The Mastermyne board keeps a close watch on acquisitions that provide growth in its existing sector and adjacent sectors that are well aligned with our capabilities, he said.

“The acquisition of Diversified Mining Services (DMS), which was completed during the financial year, extends our involvement in the coal sector to new mines and port facilities.

“It also provides an entry into other heavy industry and extends the range of services offered by the company.”

The majority of Mastermyne revenue has historically been derived from production rather than construction and this trend continues. As a result, the company has generally been less impacted as its services are valuable to our clients throughout the cycle, according to Bloomfield.

Mastermyne’s largest industry exposure is the high quality metallurgical coal sector in Australia. This sector, despite the challenging conditions, still enjoys competitive advantages, he said.

These include high quality resources, good infrastructure and proximity to the major markets in Asia.

“Australian coking coal mines generally enjoy the most favourable position on the industry margin curve,” he said. “This allows for continued cash generation during periods of low prices. Our company’s exposure to this industry is quite diversified with no one mine accounting for more than 15% of overall revenue.”