This result is not surprising given the nature of the business. Contract mining is people and capital intensive and margins are tight. However, they do not seem to be able/interested in reigning corporate costs, still running at 10% of revenue, plus their debt is too high. They have been investing in idoba for a number of years now, but I cannot see where it is heading or what returns are expected. I also am not a fan of management...I do not like the games they play with rubbish "underlying earnings" etc...this is not a good sign for me.
I was puzzled by the recent run up in the SP and have been reducing my holdings, but not all unfortunately. I have been a long term investor with these guys, but I think it is time to look else where.
PRN Price at posting:
$1.17 Sentiment: Sell Disclosure: Held
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