Positive Mining Outlook: ANG beneficiary?, page-38

Here's a recap of the Chile issues, and why I'm optimistic for H2 2026 (and beyond).

H1 FY2025 (October 21, 2024): "Austin Chile records $35M of new customer orders for FY25"

- Total Value $A35m
- ~100 Trays
- ~A350k per Tray - ~15 Trays/Month

"...expected to be delivered before the end of this financial year (June 30, 2025)"

H2 FY2025 announcement:

"This program [CHILE] has been demanding and necessitated a major ramp up, which has strained the capacity of the facility."

Margin impact and order delayed.

H1 FY2026 announcement (November 5, 2025):

- 5 Trays/Month
- 5 Months left of order (March 2026)
- Accepting no additional Trays on this $A35m order

Implied backlog = 25 Trays
Implied backlog value: $A8.9m

Now, this order was ongoing for 8 months of FY2025 i.e. 65% of the financial year. This was the isolated results for South America:



(Let's keep in mind, they also had some issues with steel - that has been resolved).

For 2026 ~A$9m/35% of the "unprofitable order" remains and let's assume the region gives us another red year, at -A$5m. (full disclosure: I think SA will be profitable in FY2026).

Reading the board, as of late, there seems to be a notion that South America has been a problem for long - it hasn't. And, that the OEM order will drag on for an unlimited time - it absolutely will not.

If we now look at North America. I argue this region standalone is worth more than the current market cap:


Steady state $15-17m net profit (before gold and copper hit record levels, and before Trump unleashed coal and rare earth mining).


Asia Pacific is doing great as well. What makes this business region unique is that also have strong recurring service revenue.


Again, these are numbers before copper and gold went to the moon (and before governments started to buy and exploit mines themselves).

The board here, unfortunately, overreacted on a large order shifting from H1 2026 to H2 2026.



Now, let's step back and look at the big picture. They are guiding $30-34m EBIT in FY2026. Financial year 2026 ends June 30th, 2026.

Essentially all issues in the last report has been arrested and solved, or near solved - and we have an end-date and maximum potential loss for the Chile OEM order. We're probably looking at $36-40m EBIT in FY2027.

Market cap is $119m. Working capital had a unusual large build up in FY2025 towards the end, so I wouldn't be surprised if we end FY2026 with a net cash position to the tune ~+A10m, after buybacks.


In my book, this is a steal.