So far a more than 17% drop in share price in one month. PRN...

So far a more than 17% drop in share price in one month.

PRN down to a market cap of just $830M yet the combined balance sheets of PRN and DDH1 have net assets of a bit over $1.7 billion.

mostly exposed to gold which is performing strongly

Ddh1 made $42 mill (before tax I believe) last year and PRN $132M after tax so combined $160m or so after tax

They are forecasting greater turnover so I'd imagine a min npat of $140 to be conservative.

on $830M market cap that is a return after tax of around 17%

negatives:

debt is around $700-800M - gearing of around .9 although easily covered by free cash flow and much of it is asset finance for mining vehicles and equipment that are easily liquidated if not required (e.g. lose a contract)

some exposure to nickel which is tanking at the moment
for example IGO and Savannah mine. may lose more nickel contracts and the runway for future work is slim in that commodity.

Despite a compelling valuation it is hard to load up during a sustained sell off. Watching and waiting for the seller to finish.