Mlg Oz Ltd · ASX:MLG
Mlg Oz — Investor Presentation (February 2023)
22 slides from Mlg Oz's investor presentation, Feb 27, 2023
Slide 1: Half Year Financial Results
HALF YEAR FINANCIAL RESULTS For period ended 31 December 2022 27 FEBRUARY 2023
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: Business Model
BUSINESS MODEL MLG
Slide 4: About MLG
ABOUT MLG Long term sustainable partner of choice OUR WAY OF DOING BUSINESS FOUNDER LED BUSINESS SAFETY AND ENVIRONMENT [ >50% ownership ] This is our number one priority, it underlines every activity we undertake. INTEGRITY & TRUST ASX LISTED: Being honest, fair and ethical in the way [ ASX:MLG ] w
Slide 5: Integrated Services Model
INTEGRATED SERVICES MODEL Building long term client relationships 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 equipmen
Slide 6: Our Operations and Reach
OUR OPERATIONS AND REACH 29 KIM BER L EY 30 CURRENT ACTIVITY 20 830 30 Fitzroy crossing 29 Koolan Island Bulk Haulage & Site Services 20 YEARS OF OPERATION EMPLOYEES Crushing & Screening 5 2 28 Offices 2 Quarries 1 SITES IN NT AND WA 1 Screening 3 P IL B AR A P IL B AR A 1 Christmas Creek N O R T H ER
Slide 7: Sustainable Operations Connected with Our Community
SUSTAINABLE OPERATIONS CONNECTED WITH OUR COMMUNITY ENVIRONMENTAL SOCIAL • Electrification opportunities • Environmental Management Systems • Community Support GOVERNANCE • Water usage • Indigenous engagement • Waste management • Health and Wellbeing • Industry recognised board • Energy efficiency •
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE MLG
Slide 9: Margin Improving Following Challenging Conditions
MARGIN IMPROVING FOLLOWING CHALLENGING CONDITIONS • Revenue remains strong Statutory Revenue - Continued delivery into long term partner contracts $175.9m Up - New project impact (Westgold and Barren Lands) 23.9% - Higher rates negotiated to reflect higher costs (HY22 $141.9m) • Labour market still
Slide 10: Sale of High Capacity Crushing Plants
SALE OF HIGH CAPACITY CRUSHING PLANTS Material reduction in debt and financing costs Reduction in debt and monthly loan repayments $19.0m Sale price Eliminates ongoing care and maintenance costs ($2.0m) Decommission and deliver Avoids potential costs of moving site before redeployment $17.0m Net Pro
Slide 11: Staffing Levels Materially Higher
STAFFING LEVELS MATERIALLY HIGHER High recruitment both domestically and internationally delivering higher staffing levels 28.1% INCREASE OUR MLG Employees PEOPLE JUN JUL AUG SEP OCT NOV DEC JAN • Greater investment in recruitment 12 month growth rate MLG Employees Casual contracts • 482-Visa (Skill
Slide 12: Client Demand Remains High
CLIENT DEMAND REMAINS HIGH Rate rises negotiated to reflect higher cost to deliver OUR CLIENTS • Very high demand for services • Significant growth opportunities with existing clients • Have selectively reduced some client exposure • Priority on sustainability of projects and profitability • Greater
Slide 13: History of Growth Through Customer and Scope Expansion
HISTORY OF GROWTH THROUGH CUSTOMER AND SCOPE EXPANSION Long term client relationships >$300m revenue Circa $10m revenue 2002 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 13
Slide 14: Financial Management
FINANCIAL MANGEMENT Improving productivity is generating higher margins OUR • Underperforming sites a key focus – margin, rates and operational performance MARGINS • Have selectively reduced some client exposure where margins unsustainable • Lag in resetting rates continues to limit margin (cost ris
Slide 15: Financial Performance
FINANCIAL PERFORMANCE MLG
Slide 16: Financial Performance – HY2023 – Period Ended 31 December 2022
FINANCIAL PERFORMANCE – HY2023 – Period Ended 31 December 2022 Strong growth in revenue with margins improving Pro forma1 revenue HY2023 FINANCIAL PERFORMANCE Pro Forma Pro Forma 200.0 Actual Actual 22.4% $000’s Notes HY22 HY23 150.0 171.5 Revenue 140.1 Mine Site Services and Bulk Haulage 123,354 15
Slide 17: Cashflow and Capital Expenditure
CASHFLOW AND CAPITAL EXPENDITURE Strong cash generation, but inflated by timing of creditor payments and tax refund $'000 31 December 31 December • End of period timing 2021 2022 - High creditor balance Receipts from Customers 154,932 183,624 - Fuel tax credit not received in cash Payments to suppli
Slide 18: Capital Management & Balance Sheet Position
CAPITAL MANAGEMENT & BALANCE SHEET POSITION Gearing remains high but expected to decline by end of financial year Consolidated Consolidated $000’s 30 June 2022 31 Dec 2022 • Increase in Net assets to $119.0m Cash and cash equivalents 210 267 • Financial debt of $65.2m Trade and other receivables 45,
Slide 19: Structure of Debt
STRUCTURE OF DEBT Majority of MLG debt is equipment finance - each contract typically repaid over 3-5 years • 84% of Financial debt at end of FINANCIAL DEBT December 2022 is hire purchase equipment finance - Equipment Finance - Multi tenor loans with fixed rates secured by single assets - Where long
Slide 20: Outlook
OUTLOOK MLG
Slide 21: Tight Control of Costs Important
TIGHT CONTROL OF COSTS IMPORTANT Challenging first half but in line with expectations. Stronger second half expected NEAR TERM LONGER TERM • Management focus • Staff - Improving margin (Controlling costs / - Improve retention Procurement) - Reduce hiring costs - Higher productivity - Cashflow • Clie
Slide 22: Outlook for FY2023
OUTLOOK for FY2023 Targeting a stronger full year performance through improvement in margin KEY FACTORS SUPPORTING NEXT 6 MONTHS • Improvements in financial performance trends later in the first half continuing into 2023 • Stronger balance sheet following sale of high capacity crushing plants • Grow