For personal use only MACA LIMITED INVESTOR PRESENTATION FEBRUARY 2013 DOUG GREWAR - MANAGING DIRECTOR / CEO ROSS WILLIAMS - FINANCE DIRECTOR / CFO

Transcription

1 MACA LIMITED INVESTOR PRESENTATION FEBRUARY 2013 DOUG GREWAR - MANAGING DIRECTOR / CEO ROSS WILLIAMS - FINANCE DIRECTOR / CFO

2 Important Notice IMPORTANT NOTICE AND DISCLAIMER This presentation and these materials (together the Presentation ) has been prepared by MACA Limited ABN (ASX:MLD) ( MACA ) as an Investor Presentation and a summary of MACA s results for the half year to 31 December By participating in this Presentation or reviewing or retaining these materials, you acknowledge and represent that you have read, understood and accepted the terms of this Important Notice and Disclaimer. This presentation should be read in conjunction with other periodic and continuous disclosure announcements that have been lodged by MACA with the ASX. This Presentation may contain forward looking statements concerning projected earnings, revenue, growth, outlook or other matters ( Projections ) for the half year ending 31 December 2012 or beyond. Any such Projections are based on assumptions which may differ materially from the actual circumstances which may arise. MACA undertakes no obligation to update any Projections for events or circumstances that occur subsequent to the date of this Presentation or to keep current any of the information provided. Past performance is no guarantee of future performance. Recipients of this Presentation are advised that the information contained in this Presentation is not legal, tax, accounting, investment or financial product advice and should not be used as the basis for making investment decisions in relation to MACA securities. The information contained in this Presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. MACA has no obligation to tell recipients if it becomes aware of any inaccuracy in or omission from the information in this Presentation. This Presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. You should consult your own advisors as to legal, tax, financial and related concerning any transaction or investment or other financial decision. This Presentation, including opinions set out in it, is based on information compiled or prepared by MACA from sources believed to be reliable, although such information has not been verified in all instances. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this Presentation. To the maximum extent permitted by law, none of MACA, its directors, employees, advisors or agents, nor any other person, accepts any liability, including without limitation any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, Projections or prospects referred to in this Presentation. 2

3 Corporate Snapshot Capital Structure Fully paid ordinary shares 150 million Directors and Senior Management Andrew Edwards Non-Executive Chairman Doug Grewar Managing Director / CEO Share price (as at 15 February 2013) $2.85 Geoff Baker Operations Director Market capitalisation (undiluted) $427.5 million Ross Williams Joe Sweet Finance Director / CFO Non-Executive Director Cash (as at 31 Dec 2012) $40.2 million Linton Kirk Non-Executive Director Dave Edwards Business Development Manager Substantial Shareholders Name Shareholding per last notice G A Baker / Gemblue Nominees 12.00% Tim Gooch Mitch Wallace Andrew Sarich Jon Carcich Mining Manager Plant Manager General Manager MACA Civil Company Secretary D Edwards / Mining and Civil Management 11.33% FM and SJ Maher 11.20% Liquidity JE and JC Moore 8.67% BT Investment Management 6.24% Celeste Funds Management 5.03% Average of 300k shares traded per day since IPO Average of 368k shares traded per day in CY2012 3

4 Financial and Operational Highlights for the Half Year Record half year result Revenue of $207.5 million (up 47% on previous corresponding period) EBITDA of $55.2 million (up 53% on previous corresponding period) NPAT of $22.6 million (up 37% on previous corresponding period) Cash from operating activities $41.7 million Key contract wins over the past 6 months include: Regis Resources Limited (ASX: RRL) Rosemont Gold Project Letter of Intent contract value $220 million over 5 years with subsequent increase in scale (minimum 8 year mine life); Atlas Iron Limited (ASX: AGO) Abydos DSO project contract value $200 million over 3 years; Main Roads Western Australia (MRWA) Carnarvon Flood Mitigation project awarded to MACA Civil Pty Ltd, contract value approximately $65 million Work In Hand position of $1.875 billion as at 31 December 2012 and average contract length + 3 years Solid balance sheet Client base diversified by commodity Iron ore 38% Gold 33% Other Minerals 7% Civil 22% Targeting full year FY2013 revenue of +$450m (100% contracted), + 35% above 2012FY 4

5 Half Year Financial Summary 2013 FY Half Year Results 31 Dec Dec 2011 Change Revenue $m $207.5 $ % EBITDA $m $55.2 $ % EBIT $m $37.2 $ % Net Profit Before Tax $m $34.5 $ % Net Profit After Tax (attributable to members) $m $22.6 $ % Contracted / Awarded Work in Hand $m $1,875 $1,401 34% Operating Cash Flow $m $41.7 $ % Earnings per share - basic cps % Dividend per share (fully franked) 1 cps % 1 Dividend Record date 15 March 2013, payable on 29 March

6 Jan-12 Feb-12 Mar-12 Apr-12 May- 12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Safety, Environment and Training Solid safety record with Lost Time Injury Frequency Rate (LTIFR) continuing to track well below the industry average MACA Mining 12 Month LTI Frequency Rate 5 As at Dec 2012 MACA employed a workforce of +900 personnel comprising direct staff and subcontractors LTIFR (Industry) LTIFR (MACA) Integrated safety and management system to AS 4801 certification to April 2015 MACA and MACA Civil 1 0 Environment management system to ISO certification to April 2015 MACA and MACA Civil Quality management system to ISO 9001 certification to April 2015 MACA and MACA Civil Federal Building and Construction OHS Accreditation Scheme awarded to MACA Civil Pty Ltd in December

7 Management Board For personal use only Board and Management Andrew Edwards Non Executive Chairman Andrew is a former Managing Partner of Price Waterhouse Coopers (PwC), Perth Office, a former national Vice President of the Securities Institute of Australia (now the Financial Institute of Australasia) and a former President of the Western Australian division of the Institute of Chartered Accountants in Australia ( ICAA ). Andrew is a Fellow of the ICAA and has served as state councillor of the ICAA. Andrew is currently a board member of Mermaid Marine, Nido Petroleum and Aspire Mining. Doug Grewar Managing Director & CEO Doug has more than 15 years direct experience in the mining industry working for some of Australia s largest mining contractors, as well as 10 years in the heavy construction materials industry in management and senior leadership roles. He also has past experience as the managing director of an ASX listed company. Geoff Baker Operations Director Geoff is a founding shareholder of MACA. Geoff is responsible for planning, operating strategy, capital expenditure and delivery of safety and financial outcomes on all projects. Geoff has worked in the sector for 36 years focusing on plant maintenance and asset management. Ross Williams Finance Director & CFO Ross is a founding shareholder of MACA. Ross is responsible for all financial facets of the Company including capital management, finance, financial reporting and corporate strategy. Ross also has 16 years banking experience having held executive positions with a major Australian bank. Ross is a past fellow of the Australian Institute of Banking and Finance and holds a Post Graduate Diploma in Financial Services Management. Joseph (Joe) Sweet Non Executive Director Joe has extensive mining contracting and civil contracting experience and was the Managing Director of BGC Australia Pty Ltd from 1988 to 1997 and Managing Director of BGC Contracting Pty Ltd from 1997 to Joe held senior management roles and Board positions within the Bell Group from 1969 to Linton Kirk Non Executive Director Linton has over 30 years experience in mining and earthmoving, covering both open pit and underground operations in several commodities. He has held technical, operational and management positions in a variety of mining and mining service companies throughout the world prior to becoming a consultant in Mr Kirk holds a Bachelor of Engineering (Mining) degree from the University of Melbourne, is a fellow and Charted Professional of the Australian Institute of Mining and Metallurgy and is a graduate of the Australian Institute of Company Directors. Dave Edwards Business Development Manager Dave is a founding shareholder of MACA. Dave is responsible for business development, estimation of required services and negotiating project contracts. Dave has worked in the mining services sector since 1978 and has held general managerial positions with major mining and civil contractors. Mitch Wallace Plant Manager Mitch joined MACA in 2005 as Plant Manager and is responsible for planning, scheduling and preventative maintenance functions and provide leadership to the maintenance teams. Mitch has worked with contractors and equipment suppliers in Australia and overseas. Tim Gooch Mining Manager Tim is a qualified Mining Engineer from Camborne School of Mines in the UK. His 30 years in the mining industry has seen him work in the UK, South & West Africa, Canada and 24 years based here in Australia. His experience covers surface and underground mining and processing in gold, diamonds, nickel and other base metals in a number of senior management roles. Andrew Sarich General Manager MACA Civil Andrew is the General Manager of the newly formed joint venture company, MACA Civil Pty Ltd. Andrew has previously worked for Main Roads WA for 10 years and has experience working with several major road building contractors. 7

8 Project Locations Mining Services Iron Ore Crushing Services Iron Ore Mining Services - Gold Northern Territory Mining Services Other Ellendale MACA Civil - Civil Contracting Pardoo DSO Mt Dove DSO Abydos DSO Plutonic Paroo Station Mine Carnarvon Andy Well Laverton Moolart Well Garden Well Rosemont Peculiar Knob DSO Midwest DSO Wheatbelt Western Australia South Australia

9 Operating Divisions Loading and Hauling Contract load and haul offering mine to mill solutions and customised to meet project needs Equipment Excavator Hitachi EX t 1 Komatsu PC t 1 Hitachi EX t 4 Komatsu PC t 19 Komatsu PC600 60t 1 Dumptruck Cat 785D 140t 4 Cat 777G 100t 7 Komatsu t 70 Dozers Cat D10T 3 Cat D9T 10 Komatsu Komatsu Graders Cat 16M 5 Cat 16H 6 Cat 16G 1 Cat 14H 2 Front End Loaders Cat Cat 988H 2 Komatsu WA600-6/3 14 Komatsu WA500-6/3 4 Cat / Komatsu 14 Drilling and Blasting Production drilling and blasting, pre-splitting and probe drilling services Equipment Blasthole Drills Terex SCH5000CL 10 Montabert / Hitachi 2 Atlas Copco F9 4 Crushing and Screening Crushing and screening fixed or mobile crushing circuits from single to multi stage Equipment Jaw Metso Cone Metso HP5 3 Metso HP4 3 Metso HP400 1 Metso HP300 5 Screens Metso TS5.2 27x8 2 Metso LH 15x8 1 Triple Cedarapids 20x8 5 Double Striker 20x7 4 Sample Stations Striker 6 Essa 2 Circuits Arrium Peculiar Knob Sinosteel Midwest Atlas Iron Pardoo Atlas Iron Mt Dove Atlas Iron Abydos Mtpa 2.0 Mtpa 1.8 Mtpa 2.3 Mtpa 2-3 Mtpa MACA Civil Joint Venture MACA 60% interest Deliver effective solutions for: Tails dam construction Evaporation ponds Complete mine infrastructure works Road construction and maintenance Airport runway construction Major earthworks projects 9

10 Mining Division Iron Ore Mining Services / Crushing and Screening Services Pardoo (1 Mtpa): Mining - to April 2013 Crushing - to August 2013 Mt Dove (2 Mtpa): Mining - 13 months, commenced October 2012 Crushing - 13 months, commenced November 2012 Abydos (2-3 Mtpa): Mining 36 months commenced December 2012 Crushing 36 months from June 2013 Peculiar Knob (3.8 Mtpa): Mining commenced in December 2011 Crushing commenced in September 2012 Contract to 2017 Picture? Picture? Midwest DSO (1.4 Mtpa): Mining at Koolanooka recently completed Crushing through until March 2012 Picture? 10

11 Mining Division Gold Mining Services Moolart Well: Mining since January Garden Well: Mining since 2011, contracted to 2019 Rosemont: Due to commence March Minimum 8 year mine life Laverton: Focus Minerals (Laverton) Ltd is a subsidiary of Focus Minerals Limited (ASX:FML) Mining since September 2009, contract to 2014 FML very well capitalised and announced plans to undertake significant exploration and development FML intends to rapidly grow production Plutonic: MACA undertakes haulage and crusher feed services Contracted since 2008, current extension through until mid 2013 Picture? Picture? Picture? 11

12 Mining Division Other Mining Services Ellendale Kimberley Diamonds: Project commenced December month contract Fixed and variable contract mitigates mining disruption during Kimberley wet season Picture? R Paroo Station Mine: Targeting restart Second Quarter CY2013 MACA to undertake drill and blast, load and haul and crusher feed. Infrastructure already in place Picture? 12

13 MACA Civil (MACA 60% interest) Tailings dam construction and site infrastructure up to $10m in total Mt Dove civil and infrastructure works. $20m in value. Commenced August 12, completed Jan 13. Abydos saddle and ROM works approx. $9.5 m. R3 accreditation achieved May 2012 National pre-qualification system for civil construction contracts Works in Carnarvon and Onslow completed in 2012 totalling $20m Browns Range Alliance Carnarvon Main Roads Western Australia (MRWA) Alliance project with contract value approximately $65 million over 12 months from October 2012 Picture? Federal Building and Construction OHS Accreditation Scheme awarded in December 2012 MidWest / Gascoyne ISA sub-contract works MRWA Roadworks Onslow March

14 Work In Hand as at Dec 12 Work in Hand: average tenure Mining 40 months Crushing 32 months Projected sources of revenue - time based (Excludes MACA Civil) Work In Hand Potential Extensions Regis Resources - Moolart Regis Resources - Rosemont Regis Resources - Garden Well Focus Mineral - Laverton Barrick - Plutonic Arrium - Peculiar Knob - Mining Arrium - Peculiar Knob - Crushing Sinosteel/Midwest - Mining Sinosteel/Midwest - Crushing Atlas Iron - Pardoo - Mining Atlas Iron - Pardoo - Crushing Atlas Iron - Abydos - Mining Atlas Iron - Abydos - Crushing Atlas Iron - Mt Dove - Mining / Crushing Kimberley Diamonds - Ellendale Rosslyn Hill Mining - Rosslyn Hill Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 14

15 Work In Hand as at Dec $m Revenue composition of work in hand FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Completed Work In Hand - MACA Potential Extension Work MACA Civil Note WIH from FY14 onwards does not include any Civil 22% 7% 33% 7% 11% 40% 6% 53% 6% 7% 58% 60% Civil Other Gold Iron Ore 38% 42% 42% 31% 33% FY13 FY14 FY15 FY16 FY17 Revenue Composition by Commodity / Area 15

16 Company Outlook First half 2013 FY performance very strong Earnings forecast to increase over the second half of 2013 FY with full year revenue now expected to exceed $450 million (previous guidance + $400 million) Order book of +$1.8 billion and average contract tenure of 40 months Emerging opportunities for growth with quality, low cost producers Focussed on maintaining a strong balance sheet for forthcoming growth Pipeline for new projects & project expansions is enhanced by strong relationships driven by proven capability Growth in scope of work MACA undertakes, expanding with civil works Strong alignment with clients and key stakeholders 16

17 Income Statement Income Statement A$ million HY11 HY12 HY13 % Change from previous corresponding period Revenue % EBITDA % EBITDA Margin 26.3% 25.6% 26.6% EBIT % EBIT Margin 18.3% 17.3% 17.9% Profit attributable to MACA % Net Profit Margin 12.0% 11.6% 10.9% Basic earning per share - cents Total dividends per share - cents Shareholders funds Net cash flow from operating activities Net debt Net debt / Net debt + equity n/a 19.0% 24.2% 17

18 Balance Sheet Balance Sheet A$ million FY11 FY12 HY13 Cash and cash equivalents Trade and other receivables Inventories / WIP Property, plant and equipment Intangibles Other assets Total Assets Payables Borrowings Provisions Other Liabilities Total Liabilities Shareholders Equity Net Debt Net tangible asset backing - cents per share (basic)

19 Contacts 19