Share price softening into results release is reflective of the...

Share price softening into results release is reflective of the weaker outlook commentary with regard to utilisation. A HC poster highlighted this on another thread a few days ago. A solid underlying business but demand restricted currently. Underground drilling looks really to be in a malaise, surface drilling holding with the need of a new LF160. I had hoped there would be no new rig purchases this year but the rig inventory is a miss balance with surface units in demand and underground in the septic tank. Maybe they should be in the thermal coal? It's tightly contested but looks like it's going to be around for a lot longer than people think/thought.

I think there are better growth opportunities in mining services at this time, especially those in WA with exposure to gold. Dividends will keep me here for now (if they maintain them) but I can't see the share price re-rating in the short term unless they can bag a significant new underground contract and that doesn't sound like it's on the cards anytime soon. Sentiment downgraded to 'Hold'