ASL delivered a strong interim result, highlighting growth opportunities in Underground, and increasing demand for equipment rental, parts and services. These segments offset a weaker performance from Surface Mining, endorsing the strategic rationale behind the Barminco acquisition. Attention to capital discipline, cash-flow, and appropriate returns on capital means a near-term focus will be on improving returns on current operations in the Surface Mining segment. FY19 NPAT guidance was reiterated, and the 2H19 run-rate provides an indication of what to expect in FY20. We have upgraded our numbers on the back of this result, our valuation climbs to $2.15 (prior $2.00), and we reiterate a BUY call.
To access our Ausdrill report please log in under the Client Area Log In at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
Perth:
clientservices@argonaut.com
+61 8 9224 6888
Hong Kong:
clientserviceshk@argonaut.com
+852 3557 4888
