Company updates
Company reporting galore as Ausdrill exceeds cashflow expectations, CML and Dicker Data both post solid results, Kinross 2041 bond added to our DirectBond list, PMP reports it is in a near debt free position, Sunland bonds offering good value on the back of its results and Qantas FY16 profits up 57% from the previous year
Company updates
Ausdrill has released its FY16 result, with revenues up by 3.3% to $743.9m. The integrated mining and energy services group achieved a significant turnaround in earnings, delivering a profit from continuing operations of $20.2m (up 112.8%). Its reported net profit after tax of $58.2m includes $35.7m profit from the sale of non core businesses
Opinion
The latest data from China shows its investment cycle has collapsed. Return on equity has declined to under 6%, debt has risen rapidly as has non bank shadow lending. Resource companies will find it increasingly difficult to generate satisfactory returns and now is a good time to sell out of the equities and buy the bonds
Company updates
CML Group launched a new issue while its existing floating rate note became available to retail investors, Impact Homes’ expects to at least meet its FY16 forecasts, NextDC confirms development of two new sites and Mackay Sugar forecasts a return to profit in FY17
Company updates
Ausdrill will use the proceeds of the sale of its drilling business to pay down debt
Company updates
Through solid operational cashflow generation of $117.9m and restrictions on capital expenditure, Ausdrill has been able to make secured debt repayments of ~$100m over FY15 in a challenging mining services market. The large reduction in secured debt improves the expected recovery position on Ausdrill’s unsecured bonds
Company updates
After a spate of earnings downgrades, do Ausdrill’s two recent contract wins suggest the company is turning things around?
Company updates
The company will provide open pit mining services to Perseus Mining at one of its mines (Edikan) in Ghana
Company updates
For an investor with a high risk/reward appetite, and willing to bank on a mining sector recovery pre 2020, Ausdrill may provide a speculative buying opportunity with the very high yield on offer
Company research
Ausdrill Limited (Ausdrill) is a leading provider of mining services in Australian and African mines. It is one of the largest listed mining services companies on the Australian Securities Exchange