Long term position for MLD, page-4

Visceral I think you hit the nail on the head by saying 24 months. If you look at the current fundamentals for Maca then you'd easily get your $1.40 back because I'm of the opinion that FY 2016 won't be much different for MDL than 2015 so this means it's on a ridiculous low PE and extremely high dividend yield. However I think the market is looking past the next 6 months and is saying in 12 to 18 months which clients will remain, what will your work on hand be , how much of your work pipeline will come to fruition and what price will you have to quote to get the business in an industry that is desperate for any new contracts.

I've gone back over MDL, NWH and a few others and if you look at their work in hand so much of it expires in the next 12 months. Once the work is in hand then it generally stays which is why their fundaments ( EPS etc ) are currently so strong. From their last annual presentation they say the average contract length is 33 months and if you look at when the contracts end they seem to have only one customer left after June 2017 which is Regis , since then they have added Beadell to their books. Some of their contracts can be renegotiated but given a lot are with IO miners you'd have to wonder with current conditions whether they will retain this work and if they do at what price/margin. Also, their work outside the mining industry is minimal with a few contracts with NRWA so there really isn't any back up for them if the mining industry implodes.

Maca aren't alone , NWH situation is just as bad probably worse ( I recently got rid of my shares in NWH ) and I've been looking at others and some of them with high debts or reliance on one or two clients could be in major problems. I still think there will be opportunities to trade these shares on temporary rallies hence my interest in Maca but until there is a sustained uptrend in core commodity prices I can't see MLD and others in the industry getting back anywhere near their former share prices. I can't see commodity prices outside of gold rebounding strongly in the next 6 months.

PS to the other contributor on this thread there are no quarterly requirement for MLD you'll have to wait for the half year reporting in Feb to see how they are going.