Macmahon Holdings Limited · ASX:MAH
Macmahon — Macquarie Connections Western Australia Forum 2017
28 slides from Macmahon's conference presentation, Oct 10, 2017
Slide 1: Western Australia Forum October 2017
10 OCTOBER 2017 WESTERN AUSTRALIA FORUM OCTOBER 2017 MACQUARIE CONNECTIONS 1
Slide 2: Company Overview
COMPANY OVERVIEW Macmahon is a leading Australian based mining services provider with both open-pit and underground mining expertise Business Overview Capitalisation Summary • Macmahon is a pure play ASX-listed company which offers both Unit Pro-forma open-pit and underground mining contracting serv
Slide 3: Map of Operations inc. Major Fleet
MAP OF OPERATIONS INC. MAJOR FLEET Map of Operations TELFER BYERWEN BATU HIJAU Loading Fleet Loading Fleet Loading Fleet • 2x 6060 BH* • 1x 9800 • 5x 4100 Rope Shovel • 1x EX3600* • 2x 9961 • 1x 2800 Rope Shovel Trucking Fleet • 2x 9350 • 2x EX5500 • 17x 793C* Trucking Fleet • 1x EX3600 • 9x 793D* •
Slide 4: Investment Proposition
INVESTMENT PROPOSITION FULL SERVICE • Diversified mining contractor offering open-pit and underground mining services MINING • Strong existing relationships with major mining companies CONTRACTOR STRONG TENDER • Multiple tender opportunities representing >$5 billion in potential aggregate contract v
Slide 5: People
PEOPLE Group Employee Numbers Employees by Division Surface Corporate 3,495 International 2,467 1,659 Underground 1,295 1,529 2013 2014 2015 2016 2017 FY17 highlights: • Several senior appointments including GM Underground and Surface Operations Manager - bolstering leadership capacity • Development
Slide 6: Safety
SAFETY Group Safety Performance KEY MILESTONES 10.1 (per million hours worked) 8.6 • The lowest LTIFR in the last five Frequency rate 5.4 5.6 4.4 years 1.1 0.9 0.9 1.1 • 2017 Kanthan, Malaysia operating 12 0.4 years LTI free 2013 2014 2015 2016 2017 • 2017 Lhok Nga, Indonesia operating TRIFR (Total
Slide 7: Innovation and Technology
INNOVATION AND TECHNOLOGY Guiding principles MACQUARIE CONNECTIONS – WA FORUM 7
Slide 8: Key Contracts
KEY CONTRACTS MACQUARIE CONNECTIONS – WA FORUM 8
Slide 9: Overview of Key Contracts
OVERVIEW OF KEY CONTRACTS With the exception of Telfer, which is on track to report a break even result in FY18, Macmahon’s project portfolio is performing on or above tendered expectations. Project / Client Location Commodity / Comments Current Status Type • Alliance model has resulted in reduction
Slide 10: Tropicana Gold Mine
TROPICANA GOLD MINE Macmahon was been awarded a Life-Of-Mine mining services contract at the Tropicana Gold Project in 2012. Project Overview • The Tropicana Gold Project is part of the joint venture between AngloGold Ashanti Australia Pty Ltd (70%) and Independence Group NL (30%) • The project is l
Slide 11: Telfer Gold Mine
TELFER GOLD MINE Macmahon was been awarded a Life-Of-Mine mining services contract at the Telfer Gold Mine in 2016. Project Overview • The Telfer gold-copper mine is located in the Great Sandy Desert in the East Pilbara region of Western Australia • Macmahon’s third largest contract (schedule of rat
Slide 12: St Ives Gold Mine
ST IVES GOLD MINE Macmahon was awarded an initial 6 month contract and a 24 month extension of its contract with the Australian subsidiary of Gold Fields Limited, St Ives Gold Mining Company Pty Ltd. Project Overview • Schedule of rates contract for equipment and labour hire • 24 month extension sig
Slide 13: Martabe Gold Mine
MARTABE GOLD MINE Macmahon was awarded a five year, 50:50 JV contract awarded by PT Agincourt Resources in 2016 Project Overview • The Martabe Gold Mine is located to the west side of Sumatra Island, in Batang Toru Sub-district, North Sumatra Province. • The mine has a resource of 7.4 million ounces
Slide 14: Underground
UNDERGROUND Macmahon's underground mining capabilities range from total mine development and production, to specialised services to meet the short and long term requirements of its clients. • Since the acquisition of National Mine Management in 1994, Macmahon has continued to develop its underground
Slide 15: New Projects – Byerwen Coal Mine
NEW PROJECTS – BYERWEN COAL MINE Macmahon has been selected by Byerwen Coal Pty Ltd as its preferred mining contractor to establish and then operate the new Byerwen Coal Mine near Glenden in the Queensland Bowen Basin. Byerwen Coal Queensland (Preferred Cairns Contractor) Asset Overview Townsville •
Slide 16: New Projects – Batu Hijau Copper / Gold Mine
NEW PROJECTS – BATU HIJAU COPPER / GOLD MINE Macmahon has been awarded a Life-Of-Mine mining services contract at the Batu Hijau Mine in Indonesia Asset Overview • Large, open pit, owner-mined, porphyry copper-gold deposit located on SUMBAWA ISLAND Sumbawa Island, Indonesia Elang Rinti • Second larg
Slide 17: Outlook
OUTLOOK MACQUARIE CONNECTIONS – WA FORUM 17
Slide 18: Outlook
OUTLOOK • Market is showing encouraging signs of improvement • Key commodity prices (Gold, Copper, Coal) – stable and/or improving • Noticeable shift in market sentiment and corporate activity • Competitive pressures still present – MAH focusing on opportunities where it has a strategic advantage an
Slide 19: FY2018 Guidance
FY2018 GUIDANCE Guidance and Assumptions FY2018 Revenue – Key Movements • FY2018 revenue of $620 – 680 million 800 Tropicana Telfer Batu Hijau Other 700 • FY2018 EBIT of $40 – 50 million (excluding one-off costs and 600 unrealised FX gains / losses) 500 A$m • Key assumptions: 400 — Commencement of i
Slide 20: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer as to forward looking statements The directors of Macmahon consider that they Not a disclosure document have used reasonable care in preparing forward This presentation is not a disclosure document This presentation contains forward looking looking financia
Slide 21: Appendix
APPENDIX MACQUARIE CONNECTIONS – WA FORUM 21
Slide 22: Executive Team
EXECUTIVE TEAM Michael Finnegan Dan Peel Mark Hatfield Katherine Blacklock Chief Executive Officer General Manager, Surface Operations General Manager, Plant and Maintenance Manager, Human Resources Services Mr Finnegan holds a Bachelor of Science Mr Peel holds a Bachelor of Engineering Katherine Bl
Slide 23: Income Statement – FY17 Results
INCOME STATEMENT – FY17 RESULTS $ Millions 2016 2017 Total revenue1 from continuing operations 312.2 359.6 2 EBITDA (from continuing operations) 42.5 31.8 3 EBIT (from continuing operations) 13.8 (1.7) Asset write-downs and onerous lease provision (2.1) - Takeover defence costs - (3.4) Net finance c
Slide 24: Cash Flow – FY17 Results
CASH FLOW – FY17 RESULTS $ Millions 2016 2017 EBITDA from continuing operations 42.5 31.8 Net interest paid (1.0) (0.1) Income taxes paid (2.8) - Working capital and other items (29.6) (1.5) Operating cash flow 9.1 30.2 Proceeds from sale of assets 17.6 12.6 Capital expenditure (23.5) (34.9) Net rep
Slide 25: Balance Sheet – FY17 Results
BALANCE SHEET – FY17 RESULTS $ Millions 2016 2017 Pro-forma1 Current assets 175.5 164.5 164.5 Non-current assets 124.6 130.5 313.0 Total assets 300.1 295.0 477.5 Net assets 207.4 185.0 367.5 Net cash 56.5 54.1 54.1 Gearing (27.2%) (29.2%) (14.7%) • No debt – net cash of $54.1 million • Balance sheet
Slide 26: Forecast FY18 Revenue and Order Book
FORECAST FY18 REVENUE AND ORDER BOOK Revenue by client Revenue by Commodity AngloGold Gold AMNT 16% Copper-Gold 9% Newcrest 8% Coal 36% Unsecured New Other 12% Other 25% 59% 12% 25% Order book by Commodity Order book $5Bn Gold 2% Batu Hijau Mining Contract 1.2 Copper-Gold Other Order Book 49% (exclu
Slide 27: Reconciliation of Non-IFRS Financial Information
RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION $ Millions 2016 2017 Profit/(Loss) for the year (as reported) 1.7 (22.8) Add back: Loss from discontinued operations (net of tax) 9.1 17.3 Net profit / (loss) after tax from continuing operations (as reported) 10.8 (5.5) Add back: • Asset write-downs
Slide 28: Western Australia Forum October 2017
10 OCTOBER 2017 WESTERN AUSTRALIA FORUM OCTOBER 2017 MACQUARIE CONNECTIONS 28
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