Mlg Oz Ltd · ASX:MLG
Mlg Oz — Shareholder Meeting (November 2024)
28 slides from Mlg Oz's shareholder meeting presentation, Nov 6, 2024
Slide 1: Annual General Meeting 06 November 2024
ANNUAL GENERAL MEETING 06 NOVEMBER 2024
Slide 2: Managing Director Presentation
MANAGING DIRECTOR PRESENTATION ANNUAL GENERAL MEETING – 2024
Slide 3: Disclaimer
This release contains certain forward looking statements, 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. Such forward looking statements are based on numerous a
Slide 4: Continued Strong Revenue Growth
CONTINUED STRONG Pro Forma1 Revenue 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 3 ANNUAL GENERAL MEETING – 2024
Slide 5: FY2024 Delivered Improved Financial Performance
FY2024 DELIVERED IMPROVED FINANCIAL STRONG PROFIT GROWTH PERFORMANCE 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% 4 ANNUAL GENERAL MEETING – 2024
Slide 6: FY2024 Highlights
FY2024 HIGHLIGHTS • Continued growth in FY2024 – 6 year revenue CAGR now 28.7% • Substantial growth in headcount to 1,145 MLG employees with a total workforce of 1,300+ • Margin improvement with EBITDA margins increasing to 11.8% with incremental improvement over time expected • Strong cashflow, fun
Slide 7: We Continue to Grow Through Customer and Scope Expansion
WE CONTINUE TO GROW THROUGH CUSTOMER AND SCOPE EXPANSION 1 2 2002 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Northern Star and Saracen merger via Scheme of Arrangement completed 12 February 2021. 2 IGO acquired Western Areas Limited 6 ANNUAL GENERAL MEETING – 2024
Slide 8: 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 9: 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 10: 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 High grade deposits within any direct larger processing capacity competitors who GOLD over last 10 years IRON ORE 50km not serviced by rail provide a fully SECTOR SECTOR integrated Greater
Slide 11: Recurring Profit Growth
RECURRING PROFIT GROWTH Pro Forma EBITDA $55.3m 17.7% $42.7m CAGR * $38.1m $30.0m $24.5m FY2020 FY2021 FY2022 FY2023 FY2024 *Underlying EBITDA – Excludes $6.6m loss on sale of high-capacity crushing plants 10 ANNUAL GENERAL MEETING – 2024
Slide 12: Strong Cash Generation
STRONG CASH GENERATION - $26.0m $33.6m - $19.8m - $29.8m $57.6m $37.8m - $3.9m - $2.1m $9.6m OPERATING CAPEX - FREE CASH EQUIPMENT DEBT CAPEX - INTEREST GST / CHANGE CASHFLOW SUSTAINING - PRE GROWTH FINANCE REPAYMENT NEW ASSETS FINANCE IN CASH DRAWDOWNS FEES 11 ANNUAL GENERAL MEETING – 2024
Slide 13: Strategic Position Provides Strong Outlook
Competitive advantage (Integrated service offering and scale) High level of demand (Organic and growth) Growth in profitability and cash generation STRATEGIC POSITION PROVIDES STRONG OUTLOOK WITH CONTINUED Long term EXPECTATION OF HIGH LEVELS OF sustainability CUSTOMER DEMAND 12 ANNUAL GENERAL MEETI
Slide 14: Expecting Revenue Growth to Continue
• Expecting revenue growth to continue • Clear focus and capacity to improve margins • Business currently only trading on approx. 1.8x EBITDA, 7.5x PE and 35% discount to NTA • Assuming the business can increase EBITDA , the operating cashflow will provide significant optionality: − Deleverage Balan
Slide 15: Questions?
QUESTIONS? MORGANS - NOOSA CONFERENCE OCTOBER 2024 14
Slide 16: Appendix
APPENDIX 15 MORGANS NOOSA CONFERENCE – OCTOBER 2024
Slide 17: 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 18: Our Services
Client strategies typically follow hub and spoke model with large Mine central processing facility fed PROVIDING CRITICAL from multiple satellite mines INFRASTRUCTURE TO Mine MINERAL PROCESSING Client Processing Facilities Mine Mine OUR SERVICES BULK HAULAGE & CRUSHING & SCREENING CIVIL & MINING CON
Slide 19: Where We Operate
WHERE WE OPERATE 18 ANNUAL GENERAL MEETING – 2024
Slide 20: Contract Terms
CONTRACT • Must provide a “service” • No commitment contract guarantees 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 FO
Slide 21: 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 22: 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% 1 Margin % $30.0m 11.8% • High volume of rainfall in March and June drov
Slide 23: Stronger Balance Sheet
Parent Entity Consolidated $000’s 30 June 2024 30 June 2023 STRONGER BALANCE SHEET 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 24: Debt Funded Through Equipment Finance
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 25: 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 26: 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 27: 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 28: 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