Mining services stocks are set for a windfall this reporting season; here are some key ones to watch
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Many sectors will be watched this reporting season but it is unlikely few will have more uniform success than mining services stocks.
The gain in certain commodity prices throughout the pandemic ranging from gold to copper, battery metals to iron ore resulted in higher demand for these companies’ services such as drilling and logistics.
Some mining services stocks have gradually released guidance throughout the year and many have excited investors.
The drilling business is expecting revenue between $153 million and $156 million and earnings between $14 and $16 million for the full FY21.
The company also reported a strong rig utilisation and order book – the latter coming in at $300 million.
Managing director Kent Swick lauded the results and said further growth would come next year.
The company also updated shareholders about its planned demerger of Orexplore, a mining tech business, saying the deal was now back on and would be complete by the end of the year.
Three mining services stocks will be reporting full year earnings for the first time the first time in logistics company MLG (ASX:MLG) as well as drillers DDH1 (ASX:DDH) and Dynamic Drill & Blast (ASX:DDB).
The most recent of these to update shareholders was also the most recent to list in MLG.
MLG told shareholders earlier this month it was in line to achieve its prospectus forecasts of $241.6 million in revenue and $41 million in earnings.
Cardno is a more diversified infrastructure and engineering consulting company – although it does serve resources sector clients. It has gained in recent weeks after announcing a strategic review and hinted some M&A activity would eventuate.
The half yearly results of this mining services stock came in strong with $1.5 billion in revenue (55 per cent up from the prior corresponding period) and $763 million in earnings (up 131 per cent) leading to a $1 per share dividend (335 per cent up).