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.
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