Wow, how do you get a 9.9% SP drop based on news like this;
-Barminco acquisition successfully completed.
- Now the 2nd largest mining services company by revenue in Australia and the leading ASX listed mining services company.
- Materially EPS accretive for Ausdrill shareholders, with underlying pro forma FY18 earnings indicating EPS(A) accretion of over 28 per cent (excluding synergies!)
-Support services in regional hubs will be centralised to support the global business, delivering approximately $5 million in run-rate cost synergies.
-Since the August 15th acquisition there have been 3 contract extensions and 1 new JV in Ghana signed minus the Edikan contract for Perseus in Ghana finishing year end.
-Reiterates FY19 earnings guidance of 20-30 per cent underlying profit growth on a standalone basis, before taking into account the acquisition of Barminco but allowing for the cessation of the Edikan contract.
-Confirms that it remains on target to meet the analyst consensus FY19 reported underlying NPAT of $98 million for the consolidated Group, inclusive of the Barminco earnings from the date of Completion and allowing for the cessation of the Edikan contract.
-Increased revolving credit facility from $200 to $300 million at a lower interest rate.
Am I missing something here? A 9.9% drop in response to one lost contract that won't affect forecast earnings? ASL's SP has been volatile for a while but this is ridiculous!
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- Ann: Completion of Barminco Acquisition and Business Update
Ann: Completion of Barminco Acquisition and Business Update, page-2
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