Buying Primero Group Ltd (ASX:PGX)

I bought shares in Primero Group Ltd (ASX:PGX) recently. The mining services company has a market cap of $65 million, $22.5 million of net cash and should report underlying earnings of more than $7 million this year. Commodity prices are relatively high in Australian dollars and PGX has a growing contract pipeline. The company was founded in 2011 by the current management team (who are also major shareholders) and has already earned itself an enviable reputation within the growing lithium sector. The strategy is to provide a range of services that cover the full lifecycle of a project, from design through to operation and maintenance, thereby maximising revenue visibility in what is a very cyclical industry.

From now on I won't be writing every day. However, I will continue to record all of my trades and provide weekly updates.

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