Ann: Investor Presentation Full Year Results FY2022, page-8

Listened to the presentation today.

Two key takeaways for me:

1.  This cycle is different to the previous cycle peak (2012/2013):

In 2012/2013, the company's record revenues were concentrated in just 3 or 4 major projects, and there was very limited visibility at the time into work available in the post-2013 period.  (As a result of the work drying up, Revenue fell by 38% in FY2014 and by a further 21% in 2014).

However, management say that this time there is far greater visibility of the project pipeline for several years out (due to the significantly higher metals intensity of renewable energy in general, as well as for renewable-specific products,e.g., lithium, hydrogen, copper), and the nature of the customer base is more granular and diversified.  


2.  Entry into "new" industrial process technologies will be considered and staged:

Designing and constructing lithium processing plants or "green" hydrogen facilities is more complex than LYL's "bread-and-butter" vanilla gold processing plants.

Pleasingly, it is clear that the LYL board and management are highly sensitised to the risks of getting involved too aggressively in these sorts of "new generation" technologies that are going to provide the longer-term projects; and so management is not going to do anything silly in that regard (befitting of the long-running prudent risk management ethos of the company which has served shareholders so well).  


Unrelated to that, DPS of 54cps for FY2022 (1H: 18cps / 2H : 36cps), implies a 8.2% DY (even after today's share price rise).   Fully expect at least a further 54cps dividend in FY2023.

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