Austin Engineering (ANG) 35c

Austin Engineering designs and manufactures mining equipment, namely specialist hauling trays and bucket attachments for mining companies globally. Investment in the space has soared in recent months on the back of commodity price support. Austin has been able to leverage this opportunity with the release of new lightweight equipment, the ultra-lightweight High Performance Tray (HPT), which has already seen strong demand come through. Last week, Austin confirmed they had contracted more than $250m in revenue for the current FY following around 120 orders for the new tray, and strong equipment demand in the pipeline for the next 18 months, significantly de-risking the outlook. The company is profitable, and has a number of growth drivers including the recent acquisition of Mainetec to drive synergies and cross-sell opportunities. It’s growing EBITDA in the double digits and it’s cheap on an EV/EBITDA multiple of less than 5x, we see further upside in the stock with the next catalyst being their half year result on Tuesday the 21^st of February.