The SP recovered from the poor verbal explanations given at the presentation. They could not adequately explain the quantum involved with lower rig utilization in January and February. They will learn from this and be better prepared next time.
The current zombie apocalypse and the most recent QLD rain perhaps did the trick over the last week or so. The sector as one has been suffering. I cite though PRN as an example that exposure to gold is being rewarded by Mr Market- if you keep the water out of the mine.
The macro does not look all that flash but I like the low debt here and that their new toys are being financed out of profits. Sound management.
Low, 13%, exposure to exploration. Production capex holds up better in a downturn than exploration spend. Their clients seem to be well placed.
IMHO DYOR
DDH Price at posting:
85.0¢ Sentiment: Buy Disclosure: Held
