Strong financial half for MACA

MINING contractor MACA said its expansion into South America had positioned it well to tackle a softer domestic market as the company returned a $A34.7 million profit for the financial half-year.
Strong financial half for MACA Strong financial half for MACA Strong financial half for MACA Strong financial half for MACA Strong financial half for MACA

 

Jack McGinn

The profit represents a 6.4% increase on the corresponding period in 2013, and comes on the back of revenue of $319.7 million — a 4.4% increase on the first half of FY2013.

Earnings before interest, tax, depreciation and amortisation were $80.5 million for the half, up 10.4% on the first half of the previous financial year. Operating cash flow was $63.8 million.

MACA will pay a dividend to shareholders of 7c, a 0.5c increase on the previous half year return.

The strong results came about despite the weaker market domestically, and the company said its decision to expand geographically over the half would help offset these moving forward.

MACA signed a five-year agreement with Beadell Resources during October for services at its Tucano gold project in Brazil — its first in the region.

On the domestic front, it also picked up a contract from Karara Mining in July for work on its Hinge project, 200km east of Geraldton in Western Australia.

However, falling commodity prices caused Rosslyn Hill’s Paroo Station and Arrium Mining’s Southern Iron operations to be placed on care and maintenance in January.

MACA holds contracts for both operations but said its work-in-hand position was strong and it was well-placed to take up more work.

In all, MACA’s order book comes to $1.47 billion, with full-year revenue guidance of $620 million and net profit after tax expected to exceed the $55.4 million earned last financial year.

MACA had cash on hand of $93.6 million at the end of the half-year.

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