Australian-based Austin Engineering says circa-A$35 million of new mine-truck tray orders in Chile in the first quarter of FY2025 improve its full-year revenue outlook for the South American business after a record FY24.
Austin Chile reported a 26% year-on-year increase in FY24 revenue to $51.6 million and now expects FY25 growth “to comfortably exceed that level”.
ASX-listed Austin has retained group FY25 guidance for revenue of c$350 million and underlying EBIT of about $50 million.
It says the Chile operation is currently producing truck trays at twice the rate averaged in FY24 as it ramps up to even higher levels by early next calendar year to meet demand.
“A successful ramp up of production is likely to see further orders placed with the Chile business for delivery towards the end of the current financial year and into FY26,” the company said.
“In addition to OEM [original equipment manufacturer] orders, expected production levels of Austin’s own brand tray ranges are expected to strengthen alongside continued demand for both new and rebuild mining buckets, including dipper buckets.
“Austin is confident that these orders represent a new normal in the level of tray production that can be expected in the region in future years and that the contribution of this business unit to group results will become increasingly important.”
Austin Chile services the copper mines of northern Chile and southern central Peru where demand has been very strong, driven by a rise in global demand for copper. The Chilean Copper Commission (Cochilco) forecasts Chile’s copper output to grow 5.5% year-on-year to 5.7 million tonnes in 2025.
“In Chile we are experiencing a complete transformation of the business much like what has already been delivered in our Batam facility in Indonesia,” Austin CEO David Singleton said.
“Chile will move from low-rate production of trays and equipment rebuilds to an operation of global importance to the group.
“We have had to reorganise and grow our teams and operations quickly to support the rapid increase in tray output. As with any ramp up this will reduce Chile’s production margins in the early phase as we implement necessary and significant changes to our operations.
“However, we believe that this is a good investment in the long-term development of our South American presence.”
