Ausdrill (ASL) share price rally’s on contract win
Stock
Ausdrill (ASL) $1.76 as at 24/06/2019
Event
The market standout today is well and truly mining services firm Ausdrill which looks set to close at the highest level in over 6 months.
Shares in ASL are trading 12% higher in the session on the back of an announcement subsidiary Barminco had won a 5-year, $800m contract with a copper mine in Botswana. The mine is in its early stages and Barminco has been brought in to establish and develop infrastructure, training, diamond drilling and have production up to a rate over 3mt/year.
The contract further validates Ausdrill’s push into the international mining market and the acquisition of Barminco that was completed late last year is already paying dividends. To put this contract into perspective, revenue for Ausdrill in FY18, prior to the Barminco acquisition, was around $1bn with EBITDA margins of around 20%.
Ausdrill (ASL) Chart
Market Matters Take/Outlook
