Australian (ASX) Stock Market Forum

PRN - Perenti Limited

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Maybe one to keep an eye on. Stock was in a very strong trend before getting carted over news. Looks to be trying to make a low now. Above 2 becomes appealing
 
Ausdrill announced this morning that it has recently secured mining services contracts totalling $171 million, including a three-year underground mining services contract at the Rosemont Gold Project from Regis Resources worth approximately $113 million. The share price has gapped up as a result and it now appears that $1.05 was the bottom for ASL. The uptrend that started a few weeks ago is unmistakable.

ASL is currently trading at $1.385, up 6.5% from Friday's close.

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Solid numbers for Ausdrill in their FY 2019 Financials announced today.

They exceeded market guidance by 5%. More than $3.4 billion in new work has been secured since 30 June 2018. Work in hand increased to $7.0 billion. Revenue, EBITDA and NPAT all up. Fully franked final dividend of 3.5 cents per share declared.

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ASL looking in much better shape now than it was 12 months ago. Solid growth in the last 12 months and a much leaner looking company. Plenty of optimism for FY 2020.

Share price has almost doubled in the last eight months. Not far off 12 month highs today after having taken a beating on declining volumes for the last month.

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greggles said:
Not far off 12 month highs today after having taken a beating on declining volumes for the last month.
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Down a bit today but Trading Volume increasing. The High of the HV bar on the 29th ($2.04) or just under looks to be the line in the sand at the moment …. Above=good Below=Not so good.

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On October 25th, 2019, Ausdrill Limited (ASL) changed its name and ASX code to Perenti Global Limited (PRN).
 
The Biggest fall today on ASX200 is Perenti Global

ASX announcement today
16/12/2019 9:27:51 AM Ghana Manganese Company Contract and Guidance Update (uploaded)

Diversified mining services company Perenti (previously known as Ausdrill), wishes to advise that Ghana Manganese Company (GMC) has terminated its equipment hire contract with African Mining Services (AMS) at its Nsuta manganese mine in Ghana.

The termination follows the temporary suspension of the contract that was announced to the market by Perenti on 2 December 2019.

The termination is not related to AMS performance, with GMC advising that the termination is due to the Ghanaian government directing GMC to cap its production at the mine and thanking AMS for the outstanding services AMS provided at Nsuta.

As a result, it has downgraded its underlying NPAT guidance from $140 million to between $115 million and $120 million.

Currently down 17%
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055
 

Attachments

  • PRN Ghana Manganese Company Contract and Guidance Update.pdf
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PRN published its result.
It is an outstanding one but market flogged.
NCM and EVN published results in booming gold - it was poor but market kissed them with a price hike.
I am terribly confused and can not go to pub being a normal work day.

 
Perenti delivers solid results in line with expectations
Key points
▪ Strong revenue of $1.2 billion supporting an underlying EBITDA of $201.8 million, an underlying EBIT(A) of $80.8 million and an underlying NPAT(A) of $34.9 million, all of which reflect growth on 2H22.
▪ Statutory NPAT(A) of $41.5 million, up $86.0 million from a statutory NPAT(A) loss of $44.5 million in the prior corresponding period.
▪ Our committed and determined ~9,000 strong workforce delivered results in line with expectations through proactive navigation of a challenging operating environment in respect of labour, supply chains and general cost pressures.
▪ Available liquidity of $539.7 million and net debt of $522.5 million with leverage of 1.3x.
▪ Updated Capital Management and Dividend Policies with an enhanced focus on liquidity.
▪ Liberated $85.4 million of cash through the divestment of MinAnalytical, noncore property, and noncore corporate equity holdings.
▪ Strong cash conversion of 94%.
▪ Subsequent to the end of the period, idoba announced a Memorandum of Understanding between the Sumitomo Corporation and finalised the acquisition of two additional and complementary businesses.
▪ Work in hand remains strong at $5.7 billion including $1.4 billion of extensions and our $9.5 billion pipeline is geared towards high-margin underground opportunities.
▪ Perenti has confirmed its FY22 EBIT(A) guidance and increased expected revenue range, notwithstanding that labour constraints and supply pressures are expected to persist through FY22.
▪ Perenti will continue to progress several initiatives to achieve target leverage of <1.0x in the medium term and will provide further context during the strategy refresh in 2H22.

sounds rather terse?!
 
Dona Ferentes said:
Perenti delivers solid results in line with expectations
Key points
▪ Strong revenue of $1.2 billion supporting an underlying EBITDA of $201.8 million, an underlying EBIT(A) of $80.8 million and an underlying NPAT(A) of $34.9 million, all of which reflect growth on 2H22.
▪ Statutory NPAT(A) of $41.5 million, up $86.0 million from a statutory NPAT(A) loss of $44.5 million in the prior corresponding period.
▪ Our committed and determined ~9,000 strong workforce delivered results in line with expectations through proactive navigation of a challenging operating environment in respect of labour, supply chains and general cost pressures.
▪ Available liquidity of $539.7 million and net debt of $522.5 million with leverage of 1.3x.
▪ Updated Capital Management and Dividend Policies with an enhanced focus on liquidity.
▪ Liberated $85.4 million of cash through the divestment of MinAnalytical, noncore property, and noncore corporate equity holdings.
▪ Strong cash conversion of 94%.
▪ Subsequent to the end of the period, idoba announced a Memorandum of Understanding between the Sumitomo Corporation and finalised the acquisition of two additional and complementary businesses.
▪ Work in hand remains strong at $5.7 billion including $1.4 billion of extensions and our $9.5 billion pipeline is geared towards high-margin underground opportunities.
▪ Perenti has confirmed its FY22 EBIT(A) guidance and increased expected revenue range, notwithstanding that labour constraints and supply pressures are expected to persist through FY22.
▪ Perenti will continue to progress several initiatives to achieve target leverage of <1.0x in the medium term and will provide further context during the strategy refresh in 2H22.

sounds rather terse?!
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I can't remember when this changed over from Ausdrill, but I think it was around $1.70 at the time?? Half year headlines look good but when you step back and think about it - Perenti (and all engineering/mining service providers) tend to be a dog investment over the long-term. They are great at growing revenues and terrible at growing the share price. They also don't really get upside from resources going up other than more contracts at similar margins (which requires more capex)

All the operating cashflow they make just gets turned in to capital spending. It's a never ending cycle. At least the debt owners make some good coin.

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Now trading at $0.69, looking a bit underbaked ($2.60 in 2018). Market cap now $490 million.

During FY22, Perenti portfolio management and rationalisation activities have generated a total of $134.7 million, excluding transaction costs and have included the divestment of the following non core assets:
  • MinAnalytical for $43.6 million
  • Non core property assets for $32.1 million
  • Historical corporate positions arising from drill for equity activities for $10.1 million
  • Chrysos equity position for $46.3 million
  • Well Control Solution for $2.6 million
 
Testing out a thesis i have. If there is a gold rush, which would you rather be?
digging for it or supplying the shovels....
Trading both of them but primarily PRN.
 

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  • NRW 2023-01-17 .png
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bk1 said:
Testing out a thesis i have. If there is a gold rush, which would you rather be?
digging for it or supplying the shovels....
Trading both of them but primarily PRN.
Click to expand...
Digging for it 100 times out of 100 myself.

Supplying the shovels is very capital intensive, and those supplying them have to continually buy new shovels, fight off other shovel suppliers for the right to keep suppling shovels, and they are at the front line of inflation, wage increases, and material increases. If gold goes up 1,000% then someone like Newcrest should get around 1,000% increase in revenue for almost no additional cost, their margin goes up = Good! The likes of a Perenti can only increase their revenue by increasing activity - likely at the same margin - and that increasing of activity is dependent on others. Then, when activity drops, they're left with assets which cannot be used to generate revenue.

These service/engineering/contracting providers I think of as a hedge (a hedge I don't want).
 
Two miners are missing after an incident at an underground zinc mine near Mt Isa in north-west Queensland.

Listed company Perenti – the parent company of Barminco – issued a statement to the ASX to confirm the incident involving their workers at MMG’s Dugald River mine at Cloncurry.
 
Dona Ferentes said:
Two miners are missing after an incident at an underground zinc mine near Mt Isa in north-west Queensland.

Listed company Perenti – the parent company of Barminco – issued a statement to the ASX to confirm the incident involving their workers at MMG’s Dugald River mine at Cloncurry.
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Oh. NO.
As a miner how fully emphasise how sad it is for the families.
 
Good morning
PRN announcement concerning this mining tragedy and local media release.

Bloody awful incident.

THEY NEVER GOT TO GO BACK HOME

Samantha Scott, Shayla Bulloch, Madura McCormack, Kate Kyriacou, Jesse Kuch AND - Isabella Holland

DYLAN Langridge and Trevor Davis, the two miners missing since Wednesday at a mine near Cloncurry, have been confirmed dead.
Rescue crews on Thursday found the vehicle that the two missing men were driving when they fell into a void at a mine site 70km northwest Cloncurry.
It is understood a drilling rig fell about 25m down a stope void at the underground Dugald River mine, with the operator able to escape the rig, but two workers in a vehicle behind the drill fell as the ground gave way about 8am on Wednesday.
The tragic news was confirmed by Barminco Managing Director & CEO of Perenti Mark Norwell who said, “This is a devastatingoutcome and I want to extend my deepest sympathies and condolences to the families, friends, colleagues and loved ones of Trevor and Dylan, both of whom should have come home safely from work yesterday.”
Mr Norwell said “our immediate and ongoing focus is on providing support to the families, friends and colleagues of Trevor and Dylan.”
“Barminco has been operating at MMG’s Dugald River mine since early 2012 with members of our workforce residing in the local area. This tragic incident is devastating and will have a lasting impact on not only the families and friends of Trevor and Dylan but also on the workforce of Dugald River, the Cloncurry and Mount Isa communities and the entire Perenti workforce.
“The safety of our employees is an absolute priority for Perenti, as it is for the industry more broadly. I am devastated that the families and friends of our two workmates have lost their loved ones. This outcome is simply not acceptable.
“In collaboration with MMG and the relevant authorities in Queensland, we will work to understand the circumstances behind this tragic incident and what additional measures need to be put in place to prevent this type of incident happening again.
“We would like to thank everyone who worked tirelessly under very challenging conditions in the recovery of Trevor and Dylan.
“The rescue operation has now sadly completed. Our primary focus is that of support for the families and colleagues of Trevor and Dylan and in parallel completing a comprehensive investigation.”
Dylan Langridge was 33 years old and joined Barminco in March 2020 as a truck operator at Savannah before joining the service crew at Dugald River later that year.
Dylan continued to progress his career at Dugald River and in October 2021 took up the role of charge up operator.
Trevor Davis was 36 years old and joined Barminco in August 2020 as a shotcrete operator at Rosemont, before transferring to Dugald River as a charge up operator in November 2021.

Kind regards
rcw1
 

Attachments

  • Tragic-outcome-in-search-for-missing-miners-at-Dugald-River.PDF
    252.7 KB · Views: 3
It's been a while since we saw a posting on PRN. So something known to all, I am sharing on this post.
The acquisition of DDH1 is a great deal.
Plus the recent announcements

No dividend in 22 and 23 ?
A sad incident not long ago

A director bought a small sum

sweetener

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