Bought in today at 0.16, starting to get some support imo. Have...

Bought in today at 0.16, starting to get some support imo. Have attached a tidy summary of progress so far from aap this morning.

Industrea is one Australian mining services company that has gone to China for work, as the local mining industry contracts with many workers losing their jobs. 08/04/2009 12:02PM AEST




Industrea Ltd (ASX:IDL) is one Australian mining services company that has gone to China for work, as the local mining industry contracts with many workers losing their jobs.

Industrea has just won a $20 million contract to supply the world's largest and most advanced long wall mining equipment to China.

It claims to have created a new trend in underground mining with China's Shenhua Energy Company Ltd when it buys six 80-tonne long wall roof support carriers and one 130-tonne shearer for one of the world's largest underground coal reserves.

Size and complexity of new equipment establishes a new trend in underground mining, reaffirming Industrea's global market leadership, says Industrea's managing director and CEO, Robin Levison.

The ground-breaking deal is expected to open up new opportunities in Russia, India and Australia itself.

Industrea this week reported over $100 million of new contracts have now been secured since July, predominantly for the Chinese underground coal industry.

This included the latest $20 million contract which has strengthened its market leadership in mining safety and productivity equipment.

"Shandong Mine is developing one of the world's largest long walls at its coal reserves in Shandong Province, and they have chosen Industrea's world-leading equipment due to its superior design, speed and safety performance," Mr Levison declared.

"The size and complexity of the revolutionary new Australian-built equipment represents a material advance in underground coal mining, and follows two years of planning and product development.

"The equipment will allow the mine's 7.3 metre coal seam to be mined in a single pass, thereby producing significant gains in productivity and efficiency which other miners both in China and other countries will seek to emulate."

He said the new agreement strengthened Industrea's longstanding relationship with the Shenhua Group, China's biggest coal producer, and added to recent contract wins secured in China, South Africa and Australia's Hunter Valley.

Coal provides around 80 per cent of China's electricity, and the long-term outlook for the Chinese industry is strong due to the forecast rise in energy demand.

With its world-leading equipment and successful track record, Industrea believes it is well positioned to benefit from continued growth in the underground coal mining sector.

SHARE PRICE MOVEMENTS

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Shares of Industrea yesterday eased 0.5c to 16.5c. Rolling high for the year is 63c and low 8.9c. Dividend is 1.25c to yield 7.58 per cent. EPS is 3.07c and price/earnings ratio is 5.37. The company has 64 million shares on issue with a market cap of $142 million.

Industrea's ADR began trading at the beginning of the year on OTCQX's International PrimeQX, under the ticker IULTY. One ADR will represent 50 of Industrea's ASX shares on the OTCQX.

At the annual meeting in November, chairman David Beddall told shareholders that turnover to June 30 was $192 million, up 190 per cent on the 2007 year.

This produced an adjusted net profit of $41.3 million, an increase of 122 per cent.

Industrea has forecast a turnover of $330 million to $350 million for the period ending June 30, 2009 with an adjusted net profit of $55 million to $60 million.

The chairman said he had no answer to current low share price.

"If the Board and management concentrate on the fundamentals of the business and deliver the results in our forecasts then when the market turns, IDL will be well placed to maximise the upswing," Mr Beddall said.

In February Industrea announced a $US6.2 million contract by Chinese coal miner Inner Mongolia Yitai Coal Ltd, demonstrating the continued demand growth from China for Industrea's mining safety and productivity equipment.

Mr Levison said the company will provide four 55-tonne long wall roof support Chock Carriers to the company based in Inner Mongolia for delivery in the 2009/10 financial year.

"Inner Mongolia Yitai Coal is targeting a major boost in production capacity over the next six years, from 38 million tonnes in 2007 to 50 million tonnes in 2010 and over 100 million tonnes by 2015," Mr Levison said.

"The state-of-the-art long wall carriers provided by Industrea will facilitate this planned expansion, while delivering safety and productivity boosts to the company's production.

"Industrea already services leading Chinese miners including Jincheng, Shanxi and Shenhua, and we see this new contract as a continuation of our successful Chinese expansion strategy," the CEO said.

Mr Levison said at the time the contract win continued the strong recent surge of business activity for Industrea, with over $75 million of new contracts awarded since July, predominantly for the Chinese coal industry.

BACKGROUND