PRN +10.60%: The mining services company that used to be known as Ausdrill upped their FY23 guidance today saying that improved conditions and a contract for work at Evolution Mining’s Ernest Henry mine were the main drivers i.e. operational performance rather than anything else.
The mining services business rallied yesterday on news of a big contract win, but also on the back of a bullish strategy update that caught our attention. The $520m, 4 year deal with Evolution Mining (EVN) to operate their Cowal gold project in NSW is material in the scope of a $2.2b revenue business. The strategy update had them targeting 10% EBIT(A) margins while the market is predicting closer to 8% for the next few...
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