Hello to all here .
I am not a holder (yet?) but I have been looking at Swick recently.
This was originally to get an idea on the competition after buying Mitchell Services shares, but it seems like Swick’s a capable owner-managed company poised on genuine opportunity for future growth given the new mining ‘boom’ , and I would like to know more about it from long term holders if anyone has the time.
It seems -at first glance- Swick is comparable and even more profitable than MSV according to it’s half year presentation - except it has something in the order of $30 million debt to Mitchell’s $2.6 million.
Yet Mitchell market cap is $104.3 million
Vs Swick $47.4 million ....
Why is there a $30 million difference there, even after the debt is taken into consideration ?
-H1 Revenue for Swick $75.3 M vs Mitchell’s $63.29
-EBITDA $14.5M for Swick vs $14.23M for Mitchell..
-Employees : SWK has 575 vs MSV 400+
Mitchell’s massive increase in revenue is likely to be partly because it bought Radco drilling ($5.3M) in February 2018 which had 11 rigs and a number of tier one contracts.
https://www.australianmining.com.au/news/mitchell-services-acquire-radco-drilling/
Motoracebeerguy you said the market doesn’t trust Swick but it won Mining Contractor of the Year award on November 29 last year in the Minng Monthly awards https://swickmining.com/swick-mining-services-named-contractor-of-the-year/
I’d appreciate other thoughts,
Happy Easter
And cheers
Here’s similar from the MSV half yearly presentation :https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvSDYL4g24wBH2v/pq6bFiGug=
PS here’s another press story for anyone interested :https://www.miningnews.net/leadership/news/1344700/10-million-down-for-swick-mining
