Production-exposed contractors have more top-line visibility and consistency than those construction-exposed. In our view smaller cap contract miners may also reap some benefits from a period of consolidation in the contract mining space, while a likely extended period of low interest rates makes their capital intensity more palatable. We see value <$1.50 for Perenti (PRN), with its broad business and strategic opportunities, while Macmahon (MAH) looks to be well set up for 2020 and beyond.
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