Pioupiou thank you, as always, for your perspective on the crucial business elements.
Ten million does seem an absolute bargain although, in the short term, I guess that depends on how much the 300 personnel and their equipment and other expenses take from the revenue .
Possibly it will not be earnings accretive until FY 2020?
BUT THEN .....
-In the long term - what if this expertise means NRW can manufacture/repair it’s own
autonomous machinery !?
Before anyone, including me, takes this too seriously though, I note in the announcement they seem to indicate any growth stemming from ‘the seed crystal’ will be self funded?
Possibly this is to reassure shareholders their dividend stream will not be diverted into robotics or other development?
... “the annuity style income from the maintenance activities of Mining Technologies and Heat Treatment will provide a platform to continue to build a broader service offering across an expanded resources and oil and gas client base.
However it all works out, I feel we are most likely going to be the best maintenance ‘Jeeves’ in WA ...maybe Queensland too....and who knows where having the Victorian outpost will lead
And as well as the employees being thrilled and relieved, as I said above , anyone who reads a newspaper or hears of this ‘save’ on radio or TV will be giving NRW a thumbs up ......
(Imaginary speaker one :“That’s great that it saved all those jobs but what is NRW darling ?”
Imaginary speaker two :.”I don’t know. never heard of them.....oh wait aren’t they the people making the rail tunnel to the Perth airport”
PLUS the clients must be really happy that a company of NRW’s calibre is taking over these crucial arms of RCR .
Not just Cloudbreak was mentioned in that AFR story ....
“RCR had an active contract as part of Talison's expansion of the Greenbushes lithium mine and was in line to build the second stage of a concentrator at Pilbara Minerals' Pilgangoora lithium mine.”
“BHP is considering its options for RCR contracts which include rail upgrades and a five-year maintenance agreement for apron feeders across its Pilbara iron ore mines. “
(20min delay)
