Mastermyne Group Limited · ASX:MYE
Mastermyne — Metarock Group — H1 FY2022 Earnings Presentation
27 slides from Mastermyne's earnings presentation, Feb 28, 2022
Slide 1: 1H FY2022 Results
For personal use only 1H FY2022 Results Metarock Group Limited (ACN 142 490 579) Tony Caruso, Managing Director Brett Maff, Chief Financial Officer 28 February 2022
Slide 2: Metarock Executive Summary
Metarock Executive Summary • Established Metarock as a specialised, diversified underground mining services group with the For personal use only transformational acquisition of hard rock mining specialist, PYBAR Mining Services 1H FY2022 Highlights • Strong HY financial performance from the coal con
Slide 3: Outlook - Metarock Strategy in Action
Outlook - Metarock Strategy in Action Mine operations and the diversification into hard rock mining delivers strong growth and a higher margin business Mine Operations Coal Contracting Hard Rock Contracting For personal use only Revenue Split Guidance ($m) Employee Numbers 130 → 378 950 → 1150 1100
Slide 4: Crinum Mine Update
Crinum Mine Update The accident has had a profound impact on our business and our people For personal use only • Underground accident occurred on 14 September 2021 fatally injuring our colleague Graham Dawson • We have remained in close contact with Graham’s family and continue to support our people
Slide 5: Transformational acquisition - PYBAR
Transformational acquisition - PYBAR Increasing confidence in PYBAR’s business and culture and its alignment with our broader values and direction Strategic Rationale Confirmed For personal use only • Highly complementary with MYE’s core business of underground mining and expedites our diversificati
Slide 6: Financial Performance
Financial Performance Normalised 1H results benefited from the strong HY financial performance from the coal contracting business Strong H1 FY2022 consolidated result impacted by: For personal use only • • Remedial and delay costs directly resulting from the Crinum accident (included as a $6.8m norm
Slide 7: Safety and Sustainability ESG Program
Safety and Sustainability ESG Program The recent serious event has sharpened our focus and approach For personal use only • Crinum accident reinforces our commitment to health and safety and our focus on key features of a recognisable high reliability organisation (HRO) • We continue to test and rev
Slide 8: People
People Having the best people ensures we can deliver growth with minimal risk For personal use only • Significant effort channelled into growing the skills of our people in preparation for growth • Our approach is becoming a point of difference for clients and employees • The PYBAR acquisition stren
Slide 9: 1H Results Summary
For personal use only 1H RESULTS SUMMARY FY2022 HALF YEAR HIGHLIGHTS | METAROCK 9
Slide 10: HY 2022 Financial Performance
For personal use only HY 2022 Financial Performance $000 H1 revenue at $180m (up 62% on PCP) Period ended 31 • Normalised Results HY22 PCP HY21 Change December 2021 • $43m PYBAR revenue contribution from November 2021 Mastermyne PYBAR Total • Mastermyne Revenue at $137m, up 23% from PCP ($112m) Reve
Slide 11: Statutory Versus Normalised Results
Statutory Versus Normalised Results Half year result is impacted by one-off costs One-off direct costs related to the Crinum accident - $6.8 million For personal use only • • PYBAR one-off acquisition costs - $1.1 million $000 Statutory to normalised results reconciliation H1 FY2022 Normalised Statu
Slide 12: H1 FY2022 Cash Flow
H1 FY2022 Cash Flow Strong cash generation from operations is supporting the investment in growth $AUD (000’s) H1 FY22 H1 FY21 For personal use only EBITDA (Statutory) 8,684 9,752 Movements in Working Capital 15,068 (6,443) Non Cash Items (654) 214 Interest Costs (1,095) (515) • Strong working capit
Slide 13: December 2021 Balance Sheet
31 December 2021 Balance Sheet Undrawn facilities of $117 million across equipment leasing and $AUD (000’s) HY22 FY21 working capital facilities Assets For personal use only Cash and Cash Equivalents 13,154 24,389 Trade and Other Receivables 71,790 41,641 • Trade receivables and Inventory increase d
Slide 14: Capital Management
Capital Management FY2022 is the year of investment that transforms the long term financial outlook for the Company For personal use only • Capital expenditure increases, particularly in H2 FY22, primarily Crinum H1 FY22 H2 FY22 FY23 and Cook projects Crinum • Gearing ratio peaks in June 2022 at 2x
Slide 15: Financial Discipline
Financial Discipline Our diversified business model and financial management approach will be core to ensuring balance sheet strength throughout resource price cycles For personal use only Efficiency Value Creation Capital Management Working Capital Contract Capital Low Debt Cost Control Focus Flexi
Slide 16: Divisional Overview
For personal use only DIVISIONAL OVERVIEW FY2022 HALF YEAR HIGHLIGHTS | METAROCK 16
Slide 17: Divisional Overview
Revenue Divisional Overview Mastermyne half year financial performance (Contracting & Mine $137m Operations consolidated) 23% increase on PCP of $112m For personal use only Strong financial contribution from the Mastermyne Coal contracting division Normalised EBITDA • • Contracting division continue
Slide 18: Divisional Overview - Mining Operations Overview
Divisional Overview Mining Operations Overview For personal use only Crinum Cook • Significant progress made installing key surface infrastructure and • Mining Contract announced based on 4 +2 year term under a direct cost remediation of drifts which includes re-supporting affected areas contract mo
Slide 19: Divisional Overview - PYBAR Half Year Financial Performance
Divisional Overview PYBAR Half Year Financial Performance Revenue $43m For personal use only • Metarock took full economic control of PYBAR from November 2021 2 months to 31 December 2021 • Early in the integration process with significant value opportunities ahead Proforma H1 FY2022 $133m • Awarded
Slide 20: Pipeline and Outlook
For personal use only PIPELINE AND OUTLOOK FY2022 HALF YEAR HIGHLIGHTS | METAROCK 20
Slide 21: Metarock Tender Pipeline and Commodity Split
Metarock Tender Pipeline Metarock Commodity Split For personal use only Combined Order Book & Tendering Pipeline • We are delivering on our strategy of becoming a fully diversified underground mining services company • Total order book stands at $1.9 billion • $245 million will be delivered in H2 FY
Slide 22: Mastermyne Order Book and Pipeline
Divisional Overview Mastermyne Order Book and Pipeline Booked Revenue Tenure For personal use only FY2022 HALF YEAR HIGHLIGHTS | METAROCK 22
Slide 23: Outlook
Outlook There is clear line of sight to the revenue and profit uplift coming through in FY2023 Mastermyne Contracting For personal use only Mastermyne contracting is travelling extremely well and has a strong track record of year on year delivery Metarock • Metarock guidance $m guidance FY2023 • New
Slide 24: Long Term Outlook
Long Term Outlook We are in the early stages of a broad mining cycle For personal use only • Commodity prices remain at attractive levels and mining services contractors will continue to benefit from these strong resource sector tailwinds • Pre production exposed mining services (Drilling, Engineeri
Slide 25: Summary
Summary For personal use only • We are in the early stages of a broad mining cycle • The Growth in Operating Mines and Hard Rock Mining has transformed our business • FY2022 is a year of investment that underpins a significant long term step up in revenue and margins • New projects coming on line in
Slide 26: Disclaimer
Disclaimer For personal use only 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 presentatio
Slide 27: For personal use only
For personal use only