Mdm Engin. Share Discussion Threads

[whizzy1] 27/6/2008 16:04

Nah, it was me im afraid, I seemed to start the ball rolling this morning with a 10,390 sale.
Kenz got to cheap not pass.
Im still of the opinion that MDM are a great Co, but the KENZ dip pulled me in.

[rcktmn] 27/6/2008 10:16

didn't have to wait for next week for this to crawl down...it's already started today!

bad market this week... have lost 1nearly 10% of my portfolio value this week alone!

still, I think this share has enormous potential and will continue to hold until the markets recover (later this yr/early next yr) and we get good releases along the way.

[hsbcpremier] 26/6/2008 21:18

i like this bit


The company, formed just two years
ago, is turning business away. Its hands
are full with four mining projects worth
$400 million and seven studies that
would be worth around $1 billion if they
go commercial. There is also a strong
pipeline of additional studies and the
conversion rate to projects is high.

......MDM expects the commodity cycle
to last for at least another eight to
ten years. If so this means its experienced
team can probably quadruple
the size of the company.

[johnv] 26/6/2008 17:44

Its only rising due to the tip, wait till next week when it will slowly crawl back down again.

[whizzy1] 26/6/2008 10:46

Great to be in a share that rises in such a awful market.

[rcktmn] 26/6/2008 10:19

Cool!

thanks for post Stegrego

[stegrego] 26/6/2008 09:08

Shares Mag Play of the Week

The mining boom is great news
for companies that assess
whether a mine will be viable
and then organise its construction.
There are a number of project
engineering companies but not
enough to cope with the big rise in
demand. Mining exploration budgets
have jumped almost $3 billion to some
$10.5 billion last year and could top $12
billion this year.
MDM floated at 145p in May, raising
£4.4 million to help fund acquisitions and
employ and incentivise more staff. Its
shares have already soared 48% but could
hit 300p next year if its current rate of
growth is maintained.
The company, formed just two years
ago, is turning business away. Its hands
are full with four mining projects worth
$400 million and seven studies that
would be worth around $1 billion if they
go commercial. There is also a strong
pipeline of additional studies and the
conversion rate to projects is high.
First Uranium is a major client with
three projects led by its ChenWes gold
and uranium mine costing $223 million
in South Africa. The Ezulwini gold and
uranium projects are worth $111 million.
Metorex is paying MDM $45 million to
bring its copper mine at Kinsenda in the
Congo on stream.
The mining assessment studies are
also dominated by South African projects
plus three in Zambia, Cote d'Ivoire and
Malawi.
While most mining engineers prefer to
steer clear of Africa, this is where MDM
makes its money. It is experienced in
building plants in remote areas with little
infrastructure.
The key to MDM's success is its experienced
management, led by chief executive
Grant Lowman (formerly at Bateman
Engineering) and chairman Bill Nairn
(former at Anglo American). MDM is
basically a refinancing and relaunch of
South African engineer MDM Ferroman,
which went bust in 2006.
Ferroman went bust because it offered
fixed-price turnkey contracts to clients.
The new team switched to a cost-plus
model. It agrees a margin with its client
and follows an open-book policy, showing
the cost per hour of its labour plus equipment
and material prices.
Any savings are split between the
client and MDM, which is paid a fee for
the project design and man hours as well
as a percentage of the project cost to
manage it. This alignment of interests
between client and contractor is the optimum
business model.
To date, MDM has completed 39 feasibility
studies – 90% of which resulted in
follow-through work – constructed 50
process plants and executed several
dozen projects in 14 countries.
Profits are expected to have grown
from $1.4 million to $4.5 million to
March 2008 and are forecast to hit $22
million this year. This will slash the PE
on a 25% tax charge to single figures. If
profits increase to $30 million next year
MDM becomes seriously cheap.

MDM expects the commodity cycle
to last for at least another eight to
ten years. If so this means its experienced
team can probably quadruple
the size of the company.With its
niche of smaller projects for Africa
the prospects look great.
Business:
Mining engineering company
Vital stats:
Market value: £81 million
Historic PE 2007: 135
Prospective PE 2008: 40
Prospective PE March 2009: 9.8
Sector PE: 20
1-month relative strength: 17.6%
1-year relative strength: n/a
Yield for 2008: n/a
NMS: 2,000
Spread: 2.3%

[cockneyrebel] 17/6/2008 19:26

Well you sold hsbc so what do you care?

CR

[hsbcpremier] 17/6/2008 16:13

will it go thru the high?

[stegrego] 12/6/2008 18:34

CR - fair comment, but although the company was formed only a year ago, all the staff came from MDM previous incarnation which was running for nearly 20 years.

[cockneyrebel] 12/6/2008 17:08

I'm not here to troll like hsbcpremier and then buy back cheaper - done and dusted here. I'd need to see a decent return from the co first and at least a demonstration they can get near the forecasts. 220p was my target on buying and SCSW helped me achieve that sooner than I hoped. I wish you luck and hope they do deliver for you.

CR

[rampmeister] 12/6/2008 13:24

Notice you are keeping an eye on this CR - are you buying back in?
Nice 25k buy just gone through was that yours?
RM

[stegrego] 12/6/2008 12:06

Must be someone unloading in the background

[rampmeister] 12/6/2008 12:04

According to ADVN buy trades have outnumbered sells for the last 10 days but MM's keep walking share price down. A little concerned what they will do if this pattern is reversed.

RM

[stegrego] 10/6/2008 19:51

CR - i think that people in glass houses shouldnt throw stones...

Your recent record isnt exactly one of picking loads of winners, pretty much most of the stuff youve touched over the past 12 mths has crashed and burned from what i can see from the various boards..... Waterline, Intimas, Wagon, Conder Env, John Lewis, Focus Solutions etc etc

How about we stick to the share rather than petty bickering?

[cockneyrebel] 10/6/2008 13:46

hsbcpremier - you were on the APG thread suggesting they might put out a profit warning. If that is a worry then what would this stock be? These have never made a profit, the company was only formed a year or so ago, no track record and up over 50% from the float. I'd be more worried about that than a warning from APG where the shareprice is already beat up. No room for error here imo - might be why there's plenty or shares to fill the buys from tip sheet followers.

Just a thought for you.

CR

[whizzy1] 06/6/2008 14:51

K im in, too good to pass, nice to see an old face Ste (u kept this one quite over in Kenz!)

[hsbcpremier] 05/6/2008 20:47

with limited funds, we like to get in the plane rather than wait in departure lounge steg

[stegrego] 05/6/2008 18:26

hsbc, why by when price is going higher?

Surely, if you are confident in the company, youd buy when the price ticked lower??

[whiterussians] 05/6/2008 16:14

up again! Will it get a wee mention in the IC?

[whiterussians] 05/6/2008 16:08

Heading back up now