Mdm Engin. Share Discussion Threads

[interceptor2] 17/10/2012 09:47

Agree Steg it's always re-assuring when other respected posters read the situation the same way.

Just finished having a closer look at MDM, they have cash of £19.4m and negligible gearing, a really clean balance sheet. At the last full year results they stated they have a commitment to pay a minimum of 50% after tax profit in dividends, which are forecast to be 6.46% and covered x 1.99.

I like the look of the chart also with strong support at 131p after a long period of consolidation. And a break out today after the update.

ic2...

[stegrego] 17/10/2012 09:17

That's quite a roll call this morning, even if I do say so myself....

Lets hope we aren't all wrong :)

[cfro] 17/10/2012 08:32

Im in too with a small intial holding.

I didnt get in straight from the off like some of you guys as i was busy digging around trying to find all the info i wanted before coming to a final decision.

But still more than worth paying up for even after a jump up on opening.

Pe is around 8 as you say steg tasty divi and loads of cash.

[interceptor2] 17/10/2012 08:26

Brought in here also today, they look very undervalued even before todays ahead trading update. Strong balance and a good divi payer.

ic2...

[stegrego] 17/10/2012 08:20

Bought some this morning.

Yield is about 6 percent I think, with cash covering over a third of mkt cap and pe is around 8.

[cambium] 17/10/2012 08:06

Managed a few down here. Lets hope we see some good rises from here

[cockneyrebel] 17/10/2012 08:01

Ahead of the 17p eps forecast?

Said they'll be paying out half earnings in divi's here out too at the last results.

CR

[deadly] 12/4/2012 08:34

Bad luck with the timing there!
This company seems to go places, see trading update:
"MDM's project pipeline continues to exceed current market expectations as the demand for our premium value added services, combined with an improved resources sector and requirement for long-term capital investment projects, increases. We are very encouraged by the momentum that has continued into the 2012 calendar year making us confident that we will continue to accelerate the growth currently experienced into the new financial year."

[rivaldo] 12/4/2012 08:29

Well, I was right about MDM being on the recovery track :o))

Shame I had to use the funds elsewhere though :o((

MDM is so illiquid though that I was only ever going to have a relatively small stake in it. Well done to any holders here.

[rivaldo] 18/1/2012 14:48

Got rid of the last of my stock today at a small loss. Lots of stock available to buy online, so unlikely to go anywhere fast, no interest, no news, lots of other stocks etc etc. As proven by the immediate price drop on my sale.

Which means a contract win RNS tomorrow then!

Good luck all. Perhaps back in if funds and timing permit as imo MDM is probably on the recovery track.

[lucky_punter] 16/12/2011 12:41

MDM Engineering riding high

MDM Engineering (LON:MDM) is a bellwether for the mining industry thanks to its pivotal role overseeing the construction of some of the sector's most significant projects.

[rivaldo] 09/12/2011 11:52

More good coverage, including:



"No planned slowdown in SA mining projects
Johannesburg, South Africa --- MININGREVIEW.COM ---
09 December 2011 -

AIM-listed MDM Engineering ‒ a company which undertakes mineral resources projects concentrating on the gold, base metals, industrial metals and diamond sectors ‒ has seen no sign of any slowdown so far on mining projects planned for Africa because of global economic worries.

That's according to executive director George Bennett who told Miningmx, "conditions now are very different to what happened in 2008 when a number of companies postponed projects and subsequently wished they had not."

Bennett added that, "another major difference is that currently some 40% of the projects being carried out are being funded by Chinese backers and they take a 30 year investment view, not an 18-month one. In 2008 there was minimal Chinese involvement," he pointed out.

"We are still seeing increasing demand for tenders ranging from feasibility studies to execution projects. We are seeing a lot of activity in the gold, copper and cobalt fields. Uranium has gone quiet but we expect that to pick up," he predicted.

"I think the guys learnt a few lessons from 2008 and, given the present situation, we are not too worried about Europe having a problem. Having said that, clearly conditions can still change at very short notice."

Bennett said MDM currently had a pipeline of "potential upcoming projects" on its books with project values totalling between US$1.5 and US$2 billion.

The company had seven execution projects in process worth US$580 million in total, while it was carrying out five bankable feasibility studies on projects with a total estimated value of US$1.4 billion. Bennett said MDM had set a strategic target of having at least 10 projects under execution at any one time and expected to achieve this during calendar 2012.

He said MDM's strategy was to focus on African projects and the company had formed a strategic partnership with listed Australian engineering and project services company GR Engineering Services (GRES).

Bennett commented, "GRES is a very similar outfit to MDM and our aim is to attract more Australian business given the extent of the Australian involvement in Africa, where 180 Aussie companies control some 400 projects."

MDM more than doubled revenues to US$19.8 million in the six months to the end of September and reported a profit before tax of US$3.3 million compared with a loss of US$2.5m in the previous comparable six months."

[rivaldo] 08/12/2011 06:46

Terrific new article:



"Nearly half of projects now Chinese funded – MDM
By: Martin Creamer
7th December 2011

JOHANNESBURG (miningweekly.com) – The London Aim-listed Africa-focused mining project company MDM Engineering, which is back in the black, reports that 40% of its projects are Chinese funded in some form, a far cry from 2008 when MDM was not delivering a single project that was Chinese linked.

"I think Chinese funding's going to continue, which is why I'm not as concerned as some people are about the effect on our projects of the European debt crisis.

"If Europe gets worse, I don't think that we're going to see any of our projects pulled like we saw in 2008," MDM executive director George Bennett tells Mining Weekly Online.

MDM, which has $600-million worth of active project execution work under way on the African continent, is continuing to experience increased demand for tenders, feasibility studies and projects going into execution.

The company has seven execution projects in process and a project pipeline of between $1.5-billion to $2-billion.

MDM anticipates being in simultaneous execution of a minimum of eight projects next year and its 18-month target is to get up to ten execution projects at any one time.

"We're getting busier," says Bennett.

While MDM perceives project house DRA as being by far the busiest in the process plant design and construction field, it sees itself as being busier than Bateman, TWP and GRD Minproc.

"The real comparisons for us are in Australia, where there are about 20 listed mining services companies and we compete with quite a few of them," Bennett says.

Last year, MDM forged a strategic alliance with the ASX-listed GR Engineering and the two companies have bid jointly for the Chalice gold project in Eritrea.

Through the alliance MDM is seeking to access some 180 Australian companies that control more than 400 mining projects in Africa.

MDM's projects are contracted on both engineering, procurement and construction management (EPCM) and EPC models to balance risk.

The company has had two profit updates so far this year and anticipates a third profit update ahead of year-end results in March 2012.

Its latest pretax profit forecast is up 21% on the previous $5.7-million forecast. Profitability is continuing into the first six months of the new financial year to September 20, with revenue rising by 176% to $19.84-million ($7.19m 2010).

Gross profit increased 398% to $7.52-million ($1.51m in 2010) and pretax profit to $3.31-million.

The gross profit percentage is 37.9% compared with 21% for the comparable period last year.

"The nature of this business lends itself to a gross profit of between 35% and 40%, which is a good gross profit percentage if you are working on a pure EPCM model.

"If you start including EPC fixed-price contracts, the gross profit percentage will drop to anything between 12% and 17%," financial director Dominique de la Roche tells Mining Weekly Online.

MDM will from this financial year-end be reporting two gross profit percentages; a normalised percentage to reflect EPCM-only contracts and the real gross profit percentage to reflect the impact of fixed-price contracts.

"We just want to give the market the comfort that the fundamentals are okay," says De la Roche.

The company favours a combination of EPCM and EPC contracts.

"You don't want everything on fixed-price contracts but there is more money to be made under fixed-price contracting if you get your pricing correct.

"Just selling purely man hours under EPCM is not a model that we like because it encourages inefficiency and we see that with some of our competitors who are far bigger than we are in man hour terms, not making much more profit than we are for a full year."

Currently of the $600-million under execution, $160-million of that is fixed-price EPC, which is more staff intensive.

Next year MDM expects to win contracts that will take the company to a 50:50 EPC/EPCM split. To further supplement the workload, MDM is currently undertaking five bankable feasibility studies (BFSs) and a number of prefeasibility studies (PFSs).

One of the more significant BFSs is for African Barrick Gold on a brownfield 2.4-million tons-a-year gold tailings retreatment plant at Bulyanhulu in Tanzania.

If successful, an EPC execution contract will begin in the first quarter of 2012.

A combination of ten BFSs and PFSs and a steady flow of new requests are expected to result in smaller projects in the next 12 months.

MDM recently completed tailings retreatment process plants for TSX- and JSE-listed First Uranium's Mine Waste Solutions project.

The company is constructing a manganese plant in the Northern Cape in which steelmaker Arcelor Mittal has 50%, Kalahari Resources 40% and South Africa's State-owned Industrial Development Corporation 10%.

Site construction on a concentrator plant for Tharisa Minerals has begun and a nickel atomiser integrated with a 3 MW direct current arc-furnace for the State-owned Mintek minerals research organisation is under way.

It is in the construction phase of a gold ore crushing plant for Gold Fields at Tarkwa, in Ghana, and has begun earthworks for dense medium separators to process copper and cobalt ore for ENRC Camrose in the Democratic Republic of Congo.

Currently small infrastructure works are being supervised on site at a copper concentrator for the JSE-listed Metorex, and project set-up is under way for a gold heap leach plant for Banro.

MDM has $14.5-million cash and near-cash debtors net of creditors of another $3-million, taking the total to $17.5-million.

The company targets net cash holdings of between $20-million and $25-million, after which it will look to increasing its dividend payout ratio.

The company has paid a dividend every six months since listing the business in 2008, even during the 2011 loss, and declared a 2.5c dividend (0.50c) in the latest period."

[rivaldo] 06/12/2011 08:30

Bought in here for the first time early doors.

Today's excellent RNS states categorically " As a consequence of this better than expected trading, MDM anticipates that its results for the 2012 financial year will be substantially ahead of current market expectations".

Current expectations per the most recent forecast were for 8.27p EPS, with a 4.52p dividend.

"Substantially" ahead could be anything, but will be a minimum of say 9.2p EPS. The wording suggests considerably more than this imho.

The divi is on track for the full 4.5p forecast and perhaps a touch more.

Plus MDM have $14.5m cash against a £35m m/cap.

Most importantly, the long-term outlook appears extremely bullish.

MDM's share price is pretty volatile. I can see the share price moving swiftly back upwards with decent sentiment behind it.

[edcrane] 19/10/2011 09:55

Great news just out .....


MDM Engineering Group Limited ("MDM" or "the Company")

Trading Statement

19 October 2011

Following the end of the first half of MDM's financial year; the six months
period to 30 September 2011, the Company is pleased to give an update on
trading and announces that the Company anticipates that results for the year
will be substantially ahead of current market expectations.

 

As indicated in the 2011 Annual Report, MDM's project pipeline recovered
during the last quarter of the year to 31 March 2011.  Since then, the number
of new projects and studies that have been awarded to the Company has
continued to grow, as a result of both MDM's efforts and an improving climate
for long-term capital investment projects.

 

These new awards, together with those studies and execution projects that have
carried over from the previous financial year, have helped see the Company
return to profitability in the first half of 2011 following the profitable
second half of the previous financial year. As a consequence of this better
than expected trading, the Company anticipates that its results for the 2012
financial year will be substantially ahead of current market expectations. The
Company intends to announce its interim results on 7 December 2011.

 

MDM Engineering Chief Executive Officer, Martin Smith commented:

"Having come through a difficult financial year ending March 2011, we are
pleased that the project workload has increased and earnings have recovered as
we had foreseen.  We are encouraged by the opportunities available to us to
organically grow the business and the restructuring work completed during the
slower periods has left us in good stead to capitalise on the significant rise
in demand for our services."

 

[mattjos] 13/1/2010 23:34

on my watch list now .. i do like the financial contros this company exhibits & thewe sector. Nice quiet thread too. some interesting contracts announced & i like the wathey tender & charge for the work.
The Director departure is a cause for concern but, i note he is not the founder or seemingly the 'engine' for the business. Th replacement will be important.
Any holders still on this thread willing to share some opinions & assit in an investment case - I'd be grateful & happy to share my opinions/research

[investinggarden] 10/12/2009 11:22

Costs rise at MDM

[napoleon 14th] 13/8/2009 09:48

Yep, rck, & they've started today with a new contract announcement!

Never mind, the CAL I bought with the proceeds is doing far more...

[rcktmn] 12/8/2009 10:04

I sold earlier this week... at a loss from the £2.12 I got in at a yr or two back...can't see this this doing much for a while.... you watch>>> it'll soar now !

[napoleon 14th] 12/8/2009 09:49

All well & good, BUT......

SP has hit strong resistance at 150p.

I'm not a trader, but with the opportunities around atm, I'm out of this
with the option of getting back in should that R=150 finally break.

[rcktmn] 22/7/2009 10:21

Agreed !

The share price is still way short of where I got in a few yrs ago @2.12p so I will continue to hold... I see this continuing to climb, particualarly if the market indices continue to improve.
The last set of results were excellent and can't really see the company going into reverse over the next few yrs (imho)

[investinggarden] 22/7/2009 10:06

Avoid recommendation from Growth Company Investor

[cestnous] 08/7/2009 10:17

Buy Tip In IC today. (Tip update)

[rcktmn] 08/7/2009 07:45

More good news....the story gets better & better

8th July, 2009
MDM Engineering Group Ltd
"MDM" or "MDM Engineering"
Notice of Award for MWS Phase 2


Following the completion of the cost budget estimate (CBE) awarded to MDM
Engineering (AIM: MDM) by First Uranium Corporation's (FIU), for Phase 2 of the
Mine Waste Solutions (MWS) Gold and Uranium Project, MDM is pleased to announce
that it has received a notice of award to immediately proceed with the Phase 2
of FIU's MWS Gold Project.


Phase 2 will incorporate another 650 000 tpm module for a tailings treatment and
reclaim plant. This module will compliment the existing 1.28 million tpm module
currently under construction by MDM.


George Bennett, MDM Engineering Executive Director commented:
"MDM is pleased to have been given the notice of award to fast track Phase 2 of
the MWS gold project and to proceed with the execution phase of the contract
after completion of the CBE."