MARKETS

Strong annual results from Sedgman

COAL preparation plant specialist Sedgman performed strongly in the recent financial year, lifting its net profit after tax by 252% from the previous year to $A25 million.

Blair Price
Strong annual results from Sedgman

The better return for the 2009-10 financial year was achieved despite a $20 million goodwill write-down.

But Sedgman also gained $3.3 million in tax benefits for research and development concessions, and another $2.1 million of deductions for acquisition costs in its customer contracts due to changes in taxation law.

“Our international expansion strategy is delivering substantial benefits,” Sedgman managing director Mark Read said.

“We are securing major engineering, procurement and construction (EPC) projects and our order book and pipeline of targeted projects are now at record levels.”

Sedgman is processing more than 20 million tonnes per annum of coal and another 9Mtpa under various operations contracts which provide the company with a recurring and long-term revenue stream.

Contracts won during the recent financial year include the $50 million coal-handling and preparation plant for Whitehaven Coal’s Narrabri mine.

But the big wins came from coal projects overseas, including Xstrata Coal’s $123 million Atcom CHPP in South Africa, Riversdale Mining’s $143 million Benga CHPP in Mozambique, and the second-stage design contract for the giant Ukhaa Khudag (UHG) mine in Mongolia.

Sedgman also won a $US85 million EPC contract for the Boseto copper project in Botswana.

Read is confident of more growth in the years ahead.

“Sedgman’s order book now stands at $706 million and has increased by $176 million over the past 12 months,” Read said.

“Targeted projects in our three-year pipeline have increased by $1.5 billion to $6.3 billion.”

Sedgman declared a fully franked final dividend of 3.5c per share which will be paid on September 17.

Total dividends for the 2009-10 financial year reached 6.5c per share – up half a cent from the previous year.

At the end of June Sedgman’s gross debt was $42.8 million while its net cash was $15.2 million.

Sedgman shares are up 4.5c or 2.8% to $1.65 this morning.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.