The company is primed for growth with a strong order book, which in turn is predominantly linked to existing operations, it said in a report.
“Importantly, tendering opportunities across brownfield operations remain healthy. Given its strong reputation, long-standing relationships and solid balance sheet, we believe MYE should win its fair share of work,” the report states.
“In turn, success on this front should particularly support FY2014 and beyond.”
Patersons expects Mastermyne’s business model to prove resilient in the current phase and is forecasting 13% earnings per share growth for FY2013.
“We anticipate coal production levels to remain resilient,” the report states.
“To this end, the group’s contracts are predominantly with Tier 1 customers, which typically operate low-cost mines; it is unlikely these operations would be materially affected.
“In turn, we expect Mastermyne’s healthy order book to remain intact. Encouragingly, Mastermyne managed to grow its earnings during FY2009 amid the GFC.”
Mastermyne has signalled it is on the lookout for opportunities arising from the rationalisation of the contractor sector brought about by the industry slowdown.
While Mastermyne’s clients had been under pressure to reduce costs in a more challenging environment, any loss of work for Mastermyne had been offset by gains at other sites, managing director Tony Caruso said in the company’s annual report.
“During this period of rationalisation across our sector, we will inevitably be presented with or become aware of growth opportunities by way of acquisitions,” he said.