00 and has been upward ever since. $33m of the $60m raised went to the balance sheet to fund their increasing growth over the last few of years.
High return on equity (~30%), manageable interest-bearing debt ($44.6m) and zero net debt, a very enviable cashflow statement. Has been winning new contacts and beating expectations.
What stands out is their order book. Due to the long term nature of the contracts, it stretches all the way out to 2020. Not only does the order book for FY12 ($255m) already exceeds FY11 ($248m), but FY13 and 14 both stand at $200m+. Any new contacts should secure profit growth over the next few years, provided margins are maintained.
I don't hold but it's on my watchlist.
FY11 NPAT Guidance: $27 - 30m (18c - 20c per share)
Number of shares outstanding: 150m
Current Price: $2.48