Australian contract miner Macmahon says it has a platform for 20% revenue growth and stronger earnings in FY25 after reporting a 6.6% year-on-year increase in full-year revenue to A$2 billion and EBITDA of $351.7 million, up 13.9% yoy.
“We have $2 billion of revenue already secured for FY25, and a key focus will be to leverage our scale and new acquisitions to convert our tender pipeline into revenue and orderbook growth,” CEO Michael Finnegan said.
“The outlook for FY25 remains positive.
“With a strong balance sheet, secured order book and enhanced underground and civil infrastructure capability, Macmahon is well positioned to continue delivering profitable growth.
“Our guidance for FY25 reflects revenue growth of at least 20% and underlying earnings of at least 14% higher than FY24.”
Macmahon’s FY24 revenue beat the $1.9 billion upper end of its guidance range. It said the successful ramp up of the Greenbushes lithium mine to steady state and record gold production at King of the Hills, both in Western Australia, boosted turnover.
FY24 net profit after tax (NPAT) was $53.2 million versus $57.7 million the previous year.
Macmahon said higher costs included a $31.8 million impairment of financial assets related to Calidus Resources, which went into receivership last month.
“The receivers and managers are seeking urgent expressions of interest for the acquisition and/or recapitalisation of Calidus,” Macmahon said. “At this early stage, Macmahon anticipates this will be a pathway for recoverability in FY25.”
The contractor said its group total recordable injury frequency rate (TRIFR) was lowered to 3.64 from 3.94 in FY23 in a period when its workforce grew 15.6% to 9676 people.
Macmahon said it was targeting plus-50% growth in its underground mining business over the next 2-3 years. The division accounted for more than 26% of FY24 group revenue.
ASX-listed Macmahon’s share price is up more than 50% in 2024, capitalising the company at about $636 million.
