Orica is a mining and infrastructure provider covering everything from supply of explosives and blasting, to mining chemicals and mining related digital solutions.

The share price has recently taken a dip, potentially on the back of the last annual report which shows actual NPAT down significantly. However this down turn is largely attributed to some significant costs including litigation costs and Latin America impairment and restructuring. When accounting for these items adjusted net profit up 32%

Return on assets (ROA) and dividends have both showed consistent improvement year on year.

Capital management looks good with a substantial share buy-back (up to $500mil) strengthening shareholder value.

Renumeration policy includes that Exec and non-exec are required to own a substantial holding of shares (personally funded) equivalent to 1 year's income to ensure alignment with company goals.

Key Macro risks include:

• commodity price downturns
• reduced mining capital expenditure
• weaker global economic growth.
• trade tariffs

My Take:

• This isn't a high-growth stock, but is a steady performer.
• Healthy operating cashflow, Strong balance sheet, with good liquidity and interest cover.
• not exactly a mote, but they do have a large market share of blasting solutions and specialty mining chemical, and;
• world’s largest mining-dedicated producer of sodium cyanide (used to extract gold and other minerals from ore.
• Digital solutions growth of >30%
• Share buy-back and consistent *dividends add to my value case

*edit- forgot to mention that Dividends have 0% franking.

Bear: $18.00

Base: $22.00

Bull: $26.00

Disc: Held on SM & will be adding a small position to my personal portfolio when the market opens.