Slide 1: FY12 Financial Results Presentation
FY12 Financial Results Presentation
Slide 2: Disclaimer
Disclaimer 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 FY2012 financial performance. Any statements, opinions, projections or other material contained in this document do not
Slide 3: Corporate Summary
Corporate Summary Capital Structure Share Price Performance $2.50 5m Shares on issue1 m 150.0 $2.00 4m Share price (GNG.ASX) (22/08/12) $ 0.99 $1.50 3m Market capitalisation $m 148.5 $1.00 2m Cash (30 June 2012)2 $m 38.9 $0.50 1m Debt (30 June 2012) $m 0.5 $0.00 0m Enterprise Value $m 110.1 Aug-11 O
Slide 4: FY12 Results Summary
FY12 Results Summary Sales revenue - $152.8 million - a record achievement for GR Engineering EBIT - $17.8 million PBT - $19.9 million - in line with guidance NPAT - $13.1 million Financial Cash flow from operations - $16.2 million Net Cash - $38.4 million1 EPS 8.7 cents Final divide
Slide 5: FY12 Financial Results
FY12 Financial Results FY12 FY11 Comment Record revenue achieved in FY12 Revenue from operations $m 152.8 142.5 EBITDA $m 18.4 28.9 Margins declined at all earnings levels primarily due to the following factors: delays in contracts being awarded EBITDA Margin % 12.1% 18.9% due to uncertain fin
Slide 6: FY12 Results Summary
FY12 Results Summary Revenue EBIT $180m $30m $28.3m 25% $152.8m $142.5m $150m EBIT Margin (%) $24m 20% Revenue ($m) EBIT ($m) $120m 2H12 19.9% $17.8m $18m 15% $90m 11.6% $12m 2H12 10% $60m 1H12 $30m $6m 1H12 5% $0m $0m 0% FY11 FY12 FY11 FY12 PBT NPAT $30m $29.2m 25% $24m $21.1m 20% NPAT Margin (%) $
Slide 7: About GR Engineering
About GR Engineering Australian based engineering design and FY12 Revenue by Commodity construction contractor servicing the mining and 5% minerals processing industry Specialising in engineering, procurement and 35% construction (EPC) contracting to provide turnkey project delivery with secure
Slide 8: Operational Performance
Operational Performance Over 90% contribution to revenue Profitability and margins impacted by: delays in contracts being awarded due to uncertain financial, equity market and commodity market conditions sub-optimal manpower utilisation and proportionately higher overhead costs New contrac
Slide 9: Operational Performance
Operational Performance Over 30 studies and consulting engagements completed in FY12 Currently engaged on 18 studies, many for near term projects and with notional potential EPC / EPCM revenue values of over $850 million in aggregate Studies primarily for gold projects – including projects in
Slide 10: GR Engineering's Clients
GR Engineering’s Clients GR Engineering is engaged by a variety of Selected Clients clients ranging from leading global diversified mining houses, mid-tier producers, developers and junior explorers EPC contracting method offers effective solutions for all client types • Larger clients seek budg
Slide 11: Selected Completed Contracts – FY12
Selected Completed Contracts – FY12 All completed projects were profitable, continuing GR Engineering’s history of having no loss making contracts Region Client & Contract Commodity Description Integra Mining Ltd Precious Metals GR Engineering was engaged by Integra Mining to undertake the R
Slide 12: West African Strategy
West African Strategy Significant progress in FY12 with strategy to diversify into West Africa - corporate presence established in Ghana, Mali and the Ivory Coast West African strategy is now delivering: engaged on detailed design works for 2 West African gold projects in Mali and the Ivory Co
Slide 13: HS&E Performance
HS&E Performance Maintained strong HS&E performance in FY12 Zero lost time injury frequency rate (LTIFR) 734 consecutive days of zero LTIFR for all employees and sub-contractors to 30 June 2012. No LTI’s recorded to date post FY12 GR Engineering focusing on long term planning to maintain cur
Slide 14: GRML Arbitration
GRML Arbitration Gold Ridge Mining Limited (GRML) Arbitration GR Engineering commenced debt recovery proceedings against GRML in June 2011 to recover outstanding costs and associated damages of around $4.5 million relating to a lump sum EPC contract for the expansion and refurbishment of the Gol
Slide 15: Market Conditions & Outlook
Market Conditions & Outlook Anticipate that gold exposure will constitute the majority of GR Engineering’s revenue for FY13 Design and construction activity for base metals projects likely to remain subdued until commodity prices stabilise Volatility in financial markets and commodity prices m
Slide 16: Growth Strategy
Growth Strategy 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 Study activity in West Africa remains strong
Slide 17: Contact
Contact 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 17
Slide 18: Appendix: Project Photos
Appendix: Project Photos Zinc / Lead Processing Plant – New South Wales 18
Slide 19: Appendix: Project Photos
Appendix: Project Photos Regrind Project – Western Australia 19
Slide 20: Appendix: Project Photos
Appendix: Project Photos Mine Paste Backfill Plant – Western Australia 20
Slide 21: Appendix: Project Photos
Appendix: Project Photos Mine Paste Back Fill Plant – South Australia 21
Slide 22: Appendix: Project Photos
Appendix: Project Photos 1Mtpa Gold Process Plant Upgrade – Western Australia 22
Slide 23: Appendix: Project Photos
Appendix: Project Photos 1.7Mtpa Gold Process Plant Refurbishment – Western Australia 23
Slide 24: Appendix: Project Photos
Appendix: Project Photos Flotation Circuit Upgrade – Western Australia 24