Macmahon Holdings Limited · ASX:MAH
Macmahon — H1 FY2016 Earnings Presentation
17 slides from Macmahon's earnings presentation, Feb 19, 2016
Slide 1: Half Year Results
For personal use only HALF YEAR RESULTS 19 FEBRUARY 2016
Slide 2: Overview
Overview For personal use only Market conditions remain challenging - operating environment likely to remain subdued over the near term due to ongoing pressure on commodity prices Continued push for cost reductions by mine owners resulting in opportunities for mining contractors Macmahon well
Slide 3: Operational Performance
Operational Performance Key projects performing to expectations: For personal use only – Tropicana operations continued to improve during the period – All other projects (with the exception of Nigerian operations) performing largely in line with expectations Nigerian operations underperforming:
Slide 4: Contract Awards
Contract Awards For personal use only During the period, contracts secured by Macmahon included: Australia: – An evergreen contract by Newcrest valued at ~$62 million annually to undertake contract mining services at its Telfer operation in Western Australia – A 6 month ‘wet-hire’ contract valued
Slide 5: Investment Case
Investment Case For personal use only Net Tangible Assets of 18cps versus share price of 8.9c at 19 February 2016 Balance sheet underpinned by quality hard assets with a book value of $143 million (excluding cash and working capital) Net cash position of $66.7 million at 31 Dec 2015 Undrawn
Slide 6: Financial Results
For personal use only FINANCIAL RESULTS
Slide 7: Financial Performance
Financial Performance For personal use only $m Dec-15 Dec-14 Total revenue from operations 174.1 384.9 EBITDA (from continuing operations)1 23.2 55.9 EBIT (from continuing operations)2 8.2 21.0 Finance costs (2.4) (7.5) Tax expense (0.5) (3.8) Net profit after tax from continuing operations 5.3 9.7
Slide 8: Cash Flow
Cash Flow For personal use only $m Dec-15 Dec-14 EBITDA (consolidated) 23.3 58.5 Net interest (paid) (1.0) (5.4) Income taxes (paid) / received (2.4) 14.0 Working capital, provisions and non-cash items (11.5) (39.9) Net cash from / (used in) operating activities 8.4 27.2 Proceeds from sale of assets
Slide 9: Balance Sheet
Balance Sheet For personal use only $m Dec-15 Jun-15 Current assets 178.0 382.6 Non-current assets 136.9 141.7 Total assets 314.9 524.3 Current liabilities 90.9 301.3 Non-current liabilities 0.9 1.2 Total liabilities 91.8 302.5 Net assets 223.1 221.8 Total equity 223.1 221.8 Net cash 66.7 74.2 Geari
Slide 10: People and Safety
For personal use only PEOPLE AND SAFETY
Slide 11: People
People For personal use only Group Employee Numbers Employees by division 2,885 Surface 2,467 2,097 Corporate 1,387 1,179 International Underground Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Key achievements: Finalisation of new organisational structure Preparation and implementation of recruitment, mob
Slide 12: Safety
Safety For personal use only 10.5 8.5 (per million hours Frequency rate 6.3 KEY MILESTONES 5.4 worked) 4.4 1.2 0.9 0.8 0.9 1.2 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 TRIFR (Total Recordable Injury Frequency Rate) LTIFR (Lost Time Injury Frequency Rate) No LTI’s since September Majority of projects L
Slide 13: Strategy and Outlook
For personal use only STRATEGY AND OUTLOOK
Slide 14: Current Environment
Current Environment For personal use only Challenging market conditions are expected to remain for the near to medium term Bulk commodities still under pressure due to China growth concerns Gold price is improving, but is still volatile – Tropicana amongst the lower cost producers / operations
Slide 15: MAH strategic priorities
MAH strategic priorities For personal use only Macmahon is focused on delivering sustainable profits and returning value to shareholders by: Successfully commencing all new projects Maintaining a low cost base, restricting CAPEX and pursuing ongoing productivity improvements Streamlining opera
Slide 16: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the business. While Macmahon considers the assumptions on which these statements are based to be reasonable, whether circumstances actually occ
Slide 17: Thank you
Thank you For personal use only macmahon.com.au