Professional’s Pick – Mastermyne Group

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What is the stock? 

Mastermyne Group Limited (MYE).

How long have you held the stock?

Our new Eley Griffiths Group Emerging Companies Fund initiated a position in early August 2017. We are back on the register following many years absence.

What do you like about it?

The coal industry is gradually returning to good health following a lengthy period of privation. Mastermyne’s FY17 result highlighted the company’s improving operating performance in the second half and preparedness for a significant uptick in revenues. The group has always enjoyed the support of tier one mining groups and now that development and expansion studies are being tendered, it is obvious the group’s order book will start to fill nicely through FY18. Fleet utilisation is now at 80% + and they will be enjoying their first taste of fixed cost leverage in many years.  Mastermyne is now armed with a recharged balance sheet and is at the beginning of an earnings upgrade cycle. It is a classic stock for our new fund.

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