Civmec

Civmec: Facilities running at full capacity, and grp is investing in new equipment to carry out structural, mechanical and piping installation work, a more technologically challenging and higher value type of construction activity. Note that BHP and Rio Tinto wants to double their iorn ore production over the next 4-5 yrs, whats interesting is that it has taken them 40 yrs to get to where they are now, and to double it over the nxt 4 yrs means that ‘you can imagine the amt of work thats required.’ In contrast, Ausgrp, Civmec’s closet peer trades at just 9x earnings vs Civmec of 52.9x. Ausgrp capabilities are however not as extensive as Civmec, e.g it does not build precast concrete structure or carry out civil works. Still, both co’s are faily closely linked and a number of key executives are former staff and shareholders of Ausgrp.