I was actually a bit disappointed. I was thinking EBITDA...

I was actually a bit disappointed. I was thinking EBITDA guidance of around $220m - sounds like it will be closer to $200m. The big one though is that net debt will only drop to around $400m-$450m by year end. I was hoping for a much larger working capital release (down to $350m).

Still they re-iterated that they have no plans to tap capital markets - at this stage anyway. Also, they are being very aggressive on cost outs.

While I was disappointed I think the market in general was expecting worse - wouldn't be surprised to see it track up.

The key going forward is if they can hold EBITDA at these levels while the boom wears off - basically whether they can cut costs as quickly as revenue falls. That will leave them well placed when mining recovers - although that could be years away. With CAPEX set to decline and further working capital releases net debt should continue to decline in the interim.

There is massive upside when the turnaround comes...but that is against the risk that things get worse in the interim. As mentioned, conditions will almost certainly get worse before they get better but that may be able to offset that with cost outs.

So overall it was a bit disappointing but considering how far this has fallen not so bad.