The board will pay an interim dividend of 2.5¢ a share, fully franked.
Mine closure costs and foreign exchange losses have clipped MACA’s otherwise solid first-half results which included a near 30 per cent surge in revenue.
The mining and civil contracting company today reported an after-tax profit of $11.6 million for the six months to the end of December, down 3 per cent on the same period a year earlier.
Revenue was up 29 per cent to $467.6m while earnings before interest and tax rose 7 per cent to $20.5m.
The board will pay an interim dividend of 2.5¢ a share, fully franked.
The Mike Sutton-led company operates mining and crushing services across the resources sector in Australia and overseas with clients including Regis Resources, Atlas Iron, Pilbara Minerals, Ramelius Resources and FQM Nickel.
It said the closure of Carabella Resources’ Bluff coal project in Queensland in October had left it chasing $6.3m in costs incurred to shutter the mine after it put receivers into the business a month later.
“Coal stockpiles have been realised with net cash of approximately $14m to be realised this financial year,” MACA said. “The company is reviewing options in relation to realising outstanding receivables.”
MACA said it was also continuing to wind up operations in Brazil and return equipment to Australia and had seen renewed civil contracting opportunities in Victoria after operations there were hampered by extended COVID-19 shutdowns during the first half.
It said it was also well-positioned to capitalise on WA’s booming resources sector as new project come on stream.
”MACA expects the strong performance of its mining division to continue into the second half of FY21 and beyond, as the renewed focus on performance delivers results,” it said.
“Strong commodity prices, particularly in gold and iron ore, continue to generate new opportunities that will support further growth.”
The company said it had contracts worth $3.3 billion on its books at the end of December and still expects revenue to top $1b for the full year.
MACA shares were trading up 2 pe rcent to $1.295 just before the close.
MLD Price at posting:
$1.28 Sentiment: None Disclosure: Held
