Its hard to say what the full year will look like - a lot will depend on the outcome of the rail package. For example if they write off the amount they have as a receivable then it will be a massive loss.
My main concern is more around what the balance sheet will look like if they don't collect any cash. Net debt will blow out. Long term though they should continue to de-lever regardless as the PPE associated with Middlemount will depreciate and generate cash flow to pay down debt. Even if they don't make any profits they will continue to generate heaps of cash as they are spending minimal on CAPEX and the PPE is depreciating so debt should continue to decline as long as they collect the rail package receivable.
Revenue for H2 will be mainly Roy Hill concrete and Middlemount. There will also be some rats and mice stuff as well as the drill and blast and maintenance business but in 2016 could really drop off a cliff if no new contracts. Again, not particularly worried about new revenue for now - just maintaining the balance sheet.
The big potential deals are Adani and the WA airport link in conjunction with Salino Impregilo. They are also still the preferred contractor for Rio so imagine they will continue to do bits and pieces for them.
NWH Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
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