Focused on Coal Plant engineering, construction and management; however also builds gold plants. Recently gave full year FY14 guidance of after tax loss in the range of $5m to $7m. Outlook for 12-18 months "subdued". Still paid a token H1 dividend of 2c, and strong balance sheet with Net Cash $80m at Dec Half. New M.D announced May 5th. Position: holds Sentiment: none, except chart looking ok with daily break above 50c if it holds. Low volume break so far. Chance of return to 40c if break is false; and note it is in mining services sector. Speculative bottom feeders interest? Daily one year Weekly 3 year
Yep us bottom feeders like companies with cash but don't like them to be losing money Took a closer look and it is indeed an interesting proposition: $80m net cash and with a market cap of $114m. Question is whether they can turn around and start making a profit or if they will continue losing money and burn the cash..... hmmm....
Lean times so Sedgman sort of paying for the initial phase of its own gig? Once the DFS is done Sedgman should get to design, build, and maybe operate the plant. Will also own a bit of Vital Metals Ltd, the client. So this is a tungsten project, and Sedgman's most recent EPC contract award was a Gold plant - Guyana Goldfields flagship Aurora Gold Project in Guyana. Just pointing out Sedgman is not just a Coal plant specialist. Its only intuitively based, but for what it's worth I take heart that SDM can operate in the gold mine servicing sector because I'm optimistically biased for a revival of gold mining. Not meaning to promote SDM as the best investment option available. Tendency to post on my own stocks and this is a dog from an historical viewpoint. Tungsten better then silver? http://stocknessmonster.com/news-item?S=VML&E=ASX&N=682713 ASX/ Media Announcement 1 July 2014 VITAL METALS LIMITED (VML) SECURES STRATEGIC INVESTMENT FROM SEDGMAN TO SUPPORT QUEENSLAND TUNGSTEN STRATEGY Key Points Listed global mineral processing and infrastructure solution provider Sedgman Limited to provide Vital with A$500,000 funding through a placement and convertible note. Strategic investment represents a strong vote of confidence in Vital's flagship 70%-owned Watershed Tungsten Project in Queensland (30% partner: Japan's JOGMEC). Funds raised to provide working capital to enable Vital to complete the Watershed Definitive Feasibility Study (DFS), which is near-complete and due for delivery in July 2014. Sedgman has been working on the Watershed DFS and has substantial experience building and operating mineral processing plants and working with large Japanese partners.
The 3 year chart looks an awful lot like the 3 year chart for many spec stocks in mining. It is like the bottoming of a parabola ....
Exactly - this is my devout wish. Down about 40% in this stock, but at least picked up a few dividends. Forgot to add earlier that as well as successfully scoring that gold plant contract in Guyana, Sedgman has recently completed the delivery of the Mungari Gold Project in Western Australia which achieved first gold pour in May.
The only thing I worry about is the possibility of gold declining to the $1000 mark. The stock will still keep the bottoming parabola but will drag on for at least another year or more. It is these type of conditions that will cause some of the weaker stocks, not just spec stocks, to fail. This will be a true sign of the bottom.
So while Sedgman has been a CHPP specialist (Coal Handling & Preparation Plant designer, builder, operator) in the past, it continues to win contracts in other minerals. After recent announcements about contract results for Gold and Tungsten, SDM has now won a contract for an iron ore plant from Fortescue. Chart is still improving with local resistance at 50c overcome apparently. I like the rounding shape that is forming as potential for a bottom. Position: Holds Sentiment: spec ASX/MEDIA RELEASE 17 July 2014 Thiess Sedgman Projects JV awarded $64m contract for Fortescue's Solomon Mine Leading resource sector services company Sedgman Limited (ASX:SDM) today announced that the Thiess Sedgman Projects joint venture ("TSP") has been awarded a $64m contract for the Design and Construction of a 7.5m tonne per annum (ROM Feed) modular iron ore processing plant ("Modular Plant") at Fortescue Metals Group Limited's (ASX: FMG) Solomon iron ore mine in Western Australia. Sedgman Chief Executive Officer and Managing Director Peter Watson said the contract is the company's first major iron ore project and represents a significant and successful milestone in its diversification strategy. "Sedgman and Thiess have an established track record of delivering coal process and materials handling projects over the last 12 years and we are excited to be able to broaden this relationship to the iron ore sector." 6 Months Daily
This company has been kicking a few goals and net cash now looks to be in region of $80m before payment of H1 dividends. That's about 35c net cash per share. Interim dividend per share 3.5c. Already gone ex. Expecting stronger second half, so should be at least 10% ff yield on .70 share price. [imgz=http://forums.silverstackers.com/uploads/1893_sdm_mar_13.gif][/imgz]
Another contract win announced yesterday. $12.4m minerals separation plant in New Jersey USA. Note again, not in Sedgman's specialty area of coal handling design/build. Versatile mining service provider. Weekly chart still an excellent prospect for 2 year rounded bottom being formed with low @ 40c Seems good buying for yield especially if it ever dips to 50c or below b4 ascending out of base?
Guidance today says they'll be reporting $17-18m npat for fy15, and that's about 7c earnings a share. So after the rally and sideways for the last 8 months is on a current p/e of less than 10 and yield of at least 10% franked, my guess. Wonder if there are any more mining servicers that could have have bottomed?
If I read right npat of 16.5m But op cashflow of $45m Paid back 19.2m borrowings $109m cash as at 30June Final div of 3.8 cps, and get this, special div of 2.2 cps Total div for year 9.5 cps fully franked Reckon they can sustain earnings fy16 How do you reckon this one will go if gold takes off? They do gold plants, diversifying away from coal plants. Who knows.
