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  1. #1
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    Post Msv - mitchell services limited

    MSV
    Great story unfolding on this one - MSV have JUST secured themselves a 2 year contract for their services by Glencore

    they have grown by another 10 million YOY and now 32 + million per annum and growing - heres some background on the owners and what they have achieved to date - they certainly have some clout

    FY16 BUSINESS OVERVIEW
    No lost time injuries in
    FY16
    $32m+revenue in FY16
    EBITDA positive FY16
    Nitro acquisition completed on time and on budget
    Circa 90% of income is from Tier 1 * mining and energy companies


    Statement by others >....
    "MSV is business is funded by Soul Pattinson and Nathan Mitchell whose family has made tens of millions from drilling services over the past 30 years or so - smart people who are well connected in providing drilling services to tier 1 mining companies."

    MSV are a savvy and professional drilling services company that bought most of its drilling rigs from Receivers of failed drillers over the past couple of years . the key to their meteoric rise is that they managed to secure drill rigs at a small percentage of what it would cost to replace them so essentially they have achieved this at a massive discount to market value - They now have 56 rigs today and now they winning major Tier #1 clients - with 30 million in secured contracts

    90% of their revenue is from Tier1 clients - with a very high net worth and market cap companies in the mining sector - it appears they are a cash cow and currently undervalued by the market which is why im interested......


    SUMMARY
    Mitchell Services vision is to be Australia’s leading provider of
    drilling services to the global exploration, mining and energy
    industries
    • Tender pipeline provides opportunity for further revenue growth
    • Mitchell Services can utilise acquired assets and generate a
    superior return versus buying new equipment
    • EBITDA positive at less than 30% annual rig utilisation in current
    pricing environment
    • Ability to leverage increased returns in an improving market
    • Mitchell Services has an experienced board and
    management team who have proven success
    in business development and growth


    Some of their recent Major contracts

    February 2016
    "Mitchell Services Limited (the Company) is pleased to announce that it has secured a three-year contract
    with mining company South 32 Limited at its Cannington mine site.
    The contract is for provision of surface and underground drilling and is anticipated to be worth
    approximately $14 million in revenue over the three year period.
    In announcing the award, Chairman Nathan Mitchell said:
    “Ensuring continuation of the surface work and securing the new underground work is extremely
    rewarding as it demonstrates the excellent working relationship that the two companies have fostered
    over the past 15 months.

    June 2016
    " Mitchell Services Limited is pleased to announce that it has secured a two-year contract with global
    resource company Glencore at its Clermont operation for the provision of near mine exploration drilling"


    definately a turnaround story and soon to become very profitable - current price 2.2c - valuation should see this trading around 8c based on forward work and millions of dollars in rigs

    THINK THE AVERAGE RIG IS A MILLION SO THEY HAVE 56 MILLION VALUE IN EQUIPMENT ( i dont know the cost of drill rigs but recent purchase of a new rig was approx 1.1m from memory) perhaps someone here knows the industry intimately and would know the average cost to procure drill rig units ???

    Cheers Schu
    Last edited by SCHUMACHER; 27-07-2016 at 09:58 AM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  2. #2
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    looks like its going to run today people - First price target is 2.8c initially re-rating about to happen

    BTW - if we break 2.3c then its a confirmed breakout and should run easily to 2.8/3c range

    10, 000,000 traded yesterday all at 2.2c - there were approx 2 x 2 million buy lots wiping out 2.2c so could be something happening - revenue not a problem so maybe some more tier 1 contracts to be released
    Last edited by SCHUMACHER; 27-07-2016 at 11:22 AM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  3. #3
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    Default

    Owned HDX once - seemed to be all go until coal miningg took a turn and miners squeezed the contractors margins

  4. #4
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    Default

    Quote Originally Posted by NZSilver View Post
    Owned HDX once - seemed to be all go until coal miningg took a turn and miners squeezed the contractors margins
    i Think the tide has finally turned as they now have 90% of their business revenue from tier 1 ( big boys) so they have less competition as tier 1 takes out most of the small operators as the criteria is tough to get these major contracts - thats why MSV have had such success of late and the market will re- rate them soon

    YESTERDAY there was some large on market buys of 1-2 million shares so i suspect after their recent investor presentation in Noosa on Friday the people analysing this company now see it as a bit of a cash cow which has been flying unde the radar - the management are highly savvy individuals who know the market and have been able to secure the big contracts like Glencore


    P.S now with all the price of gold on the increase and lITHIUM, Zinc, graphite explorers and producers on the rise - MSV now in the box seat to make some serious money as the tide turns in their favour - very smart indeed
    GLTA
    Last edited by SCHUMACHER; 27-07-2016 at 11:52 AM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  5. #5
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    Buy depths starting to look interesting and once we clear 2.3c it should run - sellers starting to retreat which is always a good sign and fairly thin up to 3c - as always time will tell

    couple of hits at 2.3c and we will be away flying as its previous resistence
    Last edited by SCHUMACHER; 27-07-2016 at 12:55 PM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  6. #6
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    Yes - we have a breakout at 2.3c - should retest 2.8c

    short lived as sellers step in - wan$&$& LOL Confirms my belief that traders are everywhere and investors are outnumbered by pip traders - thank goodness im patient
    Last edited by SCHUMACHER; 27-07-2016 at 03:25 PM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  7. #7
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    Could today be the day we break 2.3C for good !

    Looks like its about to fall and if so should run to 2.8c

    And we are off !!!!! 2.3c gone- breakout hopefully

    this company is well undervalued and should be trading around 6c -8c in terms of NTA (net tangible asset) backing
    Last edited by SCHUMACHER; 28-07-2016 at 12:40 PM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  8. #8
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    Nice one 2.4c now being taken which means if we clear this level it could run up 1c easily and hit 3c - just need a bit more volume


    now first target is 2.8c and if we clear that next major resistence is around 3.8/4c
    GLTA
    Last edited by SCHUMACHER; 28-07-2016 at 12:54 PM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  9. #9
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    and yet again profit takers and traders come in on the sell to slow it down - oh well in good time back to sleep and at least we got through 2.3c which is good sign for now
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

  10. #10
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    wELL FOLKS - Im just picking winners all over the place - this is why i spend hours researching and researching - bought this at 2.1c and now 3c

    it did exactly what i thought it would do and that is break 2.8c within 48 hours
    could go anywhere now either retrace and retest 2.8c or continue however considering its friday - profit takers may take their 50% return in 2 days as always time will tell
    Last edited by SCHUMACHER; 29-07-2016 at 01:55 PM.
    \"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.

    \"The trend is your friend\"

    \"A mans reach should always extend beyond his grasp" J.F Kennedy

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