Pumping season boosts Resource Equipment

NOT many companies linked to Queensland’s coal scene have been boosted by the devastating wet season, but specialist dewatering equipment and pumping solutions outfit Resource Equipment is a notable exception.
Pumping season boosts Resource Equipment Pumping season boosts Resource Equipment Pumping season boosts Resource Equipment Pumping season boosts Resource Equipment Pumping season boosts Resource Equipment

Image courtesy of Resource Equipment Limited.

Blair Price

Broker Intersuisse has slapped a buy rating on the company and a 12-month target price of 80c as the Queensland floods are expected to accelerate its growth as a dewatering specialist in 2011.

“While mines are focused on urgent recovery, the timelines for obtaining appropriate equipment and the need for specialist know-how to effectively solve the problems within the constraints of environmental restrictions argue for the use of a specialist provider rather than merely hiring a pump,” Intersuisse said.

“As mine water issues are typically ongoing, Resource Equipment’s solution tends to be the most economic.”

Resource Equipment estimates that more than 70% of Australian mines have water management issues and more than 90% control their water management in-house.

The company’s Queensland division is based in Mackay while its New South Wales business is based in Rutherford.

Shares in the company were unchanged at 62c this morning.

topics

loader