Mastermyne delivers stellar profit boost

UNDERGROUND coal contractor Mastermyne has increased annual net profit 89% to $10.6 million for FY19 and is on track to achieve double digit earnings margins as it grows its order book and reduces overheads.
Mastermyne delivers stellar profit boost Mastermyne delivers stellar profit boost Mastermyne delivers stellar profit boost Mastermyne delivers stellar profit boost Mastermyne delivers stellar profit boost

Mastermyne has continued to maintain strong fleet utilisation rates along with improved hire rates.

The company increased revenue 18% to $238 million in FY2019 and is looking forward to integrating its newly-acquired Wilson Mining Services.

Mastermyne CEO Tony Caruso said the result showed the company's operating leverage.

"Our disciplined approach to improving contract terms, maintaining a low overhead cost base and leveraging our specialised fleet of underground equipment has enabled us to deliver this great result," he said.

"We have been especially pleased to divest the Mastertec business on good terms, pay a special dividend from the proceeds of the sale and to acquire a niche complementary business that will add value to our underground business and to our clients.

"We are excited by the year ahead which has us well on our way to delivering the strongest ever result for the Mastermyne business."

Over the past year the company has continued to maintain strong fleet utilisation rates along with improved hire rates.

During the period, $4 million in capital was expended to overhaul mining equipment for hire into new contracts and this was a strong contributor to the improvement in the earnings before interest tax depreciation and amortisation margin.

"With the ongoing demand for mining equipment the company has taken the opportunity to successfully acquire additional equipment which has also been placed on hire," Mastermyne said.

"Workforce numbers continued to increase over the past 12 months with total workforce numbers now at 963. Resources have become more constrained as demand for mining services has increased, however, the company has successfully resourced all current projects with highly skilled and capable personnel."

During FY19 Mastermyne delivered record roadway development metres across the most number of development units operated by the company since its inception.

The company successfully renegotiated contracts, secured extensions and won contracts that flowed into revenue growth and improved margins.

  • FREE coverage on the rapidly developing coronavirus pandemic. Visit our COVID-19 hub.
  • Latest COVID-19 Coverage: Pandemic no impediment. Read more.
  • Latest COVID-19 Coverage: Like sand through the hourglass. Read more