Waiting for contract miners to turn revenue into profit is like waiting for Harold Holt.
But if MLD can even extract 3.5% npat from $1.4b in revenue in FY22, this equates to $49m (14cps). A PE of 10, gives $1.40/share.
Guessing it will pay 50% of npat in dividends, so 7cps fully-franked. This would be a yield of 7.1% on a SP of $1.40.
Is this achievable? Well "normalised" npat was 3.3% of FY21 revenue, in a year that was disruptive. Nudging this up to 3.5% shouldn't be too much of an ask ....?
MLD Price at posting:
85.5¢ Sentiment: Buy Disclosure: Held
