MLG are a mining services company offering very similar services...

MLG are a mining services company offering very similar services to what M4M wish to provide into the market. In fact they will be a competitor on some of these contracts M4M are bidding on. Have a look through their financials and you'll see companies like this won't be operating with margins greater than 20%... It all depends on the basis you do your assesements at.

For a company or industry with relatively low capital expenditures required to maintain its operations, EBITDA can be a good proxy for cash flow.However, for companies in capital-intensive industries such as oil and gas, mining, and infrastructure, EBITDA is a near meaningless metric. The extensive amount of capital spending required means that EBITDA and cash flow will often be very far apart. In such a case, EBIT may be more appropriate, as the Depreciation and Amortization captures a portion of past capital expenditures and when you look at some of the competition M4M are up against EBIT are single digit figures.



Another example of a mining services company (not direcltly relatable to M4M) as they are more a heavy vehicle and plant fitter labor hire service is Mader. There is no way any of these business will be operating with Margins over 20%