Posted last night on SWK but relevent to BLY IMO, the whole sector seems to be showing signs of new grass shoots....here's to BLY.
Drill rig providers on the rebound 20 May 2009
Drill rig providers on the rebound THE MINING Services industry has been greatly affected by the recession and subsequent downturn in the mining sector. However, it looks as if the drilling industry may be beginning to see the beginnings of a boom after all the gloom.
On 19 May 2009 Hartleys put a “speculative buy” rating on Swick Mining Services noting that, while the company recently revised downward its revenue guidance for fiscal 2009, utilisation of its drilling rigs had risen from a low 35% in January, to 59% in May and an expected 63% by June.
Swick has recently won three new contracts which will bring the number of rigs in work to 40.
Furthermore, rig utilisation of the underground diamond drilling equipment, which contributes 70% of Swick’s revenue, is now at 81%, up from the 51% low.
Swick joins a number of mining services companies that are beginning to rebound including, Forge Group, Lynas Corp, Lycopodium, GRD, Monadelphous Group and Ludowici.
BLY Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
