Maca (ASX:MLD) - CEO and Managing Director, Mike Sutton
CEO and Managing Director, Mike Sutton
Source: MACA
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  • Mining contractor MACA (MLD) reports a single underperforming contract has offset improvements in its annual margins
  • However, the company says it is still on track to meet revenue expectations for FY22
  • The underperforming contract was for the WA King of the Hills processing plant, which MACA says experienced cost overruns due to the constrained labour market in WA
  • Still, MACA estimates FY22 EBITDA to land between $189 million and $191 million, with annual NPAT between $35 million and $37 million
  • MACA shares are down 5.81 per cent and trading at 81 cents at 1:00 pm AEST

Mining contractor MACA (MLD) has reported that while its revenue remains in line with expectations, a single underperforming contract has offset improvements in its annual margins.

MACA’s 60-per-cent-owned MACA Interquip business took on a contract with Red 5 (RED) in November 2020 to develop the King of the Hills processing plant in Western Australia.

MACA said this contract had experienced cost overruns, which it attributed to the constrained construction labour market in the WA resources sector.

The news comes after MACA reported in February that it expected margins in its Mining and Civil segments, which together account for 90 per cent of MACA’s annual revenue, to see modest improvements in the first three months of this half.

While these improvements came to pass, MACA today said any further improvements have been capped by the impacts of increased WA COVID-19 cases on the state’s operations and workforce.

Still, MACA said despite the King of the Hills process plant cost overruns, the plant still remained on track to achieve targeted commissioning this quarter.

The company says its revenue expectations remain unchanged and are still in line with its revenue guidance of approximately $1.6 billion.

MACA added that it expected full-year earnings before interest, tax, depreciation and amortisation (EBITDA) for FY22 to land between $189 million and $191 million — up from reported EBITDA in FY21 of $140.4 million.

Meanwhile, net profit after tax (NPAT) for FY22 is estimated to be in the range of $35 million to $37 million — up from FY21 reported NPAT of $20.7 million.

MACA shares were down 5.81 per cent and trading at 81 cents at 1:00 pm AEST.

MLD by the numbers
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