I wouldn’t want to short this name as it’s got growth (post DDH buy), trading at around a 40% discount to book value (and that includes DDH), and doing a buyback (pause in buy-back to me is probably just being in black-out pending half yearly results in Feb).
Based on guidance (reconfirmed in Dec) , PRN should generate around $100m in free cash this year and over $120m in 2025 which puts it on a free cash flow yield of around 13%. So perhaps a restart in dividends in the near future.
Also super attractive at around 2.1x EBITDA (2024) which compares favourably to pre-covid history at 4-5x.
Interesting that other mining contractors (MAH, NWH ... EHL) seem to be catching a bit more of a bid over recent weeks.
All my opinion of course. DYOR
PRN Price at posting:
97.5¢ Sentiment: Buy Disclosure: Held
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