SW1 16.7% 1.0¢ swift networks group limited

Ann: Swift Wins in Resources Sector - Update, page-9

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  1. 2,597 Posts.
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    During the GFC a fair few mines closed pretty quickly.

    It's a reasonable due diligence question and if you are not asking about the contract clauses, then any ARR figures might be meaningless in a downturn. The reality is it is much easier to shut a mine overnight than it is a Nursing Home or Hotel. A Nursing Home or Hotel, would usually keep operating even in administration, whereas a mine is less likely to do this.  

    All I am trying to establish is what sort of protection (contractual / revenue) Swift would have if there was an industry downturn in mining, not exactly rosy out there with Brexit, US shutdown, US/China trade issues and lots of poor economic data. 

    If no one knows, no problem, but something that I would need to understand better from management, as a month to month contract extension creates revenue risks that don't exist with a 3 year extension with guaranteed revenue!

    If timeframes and revenues were guaranteed, you would expect that would be important information worth mentioning!!
 
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