Mlg Oz Ltd · ASX:MLG
Mlg Oz — Investor Presentation (February 2024)
18 slides from Mlg Oz's investor presentation, Feb 20, 2024
Slide 1: Half Year Financial Results
HALF YEAR FINANCIAL RESULTS For period ended 31 December 2023 20 February 2024
Slide 2: Disclaimer
Disclaimer Forward looking statements This release contains certain forward looking statements and forecasts, including in relation to possible or assumed future performance, costs, dividends, rates, prices, revenue, potential growth of MLG Oz Limited, industry growth or other trend projections. Suc
Slide 3: Integrated Services Model
INTEGRATED SERVICES MODEL BENEFIT OF INTEGRATED MODEL MINE • Single service provider SITE QUARRY ASSETS • Single contractual management touch point Site Construction MINE Services MINE • Reduced duplication (single Materials SITE SITE workshop, shared equipment) CLIENT • Processing facilities typica
Slide 4: Where We Operate
Where We Operate CURRENT ACTIVITY © Bulk Haulage & Site Services 20 Crushing & Screening 9 9) SMining &.Ctalt: . SITES IM NT AND WA, offices a © Quarries 1 PILBARA Christmas Creek — @) Cloudbreak Koolan Island Solomon NORTHERN TERRITORY © sranites MURCHISON © Fortnum @© Hectathara — @ cue GoLoFieLos
Slide 5: Positive Momentum Driving Stronger Financial Returns
POSITIVE MOMENTUM DRIVING STRONGER FINANCIAL RETURNS *REVENUE • Industry demand continues to drive revenue growth 32.5% $226.4m • Improving EBITDA margins ($175.9m HY23) 28.7% • Material growth in overall profitability 27.0% EBITDA • Significant reduction in financial gearing $28.5m 28.3% ($16.6m HY
Slide 6: Strategic Position Delivering Profit Growth
STRATEGIC POSITION DELIVERING PROFIT GROWTH • Client demand driving higher revenue - Organic growth as clients expand volume 32.5% through their processing facilities - Impact of new clients (Westgold, Bellevue) - Greater proportion of Civil and Crushing projects 27.0% • Increasing margins and highe
Slide 7: Highlights – Strong Growth in Revenue and Margin
HIGHLIGHTS – STRONG GROWTH IN REVENUE AND MARGIN • Strong revenue growth with existing clients and new contract wins - Gold focused revenue underpinned by large, low-cost producers - Continued growth with existing customer base a strong endorsement of MLG business model • EBITDA margin increases to
Slide 8: Headcount Remains a Key Focus to Sustain Growth
HEADCOUNT REMAINS A KEY FOCUS TO SUSTAIN GROWTH EMPLOYEES 1,000 50.0% 947 900 45.0% 850 800 800 40.0% 700 35.0% 600 30.0% 500 25.0% 400 20.0% 300 15.0% 200 10.0% 100 5.0% 0 0.0% Casual Part Time Full Time Cumulative Growth • Turnover in industry continues to remain high Higher number of operators an
Slide 9: Revenue Exposure Is Primarily in the Gold Sector
REVENUE EXPOSURE IS PRIMARILY IN THE GOLD SECTOR • Strong revenue growth driven by existing customer growth and new contract wins 2021 (Prospectus) Iron Ore Base Metals • Revenue weighted to large, low-cost gold miners 14% 4% • Significant improvement in crushing and screening Gold 82% Pro Forma1 Re
Slide 10: Financial Performance
FINANCIAL PERFORMANCE MLG
Slide 11: Financial Performance – HY 2024
FINANCIAL PERFORMANCE – HY 2024 for period ended 31 December 2023 Pro forma1 revenue 250.0 Pro Forma Pro Forma Statutory Statutory 200.0 30.1% $223.2m $000’s Notes HY24 HY23 150.0 $171.5m Revenue $Am Mine Site Services and Bulk Haulage 23.5% 185,927 150,557 100.0 Crushing and Screening 131.2% 37,180
Slide 12: Improving Margins Driving Larger Cashflow
IMPROVING MARGINS DRIVING LARGER CASHFLOW HY2024 HY2023 EBITDA 28,525 16,606 71.8% 28.4% • Payments to suppliers include catch Receipts from customers 235,811 183,624 up of aged creditors – all now in terms Payments to suppliers and employees (212,644) (166,688) 27.6% Fuel Tax Credits 2,590 1,076 14
Slide 13: Capital Expenditure in Line with Expectations
CAPITAL EXPENDITURE IN LINE WITH EXPECTATIONS Sustaining Capex $55.8m $60.0m • Existing asset overhauls $44.5m • Major Component changes $50.0m $38.1m • Replacement of end-of-life assets $40.0m • Tooling in workshops $18.5m $30.0m • Safety initiatives (Specialist customisation) $18.2m $18.6m $20.0m
Slide 14: Stronger Balance Sheet Position to Support Growth
STRONGER BALANCE SHEET POSITION TO SUPPORT GROWTH F I NANCIAL L I ABI LI TIES Consolidated Consolidated (INCLUDING OPERATING LEASES) $000’s 31 Dec 2023 30 June 2023 $65.2m 19.8% Cash and cash equivalents 384 144 Trade and other receivables 53,295 47,381 Inventories 16,895 14,551 $54.1m Total curren
Slide 15: Disciplined Capital Management Has Delivered Greater Capacity
DISCIPLINED CAPITAL MANAGEMENT HAS DELIVERED GREATER CAPACITY Debt funded through multi tenor equipment finance contracts (3, 4 and 5 years) Working Capital Overdraft 8% Big Four Banks Finance 26% Companies 19% Equipment Finance 92% Equipment Manufacturers 48% 15
Slide 16: Outlook
OUTLOOK MLG
Slide 17: Priority on Generation of Sustainable Margins
PRIORITY ON GENERATION OF SUSTAINABLE MARGINS • Demand outlook with existing clients remains significant • Margin expansion still a priority but expectation is to maintain similar margin through H2 - higher proportion of integrated site services work (New Granny Smith project and ramp up of Genesis
Slide 18: MLG Well Placed to Continue to Experience Strong Growth
MLG WELL PLACED TO CONTINUE TO EXPERIENCE STRONG GROWTH Competitive Material Gold industry MLG’s capabilities landscape improvement in experiencing high and balance sheet remains margins and commodity price strength positions constrained profitability in and driving greater us well to maximise (part