PRN -29.23%: the mining services business was forced into downgrading guidance today, causing the stock to tumble. They now expect a weaker 2H vs 1H result, previously telling the market the numbers should be inline. This comes despite $700m in contract win so far this year, and an additional 20% in the pipeline. They blamed COVID issues and stronger currency, but probably more significant was the increase in labour costs – the catch-22 of mining services, win business but increase costs at the same time, causing margins to collapse and often earnings fall despite an uptick in work. The update sent the stock to a 12-month low.
MM have no interest in PRN
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