Mitchell Services (MSV) investor relations material

Executive summary

• Achieved strong half-year results with revenue of $102.4m, up 3% year-over-year, and EBITDA of $21.4m, a 69% increase, driven by improved operating conditions, disciplined cost control, and higher shift counts.

• Net profit after tax was $8.1m, reversing a prior year loss, with return on invested capital rising to 27%.

• Net cash position of $7.2m achieved, with 80% of revenue from global mining majors and a balanced split between surface and underground drilling.

• Gold accounted for about 60% of revenue, with increased demand and a shift in project mix toward gold.

• Loop Decarbonisation Solutions joint venture and Sumitomo's investment value Loop at $24m, positioning for future growth.

Financial highlights

• EBITDA increased to $21.4m, up from $12.7m year-over-year, with a 97% cash conversion ratio and operating cash flow of $20.8m.

• Net profit after tax was $8.1m, compared to a $0.3m loss in the prior year.

• Net cash position of $7.2m at period end, with gross debt reduced to $8.3m.

• Fully franked dividend of 4.00 cents per share declared.

• Cumulative cash returns to shareholders since FY23 total $27m, about 30% of market cap.

Outlook and guidance

• Expectation of higher rig utilization by June, with a strong pipeline, positive tender activity, and potential demand growth in gold and copper.

• Margins targeted at 20% EBITDA, with sustainability dependent on weather and contract wins.

• Trading conditions in early 2026 are better than last year, with less wet weather and solid operational performance.

• Capital management remains a priority, balancing dividends, buybacks, growth, and debt reduction.

• Strategy focuses on optimising long-term growth and shareholder returns, leveraging a strong balance sheet.