Ann: Vysarn financial results 6 months to December FY2021, page-55

Yep I agree and that is why the company will eventually want to pivot from being just a driller. I don’t think I’d be invested if they were just going to stay a 12 rig hydrogeological driller forever; they just need to bed down their core business then focus on growth.

It’s still very early days for the company though and it’s still pretty cheap even if they were going to stay as a driller - they are trading under 4x EV/EBITDA for fy22.

So in my mind it’s a low risk investment especially given I think management will make very sensible decisions with our money moving forwards. They aren’t trying to grow too quick and are aware of all the pitfalls of the sector. They have mentioned a few times they want to create a business that stands up in all phases of the economic cycle and potentially expand to other industries (agriculture; government).

Obviously there is a very long way to go for that to happen but that’s the aim. So while we are probably paying a fair price for a 12 rig driller that is just starting out, I like the story and the management hence I have a lot invested in VYS.