UNDERGROUND

Mastermyne delivers stellar profit boost

Workforce numbers continued to increase over the past `year with total workforce numbers now at 963.

 Mastermyne has continued to maintain strong fleet utilisation rates along with improved hire rates.

Mastermyne has continued to maintain strong fleet utilisation rates along with improved hire rates.

The company increased revenue 18% to $238 million in FY2019 and is looking forward to integrating its newly-acquired Wilson Mining Services.

Mastermyne CEO Tony Caruso said the result showed the company's operating leverage.

"Our disciplined approach to improving contract terms, maintaining a low overhead cost base and leveraging our specialised fleet of underground equipment has enabled us to deliver this great result," he said.

"We have been especially pleased to divest the Mastertec business on good terms, pay a special dividend from the proceeds of the sale and to acquire a niche complementary business that will add value to our underground business and to our clients.

"We are excited by the year ahead which has us well on our way to delivering the strongest ever result for the Mastermyne business."

Over the past year the company has continued to maintain strong fleet utilisation rates along with improved hire rates.

During the period, $4 million in capital was expended to overhaul mining equipment for hire into new contracts and this was a strong contributor to the improvement in the earnings before interest tax depreciation and amortisation margin.

"With the ongoing demand for mining equipment the company has taken the opportunity to successfully acquire additional equipment which has also been placed on hire," Mastermyne said.

"Workforce numbers continued to increase over the past 12 months with total workforce numbers now at 963. Resources have become more constrained as demand for mining services has increased, however, the company has successfully resourced all current projects with highly skilled and capable personnel."

During FY19 Mastermyne delivered record roadway development metres across the most number of development units operated by the company since its inception.

The company successfully renegotiated contracts, secured extensions and won contracts that flowed into revenue growth and improved margins.

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

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

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