Ann: Quarterly Investor Update, page-20

Yes I was in on the webinar. I thought it contrasted from the last one. Lots of spin in covering for the poorer numbers, an acknowledgement of the client failure in Victoria and a provision for it.

Really dislike Nathan Mitchell's take on why MSV consistently has a consistently lower EBITDA return....in this quarterly in the order of 16% when competitors routinely are around 20-22%. He reckons it's because MSV have a greater percentage of work from Tier 1 clients that command a lesser return for longer & larger contracts. That's BS. If that's truly the case, then why don't they pick the "low hanging fruit" when it's available with Tier 2 & 3 clients of short term/high margin work when they have a good proportion of their rigs sitting idle? That's especially the case in a generally supportive macro mining environment that's currently industry supportive. It's there, why not take it? And that's what I dislike about MSV......it has the potential, management almost always give an impression the outlook is solid but when push comes to shove it generally fails to live up to what they say it will/should be doing. It's ok, it's coasting but it's not being pushed operationally I feel. Comparison metrics with competitors give a clean means of assessing operational/managerial nous and on that they're not doing as well as their competitors. If they were delivering to 'comps' they would be hitting the targets they had previously said the business was capable of and you'd have a commensurate rise in the price of the equity. I'm holding the Exec Chair & the CEO to that.