ASL 1.64% 93.0¢ andean silver limited

Ann: Completion of Barminco Acquisition and Business Update, page-2

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  1. 56 Posts.
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    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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