While normalised EBITDA of $21m was toward the low end of guidance, the key takeaways for us were improved margins (despite a poor performance from Perth) and a low gearing level not seen since FY11. The restructuring, including divestments, together with a focus on working capital, is now evident in a much improved balance sheet. A turnaround in Perth (conceivable given the work in the iron ore space) could help FY20, although ANG suggests mixed outlook across its various sites. We believe the $24-28m EBITDA guidance is achievable, and our little changed number sits within this range. Our valuation is increased to $0.23 (prior $0.21) and our recommendation upgraded to BUY (prior HOLD).
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