Personally for me this response is opposite of what I was looking for. As Scarborough ramped down and with the ex-BHP assets printing cash I was looking forward to potential BB's or higher returns through dividends...
Basically WDS are going to push to 20% gearing and potentially beyond that with these 2 acquisition and that will put a ceiling on FCF... I was looking at a WDS post Scarborough that would be printing $$$... Last 2 weeks and 2 acquisition somewhat changes that proposition, and talking a 10% IRR and 10yr payback and wanting government incentives, IMO this is a glossy annual report picture acquisition.
Happy to be proven wrong, but my first take is I don't like it.
WDS Price at posting:
$25.12 Sentiment: Hold Disclosure: Held
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