Slide 1: FY2021 Half Year Results Presentation
FY2021 Half Year Results Presentation February 2021 Tony Caruso, CEO & Managing Director Brett Maff, Chief Financial Officer
Slide 2: Solid result during a low point in the coal price cycle
Solid result during a low point in the coal price cycle • Revenue of $111m was down as the sector responded to softer pricing • EBITDA margins were stronger (9%) benefiting from countercyclical investment in equipment, strong operational performance and management of our costs • Net Profit of $2.0m
Slide 3: Financial result reinforces that we have the right Operating Model
Financial result reinforces that we have the right Operating Model • Revenue $110.9m vs $136.4m pcp (down 18.7% and EBITDA $9.8m vs $11.4m pcp (down 15%) • Contraction in revenue came primarily from NSW (Appin and Narrabri contract completions) with some impact also from the closure of the Grosvenor
Slide 4: Strength of our Balance Sheet allows continued investment and returns to shareholders
Strength of our Balance Sheet allows continued investment and returns to shareholders • $17.4m cash at bank ($11.6m net cash position) after return to shareholders and on‐going investment: • Dividends $4.0m (10c per share paid since Oct 2019) • Capital spend $4.1m ($1.5m net of funding) • Capital Ma
Slide 5: Opportunistic capital investment is supporting margin improvement and providing a competitive advantage
Opportunistic capital investment is supporting margin improvement and providing a competitive advantage Strong net cash position supports strategy for equipment investment during the low in the coal cycle • Sandvik Loaders X 8 ‐ $8m (over the last 12 months) • Final machines delivered to site in 1H
Slide 6: Our focus hasn't relented from Keeping Our People Safe
Our focus hasn’t relented from • Underground sector is continuing to be scrutinised following several major events over the past 12 months Keeping Our People Safe • Many of our sites are achieving long periods of injury free work • Our 1H safety statistics have remained consistent with last half and
Slide 7: WOM projects substantially progressed through the Half Year
WOM projects substantially progressed through the Half Year • Crinum – Appointed Mine Operator, awaiting final approval from Sojitz early March • Dysart East – Signed binding terms sheet and finalising Mining services Agreement • Tendered Bowen Basin WOM contract in H1 and have been shortlisted for
Slide 8: Operational headcount has reduced but recovery underway
Operational headcount has reduced but recovery underway • NSW Thermal Operations responded to softer pricing by undertaking period of complete mine shut down leading into and over the Christmas period • Fully demobilised Narrabri project which reduced revenue in 1H • Appin project fully demobilised
Slide 9: Very strong pipeline of major projects coming through in 2H
Very strong pipeline of major 2H2021 order book projects coming through in 2H • FY2021 1H vs 2H Revenue split 45% / 55%, with margins remaining similar to 1H FY2022 order book • Recovery and outlook for coal price has accelerated a number of projects and tenders that had previously been delayed • Fo
Slide 10: Met coal prices have recovered substantially and outlook is positive
Met coal prices have recovered substantially and outlook is positive • COVID restrictions and impacts globally have weighed heavily on coal prices • Met coal prices have moved from ~$US 100/tonne to $US150‐160 since December following recent strength in thermal coal prices • Long term fundamentals a
Slide 11: Our Diversify and Grow Strategy is continuing
Our Diversify and Grow Strategy is continuing Maximise returns from core coal business Expand underground service offering Build a whole of mine business into adjacent sectors • Continued investment in equipment to • WOM projects substantially progressed and improve margins • General Manager of Hard
Slide 12: Solid H1 outcomes achieved with better industry conditions ahead
Solid H1 outcomes achieved with better industry conditions ahead • Revenue of $111m achieved despite low coal prices • EBITDA margins remained strong (9%) after active management of our cost base • Net Profit $2.0m and Interim ordinary dividend declared of 0.75cps • Maintained a strong net cast posi
Slide 13: Appendices
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Slide 14: Corporate Overview
Corporate Overview Shareholder composition Capital structure Retail Investors 51% Share price as at 5 February 2021 $0.76 Shares on issue* 106.1m Institutional Investors 33% Market capitalisation $80.6m Board & Management 16% Net Cash/(Debt) as at 31 December 2019 $11.6m Enterprise value $69m Two-ye
Slide 15: Board
Board Colin Bloomfield Anthony Caruso Andrew Watts Gabriel Meena Julie Whitcombe Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Colin’s former roles during his 27 Tony has held a number of senior Andrew co‐founded Mastermyne in Gabe is a
Slide 16: HY21 Financial Performance
HY21 Financial Performance Period ended 31 HY21 HY20 Change December 2020 Total Revenue $110.87m $136.35m ‐18.7% EBITDA $9.75m $11.43m ‐14.7% EBITDA % 8.8% 8.4% +0.4% Statutory profit/(loss) before tax $2.92m $6.25m ‐53.3% Tax benefit/(expense) ($0.96m) ($1.91m) +49.6% Statutory profit/(loss) after
Slide 17: HY21 Cash Flow
HY21 Cash Flow Period ended 31 December 2020 HY21 HY20 $AUD millions EBITDA (Statutory) 9.75 11.43 Movements in working capital (6.44) (4.93) Non‐cash items 0.21 0.10 Net interest costs (0.52) (0.17) Income tax receipts / (payments) (2.41) (1.51) Net Operating Cash Flow 0.60 4.92 Net capex (includin
Slide 18: HY21 Balance Sheet
HY21 Balance Sheet Assets Liabilities Period ended 31 December Period ended 31 December 2020 HY21 HY20 2020 HY21 HY20 $AUD millions $AUD millions Assets Liabilities Cash and cash equivalents 17.44 8.72 Trade and other payables 25.09 19.09 Trade and other receivables 40.27 47.95 Loans and borrowings
Slide 19: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided regarding the success of the strategies is subject to uncertainties and contingencies beyond Mastermyne’s information contained in this presentation (the Information). You are advised to read this disclaime
Slide 20: Thank you
Thank you Contacts Tony Caruso Managing Director (07) 4963 0400 Brett Maff CFO/Company Secretary (07) 4963 0400 mastermyne.com.au