Codan Ltd (CDA)

[finicky]

Feeling a bit warmer towards Codan. This news is small in itself but could signify a growth path as this is the first real commercial contract for the Mintec division. If it can prove it adds safety and productivity to this gold miner, Saracen Minerals (SAR), other interest could follow?

Codan Limited

3 August 2016

MINETEC WINS $1.8 MILLION CONTRACT FOR DEPLOYMENT OF
UNDERGROUND TRACKING TECHNOLOGIES

Minetec, a wholly owned subsidiary of Codan Limited, has entered into a $1.8 million
contract with RUC Cementation Mining Contractors Pty Ltd for the delivery of high precision
tracking, visualisation, task management and proximity detection solutions in a Western
Australian mine owned by a subsidiary of Saracen Mineral Holdings Limited (ASX:SAR).

This technology allows underground miners to 'stop working in the dark'; the Minetec
solution is enabled by WASP, the world's most reliable underground GPS and wireless
communication system. When WASP is combined with our proprietary SMARTS task
management system, it allows underground miners to solve difficult production problems in
real time.

This contract validates Minetec's stated strategy of targeting underground hard-rock gold,
copper and diamond mines with a unique technology platform providing enhanced tracking,
safety and productivity. The system utilises Minetec's sub-metre tracking and proprietary
task management software, SMARTSTM
.
The revenue will be realised during FY17.

http://www.minetec.com.au

Disclosure: Holds
Sentiment: None

 

[finicky]

Codan CDA, has an ex chief of army on its board.


MINELAB AWARDED CONTRACT TO DEVELOP NEW HANDHELD DEVICE
DETECTOR FOR THE AUSTRALIAN DEFENCE FORCE
31 August 2016

Minelab Electronics, a wholly owned subsidiary of Codan Limited, has been awarded a
$6.7m contract by the Department of Defence to develop a new Handheld Device Detector
(HDD). The funding received under this contract is to further develop a dual sensor metal
detector which incorporates ground penetrating radar. It will partially offset the development
costs of the product, and the project is expected to be completed by 2018.

The development of the HDD builds on Minelab's success in technology development and
product innovation for use in military programmes.

Codan is particularly pleased to be of service to the ADF and to provide an enhanced
capability that currently does not exist. Once the HDD enters into service with the ADF, we
are confident that other militaries will seek the same level of capability, broadening our
market for countermine products.

The contract supports Codan's stated strategy of growing its profitability by improving and
broadening our product offerings while ensuring our value propositions remain relevant and
leading-edge.

Previous to this award, in March 2014, Minelab was selected by the Department of
Defence's Rapid Prototype Development and Evaluation (RPDE) programme to receive
$1.0m in funding to further integrate metal detection and ground penetration radar
technologies into a lightweight and compact mechanical platform. In December 2014, RPDE
provided an additional $1.3m in funding, and Minelab subsequently produced an advanced
prototype of the HDD.

Cooperating with NIITEK Inc., the HDD will combine Minelab's new Multiple Frequency
Continuous Wave metal detection technology and NIITEK's advanced ground penetrating
radar. The HDD was designed taking into account the comprehensive requirements of the
ADF, supplemented with feedback from Army User Groups. It will include advanced
detection technologies as well as new standards of compactness and ergonomics.

1.50 looks significant if it eventually breaks
CDA Monthly
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[finicky]

Bullish full white (marubozu) candle yesterday confirming prior day's break above 1.50
Unexpected lack of resistance makes me suspect 1.50 has little significance as support. Therefore a pullback might see price around 1.25, in which case CDA worth a thought.

Products
Metal detectors: for gold mining and prospecting, for mine clearance by military, gov, and NGOs
Radio Communications: HF and Land Mobile Radios for military, miners, SES, NGOs, individuals
Mining Solutions: CSIRO derived tracking technology for real time asset awareness, safety and productivity

Disclosure: held
Sentiment: hold

CDA daily
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[finicky]

CDA current bid @ 1.625
Mintec again. Another gold mine underground tracking contract. Small potatoes, however shows the mining industry is taking notice.

Codan Limited

5 October 2016

COMPANY ANNOUNCEMENTS

MINETEC WINS $1 MILLION CONTRACT FOR DEPLOYMENT OF
UNDERGROUND TRACKING TECHNOLOGIES

Minetec, a wholly owned subsidiary of Codan Limited, has entered into a $1 million contract
with PYBAR Mining Services Pty Ltd for the delivery of high precision tracking, visualisation
and task management for the South Australian Carrapateena copper-gold exploration
project. PYBAR was recently selected by OZ Minerals (ASX:OZL) for the construction of the
7.5km decline and associated ground infrastructure.

PYBAR selected Minetec's task-management system (SMARTS) and WASP high-
precision tracking in order to manage the development of the decline. The Minetec solution
allows underground miners to maximize productivity and safety by solving real world
problems in real time.

This contract further validates Minetec's strategy of targeting underground hard-rock mines
with a unique technology platform providing enhanced tracking, safety and productivity.
The revenue will be realised during FY17.

Codan is an industrial technology company that develops rugged and reliable electronics
solutions for government, corporate, NGO and consumer markets across the globe. Codan's
technologies include radio communications, metal detection and tracking solutions.

 

[finicky]

$1.83

24 Nov

CDA up 12% today on strong H1 profit guidance.
Now expects full year fy17 underlying profit to be up at least 42% on fy16.
Share price is flying but CDA expects softer H2 due to above normal H1 uptake of its newest gold detector in Africa.
Heavy investment into its Radio division not expected to see results until fy18 and beyond.
Mine asset tracking business continues to gain acceptance by industry

Sentiment: Hold

Daily - looks overbought
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[finicky]

Interesting early 2016 article about Codan's ramped investment and optimism in 'Daniels Electronics' - its Canadian land mobile radio (LMR) subsidiary.
Expects entire radio division, which consists of more than Daniels, to report softer fy17 to pcp fy16, but lift-off might be more visible in fy18?
http://www.codan.com.au/Portals/0/o...ech firm Codan sees growth wave_31.3.2016.pdf

Disc: held
Might be one to consider in a significant correction

2 yr weekly

 

[finicky]

Codan's chart is hard to call. It looks like it wants to break a neckline at 2.00 from a one year rounding top. Sometimes this pattern can surprise to the upside though so its sit and wait.

CDA 2 YR weekly


It looks like Codan (CDA) is guiding for minimum NPAT of $30m for FY18 given that it is sure of $15m for H1 and expects H2 to be higher, as is normally the case for the company. At $375m market capitalisation this puts CDA on a forward price to earnings of 12.5, possibly less. Pays a 3% ff yield and keeps half its eanings back for R&D

" PROFIT GUIDANCE FOR THE SIX MONTHS TO 31 DECEMBER 2017  Codan’s base-level business has revenues of $160 million to $180 million, delivering an annual profit in the range of $20 million to $25 million.  Results for the first half of FY18 will exceed our half-year base-level profit range.  Profit for the first half of FY18 is expected to be in the order of $15 million.  The Equinox coin and treasure detector, with new technology that will enable detectorists to find even more targets, will be available for sale early in the New Year.  Traditionally our results for the second half have exceeded those for the first half. We expect that this will be the case again this year."

Recently the company also put out this mysterious disclaimer to the market about an Adelaide Advertiser article. Codan is based in Adelaide. Is a global supplier to the mining industry interested in Codan subsidiary Minetec's system for underground mining task management sloganed 'don't work in the dark'?

"RESPONSE TO MEDIA REPORT
The company notes a reference in the Adelaide Advertiser to a possible new contract with a
global entity.
As stated at our Annual General Meeting on 25 October, the Minetec division’s tracking and
task management system has been deployed into a number of operational mines, and it is
proving successful at unlocking productivity gains for our customers. This has led to an
increased level of interest from miners and large equipment suppliers.
We continue to pursue opportunities that will scale the Minetec business, and these include
forming strategic partnerships and collaborations with major suppliers to the mining
industry. While the company is continuing a series of confidential negotiations in order to
deliver on these opportunities, no contract or transaction has been agreed at this time."

 

[finicky]

Stale news link in prior post about Codan's 'Daniels Electronics' (Land Mobile Radio) subsidiary in Victoria Canada, so I have found and reproduced article. The local paper report is keen on the job creation by Codan. The Codan M.D, Donald McGurk, is talking about escalating investment and recruitment. Proximity to the U.S market is mentioned. This article was published in 2016 in the Canadian 'Times Colonist'.

Victoria radio tech firm Codan sees growth wave, hiring blitz
Andrew Duffy / Times Colonist
MARCH 31, 2016


Ben Pearce displays tactical radio repeaters at Codan Radio Communications.

"Codan Radio Communications is in serious growth mode in Victoria with plans to expand its ranks by as many as 30 engineers and double its production in the next five years.

Formerly known as Daniels Electronics, the company acquired in 2012 by Australia-based Codan Ltd., is looking for talent and said there’s no end of potential for growth.

“We are ramping up for future growth in the near to medium term,” said Charlie Stuff, Codan’s executive general manager. He said with spending in the U.S. now returning to normal levels, the market for Codan’s products has grown and the company is well placed to take advantage.

“The [land-mobile-radio] market is expected to grow globally by between 12 to 15 per cent over the next five years and we are in the midst of it with our technology, so it’s the obvious time for us to start investing in that technology and growing the business,” Stuff said.

Codan manufactures value-added electronic products for radio communications, metal detection and mining technology. It expects to expand its Victoria operation to 100 staff through the hiring blitz that kicked off this week.

It comes as a bit of a surprise to the parent company in Australia.

Donald McGurk, the Australia-based chief executive who was in Victoria this week, said when deep spending cuts hit the U.S. shortly after Codan bought Daniels for $24 million in 2012, they saw revenue “fall off the cliff” and had the firm looking at cutting expenses.

“But that [spending] has come back and it’s exceeded our expectations,” McGurk said, crediting local management, cost control and the sales team.

McGurk said the signs suggest Codan’s Victoria operation, bought to act as a springboard for the company into the North American market, will lead Codan Ltd. forward.

“As a company, we have decided this is the growth engine for Codan. We turn over between $150 million to $170 million a year and we see more potential in these guys here than we do in every other part of our business,” McGurk said.

In fact, McGurk went so far as to suggest the Victoria operation may have doubled in value since 2012, and he hopes that in the next three and a half years it does so again.

If Codan meets expectations, it will be because it broadened its product base and had the right team in the right place at the right time, Stuff said in an interview at the company’s James Bay plant.

“The core competency that resides here is immense and the market is directly south and east of us and we are right here,” he said. “When Codan acquired Daniels in order to establish a footprint in North America, it was in exactly the right spot.”

Ben Pearce, Codan’s North America regional sales director, said it has also come down off the mountain and broadened its appeal.

Daniels Electronics made its name designing and manufacturing customized digital and analogue radio repeater systems capable of working in extreme climates, such as mountain tops and other sub-zero locales.

“We were offering a small repeater device, and we still do that … but we are coming down into markets that are much bigger and that need more capabilities,” he said. “We are focused on the public safety markets, and as a close second homeland security.

“If you’d asked us five or six years ago, we’d say those were areas of interest for us, but we just dabbled. Now, those are the big growth sectors for us.”

Pearce said the company remains a well-kept Victoria secret because it doesn’t sell here, but it is doing a lot of exciting and innovative things that are making a big splash on the global stage.

“The old Daniels market we had is vastly changed. We still have the core values, but we’ve taken that and morphed it into something much bigger,” he said.

The company recruiting effort is focused on radio frequency engineering and software development that will support new product development across its portfolio."

 

[finicky]

Codan Ltd (CDA) reports H1 results tomorrow, however this today:

Minetec signs Master Development and Marketing Agreement with Caterpillar Inc.

Minetec, a wholly owned subsidiary of Codan Limited, has entered into a global licensing, technology development and marketing agreement with Caterpillar Inc. (NYSE:CAT).
Under the terms of this agreement, Caterpillar and Minetec will collaborate to expand and develop the Caterpillar Minestar® technology solution for underground mining operations.
Minetec’s proprietary products, SMARTS™ task management, TRAX™ high-precision tracking and wireless communications, and SafeDetect™ proximity detection, will be integrated into an expanded Caterpillar Minestar® technology solution.

With 2017 sales of US$45.5 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar has an expansive dealer network covering 172 dealers across 190 countries. This agreement recognises the value of the technology developed by Minetec since its acquisition by Codan in 2012. While not expected to deliver material revenue in FY18, this is an important milestone in our strategy to scale the Minetec business.

 

[finicky]

Nice chart but I'm a bottom trawler by temperament

 

[finicky]

Codan (CDA) has guided to a strong H2 and full year FY18 NPAT of $38m, putting the company's shares on a forward p/e of 13 at yesterday's closing price.
Also Codan's 'Minetec' division has kicked another goal, winning a contract with BHP's Olympic Dam.

Minetec enters into contract to supply Fleet Management System for BHP’s Olympic Dam mine
Minetec, a wholly owned subsidiary of Codan Limited, provides high-precision tracking, productivity and safety solutions for underground hard-rock mines. After a highly competitive tendering process, Minetec has been awarded the contract to supply BHP’s Olympic Dam mine in South Australia with an underground Fleet Management System, including proximity detection, tracking and task management. The contract has a total estimated value of $9.5 million, with approximately half to be delivered in FY18 and the balance in FY19. This important milestone validates the competitive position of Minetec’s proprietary mine management solution, developed by Minetec since its acquisition by Codan in 2012.

CDA Weekly

 

[finicky]

Omg this is grave. I only went to the Montgomery blog for a laugh again at how the crack Montgomery team of Jesuits squirmed out of their debacle of a Vita Group (VTG) recommendation. About to close the tab and thought I'd search if they'd said anything about Codan (CDA) and they had. Recently. They like it. That's most ominous.

https://rogermontgomery.com/exclusive-interview-with-codan-ceo/

 

[finicky]

Minetec is only an infant division of Codan, it's just beginning to be profitable. Lots of underground mines in the world, all looking for better safety and more profit margin, Caterpillar a global supplier. Might qualify for the phrase "long runway" although I cant quite get that metaphor really.

 

[finicky]

CAT Deal

In Feb’18 Minetec entered into an exclusive deal with Caterpillar (NYSE: CAT) to integrate its underground mining technology solution with CAT’s ‘Minestar’ product.

The partnership with CAT provides an opportunity to accelerate the path-to-market of CDA’s UG mining technology, by leveraging CAT’s network of 172 dealers across 190 countries.

UG mining software solutions are strategically important for CAT given it can assist in generating “iron” sales (trucks, machinery) which are more at the core of CAT’s business.

The revenue model for CDA as part of the deal will be structured under a profit-share arrangement, whereby CDA and CAT share in the margin generated by the Minestar product’s sale. CDA is entitled to at least 50% of the profit margin on sale of the Minestar product.

While the deal is exclusive to CAT (i.e. CDA cannot partner with a competitor to integrate its product into theirs), it does not interfere with CDA selling its own Minetec product (i.e. as distinct from the integrated Minestar product) directly to customers, as evidenced by the recently announced BHP deal.

CDA is currently working with CAT to roll out this process and will roll out the integrated Minestar product across a live mine setting in WA (scheduled for 2H FY18), in order to eliminate any bugs/issues before taking the product to market ~1H FY19.

CAT has first right of refusal to acquire Minetec should it be sold.

 

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CDA chart: