SRG +4%: the mining and asset services company announced a number of new contract wins today worth around $110m. It includes two 3 year mine maintenance contracts, a 3 year engineering services contract for NZ dairy producer Fonterra and two deals with Rio Tinto for work on their Queensland alumina refinery. The key will now be margins – services businesses have struggled to maintain profitability with higher labour costs and chasing work for the sake of revenue. SRG has managed to maintain margins recently despite the conditions.
MM remains long and bullish SRG
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