Well bought a bunch more today. No matter the result for this...

Well bought a bunch more today. No matter the result for this half, evidently DDH are sitting on a lot of value that the market is currently blind to. Maybe this IMD deal will be a catalyst over the next month or so.

It is interesting that very little value for goodwill and intellectual property is noted on the balance sheet. There is about $6m for intangible development assets acquired with Swick. In note 35 of the annual report: :Swick was acquired to achieve the following: . . . Access to world leading R&D, rig construction and maintenance skill sets" (amongst five reasons listed).

The returns generated are high ROE and ROA, and are not coming from pure luck, or likely to be competed away.
The second half of this article gives a great outline of many of the innovations that have given DDH1 a big edge: https://australianminingreview.com.au/techtalk/pushing-the-boundaries/

In the annual report there are comments about "In-house engineering capabilities to develop ‘rigs of the future’"

SWICK FY22 HIGHLIGHTS
• Successful completion of the deepest
known hole to be drilled from an
underground platform, a depth of
2,232m, drilled by the Swick DeepEX
division at the Olympic Dam site in South
Australia
• Development of the e-Rig is progressing
to full electric prototypes following
successful trials of partial electric units
• AutoDrill trial completed and roll-out
commenced. This technology enables the
drill rig to maintain very high productivity
levels while allowing experienced
drillers to assist with training of new and
inexperienced operators safely

Quite evident that the market mis-understands this co. Let me know if you want my gofundme details for after you make a stack on this co ;-)