Great post Hugeorgans - I am definitely cautious about the...

Great post Hugeorgans - I am definitely cautious about the impact of the macro environment on Coffey (your story is consistent with many I have heard). It would be naive not expect them to feel some pressures.

There have been a plethora of mining services companies that have risen to prominence. The most vulnerable ones will be overly specialised in sectors and I value Coffey's diversification both in segment and geography. Fortunately they have got their debt under control just in time and I will welcome this being naturally reduced further.

My analysis of Coffey has focused on Cashflow and I also take comfort that the declining debt position will benefit here also. Operating Cashflow of $21.8 million was net of interest costs of circa $12.2 million and these should continue to meaningfully reduce.

The tailwinds of management change / debt reduction / refocusing should stand Coffey in good stead as macro issues impact.

Not fussed about dividends in the short term but can see Coffey as a signficant surplus cashflow generator in years to come.