Ann: Dividend/Distribution - MAH, page-5

Knee jerk market reaction. Happening quite a lot this reporting season.

Plenty of good news here including around
- another increase in pipeline and order book
- resolution to Batu Hijau which looks nicely capital efficient
- reconfirmed guidance, and
- capex which highlights that after significant investment spend, cashflow should improve and ROACE get to 15% "near term" according to the CEO
- ongoing risk reduction, particularly around alliance style contracts (43% now)and cost protection via rise and fall provisions in other contracts

Muktiples looks cheap:

- 0.59x book value - compared to an average of 0.92x and median of 0.75x over the last 5 years

- 1.5x ebitda - compared to average of 2.9x and median of 2.2x over the last 5 years

With cashflow improving, this stock should do well.

Risk seems to be mostly industry specific ie getting people.

IMO DYOR