Slide 1: HY12 Results Presentation
For personal use only HY12 Results Presentation February 2012
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by GR Engineering Services Limited ACN 121 542 738 (GR Engineering) to provide an overview and update of GR Engineering’s activities and HY 2012 financial performance. Any statements, opinions, projections or other material contained i
Slide 3: Corporate Summary
Corporate Summary For personal use only Capital Structure Share Price Performance $2.50 5m Shares on issue1 m 150.0 $2.00 4m Share price (GNG.ASX) (20/02/12) $ 2.00 $1.50 3m Market capitalisation $m 300.0 $1.00 2m Cash (31 December 2011) $m 51.9 $0.50 1m Debt (31 December 2011) $m 0.7 $0.00 0m Apr-1
Slide 4: HY12 Results Summary
HY12 Results Summary For personal use only Sales revenue - $79.3 million EBITDA - $9.9 million NPAT - $6.7 million Cash flow from operations - $22.4 million Financial Net Cash - $51.2 million EPS 4.5 cents DPS 4.0 cents Increased overheads - positioning the Company on a future growth
Slide 5: Operational Performance
Operational Performance For personal use only 94% contribution to revenue Margins and profitability impacted by: profit recognition accounting treatment in 1H12 for current projects delays in contracts being awarded due to uncertain financial and commodity market conditions Design & increa
Slide 6: About GR Engineering
About GR Engineering For personal use only Australian based engineering design and construction contractor servicing the mining and minerals processing industry Specialising in engineering, procurement and construction (EPC) contracting to provide turnkey project delivery with secure cost, time,
Slide 7: GR Engineering's Clients
GR Engineering’s Clients For personal use only GR Engineering is engaged by a variety of clients ranging from leading global diversified mining houses, mid-tier producers, developers and junior explorers Selected Clients Gold Base Metals Other 7
Slide 8: Completed Contracts – 1H12
Completed Contracts – 1H12 For personal use only Several design and construction projects were completed in 1H12 All completed projects were profitable, continuing GR Engineering’s history of having no loss making contracts Region Client & Contract Commodity Description Integra Mining Ltd Go
Slide 9: West Africa Strategy Materialising
West Africa Strategy Materialising For personal use only GR Engineering is extremely pleased with the progress it made in 1H12 to diversify into West Africa West African project study activity is strong and several near term opportunities exist for EPC and EPCM contract awards GR Engineering i
Slide 10: Safety Performance
Safety Performance For personal use only Maintained strong HS&E performance in 1H12 Zero lost time injury frequency rate (LTIFR) 610 days of zero LTIFR for all employees and sub-contractors to 1H12 Aligned to AS4801 compliant health, safety and environment management system in HY12 Continu
Slide 11: HY12 Financial Results
HY12 Financial Results For personal use only HY12 HY111 Comment Revenue growth remains strong Revenue from operations $m 79.3 70.7 buoyed by steady work flow on current and new projects EBITDA $m 9.9 17.3 Profitability adversely impacted by EBITDA Margin % 12.5% 24.5% declining margins resulting
Slide 12: Market Conditions & Outlook
Market Conditions & Outlook For personal use only Continued strength in gold projects (greenfields and brownfields) driven by the strong gold price across a broad spectrum of clients Increased market appetite for lump sum EPC contracts as opposed to EPCM has been observed Study activity contin
Slide 13: Growth Strategy
Growth Strategy For personal use only Focus remains on winning larger construction projects Strong balance sheet provides a platform to undertake work of increased scale Focus on quality revenue at acceptable margins will remain Continue expansion into West Africa and South East Asia Study
Slide 14: Contact
Contact For personal use only Joe Ricciardo Joe Totaro Managing Director CFO & Company Secretary +61 8 6272 6000 +61 8 6272 6000 joe.ricciardo@gres.com.au joe.totaro@gres.com.au 14
Slide 15: Appendix: Project Photos
Appendix: Project Photos For personal use only Zinc / Lead Processing Plant – New South Wales 15
Slide 16: Appendix: Project Photos
Appendix: Project Photos For personal use only Zinc / Lead Processing Plant – New South Wales 16
Slide 17: Appendix: Project Photos
Appendix: Project Photos For personal use only Mine Paste Back Fill Plant – South Australia 17
Slide 18: Appendix: Project Photos
Appendix: Project Photos For personal use only 1Mtpa Gold Process Plant Upgrade – Western Australia 18
Slide 19: Appendix: Project Photos
Appendix: Project Photos For personal use only 1.7Mtpa Gold Process Plant Refurbishment – Western Australia 19
Slide 20: Appendix: Project Photos
Appendix: Project Photos For personal use only Flotation Circuit Upgrade – Western Australia 20