Bought more, page-3

Id say NWH didn't win WTS because they couldn't match price. not a performance issue. NWH already has mining equipment at WTS. It also recently lost a mining job so it would have been eager to win the mining contract. They would have used a lean margin. How can a company that has to mobilise all that equipment and those personnel be cheaper? Mobilising oversize equipment that needs 2 escorts and a huge truck ain't cheap, neither is assembling the equipment. it would have taken a few percent off BYLs margin.

My suspicion is that BYL purchased the work at WTS because they knew they were getting the boot from the karrara project. Getting kicked off karrara left them with 2 realistic options and 1 option that seems too improbable to occur.
1. Demobilise and realise losses on lower asset resale prices -> slight loss.
2. Go in on WTS at cost or slightly above with the intention of displacing an established competitor.
3. The improbable option. Go in at equal or higher margin than Karrara and undercut NWH....

Suffice to say I'd agree bell potter are optimistic on the margins. Revenue does not equate to margin and this is an often overlooked fact of construction companies.