Mastermyne Group (MYE) H2 2024 earnings summary

Executive summary

• Achieved record statutory net profit after tax of AUD 39.6 million for FY2024, reversing a prior year loss, driven by a successful turnaround plan, improved Mastermyne operations, and the sale of PYBAR at an enterprise value of AUD 65 million.

• Exited loss-making and legacy contracts, divested non-core assets, reduced overheads, and secured a AUD 25 million equity investment from M Resources.

• Core business now focused on Mastermyne, Wilson Mining, and MyneSight, with a robust order book of AUD 280 million and a contract pipeline of AUD 1.4 billion.

• Net cash position of AUD 21.8 million at year-end, a turnaround from net debt, supported by strong cash flow, asset sales, and debt reduction.

• No dividends declared or paid for FY2024.

Financial highlights

• Revenue from continuing operations was AUD 294 million, down 10% due to project exits, but core activities grew 10% year-over-year.

• EBITDA from continuing operations reached AUD 31.8 million, up from a loss last year, with a 10.8% margin.

• NPAT from continuing operations was AUD 21.2 million, up by AUD 52 million year-over-year; total comprehensive profit was AUD 39.6 million, an improvement of AUD 114 million.

• Operating cash flows improved to AUD 39.7 million, with lower capital expenditure following project exits.

• Net tangible assets per share increased to AUD 0.20, more than triple the prior year.

Outlook and guidance

• Solid foundation for growth in FY2025, with focus on core capabilities, potential diversification, and leveraging M Resources' network.

• New AUD 30 million undrawn working capital facility established, enhancing funding capacity.

• Priorities include diversifying client base, expanding project portfolio, and enhancing competitive advantage.

• Order book remains at AUD 280 million, with a deep pipeline of AUD 1.4 billion in contract opportunities.

• Anticipates downward pressure on revenues in FY2025 due to the suspension of operations at Grosvenor Mine after a fire.