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Cheers - checked it out, little more than a mention, but reasurring to see that some of the guys who specialise in the small end of town have their eye on it. LYL - yet another example often observed inverse relationship between discussion on a Co (bam-bamm excepted) and it's LT shareprice performance.
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Hey DS,


I agree, and just find it interesting that as an LIC it states

Mirrabooka faced an unusual environment over the six month period to 31 December 2010 in that areas of the market the Company does not traditionally invest in, such as the resources sector, enjoyed very strong returns. This strength in resource companies contrasted with the subdued share price performance of many companies outside this sector during the period.


As shareholders would be aware Mirrabooka's investment activities are focused on providing investors with fully franked dividends as well as capital growth over the long term. This means the Company is not a large investor in the more speculative parts of the market such as smaller resource companies. ...

and it now ends up with Top 5: ILU, CPB, HDF, OSH, AWC plus FWD, BKN, MRM in its Top 20 and also SNX, RQL, ORE, ESG, CAH among end-Dec holdings, and now LYL and AGO added
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  • 7 years later...

Last post 2012 (when it was $6+)

Lycopodium, ASX code: LYL


Share price: $5.30; Forecast 2020 distribution: 34c a share.


With [interest] rates once again hitting ultra-low levels, there has been a renewed interest in anything and everything related to gold .. given the opportunity cost of holding the commodity is reduced the lower rates go. Unfortunately, gold will not pay you a regular income, so to play the gold thematic while also receiving a meaningful income we look to a small engineering firm out of Perth that is one of the pre-eminent gold mine engineers across the globe.


Lycopodium was founded in 1992 and has operations across Australia, with it expanding to Africa, Canada and The Philippines in later years. The company offers a wide range of civil engineering services but is focused on mining engineering, procurement and construction management.


What attracts us is Lycopodiumâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s reputation in the gold-mining industry, its sound balance sheet and steady flow of contract wins to support the dividend payouts in the near to mid term. In its most recent update, the company noted that it had a healthy pipeline and high levels of work contracted, while guiding to $16.3 million of profit after tax. With a market cap of $211m and net cash of about $61m, Lycopodium trades on an undemanding single digit profit to enterprise value multiple.


Another pleasing point is its recent contract win from its Mondium joint venture with Monadelphous (MND). The consortium was awarded its largest contract to date, a $100m retreatment processing plant for a lithium miner in Western Australia ... notable as it was also its second contract with the company, Talison Lithium.


Lycopodium would be more appropriate for an income-seeking investor with a little more appetite for risk, given it is not immune to the swings of the mining cycle. With a fully franked, forecast yield of just over 6.4 per cent, potential capital growth and a sound balance sheet, we believe Lycopodium presents compelling value.

Gareth Abernethy is an analyst for Clime Asset Management.

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  • 2 years later...

Lycopodium generated revenue of $102.4 million and net profit after tax (NPAT) of $15.3 million for the six months ended December 31, up 71 per cent and 6.3 per cent respectively. EBITDA rose 10.6 per cent to $25.1 million.

The company declared a fully franked interim dividend of 18¢ a share.


Projects in delivery, together with recent new awards, places the company in a strong position for FY22 and beyond, with full year guidance of approximately $245 million in revenue and NPAT in the order of $22 million.

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