Slide 1: Full Year Financial Results
FULL YEAR FINANCIAL RESULTS For year ended 30 June 2022 25 AUGUST 2022
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: 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 4: Integrated Services Model
INTEGRATED SERVICES MODEL Contract tenor typically 2-3 years with commercial terms and conditions and specific scope of work BENEFIT OF INTEGRATED MODEL MINE • Single service provider SITE QUARRY ASSETS • Single contractual management touch point Site Construction MINE Services MINE • Reduced duplic
Slide 5: Our Operations and Reach
OUR OPERATIONS AND REACH CURRENT ACTIVITY 20 656 Bulk Haulage & Site Services 17 YEARS OF OPERATION EMPLOYEES Crushing & Screening 6 2 26 Offices 2 Quarries 1 SITES IN NT AND WA 1 Screening 3 25 P I L B AR A P I L B AR A 1 Roy Hill 25 Christmas Creek NO R T H E R N TERRITOR Y NO R T H E R N T E R R I
Slide 6: Sustainable Operations Connected With Our Community
SUSTAINABLE OPERATIONS CONNECTED WITH OUR COMMUNITY GOVERNANCE ENVIRONMENTAL SOCIAL • Industry recognised board • Electrification • Community Support • High employee ownership • Environmental Management • Indigenous engagement • People centric culture Systems • Health and Wellbeing • Health and safe
Slide 7: Strong Revenue Growth With Labour Constraining Profit
STRONG REVENUE GROWTH WITH LABOUR CONSTRAINING PROFIT Unprecedented demand constrained by labour market and margin pressures • Strong revenue growth Statutory Revenue - Greater scope of works across existing clients $289.8m - Growth from project wins ($257.8m FY21) Pro Forma1 EBITDA - Higher billing
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE Strong underlying demand for MLG services constrained by labour market conditions • Greater investment in recruitment • Retention difficult in industry as demand intensifies • Strengthened management team OUR - New COO – Mark Hatfield PEOPLE - Re-aligned executive leadership
Slide 9: Operational Performance
OPERATIONAL PERFORMANCE Productivity below historic performance with capacity for higher margins • High capex spend in FY2022 ($55.8m) - strategic orders to mitigate supply chain delay - new projects commenced in FY2022 (Paddington, Davyhurst, Evolution, Red5) OUR - Higher sustainable capex required
Slide 10: Financial Performance
FINANCIAL PERFORMANCE MLG
Slide 11: Financial Performance – FY2022
FINANCIAL PERFORMANCE – FY2022 Strong growth in revenue but margins remain well below historic norms Pro forma1 revenue 300.0 250.0 286.8 FY2022 FINANCIAL PERFORMANCE Pro Forma Pro Forma 254.0 Actual Actual 200.0 200.0 205.0 $000’s Notes FY21 FY22 $Am 150.0 Revenue 100.0 Mine Site Services and Bulk
Slide 12: Quarterly Run Rate – FY2022
QUARTERLY RUN RATE – FY2022 Improved second half as rate increases mitigate cost escalation, despite material weather events in H2 • First quarter trading performance reflects rapid Pro forma1 revenue escalation of costs set against historic billing rates 75.0 76.0 71.9 74.7 • Repricing of rates has
Slide 13: Cashflow and Capital Expenditure
CASHFLOW AND CAPITAL EXPENDITURE Pre-ordered equipment has resulted in high capex spend in FY2022 to support growth • First quarter trading Pro Forma1 Historical Actual performance restricted operating cashflow #039;000 Notes FY19 FY20 FY21 FY22 EBITDA 33,970 24,482 42,719 30,044 • Higher capex support
Slide 14: Capital Management & Balance Sheet Position
CAPITAL MANAGEMENT & BALANCE SHEET POSITION Debt gearing ratio impacted by lower Q1 profit and higher capex spend Consolidated Consolidated $000’s 30 June 2022 30 June 2021 • Increase in Net assets to $116.3m Cash and cash equivalents 210 9,689 Trade and other receivables 45,272 42,226 • Higher cape
Slide 15: Outlook
OUTLOOK MLG
Slide 16: What Is Driving Our FY2023 Outlook?
WHAT IS DRIVING OUR FY2023 OUTLOOK? Growth outlook is a focus on margin and client delivery rather than revenue alone REVENUE LABOUR MARGIN GROWTH AVAILABLIITY IMPROVEMENT • Existing client demand • Recruitment • Cost control - Yandal belt expansion in - investment in recruitment team - Maintenance
Slide 17: High Volume Crushing Plant Opportunity
HIGH VOLUME CRUSHING PLANT OPPORTUNITY Potential to redeploy or sell or combination of both • Client parties interested in - build own and operate - outright purchase - Purchase asset plus MLG manage operations • Dedicated high capacity plant business development manager appointed • Current proposal
Slide 18: Automation Versus Electrification
AUTOMATION VERSUS ELECTRIFICATION Potential proof of concept trial to retrofit high payload fleet with electric engine AUTOMATED • Difficult with load and unloading cycle times to maximise volume • Requires new technical skills to support – less labour but difficult to source and expensive • Not app
Slide 19: Outlook for FY2023
OUTLOOK for FY2023 Expectations for strong growth in FY2023 • Cost escalation stabilising • MLG being headquartered in Kalgoorlie provides unique advantage to leverage DAMA in Goldfields region – international labour identified • Higher rates have been agreed with clients • Targeting improved margin