Macmahon : 2019 Half Year Results Roadshow Presentation
March 12, 2019 at 06:57 am
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FIRST HALF YEAR RESULTS 2019 ROADSHOW PRESENTATION
1H19 HIGHLIGHTS
Significant uplift in financial performance
• 1H19 Revenue of $542.2m, up 101% on 1H18
• 1H19 Underlying EBIT1 of $39.9m, up 311% on 1H18
• 1H19 Underlying EBITDA1 of $89.1m, up 94% on 1H18
• 1H19 Underlying NPAT1 of $32.3m, up 304% on 1H18
• Underlying basic EPS1 of 1.53cps, up 273% on 1H18
Key Achievements
• Successful ramp-up of Batu Hijau capacity, performance (gain-share) payment of $780k achieved in 1H
• Ongoing improvement in safety performance including rollout of mental health program
• Secured new work at Nifty, Fosterville and a new quarry project
Reaffirm FY19 Guidance and strong outlook
• Significant order book of ~$4.8 billion
• Healthy tender pipeline of ~$7 billion
• Forecast net debt position of $25 million to $35 million at June 19
• FY19 expected Revenue of $0.95 billion - $1.05 billion2
• FY19 expected Underlying EBIT of $70 - 80 million2
1. Underlying numbers, refer to reconciliation on slide 26
2. Guidance is not a guarantee of future performance and is subject to known and unknown risks. This guidance assumes an exchange rate of AUD:USD 0.76, and excludes the impact of one-offs including the shareholder class action that was settled in FY19. Guidance includes any Short Term Incentive Plan bonus payment but excludes Performance (gain-share) payments and share based payments.
2
2
FINANCIAL PERFORMANCE
* FY18 has been restated for consistency with the current year's presentation
KEY CONTRACTS
Project / Client
Location
Commodity / Type
Comments
Tropicana AngloGold Ashanti / Independence Group
WA Australia
Gold Open-pit
• Alliance life-of-mine contract
• Achieved reduction in unit cost by ~37% from 2015
• Phase 1 of Long Island commenced
Telfer Newcrest
WA Australia
Copper-gold Open-pit
• Commenced February 2016
• Life of mine contract
Mount Morgans Dacian Gold
WA Australia
Gold Open-pit
• Commenced December 2017
• 5 year contract
Byerwen QCoal
QLD Australia
Coking Coal Open-pit
• Commenced August 2017
• 3 year contract
Martabe
PT Agincourt Resources
North Sumatra, Indonesia
Gold Open-pit
• 50:50 NKE Joint venture commenced 2015
• Contract maturity FY21
Batu Hijau PT AMNT
Sumbawa Island, Indonesia
Copper / Gold Open Pit
• Alliance life-of-mine contract
• Commenced in August 2017
• Potential to extend scope to include future developments such as Elang
• Performance fee (Gain share) achieved in 1H
Underground Various
Australia & Indonesia
Various
Mining Services
• In Australia, continued to secure repeat, sustainable work including at Nifty, Fosterville and Olympic Dam.
• 50:50 NKE joint venture developing an exploration decline at Tujuh Bukit
Civil (TMM Group)
Various
Australia
Various
Mining Services
• TMM undertook various civil work for Peak Downs, Rolleston and Poitrel
PEOPLE
• Employee increase driven by ramp up of existing projects to steady state
• Recruitment initiatives now include a new-to-industry "greenie program" and a defence force intake program
• In Australia, 5% of our total workforce is Indigenous. In Indonesia, workforce 99% national, 10% from local communities
• 11.3% of our total workforce is female
• Survey showed high levels of engagement across the business
• Continued investment in people including expansion of the traineeship program, introduction of an accelerated apprenticeship program, and rollout of a leadership development program
1. Group employee numbers includes Full Time Equivalent contractors
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Disclaimer
Macmahon Holdings Limited published this content on 12 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 March 2019 10:45:20 UTC
Macmahon Holdings Limited is an Australia-based company, which provides mining and consulting services to mining companies across Australia and Southeast Asia. It has surface mining operations in Australia and Southeast Asia. It provides development and production, ground support, and services to facilitate ventilation and access to underground mines, including shaft sinking, raise drilling and shaft lining. It provides consulting, design, civil construction, equipment sales and hire, maintenance and site rehabilitation services to the resources sector. Its projects include Dawson South, King of the Hills (KOTH) and Batu Hijau. Dawson South forms part of the Dawson Mine and is located at the southern end of the Bowen Basin in Central Queensland near the town of Moura. The KOTH project is an open pit and underground gold deposit located in the eastern goldfield region of Western Australia. The Company also owns Pit N Portalâs operations at Wylooâs Durkin and Cassini mining projects.