Orica Limited (ORI) is a manufacturer and supplier of industrial and specialty chemicals, commercial explosives and mining chemicals

Orica Limited (ORI) is a manufacturer and supplier of industrial and specialty chemicals, commercial explosives and mining chemicals. Although the mining services sector (in exploration and development) is experiencing cyclical lows, mining volumes were being maintained. Orica derives its earnings from facilitating mining volume and does not have direct exposure to the variations in the price of the major hard commodities. Taking a closer look at the operating business of Orica, it is easy to appreciate why we like the business. Some of the valuation metrics of note include: *Margins above 16% *Debt to equity jsut 30% *ROE over 17% *Strong revenue growth over the past decade. Much like the businesses of yesteryear that flourished by selling mining equipment to prospectors during gold rushes, Orica was able to increase their sales during a period of mining exuberance. Our monthly newsletter is available here: (VIEW LINK)