1. There are not too many explosive manufacturers that provide a down-the-hole delivery services. i.e. Yes, they actually charge the holes with 'prill' or ammonium nitrate and detonate the charge.
2. They benefit from the economies of scale and rapid expansion in 'volumes' which I describe in an article on mine service contractors. See this article.
3. They are benefiting from the development of larger scale BIF iron ore, copper-gold, copper-Molybdenum, coal mining operations globally.
4. They are involved in a highly concentrated service industry
If we examine the Orica chart over the long term its apparent that this company has been trending sideways ever since the global financial crisis started in late 2008. Now, the dividend yield is currently a very appealing 4% and the stock is actually off its lows.
Now, back in 2001 I made a lot of money using a secured leveraged equity product on Orica. This product was obtained through a company called Leverage Equities Ltd, however there are other companies like Macquarie Bank, which do this as well. Now, it entails them attaching a put option to your equity acquisition, and your downside is effectively underwritten. It is actually a very nice way to invest at certain 'great stock' plays or at certain points in the equity market cycle.
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