I got the “sustaining iron ore tonnage” theme right, and the customer wrong in my earlier post today. It did cross my mind that it could be BHP, because I based my gut-feel on the RIO-style language used by NWH, but as I added in my 34031619 post of 29/06/2018, “. . . BHP tends to use similar language.”
The two cherries on the cake are that: a) the BHP work will commence soon, and favourably impact FY18 and FY19; and b) the contract is with BHP, which leaves the potential open to also land a RIO contract soon. Getting the concrete-footing work for the conveyor belts is a plus – something NWH missed out on at Silvergrass, unless they obtained that work without fanfare via a subcontract.
I am looking forward to the day when I can, with conviction, move my target price above $2.00.
PS: Those who think that new contracts means better cash flow, and hence dividends in the short term, should think again. This type of company is like a heat sink that absorbs heat (cash) when things are heating up, and emits heat when slowdowns require little CAPEX.
I got the “sustaining iron ore tonnage” theme right, and the...
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Last
$3.90 |
Change
0.010(0.26%) |
Mkt cap ! $1.574B | |||
| Open | High | Low | Value | Volume |
| $3.87 | $3.90 | $3.82 | $2.982M | 769.5K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1753 | $3.88 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.90 | 52914 | 9 |
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| Last trade - 16.10pm 29/11/2024 (20 minute delay) ? |
| NWH (ASX) Chart |
