macquarie releases research report, page-3

I guess that you are not greasing the wheel Stump. Stocks like these only go to the brokers most profitable clients.

I went through the prospectus and since this is a small share issue, although this is primed for a follow-on capital raising and exit opportunity for management attractive 8x multiple, the questions I have are:

- there was not enough information on future/tendered contracts. Does any one have any more information here;
- exposure/specialist to two commodities (gold and nickel), and the hope to use their expereince to expend their opportunities (in a market that getting full of explorers becomeing producers does this not raise issues for potential cost issues on contracts - who wants a company learning the ropes as costs are escalating);
- the mid cap producer exposure; and
- although claiming to be an international player, it is really only has Australian contracts;

What happens when gold corrects and construction contracts are cancelled, and/or what happens when miners put a bit more pressure on the services sector to extract profits.

Maybe a valuation of $1.94 gets it to a 15 - 16x multiple, but I would have thought for a company of this size and limited contracts that the multiple should be a bit lower.