Australian Engineering & Mining Services Sector Rebounds From COVID 19
A rapid turnaround in the valuations of mining services and engineering companies has been seen in the Australian market
By: LCC ASIA PACIFIC PTY LIMITED
This long running weekly report, commenced in 2011, provides information on developments specific to industries including Engineering, Mining Services, Oil & Gas Services, Oilfield Services and Infrastructure Services.
Strong iron ore prices continue to both underpin the Australian dollar and drive investment into the mining sector. The majority of Australian sector players have seen the majority of losses associated with the March "COVID shock" reversed.
A contract award of note announced during the week was MacMahon's A$700m contract at the Byerwen coking coal mine in Queensland's Bowen Basin, in addition to their confirmation of FY20 revenue projections in the region of A$1.3 to A$1.4 billion.
LCC's proprietary index – the LCC Australian Contractors & Services Providers Index® is also updated for movements in recent weeks – and it is compared against various sector movements including in both Engineering and Mining Services.
Nicholas Assef, LCC's Founder and Head of Engineering, Contracting & Services Sectors commented : "International factors such as Vale's issues in Brazil which are impacting production continue to reinforce the attractiveness of Australia as an investment and production hub for mining".
"Mine Operators continue to invest, which when combined with Government infrastructure spend in reaction to COVID 19 paints a positive picture for the remainder of 2020" Nicholas Assef concluded.
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LCC Asia Pacific is in its 16th year of operation, and specialises in both corporate finance and strategic advisory engagements to the Engineering, and Technical Services Sectors (including Infrastructure, Mining, Oilfield, Environmental & Water).