Mlg Oz Ltd · ASX:MLG
Mlg Oz — Investor Presentation (August 2024)
27 slides from Mlg Oz's investor presentation, Aug 21, 2024
Slide 1: Full Year Financial Results
FULL YEAR FINANCIAL RESULTS For the year ended 30 June 2024
Slide 2: Strong Profit Growth Achieved with High Demand for Services
STRONG PROFIT GROWTH ACHIEVED WITH HIGH DEMAND FOR SERVICES. REVENUE $474.8m ($383.8m FY23) 23.7% EBITDA $55.3m ($35.0m FY23) 58.0% NPAT $11.0m ($0.8m FY23) 1,253.5% NTA/SHARE 100.0c (89.0c FY23) 12.4% GEARING 1.0x (1.6x FY23) 37.5% 2 FY2024 FINANCIAL RESULTS
Slide 3: Highlights
HIGHLIGHTS • Given the growth outlook for the group and the potential capital requirements required to execute these opportunities, the Directors have determined that no dividend will be declared for this year. • Continued growth in FY2024 – 6 year revenue CAGR now 28.7% • Substantial growth in head
Slide 4: Material Increase in EBITDA Supported by Rising Margins
MATERIAL INCREASE IN EBITDA SUPPORTED BY RISING MARGINS $60.0m EBITDA 19.0% $50.0m $55.3m 17.0% • Second half margins lower due to new project mobilisations in third quarter of the financial year $40.0m 15.0% 12.8% $35.0m 13.0% Margin %1 $30.0m 11.8% • High volume of rainfall in March and June drove
Slide 5: Headcount Drives Productivity
HEADCOUNT DRIVES PRODUCTIVITY MLG Employees • Increase in staff achieved through: − Dedicated recruitment focus 1,145 − New to industry training program 850 947 800 − Conversion of 3rd party staff to MLG when onboarding new 647 project wins • Staff retention remains a key focus Jun-22 Dec-22 Jun-23
Slide 6: Strong History of Revenue Growth
STRONG HISTORY Pro Forma1 Revenue OF REVENUE GROWTH $468.6m 24.9% $375.2m 28.7% CAGR $286.8m $254.0m $199.6m $205.1m $132.7m FY18 FY19 FY20 FY21 FY22 FY23 FY24 1. Pro Forma revenue offsets fuel tax credits and other income against costs of sales 6 FY2024 FINANCIAL RESULTS
Slide 7: About MLG
21 AUGUST 2024 FY2024 FULL YEAR FINANCIAL RESULTS AND OUTLOOK ABOUT MLG 7 FY2024 FINANCIAL RESULTS
Slide 8: Providing Critical Infrastructure to Mineral Processing
Client strategies typically follow hub and spoke model with large central processing facility fed PROVIDING CRITICAL Mine from multiple satellite mines INFRASTRUCTURE TO Mine MINERAL PROCESSING Client Processing Facilities Mine Mine OUR SERVICES BULK HAULAGE & CRUSHING & SCREENING CIVIL & MINING CON
Slide 9: Where We Operate
WHERE WE OPERATE 9 FY2024 FINANCIAL RESULTS
Slide 10: Revenue Is Primarily Driven from the Gold Sector
REVENUE IS PRIMARILY DRIVEN FROM THE GOLD SECTOR • Strong revenue growth from both organic expansion with existing customers and new contract wins • Revenue weighted to large, low-cost gold miners • Significant increase in crushing and screening revenue (up 38.4%) FY2024 Revenue Construction Materia
Slide 11: Technology Platform Supports Improved Decision Making
REPORTING TECHNOLOGY PLATFORM SUPPORTS IMPROVED DECISION MAKING • Daily revenue across all projects • Cost control – transaction drill down on expenses Performance • Profit and Loss visibility by project EXTRACT AND TRANSLATE • Client portal monitors rates for billing • Dashboard metrics to measure
Slide 12: Structural Demand for Greater Haulage and Site Services
STRUCTURAL DEMAND FOR GREATER HAULAGE AND SITE SERVICES MLG does not currently have 1 Material Investment in 2 any direct High grade deposits within competitors who larger processing capacity GOLD over last 10 years IRON ORE 50km not serviced by rail provide a fully SECTOR SECTOR integrated Greater
Slide 13: Financial Performance
21 AUGUST 2024 FY2024 FULL YEAR FINANCIAL RESULTS AND OUTLOOK FINANCIAL PERFORMANCE 13 FY2024 FINANCIAL RESULTS
Slide 14: Financial Performance
For the period ended 30 June 2024 Pro Forma Pro Forma FINANCIAL PERFORMANCE Statutory Statutory $000’s Notes FY24 FY23 Pro forma1 REVENUE Mine Site Services and Bulk Haulage 25.1% 412,911 329,943 24.9% $468.6m Crushing and Screening 38.4% 55,477 40,096 $375.2m Export Logistics 95.6% 230 5,171 $AUD R
Slide 15: Stronger Balance Sheet
Parent Entity Consolidated $000’s STRONGER BALANCE SHEET 30 June 2024 30 June 2023 Cash and cash equivalents 5,861 144 Trade and other receivables 67,456 47,381 Inventories 18,586 14,551 • Net assets up 10.8% to $130.8m Total current assets 91,904 62,075 Property, plant and equipment 194,418 177,538
Slide 16: Debt Funded Through Equipment Finance (Asset Backed)
DEBT FUNDED THROUGH EQUIPMENT FINANCE (ASSET BACKED) Available working capital liquidity $ 25.7m ($19.8m Overdraft + $5.9m Cash) Cash +$5.9m EQUIPMENT FINANCE Current - Equip Finance, • Individual loans secured against each asset $24.3m Big 4 Banks, 54% • Fixed Rate interest for term of loan Bank Gu
Slide 17: Cashflow and Capital Expenditure
Operating Cashflow CASHFLOW AND CAPITAL $'000 Notes FY21 FY22 FY23 FY24 EXPENDITURE EBITDA 42,719 30,129 35,033 55,288 Movement in net working capital 1 (2,686) 2,090 (2,327) 2,312 Other operating cash flows - - - - • $57.6m operating cashflow - Positive cash generation Tax paid (3,139) 1,450 - - po
Slide 18: Use of Funds - Free Cashflow Available
USE OF FUNDS - FREE CASHFLOW AVAILABLE - $29.8m $33.6m - $26.0m Total Capex $49.6m $57.6m (including - $19.8m growth capex of $29.8m) - $3.9m - $2.1m $9.6m OPERATING EQUIPMENT EQUIPMENT CAPEX - CAPEX - GST / FREE INTEREST CASHFLOW FINANCE DEBT FINANCE NEW ASSETS SUSTAINING FINANCE CASH (Principle Py
Slide 19: Outlook
21 AUGUST 2024 FY2024 FULL YEAR FINANCIAL RESULTS AND OUTLOOK OUTLOOK 19 FY2024 FINANCIAL RESULTS
Slide 20: Outlook Remains Strong with Continued Expectation of High Customer Demand
• We anticipate our existing clients will continue to drive higher processing production volumes and hence expect ongoing organic growth for MLG • Our focus is on the long-term sustainability of our profit margins and we expect to see further improvements over time as we manage costs and optimise ou
Slide 21: Thank You
HEAD OFFICE A 10 Yindi Way Kalgoorlie, Western Australia P (08) 9021 1011 CORPORATE OFFICE A Level 5, 200 St Georges Terrace Perth, Western Australia P (08) 9022 7746 EMAIL info@mlgoz.com.au WEBSITE mlgoz.com.au ABN & ASX ABN 53 102 642 366 ASX MLG THANK YOU
Slide 22: Appendix
21 AUGUST 2024 FY2024 FULL YEAR FINANCIAL RESULTS AND OUTLOOK APPENDIX 22 FY2024 FINANCIAL RESULTS
Slide 23: Our Timeline
OUR TIMELINE 2002 2004 2007 2014 2018 2020 2022 MLG founded FieldsFirst sand First hard rock First contract- Build, own, operate Construction and Celebrating by Murray Leahy quarry operation – quarry established crushing contract fixed plant crusher at commissioning of fixed 20 years of MLG 8 Mile R
Slide 24: Meet the Team
MEET THE TEAM BOARD OF DIRECTORS EXECUTIVE LEADERSHIP TEAM MURRAY LEAHY GARRET DIXON MARK HATFIELD PHIL MIRAMS Managing Non-Executive Chief Chief Financial Director Director Operations Officer Officer ANNA NEULING TOM GREGORCZYK ALLUN WALLER Non-Executive Chief Chief People Chair Commercial Officer
Slide 25: Modern Owned Fleet Supporting Operational Performance
MODERN OWNED FLEET SUPPORTING OPERATIONAL PERFORMANCE Average Age 4 Years 147 15 $2.0m Prime Movers $84.4m WDV 536 WDV Graders Trailers/Dollys Average Age 5 Years 38 $6.3m 5 $1.4m Excavators WDV Dozers WDV Average Age 3 Years Average Age 3 Years 113 $48.6m 10 $2.6m Loaders WDV Dump Trucks WDV Averag
Slide 26: Contract Terms
CONTRACT • Must provide a “service” • No commitment to minimum tonnes TERMS • Fixed and variable rates • Client retains “termination for convenience” rights • Capital payout terms for early termination (specific contracts) SCOPE OF SCHEDULE WORKS OF RATES STANDARD COMMERCIAL RISE AND FALL TERMS FOR
Slide 27: Historic Financial Performance – Pro Forma
HISTORIC FINANCIAL PERFORMANCE – PRO FORMA1 Pro Forma Pro Forma Pro Forma Statutory Statutory Statutory $000’s Notes FY24 FY24H2 FY24H1 FY23 FY23H2 FY23H1 FY22 FY22H2 FY22H1 Revenue Mine Site Services and Bulk Haulage 1 412,911 226,984 185,927 329,943 179,386 150,557 252,006 128,652 123,354 Crushing