Mastermyne Group Limited · ASX:MYE
Mastermyne — FY2021 Earnings Presentation
28 slides from Mastermyne's earnings presentation, Aug 18, 2021
Slide 1: Financial Results Full Year Ended 30 June 2021
Financial Results Full Year Ended 30 June 2021
Slide 2: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any information c
Slide 3: Financial Results
Financial Results Full Year Ended 30 June 2021 Tony Caruso CEO & Managing Director Brett Maff Chief Financial Officer
Slide 4: FY21 Highlights
FY21 Highlights Delivering strong safety and operational performance Safety Learning & Development Order Book 4.96 70/20/10 $1.1b Excellent Safety Performance We strongly invested in $250m of revenue booked to with best TRIFR result since developing the capability of be delivered in FY22 the company
Slide 5: FY21 Financial Results
FY21 Financial Results Strong result despite price cycle headwinds Revenue EBITDA Margin NPAT $233m 9.6% $5.9m Inline with FY21 guidance Inline with FY21 on lower revenue Stronger H2 result at $3.8m EBITDA EBIT Dividend $22.3m $9.7m 2.25c Guidance $22-23m Reflects increased depreciation from Full ye
Slide 6: Strong Capital Position
Strong Capital Position Cash at bank and undrawn facilities will fund growth Operating Cash (Less Sustaining Capex) $4.7m final FY20 and interim FY21 dividend paid Cash at Bank to investors $24.4m 100% at 30 June Acquisition of minority investors in Mynesight $28.6m (100% ownership $0.4m) 76% 77% Ma
Slide 7: Proactive and Integrated Safety Approach
Proactive and Integrated Safety Approach Company best performance • TRIFR at 4.96 • Health & Safety approach is built around strong psychological safety principles which is making the difference • Continuing our journey towards becoming a recognisable High Reliability Organisation (HRO) • Managing t
Slide 8: Operational Summary and Outlook
Operational Summary and Outlook Full Year Ended 30 June 2021 Tony Caruso CEO & Managing Director Brett Maff Chief Financial Officer
Slide 9: We Are Becoming a Different Business
We Are Becoming a Different Business Mine operations and hard rock change the outlook of the business Mine Operations Contracting Hard Rock Other Services FY22 $80m Historically runs at Brings strong Wilson Mining and FY23 and beyond between $200-$300m commodity Mynesight $150m+ PA diversification •
Slide 10: FY21 Summary of Operational Performance
FY21 Summary of Operational Performance Contracting business performed well despite some headwinds • Challenging year stemming from low coal prices and temporary mine closures in Qld FY21 Workforce Numbers • Anglo’s Aquila Longwall Project has largely offset contraction on other projects for MYE • F
Slide 11: Crinum Mine Operations Contract
Crinum Mine Operations Contract Contract executed for ~ 7 year term to re- establish and operate Executed with work already commenced on site underground mine at Crinum Total Contract Value of $600-660 million, • Work on site commenced and tracking to schedule and budget delivering $80-$100 annual r
Slide 12: Second Mine Operations Contract Announced at Cook Colliery
Second Mine Operations Contract Announced at Cook Colliery Early works started and mining contract being finalised • Located in Central Queensland producing high quality metallurgical coal • Low risk approach through selective mining method and locations • QCoal is a very experienced and well-regard
Slide 13: Mitigating Execution Risk
Mitigating Execution Risk Investing in our people development and sourcing the right equipment • Expanded management team in place in readiness for Mine 14 coordinators Operations contracts at Crinum and Cook completed MYE Diploma of Project • Investment in our people through our 70/20/10 Rule of Ma
Slide 14: Hard Rock Mining Diversification
Hard Rock Mining Diversification We are clear on our delivery strategy • Formed new business division for Mastermyne Hard Rock division • Recruitment of key management roles is complete with candidates for other key positions now shortlisted • Submitted tenders with aggregated value in excess of $10
Slide 15: FY22 Guidance
FY22 Guidance $250m of FY22 revenue now locked in • FY22 Revenue guidance $300-$320m (approx. 85% of guidance secured) • FY22 EBITDA guidance $28-$32m • FY22 is largely establishment and production ramp up phases at Crinum and Cook with full run rate for these projects occurring in FY23 • Recurring
Slide 16: Outlook Supports Growth and Diversification
Outlook Supports Growth and Diversification Commodity prices are driving increasing opportunities Crinum and Cook Revenue Ramp Up Tender Pipeline Yr on Yr Change Full Run Rate $2.3b $250 $2.50 $1.8b $200 $2.00 $1.75b Establishment $1.5b phase $150 $1.50 Million Billion Cook $100 $1.00 $50 $0.50 Crin
Slide 17: Order Book Materially Bolstered
Order Book Materially Bolstered Booked revenue is well diversified and at record highs • Booked revenue now stands at $1.1b (excluding Cook which Financial Years 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 is being finalised) Sojitz Crinum Mining Service
Slide 18: Commodity Prices Outlook
Commodity Prices Outlook Recovery has been substantial and outlook is positive • Metallurgical coal prices have strengthened returning to historical averages moving from ~$US 100/tonne to ~$US 220 since December • Long term fundamentals are very strong for met coal (95%+ of Mastermyne revenue exposu
Slide 19: We are In Great Shape
We are In Great Shape We are optimistic we can deliver significant growth Safety FY21 Financials Dividend Order Book Strong 3.0c Full Year Totals $1.1b Inline with Guidance $250m Locked In for Performance 56% of Net Profit FY22 Mine Operations Strategy Net Cash FY22 Guidance Revenue Diversify Throug
Slide 20: Financial Results
Financial Results Full Year Ended 30 June 2021 Tony Caruso CEO & Managing Director Brett Maff Chief Financial Officer
Slide 21: Appendix
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Slide 22: Board
({) mastermyne Colin Bloomfield Non-Executive Chairman Colin's former roles during his 27 years with BHP Billiton include President Illawarra Coal (8 years), Vice President Health, Safety and Environment (Global role) and Project Director for the BHP Billiton merger integration as well as member of
Slide 23: Key Customer Relationships
Key Customer Relationships Crinum Mine Cook Colliery Broadmeadow Mine New Contract New Contract 6+ Years Wambo Mine Integra Mine Moranbah North Mine 6+ Years Ulan West Mine Grosvenor Mine 10+ Years Aquila Mine 17+ Years 23
Slide 24: Corporate Overview
Corporate Overview Share price as at 17 August 2021 $1.05 49% Shares on issue 107.4m 34% Market capitalisation $112.8m 17% Net Cash/(Debt) as at 30 June 2021 $19.3m Enterprise Value $93.5m Figures in $AUD 11.55% 10.24% 9.07% 5.91% 24
Slide 25: FY21 Profit and Loss Statement
FY21 Profit and Loss Statement 25
Slide 26: FY21 Cash Flow
FY21 Cash Flow Yared S09 2 a] pa EBITDA (Statutory) 223 28.6 Movements in working capital (0.4) 8.2 Non-cash items 05 03 Net interest costs (1.1) (0.8) Income tax receipts / (payments) (3.0) (5.5) Net Operating Cash Flow 18.3 30.8 Net capex (including intangibles) (7.9) (8.8) Net borrowings / (repay
Slide 27: FY21 Balance Sheet
FY21 Balance Sheet Assets Liabilities SAUD millions Fv2l| —FY20 Suomiiens Fai} FY20 Assets Liabilities Cash and cash equivalents 244 254 Trade and other payables 244 341 Trade and other receivables 40.4 49.1 Contract liabilities 0.2 - Contract assets 12 - Lease liabilities 47 49 Inventories 64 63 Em
Slide 28: (® mastermyne
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