Hope everyone’s having a good weekend ?
I discovered I can go ‘swimming with the horses ‘ at a local beach with a bunch of nice young people
Kind of like ‘swimming with the dolphins’ only with hooves and you don’t feed them a fish.
.,and except the morning was a bit damp and chill, and overcast, and I found I didn’t actually want to swim or ride, I would have been right into it .
Continuing with the overview on civil infrastructure (for anyone besides me who is interested
Over at Maca @Nightmarez3k summed it up beautifully ...” I do believe the issue is with civil construction having profitless boom.”
The boom without profit?
MINING
As previously noted :
-There are some big mining companies for sale - Downer* and BGC .
-Barminco bought by Ausdrill.
-Maca is aiming at diversifying away from mines yet has been obliged to buy a new fleet...Result? Revenue of $300M in H1 expected to earn between $7-$9M profit. ( at $7M that’s 2.33% profit over the six months ).. Share prices crashed on that news.
PUBLICINFRASTRUCTURE
Read back over this thread to October 1 for a list of several companies that have died recently at least three of them possibly breaking their backs on work for Main Roads Departments (Brierty, York, Omega)
Here’s a repaste of a link to https://thewest.com.au/business/inf...ay-price-for-main-roads-savings-ng-b88994838z
In Big Trouble ?
Worley Parsons not so popular ...
Lendlease? https://www.theaustralian.com.au/bu...s/news-story/ae523a686ddf038ad9c4e18cdf7797db
“Development giant Lendlease has apologised for the poor performance of its engineering business, which led to a surprise $350 million provision and prompted investors to wipe more than $2.5 billion from its market capitalisation.
At a subdued annual general meeting, Lendlease chairman David Crawford said external advisers had been hired to work on a strategic review of the engineering business, which has been marked for a potential sale.
The Australian can reveal that boutique house Gresham, which has close ties with the company, has been tapped to lead the revie
“This will include consideration of structural alternatives for the engineering business, such as retaining the business, demerger or divestment. All options will be considered,” Mr Crawford said.
The chairman did not provide further detail on the review but analysts have estimated that the unit could be worth about $1 billion, once complex engineering problems are resolved....”
Downer?
..And what’s going on behind the scenes at Downer?
The company was quoted as saying there is no money in solar because of the margins https://reneweconomy.com.au/rcr-takes-huge-write-down-on-queensland-solar-projects-81971/
. “Because they’re bid at pretty tight margins, you can’t have too many things that upset you. Whether it be ground conditions or weather or whatever. I think all of the contractors are still in a position of making sure that they have very good execution on construction of these projects.
“Every man and his dog is in there trying to build these things,” Fenn said.
Now the rumours re mining division?
*Not rumours after all :https://www.copyright link/street-t...o-sell-mining-unit-hires-bank-20181113-h17vb4 Downer progresses talks to sell mining unit, hires bank
Downer is pressing ahead with negotiations to sell its mining services division to an offshore party.
“Street Talk can reveal the Grant Fenn-led company has hired Deutsche Bank to advise on the discussions, which could see one of the largest mining services businesses in the country move into overseas hands.”.......
Recent history around this is in February Downer decided to combine it’s mining business with it’s engineering business on the impairment of mining goodwill and a loss on the sale of its freight rail division. Downer EDI swings to $16m interim loss on mining write-downs https://www.copyright link/business...rim-loss-on-mining-writedowns-20180219-h0wcly
For the record here is an editorial from Financial Review from March 2017 when Downer bought out Spotless https://www.copyright link/business...g-a-huge-premium-for-spotless-20170321-gv3ks8
“Downer EDI chief executive Grant Fenn is paying one of the biggest premiums seen in Australian takeovers in the last five years – and for a company most agree is struggling badly.
Data compiled by Dealogic for The Australian Financial Review shows Downer's $1.2 billion takeover offer for Spotless Group, which was pitched at a premium of 58.6 per cent to Spotless' previous closing share price, is the second-biggest premium offered for a deal over $500 million since 2012”. ......
....etc
Here?
We seem to be living in interesting times with the profitless boom, the labour issues, the spectacular fails by peer companies, large and small, and international giants circling like buzzards.
NRW building its cash position and keeping its head in and its workers happy seems to have been what it has been doing of late along with acquiring small useful projects and equally useful long larger long term ones.
I can’t see anywhere that we have bitten off more than we can chew ...Even the previously dormant New Gen drill is back at work.
The Gascoyne mine does need to get to decent gold . Presumably it will.
The big new iron mines will be starting up.
Rio may even have a copper mine in store.
(20min delay)
