Mastermyne on track to double in size

MINING services provider Mastermyne will target second-tier miners in the coming year and expand its offering to maintain its growth strategy of doubling in size in three to five years.
Mastermyne on track to double in size Mastermyne on track to double in size Mastermyne on track to double in size Mastermyne on track to double in size Mastermyne on track to double in size

Courtesy Mastermyne.

Lou Caruana

The growth trajectory may not be steady though, given the uneven nature of resources project developments in the underground coal sector and labour supply constraints, chairman Peter Slaughter said at the company’s annual general meeting.

“Mastermyne intends to maintain its focus on the Australian coal sector,” he said.

“This has been a buoyant market in recent years but we are tempering our growth by a desire not to overstretch ourselves.

“In this context and bearing in mind my earlier comments about skilled employees and our culture, the company is on target to double the size of our business (from last year) in three to five years.

“Shareholders should note that the increase in performance is unlikely to be a steady growth and that some measures may double before others as we move through transition phases.”

The company will be tendering work at Whitehaven’s Narrabri operation, Centennial’s Airley, Yancoal’s Austar, Peabody’s Wambo, Ensham Resources’ underground operation and Gujarat’s NRE colliery.

Mastermyne is also in business development discussions with Yancoal’s Moolarben operation and Centennial’s Newstan, Angus Place and Mandalong operations.

“Our increased presence in the Hunter region, new service offerings and new contracts will form the backbone of our growth,” Slaughter said.

“There may well be some business acquisitions that fit our strategy as we move forward although there is nothing of substance under detailed consideration as of now.”

Meanwhile, the company has launched its new $A1.2 million underground coal mining training facility, Myne Start, which will provide specialised underground training to participants in a realistic environment.

The facility in Mackay was officially opened yesterday by Queensland Resources Council chief executive Michael Roche.

Mastermyne managing director Tony Caruso said the complex would provide inexperienced underground miners (“cleanskins”) with the opportunity to complete in-depth training in a unique simulated training facility.

Last month, the company won a contract with Xstrata Coal’s Oaky Creek mining complex to install underground conveyors for the next three years.

Mastermyne shares were steady at $1.415 in morning trade.