Perenti Global Ltd.

Overview Key strengths Key risks A leading Australian underground and surface mining service operator with a modestly diversified service offering. Small scale compared with global mining companies, which exposes it to ?in-housing? risk during commodity downcycles. Track record of conservative financial management relative to industry peers.Sizable contract book with counterparty diversity. Material exposure to African countries that have higher sovereign and operational risks.Capital intensive business with volatile cash flows due to the company's indirect exposure to volatile commodity prices. That said, the company may reduce its sovereign risk exposure if it can continue to execute on shifting more of its client base to lower-risk jurisdictions such as Australia, North America and Botswana, from higher-risk West Africa. Offsetting these weaknesses are

...Perenti Global Ltd.'s (Perenti) smaller scale globally, material exposure to West Africa, and indirect exposure to volatile commodity prices from contract mining revenues constrain creditworthiness, in our view. That said, the company may reduce its sovereign risk exposure if it can continue to execute on shifting more of its client base to lower-risk jurisdictions such as Australia, North America and Botswana, from higher-risk West Africa. Offsetting these weaknesses are the company's long track record and operating expertise, conservative financial management, and modestly diversified service offerings that provides some resilience to an industry downturn....

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