Yep, I feel comfortable holding EHL and the risk involved- I was...

Yep, I feel comfortable holding EHL and the risk involved- I was attracted by their plans and execution around debt and diversification away from coal.

One of the PRN attractions is that MV is about a third of EV. That sort of thing attracts punters. But it should also ring alarm bells. There will be another sector downturn and it is more likely than not that they will have another African misadventure- not wishing it on them. A downturn or a reversal of fortunes could lead to a heavy impairment of PPE and goodwill- at a stroke the balance sheet would look pretty ordinary and various debt ratios and covenants could be concerning plus.

But the above is, though possible, the worst case scenario. It most likely would not be as dire as that.

Then you choose your level of risk and the SP/MV is part of that equation. At the moment, for me, the sector offers plenty of mining contractors with a level of risk and reward more attractive to me than PRN. That could change.

I have had success in investing in this sector. I enjoy the research- it is a fascinating sector. You come across some really knowledgeable posters on the various sites who seem quite pleasant and engaging as well. Reading reports is not a chore.

IMHO DYOR