Partnership with Rio Tinto, page-2

This sounds like a big deal. Building a facility in the Pilbara to service and supply Rio Tinto is as much as you could wish for in the rail transport industry. There will of course be capital costs but having a presence will surely attract further custom. On face value this nominally adds 12.5% to the revenue base annually over 6 years (25 % to Gemco's revenue). Although they do say this figure includes the existing maintenance revenue. It is fair to say that Gemco is the Jewel in the crown driving company revenue, margins and profits. I'd be happy to see this business grow at the expense of the smaller businesses.

Some of the numbers provided are a bit confusing: They say they will supply 100 rail carts over 6 years, that is circa 17 cars per annum. They also say they will deliver the first 40 prior to the establishment of the Karratha facility which is slated for the end of 2024. That suggests 40 cars in 18 months? Does anyone read that differently?

From a shareholder point of view I'd been concerned about the lack of growth. This is a big tick for Dean Draper early in his contract and hopefully it's a sign of a new focus for growth and dynamism.

I wonder what sort of capital will be required to acquire and build facilities in Karratha due in 18 months as well as building the first 40 rail cars in Forrestfield prior to the Karratha facility being established? CR perhaps?