Interesting investor/analyst call for those that tuned in. An...

Interesting investor/analyst call for those that tuned in. An analyst from Jarden was making comparisons between trading multiples of MSV and its most closely listed competitor (DDH). Further to that I see Tribeca Natural Resources Fund has a high conviction exposure to service providers & its core exposure is again DDH. They highlight its attractiveness (below) & I compare it (again) to MSV. Note in particular the multiples to EBITDA. MSV state they now have have capacity for EBITDA of $50-60mil & during the call Nathan Mitchell alluded to that being conservative. While I don't ever expect MSV to trade at multiples of 8-10 x EBITDA like its international counterparts.....the near 5 x EBITDA of DDH would be more than enough.

Note MSV will have the largest drilling fleet in Australia if it takes up its option on the balance of 3 rigs to its recent order & current delivery of 9 rigs & there are balance sheet differences (DDH has net cash, MSV of course net debt)

August 202128
DDH1 (DDH:AU)Appealing Commodity Suite
Well established mining services business with the
largest drilling fleet in Australia
Aligned management with significant share
ownership
Track record of generating strong returns through
the cycle
Tier 1 client base
Strong demand upswing due to healthy commodity
prices while supply of drill rigs is constrained
Compelling valuation –trades <5x EBITDA, versus
global peers on 8-10x