Currently viewing Global edition

Coal contractor Mastermyne delivers record profits

ASX-listed Mastermyne has increased its net profit for the 2019-20 financial year by 37% to A$11.7 million by maintaining operating discipline and a focus on operational leverage in difficult market conditions.
Coal contractor Mastermyne delivers record profits Coal contractor Mastermyne delivers record profits Coal contractor Mastermyne delivers record profits Coal contractor Mastermyne delivers record profits Coal contractor Mastermyne delivers record profits

Mastermyne has started FY21 well positioned with a record order book and a strong pipeline of projects

Lou Caruana

Mastermyne CEO Tony Caruso said the company started FY21 well positioned with a record order book and a strong pipeline of projects.

"Like last year we will focus on our operating discipline while investing in growth of our business through whole-of-mine projects and expansion into other commodities," he said.

"With this order book, pipeline and growth strategy we are set up for another excellent year."

Annual revenue for FY20 was 23% higher than the previous corresponding period at $292.7 million, boosted by new contracts at Anglo American's Moranbah North and Aquila mines in Queensland.

The company boasts an order book of $656 million.

Mastermyne is continuing to pursue several life-of-mine opportunities with one project substantially progressed.

It said the final decision on the project could be made as early as the first half of FY21.

The company is also progressing other growth plans that will allow it to continue its diversification into the metalliferous mining sector.

"We have delivered in a difficult year and it demonstrates the resilience of our business and the resources sector generally," Caruso said.

"Operating discipline and a focus on operational leverage has seen us deliver robust top and bottom line growth and this has been converted to a strong net cash position at year end."

Mastermyne (ASX: MYE) finished up about 18% this week at A90c, valuing the company at $92 million. It reached a 12-month high of $1.30 last August.