Primero Group a new mining services company that has literally formed out of the ashes of the failed Forge Group. Much of the management of Primero Group were former Forge Group employees responsible for the engineering and business development at Forge. It is worth noting that this group was not responsible for Forge's bankruptcy (see news articles attributing to a poor acquisition of a power station company that had under estimated the projects. Similar story to RCR). What is exciting about Primero Group is its new culture, which will be competitive advantage if management can nurture in the coming years as it transitions from a startup to a Small Cap --> Mid Cap company.
Primero skills set lay in its design, construct and operate model. At present it appears to leverage its skills in the development of lithium plants a industry that has been seeing some strong growth in the Western Australian region. This however is not its only skills set and I would expect that it would diversify if not already.
At 40c a share, growth could see it approach to 50c in the next 12 to 24 months, on the back of a strengthen mining industry.
In Short what I like:
-Strengthening Mining industry
-Large players engaging in sustaining capital expenditure or growth
-Company Culture at Primero Group could be an advantage with engaged and innovative employees. Often can be lost in large corporations and given that many remember the mass redundancies of the last few years, many will need to feel valued again.
-Vacuum in the mining services industry exists and Primero looks to fill that space. (RCR Tomlinson, Forge Group & AMMS to name a few)
Primero skills set lay in its design, construct and operate model. At present it appears to leverage its skills in the development of lithium plants a industry that has been seeing some strong growth in the Western Australian region. This however is not its only skills set and I would expect that it would diversify if not already.
At 40c a share, growth could see it approach to 50c in the next 12 to 24 months, on the back of a strengthen mining industry.
In Short what I like:
-Strengthening Mining industry
-Large players engaging in sustaining capital expenditure or growth
-Company Culture at Primero Group could be an advantage with engaged and innovative employees. Often can be lost in large corporations and given that many remember the mass redundancies of the last few years, many will need to feel valued again.
-Vacuum in the mining services industry exists and Primero looks to fill that space. (RCR Tomlinson, Forge Group & AMMS to name a few)
Comment:
Contract wins are positive catalysts