I agree 100%! - expectations over a decrease in the % margin had been built into the price during the backend of last week (as they were for a vast majority of mining service companies).
It’s tough to get skilled labour for these guys atm due to travel restrictions, etc. which is reflected in a much higher employee benefits expense. As per the 1H 2021 presentation there is in excess of 2200 employees where 700 of which are from the Downer acquisition. So therefore for the 1H you technically have 1500 employees with the expense being $175.45m; thus, $110k give or take per employee (I have set headcount at 1600 for the purposes of this as I don’t know how much in excess of 2200 is). Now we take a step back to the 1H 2020 presentation where they say that they have 1,958 employees with the expense at $139.4m (per the PY figures in the report released today). That’s around $71k per person. Hope this gives some more insight.
This will improve greatly as COVID dies down and ppl are allowed to travel more freely! the result could’ve been A LOT worse in my humble opinion, but I’m happy with getting a 2.5c dividend when my cost price was 78.5c
DYOR & have fun!!
MLD Price at posting:
$1.28 Sentiment: Hold Disclosure: Held
