ANNUAL REPORT
DIRECTORS
Geoff Baker
Non-Executive Chairman
David Flanagan
Independent
Non-Executive Director
Rachel Rees
Independent
Non-Executive Director
Robert Ryan
Independent
Non-Executive Director
Nick Marinelli
Independent
Non-Executive Director
SOLICITORS
Aphelion Legal
Corporate and Commercial Law
PO Box 8250, South Perth,
PERTH WA 6151
AUDITORS
Moore Australia Audit (WA)
Exchange Tower, 2 The Esplanade
PERTH WA 6000
SHARE REGISTRY
Computershare Investor
Services Pty Ltd
11 / 122 St Georges Terrace
PERTH WA 6000
STOCK EXCHANGE LISTINGS
MACA Limited shares are listed on
the Australian Securities Exchange
CONTENTS
CORPORATE DIRECTORY
About Us
Corporate Directory
1
About Us
3
Operating Businesses
5
History
6
Leadership
Board of Directors
7
Chief Executive Team
9
Executive Team
10
Operational Review
Chairman’s Address
11
CEO’s Review of Operations
13
FY 22 Key Points
15
Areas of Activity
17
Performance
19
Growth Strategy
20
Financial Review
21
Operational Review
23
Environmental, Social & Governance
27
Directors’ Report
35
Remuneration Report
45
Financial Report
Auditor’s Independence Declaration
59
Corporate Governance Statement Checklist
60
Directors’ Declaration
66
Consolidated Statement of Profit or Loss
67
and Other Comprehensive Income
Consolidated Statement of Financial Position
68
Consolidated Statement of Changes in Equity
69
Consolidated Statement of Cash Flows
70
Sections to the Financial Statements
71
Independent Audit Report
116
Shareholder Information
121
JOINT COMPANY SECRETARIES
Peter Gilford
Company Secretary
Nick Ward
Company Secretary
REGISTERED OFFICE
45 Division Street
WELSHPOOL WA 6106
Telephone (08) 6242 2600
www.maca.net.au
MACA LIMITED
ABN 42 144 745 782
ASX CODE : MLD
2
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
MACA LIMITED ANNUAL REPORT 2022
1
This year we are
celebrating 20
years in operation.
We are committed to
continuing to drive greater
safety, productivity and
capital efficiency outcomes
for our clients.
ABOUT US
» CORE VALUES
PEOPLE FIRST
We care for people and create a safe and enjoyable
workplace. We treat them fairly, with integrity,
honesty and respect
EXCEED EXPECTATIONS
We strive to exceed expectations of our people,
clients and shareholders
CONTINUOUS IMPROVEMENT
We are committed to being a better business through
continuous improvement and innovation
COMMUNITY
We show leadership and take responsibility for our
community
ACCOUNTABILITY
We are personally accountable for delivering on our
commitments. We do what we say
» OUR PROMISE
We Care
We are Flexible
We Deliver
» OUR VISION
Be Number 1 in what we do
» OUR PURPOSE
Creating Sustainable Futures
4
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
3
MACA LIMITED ANNUAL REPORT 2022
• Modern fleet of surface
mining equipment
• Load & haul mining
contracts
• Bulk overburden removal
• Modern fleet of
drilling equipment
• Complete blasting
service utilising latest
technology
• Expertise in gold, iron
ore, lithium, nickel and
other commodities
• Modern fleet of crushing
equipment including
primary jaw crushers,
secondary cone crushers
and tertiary cone crushers
• Complete screening
services utilising the
latest technology
with scalping screens,
vibrating and fixed
screens and single,
double and triple deck
screens
• Equipment and operating
techniques are used to
meet client needs in diverse
operating environments
• Load and haul
• Drill and blast
• International expertise in
gold and copper projects
• Civil bulk earthworks for
the private / resource
sector including mining,
tailings storage facilities,
roads, airstrips, camp
pads, borefields and camp
infrastructure
• Public works civil
capabilities include
roads and bridges, bulk
earthworks, aerodromes,
drainage and marine works
• Infrastructure capabilities
and experience includes
roads maintenance and
construction, parks
and gardens, specialist
services, verge works,
bridge works and safety
barriers
• Asset management and
maintenance segments
in Australia
• Delivering structural,
mechanical and piping
projects
• New and refurbished plant
and equipment
• Consumables to the
mineral processing sector
of the resources industry
• Significant number of low
to high lift cranes available
MINING
AUSTRALIA
CIVIL
CONSTRUCTION
MINING
INTERNATIONAL
MACA
INTERQUIP
INFRASTRUCTURE
MAINTENANCE
CRUSHING
OUR OPERATING BUSINESSES
ABOUT US
HISTORY
2002
Mining and Civil Australia
was founded in WA
2007
Awarded 1st contract with
Regis Resources
2003
First mining contract with Equigold Limited
2021
Acquired Mining West business from
Downer Mining
2020
Entered Cambodia at the Okvau
Gold Project
2022
Deployed AI-powered autonomy in our
mixed fleet of haul trucks at Karlawinda
2019
Commenced Crushing for BHP
2014
Entered Brazil
2016
Acquired Alliance Contracting
2016
Acquired MACA Infrastructure
and 60% MACA Interquip
2011
MACA Civil began providing
Civil & Infrastructure services
2010
Listed on ASX as MACA Limited
2007
Awarded 1st Crushing and
Screening contract
FY22 Highlights
$1.65bn revenue
$2.8bn work in hand
3,700+ employees
6
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
5
MACA LIMITED ANNUAL REPORT 2022
LEADERSHIP
BOARD OF DIRECTORS
Geoff Baker
Non-Executive Chairman
MAICD
Geoff is a founding shareholder of MACA
and has worked in the mining services
sector for 40 years, with a focus on plant
maintenance and asset management
in both operational and management
positions. Geoff’s previous Executive duties
at the Company included responsibility
for planning, operating strategy, capital
expenditure and delivery of safety and
financial outcomes on all projects.
David Flanagan
Independent Non-Executive Director
Executive Director BSc (Mining), FAICD,
MAusIMM
David Flanagan is a geologist with more
than 25 years’ experience in the mining
and mineral exploration industry in
Australia, Indonesia and Africa. David has
a BSc in Mining and Minerals Exploration
Geology, undertaken at Curtin University,
WA School of Mines in Western Australia.
He is a Fellow of the Australian Institute
of Company Directors and Member of
the Australian Institute of Mining and
Metallurgy. David was the founding
Managing Director of Atlas Iron Limited,
during which he oversaw its growth from a
junior explorer to an ASX top 50 company.
Nick Marinelli
Independent Non-Executive Director
B Bus, GAICD
Nick has over 35 years’ industry experience
in the Construction, Infrastructure Services
and Utilities sectors. He was the CEO of
Fulton Hogan Australia between 2017
and 2019, during which time he grew the
business into new sectors and geographies,
in addition to leading commercial
acquisition activities, new venture start-
ups, marketing, business development
and technology. Prior to joining Fulton
Hogan in 2009, Nick held senior positions
with Rinker Australia, Cemex Australia,
Pioneer Construction Materials and Pioneer
International, both locally in Australia and
overseas. Nick has a Bachelor of Business
degree and is a graduate member of the
Australian Institute of Company Directors.
He is also a Non-Executive Director of the
Australian Road Research Board.
Mike Sutton
Chief Executive Officer
and Managing Director
BSc in Civil Engineering, MAICD, MAusIMM
Mike is an experienced Civil Engineer
with over 40 years’ experience gained in
various senior roles within the mining and
civil contracting industries, having worked
internationally with more than 20 years
spent in Western Australia. Prior to joining
MACA, Mike held the role of Chief Operating
Officer at Downer EDI Mining for 10 years
successfully growing the business from
a low base. Prior to that Mike held senior
roles with Leighton Contractors and Henry
Walker Eltin. Mike holds a Bachelor of
Science in Civil Engineering.
Rachel Rees
Independent Non-Executive Director
BBus, GradDipACG, FGIA, FCG, FCA
Rachel is an experienced senior executive
and non-executive director with expertise
in business transformation, mergers
and acquisitions, corporate governance,
stakeholder engagement, strategy,
compliance, financial and risk management.
She has a Bachelor of Business and is a
Fellow of Chartered Accountants Australia
and New Zealand, a Fellow of Governance
Institute of Australia and a Fellow of
Chartered Governance Institute and has
held CFO and senior executive roles with
ASX , TSX listed and private companies
across diverse industries including
mining, energy, logistics and industrial
conglomerates.
Robert Ryan
Independent Non-Executive Director
MIEAust, MAICD
Robert brings over 40 years’ experience in
civil engineering and construction to the
Board. For 10 years he worked at a senior
level for a significant public company
working in engineering services. Prior to
that Robert ran the Western Australian
civil division of that business for 4 years
contributing at a strategic level to the
senior management group whilst the civil
business established itself throughout
Australia. During that time the business
experienced significant growth. Mr Ryan
later accepted a strategic role aligned to
business growth and improvement, working
on specific tasks both in Australia and
overseas, reporting directly to the CEO of
the infrastructure division. Robert was also
a partner in a successful civil earthmoving
business for 12 years.
Resignation eff ective
22 July 2022
7
MACA LIMITED ANNUAL REPORT 2022
8
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
EXECUTIVE TEAM
LEADERSHIP
David Greig
Chief Executive Officer
B Com, GAICD
David has over 20 years’ experience
in international mining, construction,
maintenance, and infrastructure
industries. Early in his career David
worked for OEM’s in Kalgoorlie,
Western Australia and the USA. This
was followed by 12 years as a Regional
General Manager for an international
mining equipment and maintenance
company, spending 6 years working in
Australia and more recently 6 years in
North and South America.
Michael Hunt
Executive General Manager - Mining
B Eng(Mining), GradCertBus
Michael has over 24 years of
experience in estimating and
technical services within the mining
and civil industries, and has held
senior roles with mining contractors
for over 15 years.
Peter Gilford
Chief Financial Officer
and Company Secretary
B Com, CA, AGIA, ACIS
Peter is a finance professional with
experience in the areas of financial
management, accounting, treasury,
insurance, taxation, debt and equity
funding. He has provided services to
a large number of mining, exploration
and construction companies. Peter
holds a Bachelor of Commerce and a
Graduate Diploma in Applied Corporate
Governance. Peter is a member of the
Institute of Chartered Accountants
in Australia and New Zealand and an
associate member of the Governance
Institute of Australia.
GENERAL MANAGEMENT
From L to R: Shane Clark, Nick Ward, Joshua Redmond, Brent Jenkins, Lance Matthews, Linda Devereux, Michael Hunt, Jim Rayner, Adam Struthers
Absent: Mark Davidovic, Tim Gooch, Barry Criddle, Andrew Smith
From L to R: Liam Stopp, Dylan Siu, David Greig, Brett Lourens, Cody Voss
9
MACA LIMITED ANNUAL REPORT 2022
10
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
CHAIRMAN’S
REPORT
On behalf of the Board of MACA
Limited, I am pleased to provide
you with an overview of the
Group’s results for the year
ended 30 June 2022.
MACA’s performance in the 2022
financial year has demonstrated the
resolve of the business to withstand
unprecedented challenges, as the
COVID-19 pandemic continued to
evolve around the world and in
Australia.
This was the first full year of
operations following the acquisition
of the Downer West business in FY21
which saw MACA achieve record levels
of revenue alongside a recovery in
our EBITDA and NPAT margins. Our
financial results were largely in line
with the guidance provided to the
market, with revenue of $1.65 billion
and EBITDA of $189 million.
I thank our Executive Leadership
Team, including our former CEO and
Managing Director Mike Sutton and
his replacement David Greig (appointed
in July 2022), who have continued to
demonstrate strong leadership and
commitment to our business. I also
acknowledge all of our managers,
employees and contractors for their
commitment to our business, working
with our clients to safely deliver our
services. Health and safety remain
the highest priority of MACA, and it
is pleasing to see continued
improvement in our safety statistics,
with MACA’s total recordable injury
frequency rate decreasing again to
3.3 during the year.
The Company is actively pursuing
many opportunities with existing
and new clients. We expect positive
market conditions will continue across
the mining and civil construction
sectors, although a tight labour market
and inflationary impacts continue
to represent challenges across the
industry. MACA is currently expecting
revenue of approximately $1.45
billion to $1.5 billion in FY23, of which
approximately $1.3 billion is currently
secured.
Subsequent to the end of the
financial year, the announcement of a
proposed takeover offer by Thiess in
July 2022 was a momentous decision
for MACA and its long-term future.
A few weeks later in August 2022, a
subsequent non-binding, conditional
and indicative proposal was received
from NRW Holdings Limited, which
required careful analysis by the
Board of MACA. After consideration
of the NRW non-binding, conditional
and indicative proposal as a whole,
and of each of its components, and
after taking professional advice and
liaising confidentially with NRW, the
MACA Board unanimously concluded
that the NRW Indicative Proposal did
not represent a superior offer to the
existing takeover offer from Thiess.
The Directors of MACA have not
changed their recommendation, which
is that MACA shareholders accept the
Thiess Cash Offer, in the absence of a
superior proposal and subject to the
Independent Expert concluding, and
continuing to conclude, that the Thiess
Cash Offer is fair and reasonable (or
not fair but reasonable) to the MACA
shareholders.
In light of the proposed takeover offer
the Board of Directors has deferred
any decision around declaration of
final dividend for the 2022 financial
year. The full year dividend payable
to shareholders for the 2022 financial
year is therefore the interim dividend of
2.5 cents per share, representing 23%
of net profit after tax.
I would also like to thank the Board
of MACA for their efforts in the 2022
financial year and for their tireless
efforts in recent months.
We will continue to position
MACA for future years by pursuing
appropriate growth opportunities and
diversification. MACA remains focused
on living our values to drive earnings
sustainability.
On behalf of the Board, I would like
to take this opportunity to thank our
shareholders, as well as all of MACA’s
other stakeholders, for their continued
support, and in particular our dedicated
people for their commitment and
contribution during the year.
Geoff Baker
Non-Executive Chairman
We expect positive market
conditions will continue
across the mining and civil
construction sectors, although
a tight labour market and
inflationary impacts continue
to represent challenges
across the industry.
GEOFF BAKER
Non-Executive Chairman
FY21
FY20
FY19
FY18
Revenue ($m)
$ million
562.6
665.7
808.0
1,173.9
1,650.0
FY22
2020
2019
2021
Work in Hand ($bn)
3.1
2.8
1.8
1.3
2022
11
MACA LIMITED ANNUAL REPORT 2022
12
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
REVIEW OF OPERATIONS
OPERATIONAL REVIEW
MACA is focused on embracing
diversity and inclusiveness
across all of our sites and offices,
and we rely on our people to
act in accordance with MACA’s
values and policies.
DAVID GREIG
Chief Executive Officer
Presented below is MACA’s Review of Operations for the financial year ending
30 June 2022.
MACA thanks to all of our valued
employees, contractors and suppliers
for their significant contributions this
year. We have all heard a lot about
the impacts of COVID-19 and there is
no doubt they were very real to our
people and key stakeholders. As a
business servicing a range of critical
industries our management of this (in
addition to our underlying growth)
proves resilience and problem solving
at all levels.
Equipped with the right tools and
support services, our people have
made great contributions to help
us achieve another year of strong
growth.
Financial Year Highlights:
• 41% increase in revenue to
$1,650 million
• EBITDA increased to $ 189 million
(up 39% on pcp)
• Operating cash flows of
$132.5 million (EBITDA cash
conversion of 70%)
• Cash balance of $91.6 million
• Net debt of $194.1 million
OUR PEOPLE
MACA’s workforce increased through
the year to in excess of 3,700 people
(June 2021: 3,279). I would like to
acknowledge the diverse talent that
has joined and entrusted us with their
careers and thank the existing MACA
talent for making our new starters
feel like productive members of our
team. Recruitment, onboarding, and
retention has been an important part
of our success.
We continue to focus on the
development of our workforce.
Including ongoing investment in
trainees, apprenticeships, and
in-house leadership programs.
The board and employee’s
contribution to our culture surveys
has allowed us to support one
another to improve. We have
enjoyed celebrating many diverse
stories through our internal
communications platform
‘Our MACA’.
There is evidence in all parts of the
business where we successfully
embrace diversity and inclusiveness.
Underpinning this is our people
acting in accordance with MACA’s
values and policies.
MACA is making progress in its
gender balance program and
conducted female and indigenous
only trainee operator intakes during
FY22 and ran a number of leadership
development courses for its people.
We enjoyed delivering female only
leadership courses, to ensure the
business is proactively developing its
future female leaders.
SAFETY
MACA remains committed to working
safely and continuously improving
the safety performance of the
business. Creating a safe working
environment for our employees
remains our highest priority.
Our total recordable injury frequency
rate is 3.3 at 30 June 2022, down
15% from 30 June 2021, which
is a pleasing result and a testament
to the efforts of all our people.
2019
1,741
2020
1,958
2021
2022
2,381
3,279
3,701
2018
Our People (including Contractors)
2022
2021
2022
2021
3.3
3.9
2022 Safety TRIFR
0.20
0.16
2022 Safety LTIFR
13
MACA LIMITED ANNUAL REPORT 2022
14
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FY 22 KEY POINTS
OPERATIONAL REVIEW
(down 15% from FY21)
(up 39% from FY21)
SAFETY (TRIFR)
3.3
(up 41% from FY21)
REVENUE
$1.65
WORKFORCE
(INCL CONTRACTORS)
3,700+
billion
EBITDA (REPORTED)
$189.2
million
OPERATING
CASH FLOW
$132.5
million
NET PROFIT
AFTER TAX
$35.8
million
CAPITAL
INVESTMENT
$102.3
million
WORK IN HAND
$2.8
billion at Jun 22
MACA continues
to positively react
to the tight labour
market, with a focus
on the development
of our workforce.
MACA LIMITED ANNUAL REPORT 2022
(up 121% from FY 21)
(up 12% from FY21)
15
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
16
PERTH
A U S T R A L I A
C A M B O D I A
W E S T E R N
A U S T R A L I A
PILBARA
KIMBERLEY
GOLDFIELDS
MURCHISON
WHEATBELT
19
18
1
2 Pilbara Minerals
Pilgangoora
BHP
Mining Area C
Eastern Ridge
WAIO
4 Atlas Iron
Sanjiv Ridge
6 Roy Hill
Roy Hill Iron Ore Project
7 Capricorn Metals
Karlawinda Gold
FMG
Eliwana
Iron Bridge
C
Cape Preston
Rio Tinto
Western Turner
3
5
9
8
10
11
12
1 MainRoads WA
Kimberley Road Maintenance
19 First Quantum Minerals
Ravensthorpe
Regis Resources
Norton Gold Fields
Duketon South
Moolart Well
22 Red 5 Limited
King of the Hills
Binduli North Heap Leach
Gruyere Joint Venture
Gruyere Gold Project
Wiluna Mining
Wiluna Tailings
21
20
23
25
24
26
Ramelius Resources
Edna May
Tampia
Penny West
13 Ramelius Resources
Mount Magnet
Ansteel
Karara Iron Ore Project
Fenix Resources
Iron Ridge
14
16
15
27 Emerald Resources
Okvau Gold
2
4
7
3
6
5
8
9
MELBOURNE
28
V I C T O R I A
Q U E E N S L A N D
28 VicRoads
Golf Links Road Upgrade (MRPV)
Western Vic Maintenance
Other DoT & Council Packages
20
21
23
22
27
Main Roads
Bunbury Outer Ring Road
17
17
10
11
12
13
14
15
16
18
24
25
26
MACA OFFICES
MINING
CIVIL & INFRASTRUCTURE
CRUSHING
MACA INTERQUIP
MACA OFFICES
MINING
CIVIL & INFRASTRUCTURE
CRUSHING
MACA INTERQUIP
AREAS OF OPERATION
OPERATIONAL REVIEW
INFRASTRUCTURE
MAINTENANCE
CIVIL
INTERNATIONAL
CRUSHING
MINING AUSTRALIA
MACA INTERQUIP
FY22 REVENUE
BY DIVISION
GOLD
IRON ORE
GOVERNMENT
LITHIUM
NICKEL
FY22 REVENUE
BY COMMODITY1
47%
5%
7%
7%
34%
67%
8%
3%
7%
3%
4%
1 Revenue from continuing operations
(excludes discontinued and ceased operations)
17
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
MACA LIMITED ANNUAL REPORT 2022
18
OPERATIONAL REVIEW
MOMENTUM FOR GROWTH
• Record revenue $1.65bn in FY22
• Improvement across EBITDA, EBIT and NPAT
• Strong balance sheet, disciplined capital management
• Work in hand of $2.8bn
• $10bn pipeline of organic growth opportunities
• Commodity, client and service diversification
• 3,701 valued employees and contractors
• MACA’s 20th year of operations
REVENUE
EBITDA
NPAT
OPERATING CASH FLOW
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
$ million
$ million
$ million
$ million
562.6
21.7
8.7
76.6
665.7
22.4
57.5
70.7
808.0
1,173.9
1,650.5
20.7
35.8
116.6
118.8
132.5
120.4
140.4
189.2
REVIEW OF OPERATIONS CONTINUED
PERFORMANCE
WORK IN HAND
DIVIDENDS
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
$ million
cps
1,051
1,300
1,800
3,100
2,800
6.5
4.5
5.0
5.0
2.5
NET DEBT / (CASH)
FY18
FY19
FY20
FY21
FY22
FY18
FY19
$ million
(-63.3)
82.8
73.4
180.2
194.1
NET TANGIBLE ASSETS
FY18
FY19
FY20
FY21
FY22
cps
118.8
119.5
106.7
104.4
108.8
GROWTH STRATEGY
RUN
EXCELLENT OPERATIONS
Applying continuous improvement to get better at what we do.
• Improve year on year safety performance on all MACA projects
• Apply continuous improvement in productivity and resource allocation to meet or
exceed tendered parameters on all projects
TRANSFORM
MACA OF THE FUTURE
Building the systems and structures that support our growth.
• Clear competitive advantage through efficient and effective people, process and systems
• Improved and sustainable margins delivered through a Digital and Process driven
approach to business activities
GROW
NEW HORIZONS
Pursue profitable growth in new markets and services.
• Identify and capture sustainable and profitable growth by increasing market share in
existing markets
• Further grow MACA by identifying and successfully entering new geographies / markets
FY20
-17.4
19
MACA LIMITED ANNUAL REPORT 2022
20
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
REVIEW OF OPERATIONS CONTINUED
OPERATIONAL REVIEW
OVERVIEW
MACA has delivered a full year
net profit after tax attributable
to members at 30 June 2022 of
$42.8 million (up 197% on prior
comparative period “pcp”) on
revenue of $1.65 billion (up 41%
on pcp). Reported earnings before
Interest, Tax, Depreciation and
Amortisation (‘EBITDA’) was $189
million (up 39% on pcp). Our
financial results were largely in line
with market guidance provided in
April 2022.
BALANCE SHEET AND GEARING
The net gearing of MACA increased
during FY22 although the position
improved in the second half of
the financial year following the
completion of deferred consideration
payments in relation to the
acquisition of the Downer West
business in February 2022. Net debt
as at 30 June 2022 was $194.1m
(2021: $180.2 million) and cash on
hand of $91.6m. Net debt is expected
to decrease over the coming year due
to reduced capex requirements.
DIVIDEND
In light of the proposed takeover
offer the Board of Directors has
deferred any decision around
declaration of final dividend for the
2022 financial year. The full year
dividend payable to shareholders is
therefore an interim dividend of 2.5
cents per share, representing 23% of
net profit after tax. The total dividend
paid during the year was $17.9 million
(2021: $15.2 million).
OPERATING CASH FLOW AND
CAPITAL EXPENDITURE
Operating cash flow for the period
ending 30 June 2022 was $132.5
million (up from $118.8 million during
the prior comparative period). While
MACA’s operating cash flows in FY22
(EBITDA to cash flow conversion ratio
of 70%) reflect a steadier state of
operations in the mining division, cash
flows have been impacted by MACA’s
investment in net working capital
during the year, particularly a build-up
of inventory levels in order to manage
supply chain pressures as a result of
global events. Repayments of deferred
consideration in relation to the Mining
West business of $38.5m were made
during the year.
Capital expenditure for the FY22 was
$102.3 million relating to plant and
equipment primarily to support the
ramp-up of operations on a number of
existing projects. Plant and equipment
valued at $19 million was disposed
of during the period, which mainly
consisted of the Area C crushing plant.
Capital equipment purchases were
funded by a combination of cash and
equipment finance contracts.
OUTLOOK
A significant pipeline of opportunities
for the Mining division allows MACA
to take a disciplined approach to
project selection based on labour
availability, capital requirements
and profitability, with a continued
focus on existing clients. The labour
market in the WA resources sector is
expected to improve from the 2022
financial year and the Mining division
has entered the 2023 financial year
with a strong work in hand position
and a high proportion of revenue
secured for FY23.
The Civil and Infrastructure
businesses in Western Australia
enter FY23 with record work in hand.
We expect opportunities to continue
to present themselves over the
remainder of FY23 whilst cognisant of
resource constraints in the delivery
of works. The recent award of two
MainRoads WA bridge projects on the
Bussell Highway (valued at $13m)
reflects these opportunities. MACA’s
Victorian business has enjoyed
a turnaround in FY22 and enters
FY23 with a record order book with
mostly lower risk Alliance-style civil
contracts, and we are pursuing a
material long-tenured opportunity
for the division. The MACA Interquip
business enters FY23 with a focus
on restructuring the business and
delivering on lower risk projects
in the short term. Following the
recent completion of the King of
the Hill project, MACA will be
looking to leverage its EPC ability
at the appropriate time to deliver
future projects.
FINANCIAL REVIEW
Organisational changes, including
the appointment of a new CEO in Mr
David Greig, have added capability and
streamlined reporting processes for
the MACA business. These changes are
expected to provide an increased focus
on business opportunities together with
optimising operational delivery.
The strong improvements to
metallurgical coal prices in the 2022
financial year have enabled significant
progress in the recovery of monies owed
to MACA by Carabella, with the sales
process for the Bluff assets completed
in the second half of the 2022 financial
year, and a process underway for the
divestment of the Grosvenor West asset,
which is expected to occur in the 2023
financial year. Proceeds from divesting
listed shares, the sale of / or receipt of
the Bluff mining royalty plus a possible
divestment of the Grosvenor West asset
are all potential positive impacts on
MACA’s cash flows in FY23.
MACA’s work in hand has increased
substantially over the previous three
years, from $1.3bn at August 2019 to
$2.8bn at July 2022. Our pipeline of
organic growth opportunities across
the Mining, Civil & Infrastructure and
Interquip divisions remains robust, and
notwithstanding the outcome of the
takeover offer, are expected to deliver
opportunities to MACA, some of which
are anticipated to commence in FY23.
FY22 - FY25+ WORK IN HAND RUN-OFF
FY22
FY23
FY24
FY25+
$ billion
1.4
1.2
1
0.8
0.6
0.4
0.2
0
MINING
CIVIL & INFRASTRUCTURE
MACA INTERQUIP
21
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
22
MACA LIMITED ANNUAL REPORT 2022
OPERATIONAL REVIEW
REVIEW OF OPERATIONS CONTINUED
MACA has structured its business reporting into segments,
Mining & Crushing, Civil Construction & Infrastructure
Maintenance and MACA Interquip. The following are
highlights of each of the business units:
MINING AND CRUSHING
MACA undertook contract mining operations in the gold sector for Regis Resources
at the Duketon South and Duketon North operations, for Ramelius Resources at the
Mt Magnet, Tampia, Penny West and Edna May (now ceased) operations and for
the Gruyere JV (Gold Fields and Gold Road) at the Gruyere project. MACA continued
operations for Capricorn Metals at the Karlawinda gold project where we conducted
a successful first stage autonomous vehicle trial in conjunction with SafeAI and
Position Partners.
MACA undertook contract mining operations in the iron ore sector for Fortescue
Metals Group at the Eliwana project, for Sino Iron at the Cape Preston project, for
Atlas Iron at the Sanjiv Ridge project, for Fenix Resources at the Iron Ridge project
and for Karara Mining at the Karara project (which ceased in February 2022). During
the year, MACA was awarded a one-year mining services contract for Roy Hill Iron
Ore at the Sierra deposit at the Roy Hill Iron Ore project, which commenced in the
second half of FY22 and utilised the existing fleet from the Karara project.
MACA also undertook mining operations in the battery metals sector for FQM
Nickel Australia at the Ravensthorpe Nickel project and for Pilbara Minerals at the
Pilgangoora Lithium project.
Internationally, MACA ramped up mining operations at the Okvau mine for
Emerald Resources in Cambodia. MACA continues to wind down its presence
in Brazil following the cessation of operations in January 2020, with associated
administration costs recognised in discontinued operations.
MACA’s Crushing division provided crushing and screening works for BHP at Mining
Area C and Eastern Ridge and crushing of stemming materials for BHP’s Western
Australian Iron Ore operations in the Pilbara. The Area C contract ceased late in
FY22 with BHP exercising its option to acquire the crushing plant from MACA. This
resulted in a positive cashflow from the sale with a further working capital unwind
to occur in FY23 as a result. MACA continued crushing operations at the Iron Ridge
project for Fenix Resources during the period, for Fortescue Metals Group at their
Iron Bridge and Eliwana operations for stemming material, and at other minor
projects for gold producers.
OPERATIONAL REVIEW
23
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
24
MACA LIMITED ANNUAL REPORT 2022
OPERATIONAL REVIEW
REVIEW OF OPERATIONS CONTINUED
MACA INTERQUIP
MACA Interquip (60% owned by MACA Limited) has underperformed financially this year. The focus for the FY22 financial
year was the delivery of the EPC contract for the Red 5 King of the Hills (‘KOTH’) gold project, encompassing the KOTH
processing facility, equipping of the bore fields, high voltage power distribution, workshop, warehouse and bulk
earthworks, in addition to the supply of the SAG Mill and gyratory crusher. This project experienced cost overruns, primarily
due to the highly constrained specialist sub-contractor and labour supply marketplace in the WA resources sector. The
project was completed in the June quarter of 2022, and notwithstanding the negative financial impact of the cost overruns,
the project completion and positive client feedback is a powerful demonstration of MACA’s ability as a large scale EPC
provider in the gold sector. An externally facilitated project review has focused the MIQ business on contract control
improvements in order to ensure improved financial outcomes on current and future projects.
MACA Interquip also conducted a number of minor projects throughout FY22, the Binduli Heap Leach project for Norton
Resources, and minor works for Wiluna Mining Corporation. Following the voluntary administration of the latter subsequent
to year end, MACA has made an impairment of $1.04m to the carrying value of shares in Wiluna Mining Corporation which
were issued under a debt to equity conversion.
The MACA Interquip business is currently being restructured, with leadership appointments expected in the first half of the
2023 financial year, and will refocus on the delivery of lower risk projects in the shorter term.
INFRASTRUCTURE MAINTENANCE
In both Western Australia and Victoria smaller long-term
infrastructure works involving road maintenance continued.
MACA continues to deliver for Main Roads WA under the
Kimberley maintenance contract, which runs through to FY26.
CIVIL CONSTRUCTION
The Civil & Infrastructure business remains an important
element to MACA’s growth and diversification strategy and a
number of the project awards and project deliveries in this half
have highlighted the benefit of the ability to service resource
sector clients either alongside or in advance of our Mining and
Interquip divisions. This division provided services to existing
Mining clients of the MACA business including Sino Iron, First
Quantum, Ramelius Resources and Roy Hill.
During FY22, the WA Civil division also performed works
packages for Mondium and continues to deliver the South West
Gateway Alliance Bunbury Outer Ring Road (of which MACA is
a 10% participant). Additionally, MACA was awarded a contract
by Main Roads WA for the construction of three bridges over
the Abba, Ludlow and Sabina rivers in the Busselton region
of Western Australia. Subsequent to the end of the FY22
financial year, the WA Civil division was awarded two civil
contracts, being the Rio Tinto Western Range Project Early
Works (expected to generate circa $60 million revenue over
12 months) and an additional Roy Hill Civil Works package
(expected to generate circa $16 million over six months).
In Victoria, following underperformance in the 2021 financial
year which led to a internal restructure, the business has
delivered pleasing results. MACA has been delivering the Major
Road Projects Victoria (“MRPV”) Golf Links Road upgrade
in Langwarrin South (which is a target operating cost style
contract), and has recently been awarded a second MRPV
contract to build the eastern package of the Hall Road Upgrade,
which is expected to generate approximately $40m of revenue,
with delivery through to 2024. Subsequent to the end of the
FY22 financial year, the Victorian division secured a five-year
maintenance contract in Yarra Ranges (expected to generate
circe $30 million over five years).
25
MACA LIMITED ANNUAL REPORT 2022
26
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
OPERATIONAL REVIEW
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
MACA’s ISO AS/NZS 14001 certified Environmental
Management System provides the framework to enhance
environmental performance. We continued to implement
environmental management plans and procedures to
ensure compliance with all legal and client requirements
regarding important issues such as waste, flora and
fauna, hazardous substances, noise, water, and cultural
heritage management. We are pleased to report that there
were no major environmental incidents, prosecutions, or
infringements during the reporting year.
MANAGING OUR ENVIRONMENT IMPACTS
MACA recognises that climate change is a complex and
challenging issue. We are committed to working with
our clients to understand climate-related risks and
opportunities to reduce the effects of carbon emissions
across our operations including accounting for our
emissions.
ENVIRONMENTAL EMISSIONS
In 2020/2021 MACA completed an assessment of our
statutory Environmental Reporting requirements for our
Australian Operations.
In 2021/2022 we reviewed our statutory Environmental
Reporting requirements for our Australian Operations as
part of an annual review process.
As the majority of our operations are under the operational
control of the client, who is the registered reporting body,
MACA does not meet the requirements to report under
the National Greenhouse and Energy Reporting scheme
(NGERs) or the National Pollutant Inventory (NPI). MACA
continues to quality check and verify our data provided
to our clients to enable them to meet their reporting
obligations.
CARBON EMISSIONS
MACA has adopted the principals, methodology and
emission factors from the NGERs Act 2007 legislation suite,
to capture annual emission source data. This data is used
to calculate the carbon emissions that have been directly
generated as a result of our project activities. These are
known as Scope 1 emissions and have been reported to
our clients who include them in their own facility emission
reports where applicable.
The primary source of Scope 1 emissions for MACA
operations is diesel fuel used in road registered and off-
road vehicles. Incidental sources of Scope 1 emissions can
also include the use of unleaded petrol, acetylene, LPG,
oils, and greases.
Scope 2 emissions are from the purchased electricity
for our offices and are also calculated using the state-
based grid factors from the NGERs legislation for the
appropriate year.
Greenhouse Gas Emissions
FY2021
FY2022
Total Scope 1 CO2-e Tonnes
2,888
1,432
Total Scope 2 CO2-e Tonnes
370
516
DUMP TRUCK ELECTRIFICATION INVESTIGATION
MACA has collaborated with Mitsui, AVL and other global
industry leading battery and engineering companies to
investigate the electrification of dump trucks, including
replacement of diesel driveline with sustainable
alternatives. The current focus is on battery design and
packaging. In parallel, studies continue to be undertaken
on cycle simulations to ensure that the program is
economic. Preliminary studies indicate that there is an
economic application on certain mining activities.
SAFEAI COLLABORATION
In 2022, MACA collaborated with SafeAI to retrofit our
mixed fleet of haul trucks with autonomous hardware
and software. Follow a six month proof of concept trial at
one of our client’s existing operations, this collaboration
represents a significant next step that will see us scale
up our autonomy fleet over the coming years.
BIODIVERSITY AND LAND MANAGEMENT
MACA places great importance on ensuring that
there is minimal impact to the environments in
which we operate. We appreciate and respect
the significance of the cultural heritage sites and
will continue to work with traditional landowners
and our clients to ensure that we don’t disturb or
negatively impact cultural heritage sites around us.
We are proud to report that we have had no
significant environmental incidents or heritage
breaches this financial year, and will continue to
take the necessary steps to ensure this statistic
remains consistent in the future.
Waste and
Recycling
MACA actively engages in waste and recycling
initiatives on our sites to reduce our environmental
footprint. We have developed and implemented
waste management guidelines with the objective to
minimise the generation of waste where possible,
maximise the proportion of waste we reuse or recycle,
avoid creating areas of contamination, abide by all
regulatory requirements for waste management, and
dispose of non-recyclable solid waste appropriately.
DRILL STEEL RECYCLING
MACA actively recycles drill consumables across our
mining sites. A payment is received from recyclers for
this initiative, and the money is donated back into the
MACA Cancer 200 Ride for Research charity event.
MACA recognises the importance of Environmental, Social and Governance (ESG) outcomes in delivering long-term
sustainable performance and shareholder value.
We strive to Create Sustainable Futures as a business and incorporate ESG outcomes into our risk-based decision-making
process to ensure we operate responsibly and minimise the impact to our people, our environment, and the communities
in which we operate.
As part of our Health, Safety and Environment management system, we actively consider the lifecycle aspect to
environmental decision-making to reduce MACA’s environmental footprint, now and in the future. We also ensure that
we are exploring innovative ideas and following the latest environmental standards that will result in reducing emission
discharges, wastes, energy usage, and resource consumption.
Over the last year, we have revised our policies and procedures to ensure that they are in line with the Global Reporting
Initiative (GRI) Standards and the UN Sustainability Goals, along with enhancing data collection of sustainability
parameters for clear and transparent reporting in future years.
ENVIRONMENTAL
0
Significant
Environmental
Incidents
Heritage
Breaches0
27
MACA LIMITED ANNUAL REPORT 2022
28
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
OPERATIONAL REVIEW
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
GENERAL RECYCLING AND WASTE MINIMISATION
We seek to reuse or recycle as much as possible before sending to landfill or incineration. Sites recycle scrap metals and
return waste oils, batteries, and tyres to contractors for repurposing or recycling. Operating in remote areas means we
rely on single-use plastic and packaging for many essential items. We are working to eliminate single-use plastic drinking
bottles at our sites and offices.
Paperless
Assessments
Paperless Assessments was launched in July 2021 with three sites and Technical Trainers using the online platform.
Enhancements to the platform have since been implemented and version 2.0 will be rolled out across all divisions by the
end of December 2022. This initiative will not only improve efficiency and enable Trainer Assessors to spend more time out
in the field, but it will also significantly decrease MACA’s paper usage across all our operations.
Rehabilitation
Rehabilitation work is undertaken on land disturbed by mining or construction activities to ensure it is stable, safe, and
suitable for post-closure use. Planning for closure of a work area starts when MACA commences a project and continues
throughout the project life to ensure that the impacts of the project can be managed in an environmentally, socially, and
economically responsible manner.
Progressive restoration of disturbed areas helps contribute to a reduction in our client’s financial liabilities.
Water Management
Management of freshwater resources continues to be a core focus area which is an issue that can impact directly on the
environment and the communities in which we operate. While competition for water resources continues to increase
globally due to multiple pressures (particularly climate change, population growth and pollution), MACA recognises the
critical importance of water for community and ecosystem health.
Water is a raw material used in our operations and for site amenities. Depending on the site MACA operates on, the water
we use may be drawn from surface water, groundwater, potable water, and recycled water sources. Our focus at all sites is
on reducing our dependency on potable water to limit our impact and increase our resilience to water limitations. We aim to
achieve this by increasing the efficiency we use water and maximising our use of recycled water wherever possible.
Our water usage strategy aims to balance our operational needs while protecting the quality and quantity of water
remaining in the environment that is available to our host communities. Our ultimate aim is not to use more water than
required to effectively run our operations. At each site, our clients are tracking by source how much water is extracted,
consumed, or discharged as part of their licensing conditions.
SOCIAL
HEALTH AND SAFETY
Our focus remains on ensuring that our people, contractors and visitors have a healthy and safe work environment
every day.
We have an unrelenting focus on the health and safety of our people within the workplace. We work to actively identify
areas of risk and exposure, and ensure our people are equipped with the latest information, tools, and technology to
keep them safe on the job.
Our response to safety is authenticated by our 2022 Cultural Survey, in which our results from our people
overwhelmingly agreed that safety is a priority for our business.
There was a slight increase from last year in our LTIFR for the reporting period. This was due to isolated incidents that
involved accessing and egressing mobile equipment. A business wide review was conducted, and a suite of standards
has been developed to prevent similar incidents from occurring.
COVID-19
The COVID-19 pandemic has continued to cause
disruption. MACA has adopted all government guidelines,
and introduced a vaccination campaign, to encourage
vaccination uptake amongst all our workforce. We have
been working closely with our clients to ensure we are
implementing practical solutions to assist with the global
and economic impact that the virus has caused. We have
acted swiftly in coordinating our efforts and utilised new
technology to communicate with our workforce, to ensure
our people are kept up-to-date and safe on the job.
ECONOMIC CONTRIBUTION
MACA makes payments to our 3,000+ employees in
wages and benefits, to our suppliers and contractors, to
our shareholders through dividends, to local, state, and
federal governments through our taxes, and to voluntary
investments and donations to social projects across the
communities where we operate.
MACA is committed to complying with tax laws in a
responsible manner, to paying and reporting our taxes on
time and to being transparent about the taxes we pay.
Increased our LTIFR
FROM
0.16
FY 20-21
TO
0.20
FY 21-22
Reduced our TRIFR
FROM
3.88
FY 20-21
TO3.30
FY 21-22
29
MACA LIMITED ANNUAL REPORT 2022
30
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
OPERATIONAL REVIEW
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
OUR SAFETY MANAGEMENT FRAMEWORK
The MACA Working Safely Framework is comprised of a
six pillar, eighteen element framework, grouped under
the headings of Leadership, Risk Management, Planning,
Support and Documentation, Performance Evaluation and
Continuous Improvement. It defines MACA’s eighteen
Management Standards and aligns with AS4801 and ISO
45001.
The framework is designed to:
• Integrate with and directly support how we work.
• Ensure workplace risk management processes and risk
controls are implemented and remain effective and
reliable.
• Set clear measurable expectations for leadership at all
levels, especially for those supervising others.
• Provide appropriate business consistency and
support, allowing for efficient knowledge sharing and
improvement across our varied operations.
• Maintain efficient assurance processes that verify and
improve how we operate as a business.
• Continuously strive for project improvement.
Each element of the framework establishes our business
intent which allow for client systems and external
requirements, such as legislation to be mapped and, as
required, incorporated into the MACA Management System
while still meeting business expectations.
SAFETY ADVISORS AND ONGOING DEVELOPMENT
PROGRAMS
MACA recognises the importance of the ongoing
development of our people to ensure we live up to our
“Working Safely” vision. We commenced the “Safety
Advisor Development Pathway” with five participants
who have moved across MACA projects gaining industry
experience with MACA. This structured pathway ensures
participants are equipped with the correct tools and
knowledge to enhance safe practices on any project.
PERSONAL TASK ASSESSMENTS
Our Personal Task Assessments are a key part of our Risk
Management Framework to achieve our “Working Safely”
vision. The Personal Task Assessments were implemented
throughout the business providing area specific
assessments that aid our people in being more mindful
about their work at hand.
Legislation Training
With the implementation of the new Work Health and
Safety legislation, MACA engaged Sarah Harrison
Consulting to provide training to the MACA leadership
team over a period of 14 weeks. MACA also piloted the first
Statutory Supervisor course with 15 participants facilitated
by Safety and Learning Techniques Pty Ltd.
Catastrophic Risk Management
MACA recognises the importance of having a Catastrophic
Risk Management and Assurance program in place and
delivered its Catastrophic Risk Performance Standards
to all projects in 2022. These identify the critical controls
required to manage the catastrophic risks across all
divisions.
InControl (INX)
MACA successfully Implemented a new safety management
platform, INX InControl. INX is a Workplace Health and
Safety management system that benefits the business
by streamlining workflows and automating processes. It
provides a platform for a higher volume of accurate data
to be captured and will reduce the amount of paper forms
and manual workarounds. With INX, the business will
have a more efficient safety approach as well as improved
accuracy of information captured.
MENTAL WELLBEING
Over the past 12 months we have continued to engage
with our employees to promote a healthy, safe, and
balanced lifestyle, ensuring that our workplaces provide an
environment of mutual respect for everyone.
We recognise the importance of mental health and have
provided consistent Mental Health First Aid training
courses for all MACA personnel and will continue offering
these courses to educate and empower Mental Health First
Aiders in the workplace.
DUMP TRUCK OPERATIONS (DTO) DEVELOPMENT
PROGRAM
MACA introduced a DTO program in November 2021.
The 3-day training provides entry level operators the
opportunity to learn in a classroom environment with
practical experience given at the end of day three.
Topics covered over the three days include introduction to
mining, safety, tyre management, positive communication,
operations of a dump truck and practical prestart and
isolation training.
OUR PEOPLE
FY22 has again presented our people with many
challenges as we navigated our way through the ever-
changing landscape of COVID-19, whilst working hard
to provide the best service possible to our clients.
It takes a strong culture and strong leadership to
provide the direction and support that is required
to ensure we meet the expectations of our clients,
employees, and shareholders. Our people are
passionate, committed, and driven to succeed.
At MACA, we take our value of “People First” seriously.
We strive to consider this value in our actions and
decision making. We ask a lot of our people, especially
in these challenging times, and in return we work hard
to support them.
To ensure we keep abreast of the culture across our
organisation, we continue to provide employees with
the opportunity to tell us what we do well and what we
can do better. Their honest feedback helps us set the
tone of our people priorities from year to year.
In FY22, MACA’s HR Strategy continued to focus on
a number of key pillars to enhance and build the
sophistication of our HR processes and systems, to
support our leaders, and engage our people.
These pillars included:
• Organisational Design
Ensuring MACA’s structure is strategically designed
to support our growth plan
• Organisational Development
To strengthen leadership capability
• Systems
Build and implement fit for purpose people systems
• Attract & Retain
Be creative and flexible in our approach to attract
and retain talent
Diversity
MACA stands by its Diversity Policy and prides itself on
being an equal opportunity employer. We continuously
strive to achieve a more balanced and diverse workforce
where people feel comfortable and highly engaged.
Gender and Indigenous diversity continue to be a focus
for MACA, with a range of initiatives implemented in
FY22 to address previous gaps.
FY 22
Actual
FY 23
Targets
Indigenous Australians
4%
5%
Percentage of Female Workforce
17%
19%
Percentage of Female Directors
17%
30%
Gender Pay Parity
MACA conduct pay parity reviews each year taking
into consideration individual performance, experience,
location, and the nature of each person’s role. Gaps
are reported to the Board bi-yearly, and strategies
implemented to reduce the gaps where and when they
appear.
Paid Parental Leave Scheme
MACA’s paid parental leave scheme was approved and
implemented in FY21 providing primary and secondary
carers additional financial support whilst they take time
out to welcome their new arrivals.
31
MACA LIMITED ANNUAL REPORT 2022
32
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
OPERATIONAL REVIEW
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
Increase Female Participation
MACA currently has an overall female participation rate
of 17%, up 2% on last year, and is working to increase
this year on year. In FY22 MACA implemented a number of
initiatives to improve our overall female participation rate
and to achieve greater gender balance in management
roles. Outcomes this year include:
• The education of managers within the business around
conscious and unconscious bias
• Commitment to 50% female participation across all
trainee assessment centres and programs
• Completion of our pilot Female Emerging Leaders
Program
• 28% female participation rate across our leadership
development programs
• Gender-focused talent identification sessions
• Participation in female mentoring programs
Whist there is clear recognition that we need to do more,
there is a genuine commitment to improve.
Increase Indigenous Participation
MACA’s aim is to have a fair representation across our
business of Indigenous employment and contracting
opportunity. With a current Indigenous participation rate of
4% across our entire business, our goal is to improve year
on year. In FY22, MACA implemented our first Indigenous
trainee assessment centres and have expanded our
supplier base through mutually beneficial partnerships
with Indigenous contractors. In addition, we continue to
build great capability in the northwest with Indigenous
participation on our civil projects.
GOVERNANCE
MACA remains committed to a governance culture that aims to protect shareholder rights, effectively manage risk,
enhance disclosure and transparency (both within the company and to external stakeholders) and facilitate the effective
functioning of the board.
We believe that by operating with a strong focus on corporate governance, we will enhance MACA’s sustainable long-
term performance and value creation for all stakeholders. The Board of Directors is responsible for MACA’s corporate
governance framework, which ensures that the Company’s obligations and responsibilities to its various stakeholders are
fulfilled.
The Company’s 2022 Corporate Governance Statement, to be released to shareholders towards the end of September
2022, will report on MACA’s governance practices. MACA has in place charters, policies, and procedures (published on
our website) which are reviewed and revised as appropriate to reflect changes in law and developments in corporate
governance.
MACA also provides a risk management framework in accordance with ISO31000: Risk Management Principles and
Guidelines, which allows the Group to identify potential change and manage the associated risks and opportunities, to
meet or exceed the organisational strategic and operational objectives.
Additionally, in FY22, MACA delivered its second Modern Slavery Statement.
COMMUNITY
At MACA, we know that we can make an impact through the contributions and support we give to our
communities. We have continued to develop partnership that generate long-term value and support a
sustainable future for both our people and the wider community. Some of our charitable partners include:
The Harry Perkins Institute
of Medical Research
We have continued our long-term
partnership with the Harry Perkins
Institute of Medical research,
and corporate partner and title
sponsor for the Perkin’s main
charity event, the MACA Cancer 200
Ride for Research. Last year, more
than 1,500 riders participated in
Australia’s biggest charity bike ride
and the ride raised a record $7m for
the Harry Perkins Institute over the
October 16-17 weekend.
The Perth’s Children
Hospital Foundation
The MACA Paediatric Simulation
Education Fellowship is the only
program in WA that provides
medical professionals the
opportunity to improve their clinical
practice in a simulated environment.
More recently, we have supported
the Foundation in creating an
intricate neonatal transport unit, fit
with Criticool technology, to safely
transport premature babies.
We look forward to continuing our
partnership with the Foundation to
improve the long-term health of our
community.
Fremantle Dockers
Women’s Team
Last Financial year, we welcomed a
new partnership with the Fremantle
Docker’s Women’s team as the
Club’s official AFLW coaches’
partner.
We have continued this partnership,
symbolising the business
commitment to diversity and
community engagement, now and
into the future.
Western Australian Symphony
Orchestra (WASO)
MACA is proud to be a Platinum
Partner of WASO, supporting
the Classics Series. This arts
partnership is a first for MACA,
which began in 2014 and reflects
our decision to expand our
community investment to include
the arts. We look forward to
continuing to work with WASO in
the future.
Murlpirrmarra
Connection
Indigenous diversity continues to be
a focus for MACA. We are proud to be
a long-term and foundational partner
of the Murlpirrmarra Connection.
Since its establishment in 2010,
the Murlpirrmarra Connection
has assisted 128 students
through primary and secondary
school, tertiary studies, and early
employment, with a 92% school
attendance rate and one in five
graduate success.
Youth Focus
MACA is a Team Sponsor of the
Hawaiian Ride for Youth, a 700km
ride from Albany to Perth where
riders stop at high schools along
the journey to engage with students
in the issues of youth suicide,
depression, and anxiety and to offer
the services of Youth Focus.
In addition, MACA also hosts a
yearly Ride for Youth Breakfast,
attracting over 400 attendees each
year to raise funds for mental health
counselling.
33
MACA LIMITED ANNUAL REPORT 2022
34
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
The Directors present their report, together with the financial statements, of the consolidated entity (referred to hereafter as
the ‘consolidated entity’) consisting of MACA Limited (referred to hereafter as the ‘company’ or ‘parent entity’) and the entities
it controlled for the year ended 30 June 2022.
DIRECTORS
The following persons were directors of MACA Limited during
the whole or part of the financial year and up to the date of
this report:
Mr Mike Sutton (Chief Executive Officer and
Managing Director, resignation effective 22 July 2022)
Mr Geoffrey Alan Baker (Non-Executive Chairman)
Mr Robert Neil Ryan (Non-Executive Director)
Nick Marinelli (Non-Executive Director)
Mr David Flanagan
(Non-Executive Director, commenced 30 September 2021)
Ms Rachel Rees
(Non-Executive Director, commenced 8 November 2021)
Mr Linton John Kirk (Non-Executive Director,
resignation effective 18 November 2021)
Sandra Dodds (Non-Executive Director, resignation
effective 30 September 2021)
PRINCIPAL ACTIVITIES AND ANY SIGNIFICANT
CHANGES IN NATURE
The Group operates in three businesses and currently
three geographical segments. The business segments are
for the provision of contract mining, civil & infrastructure,
and structural, mechanical and piping (through Interquip)
services to the resource sector. The three geographical
segments being Australia, Brazil and Cambodia. Operations
in Brazil have been discontinued since the prior year and
are presented separately in the table below. Operations in
Cambodia have commenced in the current year.
DIVIDENDS PAID OR RECOMMENDED
Dividends that were fully franked and paid or declared for
payment since the end of the previous financial year were
as follows:
2021
2022
Interim dividend declared and
paid per ordinary share (cps)
2.5
2.5
Final dividend declared and
paid per ordinary share (cps)
2.5
–
The final fully franked dividend was paid on the
17th September 2021
DIVIDEND REINVESTMENT PLAN
There is no dividend reinvestment plan in place.
ENVIRONMENTAL ISSUES
MACA is aware of its environmental obligations with regard
to its principal activities and ensures it complies with all
regulations.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There have not been any significant changes in the state of
affairs of the Group not otherwise disclosed in this Report or
the Financial Statements.
CHANGES IN CONTROLLED ENTITIES
There were no changes in controlled entities.
EVENTS SUBSEQUENT TO BALANCE DATE
• Award of 3 civil contracts that comprise Rio Tinto Western
Range Project Early Works, MRPV Hall Road Upgrade and
Roy Hill Civil Works with total value of approximately
$115 million;
• Mr Mike Sutton resigned as Managing Director and Chief
Executive Officer of MACA effectively on 22 July 2022. Mr
David Greig will take on the role of Chief Executive Officer;
• On 26 July 2022, MACA entered into a Bid implementation
Deed (‘BID’) with Thiess Group Investments Pty Ltd
(“Thiess”), under which Thiess has agreed to make an
off-market takeover offer to MACA shareholders at the
consideration of $1.025 cash per share for each MACA
Share.
The Directors of MACA unanimously recommend the
offer in the absence of a superior proposal and subject
to the Independent Expert concluding, and continuing to
conclude, that the Offer is fair and reasonable (or not fair
but reasonable) to the MACA shareholders.
On 19 August 2022, MACA announced its assessment
of the non-binding, conditional and indicative proposal
received from NRW Holdings Limited (“NRW”), for the
acquisition of all MACA shares by way of a scheme
of arrangement. After careful consideration of the
NRW Indicative Proposal as a whole, and of each of
its components, and after taking professional advice
and liaising confidentially with NRW, the MACA Board
unanimously concluded that the NRW Indicative Proposal
is not superior to the existing conditional off-market
takeover offer from Thiess to acquire all MACA shares.
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
Ordinary Activities
30 June 2022
(Restated)*
30 June 2021
Movement
Revenue
$1,650.5m
$1,173.9m
41%
EBITDA
$190.9m
$139.5m
37%
EBIT
$63.1m
$40.4m
55%
Net Profit / (Loss) Before Tax
$52.0m
$31.9m
63%
Net Profit / (Loss) After Tax
$37.6m
$20.7m
82%
Discontinued Operations
30 June 2022
30 June 2021
Movement
Revenue
-
-
%
EBITDA
($1.6m)
($3.7m)
56%
EBIT
($1.9m)
($4.7m)
60%
Net Profit / (Loss) Before Tax
($1.8m)
($4.5m)
60%
Net Profit / (Loss) After Tax
($1.8m)
($4.5m)
60%
Total
30 June 2022
(Restated)*
30 June 2021
Movement
Revenue
$1,650.5m
$1,173.9m
41%
EBITDA
$189.2m
$135.8m
39%
EBIT
$60.6m
$35.7m
70%
Net Profit / (Loss) Before Tax
$50.2m
$27.4m
83%
Net Profit / (Loss) After Tax
$35.8m
$16.2m
121%
Other Metrics
30 June 2022
(Restated)*
30 June 2021
Movement
Work in Hand**
$2,800m
$3,100m
(13%)
Net Debt (Cash) position
$194.1m
$180.2m
(8%)
Operating Cash Flow
$132.5m
$118.8m
12%
Earnings per share - basic
12.5 cents
4.7 cents
166%
Dividends per share (fully franked)
2.5 cents
5.0 cents
** The comparative fi gures have been restated for the change in fair value of Mining West Business according to the AASB 3 Business Combinations.
~ Work in hand as at 31 July 2022.
MACA informed NRW that if NRW could remove or reduce
the risks that the NRW Indicative Proposal asked MACA
shareholders to assume and increase the total consideration
offered, then MACA considered that there was a basis
for further discussion, and would have welcomed such
discussion (refer to the market announcement on 19 August
2022 for further details).
MACA’s Target’s Statement was released to shareholders on
25 August 2022. On 29 August 2022, Thiess increased the
offer price to $1.075 per share. On 30 August 2022, NRW
announced that it had determined that continuing to pursue
a transaction to acquire MACA would not be in the best
interests of NRW’s shareholders at present. MACA
released supplementary Target’s Statements on
1 September 2022 and 16 September 2022.
On 27 September 2022 Thiess waived all remaining
conditions and the offer was declared unconditional.
Other than the items listed above, no other matters or
circumstances have arisen since the full year to 30 June 2022
which significantly affected or may significantly affect the
operations of the Group, the results of those operations,
or the state of affairs of the Group in future financial years.
EVENTS SUBSEQUENT TO BALANCE DATE (CONTINUED)
35
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
36
MACA LIMITED ANNUAL REPORT 2022
DIRECTORS’ REPORT
INFORMATION ON CURRENT DIRECTORS
Ms Rachel Rees
TITLE:
Independent Non-Executive Director
QUALIFICATIONS:
BBus, GradDipACG, FGIA, FCG, FCA
EXPERIENCE AND
EXPERTISE:
Rachel is an experienced senior executive and non-executive director with expertise in business transformation,
mergers and acquisitions, corporate governance, stakeholder engagement, strategy, compliance, financial and
risk management. She has a Bachelor of Business and is a Fellow of Chartered Accountants Australia and New
Zealand, a Fellow of Governance Institute of Australia and a Fellow of Chartered Governance Institute and has
held CFO and senior executive roles with ASX , TSX listed and private companies.
CURRENT
DIRECTORSHIPS:
Chair of the Audit Committee for MACA Limited, a Non-Executive Director and Chair Risk, Audit and Finance
Committee for Governance Institute Australia, a Non-Executive Director of Peninsula Energy Limited.
FORMER
DIRECTORSHIPS
(IN LAST 3 YEARS):
Nil
SPECIAL
RESPONSIBILITIES:
Ms Rees is currently Chair of the Board’s Audit Committee and a member of the Risk Committee and
Remuneration Committee.
INTEREST IN
SHARES:
Nil
Mr Geoff Baker
TITLE:
Non-Executive Chairman
QUALIFICATIONS:
MAICD
EXPERIENCE AND
EXPERTISE:
Mr Baker is a founding shareholder of MACA.
He has extensive experience in planning,
operating strategy, capital expenditure and
delivery of successful safety and financial
outcomes for projects. Mr Baker has worked
in the sector for over 40 years, with a focus on
plant maintenance and asset management.
CURRENT
DIRECTORSHIPS:
Mr Baker has been a board member of MACA
Limited since the 10th of November 2010.
FORMER
DIRECTORSHIPS
(IN LAST 3 YEARS):
Nil
SPECIAL
RESPONSIBILITIES:
Mr Baker is currently a member of the Board’s
Audit Committee, Risk Committee and
Remuneration Committee.
INTEREST IN
SHARES:
13,613,816
INTEREST IN
PERFORMANCE
RIGHTS:
Nil
Mr David Flanagan
TITLE:
Independent Non-Executive Director
QUALIFICATIONS:
BSc in Mining and Minerals Exploration
Geology
EXPERIENCE AND
EXPERTISE:
David Flanagan is a geologist with more
than 25 years’ experience in the mining and
mineral exploration industry in Australia,
Indonesia and Africa. He is a Fellow of the
Australian Institute of Company Directors and
Member of the Australian Institute of Mining
and Metallurgy.
CURRENT
DIRECTORSHIPS:
Chairman of Battery Minerals Limited,
Chair of Australian Remote Operations for
Space and Earth and Chairman of Red Dirt
Metals Limited.
FORMER
DIRECTORSHIPS
(IN LAST 3 YEARS)
CZR Resources Limited: April 2020 to
September 2021, Magmatic Resources
Limited: October 2019 to February 2021
SPECIAL
RESPONSIBILITIES:
Mr Flanagan is a member of the Remuneration
Committee, Audit Committee and Risk
Committee.
INTEREST IN
SHARES:
Nil
Mr Robert Ryan
TITLE:
Independent Non-Executive Director
QUALIFICATIONS:
MIEAust, MAICD
EXPERIENCE AND
EXPERTISE:
Mr Ryan has extensive civil construction and
engineering experience. That experience
has been at both project and management
levels in construction and asset management.
Mr Ryan worked at a senior level with
Downer EDI for 14 years as EGM Downer
Infrastructure WA for four years then
reporting directly to the CEO of DownerEDI
Infrastructure working on various business
improvement projects nationally and
overseas.
CURRENT
DIRECTORSHIPS:
Mr Ryan has been a board member of MACA
Limited since 18th August 2015.
FORMER
DIRECTORSHIPS
(IN LAST 3 YEARS):
Nil
SPECIAL
RESPONSIBILITIES:
Mr Ryan is currently the Chair of the Board’s
Remuneration Committee and member of the
Audit Committee and Risk Committee.
INTEREST IN
SHARES:
73,256
Mr Nick Marinelli
TITLE:
Independent Non-Executive Director
QUALIFICATIONS:
B Bus, GAICD
EXPERIENCE AND
EXPERTISE:
Nick has over 35 years’ industry experience
in the Construction, Infrastructure Services
and Utilities sectors. He was the CEO of Fulton
Hogan Australia between 2017 and 2019,
during which time he grew the business into
new sectors and geographies, in addition to
leading commercial acquisition activities,
new venture start-ups, marketing, business
development and technology. Prior to joining
Fulton Hogan in 2009, Nick held senior
positions with Rinker Australia, Cemex
Australia, Pioneer Construction Materials and
Pioneer International, both locally in Australia
and overseas.
CURRENT
DIRECTORSHIPS:
Mr Marinelli is a Director of the
Australian Road Research Board.
FORMER
DIRECTORSHIPS
(IN LAST 3 YEARS):
Citywide North Melbourne Asphalt Pty Ltd,
Fulton Hogan Egis O&M Pty Ltd
SPECIAL
RESPONSIBILITIES:
Mr Marinelli is currently Chair of the Board’s
Risk Committee and a member of the Audit
Committee and Remuneration Committee.
INTEREST IN
SHARES:
Nil
Mr Peter Gilford
TITLE:
Chief Financial Officer / Company Secretary
QUALIFICATIONS:
B Com CA, AGIA, ACG
EXPERIENCE AND
EXPERTISE:
Mr Gilford has significant experience in the
areas of financial management, accounting,
business and taxation services. He has
provided services to a large number of
mining, exploration and construction
companies. Mr Gilford has acted in roles of
Director, Company Secretary and CFO for
a number of privately owned businesses.
Peter is a member of the Chartered
Accountants Australia and New Zealand
and is a member of the Chartered
Governance Institute.
Mr Nick Ward
TITLE:
Company Secretary
QUALIFICATIONS:
B Com, CA, GradDipCorpGov, GradDipAppFin
EXPERIENCE AND
EXPERTISE:
Nick is a finance and governance
professional with experience in the areas
of corporate finance, corporate governance
and accounting. Prior to joining MACA,
Nick spent ten years at EY with a focus on
corporate finance and M&A transactions,
which saw him work at a number of EY’s
international offices. Nick holds a Bachelor
of Commerce degree and has completed
Graduate Diplomas in both Applied
Corporate Governance and Applied Finance.
Nick is a member of Chartered Accountants
Australia and New Zealand.
JOINT COMPANY SECRETARIES
37
MACA LIMITED ANNUAL REPORT 2022
38
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
The number of directors’ meetings which directors were eligible to attend (including Committee meetings) and the number
attended by each director during the year ended 30th June 2022 were as follows:
Directors’ Meetings
Committee Meetings
Board*
Audit
Remuneration Risk
Number eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Geoff Baker
11
11
2
2
2
2
2
2
Mike Sutton
11
11
2
2
2
2
2
2
Rob Ryan
11
11
2
2
2
2
2
2
Nick Marinelli
11
11
2
2
2
2
2
2
David Flanagan~
9
9
1
1
1
1
2
2
Rachel Rees~
9
9
1
1
1
1
2
2
Sandra Dodds^
2
2
1
1
1
1
-
-
Linton Kirk^
3
3
1
1
1
1
-
-
*The Board sitting as a Nomination Committee met twice during the year
^Resigned during the 2022 financial year
~Appointed during the 2022 financial year
REMUNERATION REPORT
The audited remuneration report is set out on pages 45 to 58
and forms part of this Directors’ Report.
INDEMNIFYING OFFICERS OR AUDITOR
During the financial year the Company paid a premium in
respect of a contract insuring the directors of the Company, the
joint company secretaries and all executive and non-executive
directors of the Company and any related body corporate
against a liability incurred as such a director, company
secretary or executive officer to the extent permitted by the
Corporations Act 2001.
The Company has not otherwise, during or since the end of
the financial year, except to the extent permitted by law,
indemnified or agreed to indemnify an officer or auditor of
the Company or of any related body corporate against a
liability incurred by an officer or auditor. In accordance with a
confidentiality clause under the insurance policy, the amount
of the premium paid to insurers has not been disclosed. This is
permitted under s300(9) of the Corporations Act 2001.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings
on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of
those proceedings.
The Company was not a party to any such proceedings during
the year.
ASIC CI 2016/191 ROUNDING OF AMOUNTS
The Company is an entity to which ASIC CI 2106/191 Rounding
of Amounts applies and, accordingly, amounts in the financial
statements and directors’ report have been rounded to the
nearest thousand dollars.
NON-AUDIT SERVICES
No non-audit services were provided during the year by the
auditor to the Company or any related body corporate.
AUDITORS INDEPENDENCE DECLARATION
The auditor’s independence declaration as required under
section 307C of the Corporations Act 2001 is set out on page
49 and forms part of the directors’ report for the financial year
ended 30 June 2022.
RISK
MACA’s risk management framework is embedded within existing
processes and is aligned to the Group’s strategic business
objectives. Given the markets and the geographies in which the
Group operates, a wide range of risk factors have the potential to
affect the achievement of these objectives. For further information
in relation to the Group’s risk management framework, refer to
the Corporate Governance Statement.
Set out below is an overview of the more significant business
risks facing MACA and the approach taken to managing those
risks. The factors identified below are not necessarily listed in
order of importance and are not intended as an exhaustive list of
all the risks and uncertainties associated with the MACA business.
40
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
39
MACA LIMITED ANNUAL REPORT 2022
HEALTH, SAFETY,
SUSTAINABILITY AND
ENVIRONMENT RISK
The industry sectors in
which we operate involve a
high degree of operational
risk. MACA believes it takes
all reasonable precautions
to manage safety and
environmental risks to ensure
the continued sustainability
of the business. However,
there can be no assurance
that the Group will avoid
significant costs, liability
and penalties or criminal
prosecution. This risk is
mitigated by progressively
improving on already high
safety performance standards
across the business and by
maintaining independently
reviewed health and safety,
environmental and quality
certifications.
PROJECT DELIVERY RISK
The execution and delivery of
projects involves judgment
regarding the planning,
development and operation
of complex operating
facilities and equipment.
Some parts of MACA’s
business are involved in
large-scale projects that
may occur over extended
time periods. As a result,
the Group’s operations,
cash flows and liquidity
could be affected if MACA
miscalculates the resources
or time needed to complete
a project, if it fails to meet
contractual obligations, or
if it encounters delays or
unspecified conditions. MACA
maintains a strict project
monitoring regime, proactive
management and decision
making to mitigate project
delivery risks.
ORDER BOOK RISK
Generally in the mining
industry, most contracts
can be terminated for
convenience by the
client at short notice and
without penalty, with the
client paying for all work
completed to date, unused
material and in most cases
demobilisation from the
site and redundancies. As
a result, there can be no
assurance that work in hand
will be realised as revenue
in any future period. MACA
seeks to manage this risk
by being selective in the
contracts that it enters into
and always seeks to extend
contracts where possible
in an effort to maximise its
return on capital.
DEMAND RISK
MACA is a contractor
operating predominantly in
the mining resources and
civil sectors. As a result,
failure to obtain contracts,
delays in awards of contracts,
cancellations or terminations
of contracts, delays in
completion, changes in
economic conditions and the
volatile and cyclical nature
of commodity prices means
that the demand for MACA’s
goods and services can vary
markedly over relatively short
periods. Accordingly, changes
in market conditions could
impact MACA’s financial
performance. The Group
seeks to manage demand risk
as best it can by maintaining
a diversified client base and
commodity mix and having a
proportion of equipment and
labour on hire.
DIRECTORS’ REPORT
BUSINESS ACQUISITIONS
When MACA acquires a
business there is a risk of
not being able to realise or
sustain expected benefits of
the acquisition. The goodwill
represents the amounts
paid for the business, less
the fair value of the net
assets acquired. MACA, at
least annually, reviews the
carrying value of goodwill
and may incur impairment
charges related to goodwill
if the businesses or markets
they serve deteriorate. In
addition, businesses that
MACA acquires may have
liabilities that MACA was
unaware of in the course of
performing due diligence
investigations. Any such
liabilities may have material
adverse impact on MACA’s
business and financial
position. As part of the due
diligence process, MACA
thoroughly reviews all
contracts to mitigate the
risk of acquiring onerous
contracts and change in
control provisions, and
historic liabilities and
integration risks.
COMPETITION RISK
The market in which
MACA operates is highly
competitive, which may
result in downward pressure
on prices and margins. If
MACA is unable to compete
effectively in its markets, it
runs the risk of losing market
share. MACA continues to
focus on delivering quality
services to make us a
contractor of choice as a
means of mitigating this risk.
COUNTERPARTY RISK
MACA derives its revenue
from a number of customers.
In the event that any of
these customers fails to
pay, reduces production
or scales back operations,
terminates the relationship,
defaults on a contract or
fails to renew their contract
with MACA, this may have
an adverse impact on the
financial performance and/or
financial position of MACA.
MACA seeks to manage this
risk by regularly monitoring
material counterparties and
its exposures and seeks
additional security when
appropriate.
CONTRACT PRICING RISK
MACA has a mixed exposure
to contract types. However,
if the Group materially
underestimates the cost
of providing services,
equipment, or plant, there
is a risk of a negative
impact on MACA’s financial
performance. MACA follows
a proven tender review
process to reduce the risk of
under-pricing contracts.
COUNTRY RISK
While the large majority of
MACA’s operations are in
Australia, MACA has one
project in Cambodia. The
sovereign risk Cambodia is
higher than in Australia, and
operating in international
jurisdictions could expose
MACA to additional adverse
economic conditions,
conflicts, terrorism, security
breaches, and bribery and
corrupt practices.
CYBER SECURITY
The potential for malicious
cyber security attacks
resulting in the misuse
and release of sensitive
information poses and
ongoing and real risk to
companies that operate
in the 21st century. MACA
continues to progress its
ICT Strategy, of which
one initiative includes the
continual review of our cyber
security and ICT maturity.
Gaps and vulnerabilities are
addressed on an ongoing
basis.
41
MACA LIMITED ANNUAL REPORT 2022
42
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
DIRECTORS’ REPORT
LIQUIDITY RISK
The risk of MACA not being able
to meet its financial obligations
as they fall due is managed
by maintaining adequate cash
reserves and available borrowing
facilities, as required. Errors or
unforeseen changes in actual and
forecast cash flows that then create
a mismatch against the maturity
profiles of financial assets and
liabilities could have a detrimental
effect on the Group’s liquidity. The
Group’s approach to managing
liquidity is to ensure, as far as
possible, that it will always have
sufficient liquidity to meet its
liabilities when due, under both
normal and stressed conditions,
without incurring unacceptable
losses or risking damage to the
Group’s reputation.
PARTNER RISK
MACA, in some cases, may
undertake services through
and participate in, joint
ventures or partnering/alliance
arrangements. The success
of these partnering activities
depends on the satisfactory
performance by MACA’s partners.
The failure of partners to meet
performance obligations could
impose additional financial and
performance obligations that could
cause significant impact on MACA’s
reputation and financial results.
MACA completes due diligence
on potential partners prior to
forming any business relationship
and regularly monitors these
relationships.
GUIDANCE
MACA may provide forecasts
and predictions about its future
performance (“Guidance”) on the
basis of assumptions, which may
subsequently prove to be incorrect.
Guidance is not a guarantee of future
performance, and is subject to risks,
many of which are beyond the control
of MACA.
LABOUR COSTS AND
AVAILABILITY
Labour represents a significant
portion of operating expenses. In
order to compete for work and to
service clients, the Group needs to be
able to continue to attract and retain
skilled employees. Consequently, the
Group is exposed to increased labour
costs in markets where the demand
for labour is strong. Within more
stable labour markets, the group’s
labour costs are typically protected
by rise and fall mechanisms within
client contracts, which help neutralise
the impact of rising labour costs.
CLIMATE CHANGE
MACA recognises the impacts of
climate change, which can include
an increased incidence of extreme
weather events and changes to legal,
regulatory, policy, financing and
investor landscape. MACA remains
committed to understanding the
impact of climate change on our
business and people, and continues
to seek opportunities improve our
performance in this area.
CURRENCY FLUCTUATION
As a Group with international
operations, MACA is exposed to
fluctuations in the value of the
Australian dollar versus other
currencies. As MACA’s consolidated
financial results are reported in
Australian dollars, if MACA generates
sales or earnings or has assets and
liabilities in other currencies, the
translation into Australian dollars
for financial reporting purposes
can result in a significant increase
or decrease in the amount of those
sales or earnings and net assets.
MACA uses cash backed deposits
to mitigate some of the US dollar
currency risk. Currently the company
has unhedged exposure to United
States Dollars (from MACA’s
Cambodian Mining Contract).
Other material risks that
could aff ect MACA include:
• Public liability risk incurred
maintaining road assets
requiring identified defects
to be closed out within a
specified timeframe;
• A major operational failure or
disruption at key facilities or to
communication systems which
interrupt MACA’s business;
• Changing government
regulation including tax,
occupational health and
safety, and changes in policy
and spending;
• Loss of reputation through
poor project outcomes, unsafe
work practices, unethical
business practices, and
not meeting the market’s
expectation of its financial
performance;
• The impact of rising interest
rates on future cash flows and
discount rates used in valuing
assets and liabilities;
• Increases in oil prices and
inflationary pressures;
• Equipment and consumable
availability;
• Commitments and policies on
climate and carbon emissions
by governments;
• Technological changes and
innovation;
• Legislative and regulatory
changes; and
• Loss of key Board,
management or operational
personnel.
43
MACA LIMITED ANNUAL REPORT 2022
44
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
REMUNERATION REPORT
Section
Title
Description
Section 1
Introduction
Outlines the scope of the Remuneration Report and the individuals disclosed.
Section 2
Remuneration Governance
Describes the role of the board, the Remuneration Committee and matters
considered (including external advice) when making remuneration decisions.
Section 3
2022 Executive remuneration
framework and improvements
Outlines the 2022 remuneration framework and changes to remuneration plans.
Section 4
Company performance and the
link to remuneration
The outcomes of the key business metrics and hurdles that are used for measuring
variable pay outcomes.
Section 5
Executive remuneration
outcomes
Provides Chief Executive officer remuneration, Short Term Incentive (STI) and Long
Term Incentive (LTI) Plan details and Executive remuneration outcomes for the year.
Section 6
Executive contracts
Appointments and notice periods for current and former Key Management
Personnel.
Section 7
Non-Executive Directors’ fees
Provides detail regarding the fees paid to Non-Executive Directors.
1.0 INTRODUCTION
This remuneration Report forms part of the Directors’ Report for 2022 and outlines the remuneration strategy and
arrangements for the Company’s Directors and Executives (together “Key Management Personnel” or “KMP”) in
accordance with section 300A of the Corporations Act.
1.1 KEY MANAGEMENT PERSONNEL
The KMP of the Group during and since the end of the financial year comprise the company directors (as detailed in
the beginning of the Directors’ Report) and the following three executives, defined as CEO, CFO and Executive General
Manager - Mining. Except as noted, these persons held their current position for the whole of the financial year and since
the end of the financial year.
Person
Position
Period in position during the year
Directors - Non-Executive
Geoff Baker
Non-Executive Chairman
Full Year Ccommenced as Chairman on
20 November 2020)
Robert Ryan
Non-Executive Director
Full Year
Nick Marinelli
Non-Executive Director
Full Year
David Flanagan
Non-Executive Director
Part Year (commenced 30 September 2021)
Rachel Rees
Non-Executive Director
Part Year (commenced 8 November 2021)
Former Directors
Sandra Dodds
Non-Executive Director
Part Year (retired 30 September 2021)
Linton Kirk
Non-Executive Director
Part Year (retired 19 November 2021)
Directors - Executive
Mike Sutton
Chief Executive Officer / Managing Director
Full Year (retired 22 July 2022)
Executives
David Greig
Chief Development Officer
Full Year
Peter Gilford
Chief Financial Officer / Company Secretary
Full Year
Michael Hunt
Executive GM Mining
Part Year
DIRECTORS’ REPORT
2.0 REMUNERATION GOVERNANCE
The Board oversees the remuneration arrangements of the KMP.
In performing this function the Remuneration Committee reviews the remuneration packages of all Directors, the Chief
Executive Officer and other Executives (collectively the KMP). The Committee makes recommendations to the Board on an
annual basis with benchmarking against comparable industry packages and adjusting to recognise the specific performance
of both the company and the individual.
The Remuneration Committee may also engage an external remuneration consultant to review the levels of senior executive
and non-executive remuneration. The Remuneration Committee engaged independent third party consultants in the year, in
relation to Non-Executive Director fee benchmarking and incentive design.
3.0 2022 EXECUTIVE REMUNERATION FRAMEWORK
Remuneration practices are continuously developed in line with the Company’s business demands, industry conditions and
overall market trends. The primary goal is to link executive remuneration with the achievement of MACA’s business and
strategic objectives with the aim to increase shareholder value over the short and longer term. The nature and amount of
compensation for executive KMP are designed to retain and stimulate individuals on a market competitive basis.
Remuneration Framework
Total fi xed remuneration (TFR)
Short-term incentive (STI)
Long-term incentive (LTI)
• TFR takes into account similar
positions in peer companies,
length of service, experience and
contribution
• Peer companies are those with
broadly similar revenue and in
related industries
• TFR is reviewed annually
Financial metrics comprise some or all of:
• Net profit after tax - company and divisional
• Earnings per share
Non-financial metrics comprise some or all of:
• Safety indicators - LTI and TRIFR
• Personal performance
• Maximum STI is 15 - 60% of TFR depending on
the individual
• Relative TSR using a benchmark
index namely the S&P/ASX
Small Ordinaries Accumulation
Index (XSOAI) measured over a 3
year period (100% component)
• Number of performance rights
issued up to 50% of fixed annual
remuneration divided by the
independently assessed value of
a performance right
4.0 COMPANY PERFORMANCE AND THE LINK TO REMUNERATION
Key Performance Indicators (‘KPIs’) for both short term and long-term Executive incentive schemes are linked to
the Company’s strategic and business objectives and as a result, pay outcomes are directly aligned with Company
performance against these objectives. The following Company performance measures are among those that may be
included in incentive plans for relevant executives. KPIs may be adjusted for individually large or unusual items to derive
an underlying performance measure outcome. The Board believes these KPIs are aligned to Shareholder wealth and
returns to investors.
45
MACA LIMITED ANNUAL REPORT 2022
46
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
2022
2021
2020
2019
2018
Reported net profit/(loss) attributable to equity
holders of the parent ($m)
42.8
14.4
(17.9)
20.6
23.6
Reported return on equity (%)
8.9
4.2
(5.8)
6.9
7.4
Reported basic earnings per share (cents)
12.5
4.7
(6.7)
7.7
9.1
Lost time injury frequency rate (LTIFR)
0.2
0.2
0.2
0.5
-
Total recordable injury frequency rate (TRIFR)
3.3
3.9
6.6
6.4
6.8
Shareholders’ Wealth
Interim dividend declared (cents)
2.5
2.5
2.5
2.0
3.0
Final dividend declared (cents)
0.0
2.5
2.5
2.5
3.5
Special dividend declared (cents)
-
-
-
-
-
Share price at 30 June (cents)
66
76.0
86.5
90
120
Total shareholder return (TSR %) 1
(9.9)
(6.4)
1.7
(21.3)
(23.3)
3 year Annual Compound TSR 1
(9.0)
(9.1)
(14.1)
(5.2)
23.2
1 All dividends in the TSR (Total Shareholder Return) calculations are on a declared (rather than paid) basis in respect to each
financial year.
5.0 EXECUTIVE REMUNERATION OUTCOMES
5.1 MANAGING DIRECTOR AND CEO ARRANGEMENTS
Mr Sutton’s remuneration package as CEO was determined by benchmarking it against that paid to CEOs in similar
organisations. The remuneration package comprises the following components:
- Total Fixed Remuneration (TFR) is $712,985 per annum inclusive of superannuation.
- An STI which includes the opportunity to earn an annual cash bonus of up to 60% of total fixed remuneration, subject
to achieving performance hurdles. Mr Suttons’ STI plan has been aligned with other senior executives under similar
plan rules with KPIs that align to profitable performance and safety. The CEO’s STI Plan comprises 40% for key financial
KPI’s, 30% for safety KPI’s and 30% for personal KPI’s. The financial KPIs comprise Net Profit after Tax and Earnings per
Share growth. The safety KPIs are based on the Lost Time Injury Frequency Rate (LTIFR) and the Total Recordable Injury
Frequency Rate (TRIFR).
There was no STI payable for Mr Sutton for 2022 - refer 5.4 below.
- An LTI under which Mr Sutton may receive share performance rights convertible into fully paid shares, subject to
performance criteria being met.
4.0 COMPANY PERFORMANCE AND THE LINK TO REMUNERATION (CONTINUED)
REMUNERATION REPORT CONTINUED
DIRECTORS’ REPORT
5.2 TOTAL FIXED REMUNERATION (TFR)
All Executives received TFR as outlined in page 53 of this report. TFR comprises base salary and superannuation plus
motor vehicle allowance.
Fixed pay has been reviewed and set against peer companies with whom MACA competes. MACA also benchmarks
through industry surveys and reports and may seek external advice for KMP remuneration.
5.3 SHORT-TERM INCENTIVE PLAN (STI PLAN)
Key features of the STI Plan are outlined in the table below.
Objective
KPIs are set to encourage a profit and safety driven culture with the ultimate aim of driving
Stakeholder returns. The STI payments are structured to recognize and motivate employees to
align their performance with the Company’s goals. The amount of bonus actually earned will
depend on performance against predetermined KPIs with payment commencing upon reaching
those hurdles.
Eligibility
All Executive key management personnel.
At risk payments
2022: The STI is a component of ‘at risk’ pay provided to Executives and KMP.
% of TFR paid on Target Achievement
CEO
25% - 60%
COO and CFO
25%
Other Executive KMP
15%
2021: The STI is a component of ‘at risk’ pay provided to Executives and KMP.
% of TFR paid on Target Achievement
CEO
25% - 60%
COO and CFO
25%
Other Executive KMP
15%
Performance conditions Financial and safety targets are all agreed with the Board and personal KPIs are set in
consultation with the relevant Executive.
Each KPI is weighted according to its importance in driving profitable performance and returns to
Shareholders. In order to be eligible to receive an STI there is a minimum financial requirement
or gate which must be met before other KPIs are considered.
KPIs for the CEO include Earning per Share (EPS), Net Profit after Tax (NPAT), Lost Time
Injury Frequency Rate (LTIFR), Total Recordable Injury Frequency Rate (TRIFR) and personal
assessment.
KPIs for other KMP include Net Profit after Tax (NPAT), business operating unit profit
performance, Lost Time Injury Frequency Rate (LTIFR), Total Recordable Injury Frequency Rate
(TRIFR) and personal assessment.
Setting of KPIs
Financial and safety targets are all agreed with the Board and personal KPIs are set in
consultation with the relevant Executive.
Assessment of KPIs
Performance is measured quantitatively and progress against key targets measured at half year
and full year.
Trigger for payment
Any performance target met will trigger the calculation of total or partial payment of the STIs.
The board may exercise its discretion in relation to the payment of STIs.
Cessation of employment STI forfeited if an Executive or KMP resigns or is terminated before the payment date. In
exceptional circumstances this may be reviewed by the Board.
47
MACA LIMITED ANNUAL REPORT 2022
48
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
5.4 STI OUTCOMES
No STI was paid to any member of the senior executive team.
5.5 LONG-TERM INCENTIVE PLAN (LTI PLAN)
Key features of the LTI Plan are outlined in the table below.
Overview of the LTI Plan The Plan offers Executive KMP performance rights with the opportunity to receive fully paid
ordinary shares in MACA Limited for no consideration, subject to specified time restrictions,
continued employment and performance conditions being met. Each performance right will
entitle participants to receive one fully paid ordinary share at the time of vesting.
Objective
The Plan is designed to assist with Executive and KMP retention and to incentivise employees to
maximise returns and earnings for Shareholders.
Eligibility
Executive KMP as determined by the Board.
At risk payments
The LTI is a component of ‘at risk’ pay offered to Executive KMP. The number of performance
rights issued will depend on performance against predetermined KPIs with vesting occurring
upon reaching those hurdles.
The number of performance rights that vest is linked to relative Total Shareholder Return (TSR).
2022
% of TFR applied in LTI
CEO
50%
COO and CFO
35%
Other Executive KMP
25%
2021
% of TFR applied in LTI
CEO
50%
COO and CFO
35%
Other Executive KMP
20%
Performance conditions KPIs are set for the Group (where relevant).
Each KPI is weighted according to its importance in driving profitable performance and returns to
Shareholders.
KPIs for the CEO, Executive Directors and other Executive KMP comprise 100% against a Total
Shareholder Return (TSR) using a benchmark index namely the S&P/ASX Small Ordinaries
Accumulation Index (XSOAI) measured over a 3 year period.
TSR Comparator Group Assessed 100% against TSR using a benchmark index namely the S&P/ASX Small Ordinaries
Accumulation Index (XSOAI).
Assessment of KPIs
Performance is measured quantitatively and progress against key targets reported at full year.
Trigger for vesting
Assessed 100% against TSR using a benchmark index namely the S&P/ASX Small Ordinaries
Accumulation Index (XSOAI). The Board has discretion to not approve the vesting of the rights if
the TSR is negative.
Cessation of employment LTI may be forfeited if an Executive resigns or is terminated before the payment date.
In exceptional circumstances this may be reviewed by the Board.
DIRECTORS’ REPORT
REMUNERATION REPORT CONTINUED
5.6 LTI OUTCOMES
None of the applicable hurdles were met for the period 1 July 2019 to 30 June 2022 (3-year period) for rights to vest in the
LTI performance conditions above for Executives and KMP. Accordingly, no performance rights vested during FY22.
5.7 UNVESTED ENTITLEMENTS
It is the Company’s policy to prohibit executives from entering into transactions or arrangements which limit the economic
risk of participating in unvested entitlements under any equity-based remuneration schemes.
5.8 KMP OPTIONS
No options were granted during the period and no options were vested or were exercised during the period. At 30 June
2022 no options were held by KMP.
5.9 KMP PERFORMANCE RIGHTS
During the 2022 financial year 1,591,349 (2021: 2,843,084) performance rights were granted under the Group’s
Performance Rights Plan and 1,161,085 (2021: 1,529,493) performance rights were forfeited. Subject to the achievement
of designated performance hurdles, these performance rights will vest in June 2024. As at 30 June 2022 there were
4,434,433 (2021: 4,004,169) performance rights outstanding.
49
MACA LIMITED ANNUAL REPORT 2022
50
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
5.9 KMP PERFORMANCE RIGHTS (CONTINUED)
The number of rights over ordinary shares held by each KMP of the Group during the financial year is as follows:
30 June 2022
Balance at
beginning
of year
Granted as
remuneration
during the year
Exercised
during the
year
Other
changes
during the
year
Balance at
end of year
Vested and
exercisable
Vested and
unexercisable
Unvested at
end of year
Geoff Baker
Non-Executive Chairman
-
-
-
-
-
-
-
-
Linton Kirk
Non-Executive Director
-
-
-
-
-
-
-
-
Robert Ryan
Non-Executive Director
-
-
-
-
-
-
-
-
Sarah Dodds
Non-Executive Director
-
-
-
-
-
-
-
-
Nick Marinelli
Non-Executive Director
-
-
-
-
-
-
-
-
Rachel Rees
Non-Executive Director
-
-
-
-
-
-
-
-
Dan Flanagan
Non-Executive Director
-
-
-
-
-
-
-
-
Mike Sutton
Managing Director /
Chief Executive Officer
785,000
821,512
-
-
1,606,512
-
-
1,606,512
David Greig
Chief Development Officer
678,628
422,442
-
(125,015)
976,055
-
153,057
822,998
Peter Gilford
Chief Financial Officer /
Company Secretary
598,367
347,395
-
(115,819)
829,943
-
153,704
676,239
Total
2,061,995
1,591,349
-
(240,834)
3,412,510
-
306,761
3,105,749
DIRECTORS’ REPORT
REMUNERATION REPORT CONTINUED
5.10 KMP SHAREHOLDINGS
The number of ordinary shares in MACA Limited held by each KMP of the Group during the financial year is as follows:
30 June 2022
Balance at
beginning of
year
Granted as
remuneration
during the year
Increase
other
Issued on
exercise of
rights during
the year
Other changes
during the year
Balance at
end of year
Geoff Baker
Non-Executive Chairman
13,613,816
-
-
-
-
13,613,816
Linton Kirk
Non-Executive Director
143,750
-
-
-
(143,750)
-
Robert Ryan
Non-Executive Director
73,256
-
-
-
-
73,256
Sandra Dodds
Non-Executive Director
-
-
-
-
-
-
Nick Marinelli
Non-Executive Director
-
-
-
-
-
-
Rachel Rees
Non-Executive Director
-
-
-
-
-
-
David Flanagan
Non-Executive Director
-
-
-
-
-
-
Mike Sutton
Managing Director /
Chief Executive Officer
70,408
-
80,000
-
-
150,408
David Greig
Chief Development Officer
-
-
-
-
-
-
Peter Gilford
Chief Financial Officer /
Company Secretary
278,973
-
-
-
-
278,973
Total
14,180,203
-
80,000
-
(143,750)
14,116,453
51
MACA LIMITED ANNUAL REPORT 2022
52
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
5.11 KMP REMUNERATION
5.11.1 Employment benefi ts and payments for the year ended 30 June 2022
The following table sets out the benefits and payment details, in respect to the financial year, and the components of
remuneration for members of office holders and key management personnel of the consolidated group.
Short-term benefi ts
Post-employment
benefi ts
Long-term
benefi ts
Equity-settled
sharebased
payments
Salary, fees
and leave
Comm-
ittee
fees
Cash
bonus/
STI
Non-
monetary
Other
Super-
annuation
Other
Incentive
plans
LSL
Share /
Units
Options /
Rights
Total
Year
$
$
$
$
$
$
$
$
$
$
$
$
Executive Directors
Mike Sutton1
Managing Director /
Chief Executive Officer
2022
687,985
-
-
-
-
25,000
-
-
-
-
235,500
948,485
2021
681,500
-
-
-
-
25,000
-
-
-
-
117,750
824,250
Total compensation for
Executive Directors
2022
687,985
-
-
-
-
25,000
-
-
-
-
235,500
948,485
2021
681,500
-
-
-
-
25,000
-
-
-
-
117,750
824,250
Non-Executive Directors
Geoff Baker
Non-Executive
Chairman
2022
170,500
-
-
-
-
-
-
-
-
-
-
170,500
2021
443,522
-
-
-
-
-
-
-
-
-
-
443,522
Linton Kirk2
Non-Executive Director
2022
35,817
-
-
-
-
3,582
-
-
-
-
-
39,399
2021
84,658
-
-
-
-
8,043
-
-
-
-
-
92,701
Robert Ryan3
Non-Executive Director
2022
102,900
-
-
-
-
-
-
-
-
-
-
102,900
2021
94,554
-
-
-
-
-
-
-
-
-
-
94,554
Sandra Dodds4
Non-Executive Director
2022
24,007
-
-
-
-
2,401
-
-
-
-
-
26,408
2021
60,343
-
-
-
-
5,733
-
-
-
-
-
66,076
Nick Marinelli
Non-Executive Director
2022
90,119
-
-
-
-
9,012
-
-
-
-
-
99,131
2021
11,355
-
-
-
-
1,079
-
-
-
-
-
12,434
Rachel Rees6
Non-Executive Director
2022
66,600
-
-
-
-
-
-
-
-
-
-
66,600
2021
-
-
-
-
-
-
-
-
-
-
-
-
David Flanagan7
Non-Executive Director
2022
60,612
-
-
-
-
6,061
-
-
-
-
-
66,673
2021
-
-
-
-
-
-
-
-
-
-
-
-
Total compensation
for Non-Executive
Directors
2022
550,555
-
-
-
-
21,056
-
-
-
-
-
571,611
2021
694,432
-
-
-
-
14,855
-
-
-
-
-
709,287
DIRECTORS’ REPORT
REMUNERATION REPORT CONTINUED
5.11 KMP REMUNERATION (CONTINUED)
Short-term benefi ts
Post-employment
benefi ts
Long-term
benefi ts
Equity-settled
sharebased
payments
Salary, fees
and leave
Comm-
ittee
fees
Cash
bonus/
STI
Non-
monetary
Other
Super-
annuation
Other
Incentive
plans
LSL
Share /
Units
Options /
Rights
Total
Year
$
$
$
$
$
$
$
$
$
$
$
$
Executives (KMP)
David Greig
Chief Development
Officer
2022
525,346
-
-
-
-
25,000
-
-
-
-
148,184
698,530
2021
516,692
-
-
-
-
25,000
-
-
-
-
115,137
656,829
Peter Gilford
Chief Financial Officer /
Company Secretary
2022
445,339
-
-
-
-
25,000
-
-
-
-
126,787
597,126
2021
406,885
-
-
-
18,136
25,000
-
-
-
-
102,474
552,495
Michael Hunt
Executive GM Mining
2022
171,154
-
-
-
-
9,615
-
-
-
-
-
180,769
2021
-
-
-
-
-
-
-
-
-
-
-
-
Total compensation for
Executives
2022
1,141,839
-
-
-
-
59,615
-
-
-
-
274,971
1,476,425
2021
923,577
-
-
-
18,136
50,000
-
-
-
-
217,611
1,209,324
Andrew Edwards
Chairman
2022
-
-
-
-
-
-
-
-
-
-
-
-
2021
76,221
-
-
-
-
7,241
-
-
-
-
-
83,462
Christopher
Sutherland5
Non-Executive Director
2022
-
-
-
-
-
-
-
-
-
-
-
-
2021
19,085
-
-
-
-
1,813
-
-
-
-
-
20,898
Total compensation
for former KMP
2022
-
-
-
-
-
-
-
-
-
-
-
-
2021
95,306
-
-
-
-
9,054
-
-
-
-
-
104,360
1 Mike Sutton resigned as a Director and CEO effective 22 July 2022
2 Linton Kirk resigned as a Non-Executive Director effective 19 November 2021.
3 Robert Ryan was engaged on a contract basis through his business Hensman Properties to perform consulting work in
business development. The engagement was charged at hourly rates and is included in the amount of salary and fees
above.
4 Sandra Dodds resigned as a Non-Executive Director effective 30 September 2021
5 Chris Sutherland resigned as a Non-Executive Director effective 10 September 2020
6 Rachel Rees was appointed as a Non- Executive Director effective 8 November 2021
7 David Flanagan was appointed as a Non-Executive Director effective 30 September 2021
53
MACA LIMITED ANNUAL REPORT 2022
54
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
5.11.2 Employment details of members of key management personnel and other executives
The following table provides details of persons who were, during the financial year, members of key management
personnel of the consolidated Group. The table also sets out the proportion of remuneration that was performance and
non-performance based and the proportion of remuneration received in the form of options and performance rights..
Proportions of elements of remuneration related to performance
Proportions of
elements of
remuneration
not related to
performance
Non-salary cash-
based incentives
Shares / Units
Options / Rights
Fixed Salary / Fees
Total
Year
%
%
%
%
%
Executive Directors
Mike Sutton
Managing Director / Chief Executive Officer
2022
-
-
24.8
75.2
100.0
2021
-
-
14.3
85.7
100.0
Non-Executive Directors
Geoff Baker
Non-Executive Chairman
2022
-
-
-
100.0
100.0
2021
-
-
-
100.0
100.0
Linton Kirk
Non-Executive Director
2022
-
-
-
100.0
100.0
2021
-
-
-
100.0
100.0
Robert Ryan
Non-Executive Director
2022
-
-
-
100.0
100.0
2021
-
-
-
100.0
100.0
Sandra Dodds
Non-Executive Director
2022
-
-
-
100.0
100.0
2021
-
-
-
100.0
100.0
Nick Marinelli
Non-Executive Director
2022
-
-
-
100.0
100.0
2021
-
-
-
100.0
100.0
Rachel Rees
Non-Executive Director
2022
-
-
-
100.0
100.0
2021
-
-
-
-
-
David Flanagan
Non-Executive Director
2022
-
-
-
100.0
100.0
2021
-
-
-
-
-
Executives (KMP)
David Greig
Chief Development Officer
2022
-
-
21.2
78.8
100.0
2021
-
-
17.5
82.5
100.0
Peter Gilford
Chief Financial Officer /Company Secretary
2022
-
-
21.2
78.8
100.0
2021
-
-
18.5
81.5
100.0
Michael Hunt
Executive GM Mining
2022
-
-
-
100.0
100.0
2021
-
-
-
-
-
Former (KMP)
Andrew Edwards
Chairman
2022
-
-
-
-
-
2021
-
-
-
100.0
100.0
Chris Sutherland
Non-Executive Director
2022
-
-
-
-
-
2021
-
-
-
100.0
100.0
DIRECTORS’ REPORT
REMUNERATION REPORT CONTINUED
6.0 EXECUTIVE CONTRACTS
Executive contracts of service between the Company or company within the Group and KMP are on a continuing basis, the
terms of which are not expected to change in the immediate future. The notice period for termination varies from one to
three months.
Executive
Appointment to KMP
Notice period for contract cessation
Mike Sutton
Managing Director / Chief Executive Officer
24th February 2020
The contract is ongoing and has
no fixed term
The contract can be terminated by either party
with 6 months’ notice or payment in lieu
David Greig
Chief Development Officer
18th July 2016
The contract is ongoing and has
no fixed term
The contract can be terminated by either party
with 6 months’ notice or payment in lieu
Peter Gilford
Chief Financial Officer / Company Secretary
23rd July 2014
The contract is ongoing and has
no fixed term
The contract can be terminated by either party
with 3 months’ notice or payment in lieu
Michael Hunt
Executive General Manager Mining
1st February 2022
The contract is ongoing and has
no fixed term
The contract can be terminated by either party
with 3 months’ notice or payment in lieu
55
MACA LIMITED ANNUAL REPORT 2022
56
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
7.0 NON-EXECUTIVE DIRECTORS FEES
Non-executive Directors fees are determined within an aggregate director’s fee pool which is periodically recommended
for approval to shareholders. The current aggregate directors’ fee pool is $800,000. This provides for any future increases
to Non-executive Directors fees and to allow for any changes to the Board make up and potential increases in the number
of Non-executive Directors.
Fees paid to Non-executive Directors are set at levels which reflect both the responsibilities of, and time commitments
required from, each Non-executive Director to discharge their duties and are not linked to the financial performance of the
Company. Non-executive Directors fees are reviewed annually by the Board to ensure they are appropriate for the duties
performed, including Board committee duties, and are in line with the market.
Other than statutory superannuation, non-executive Directors are not entitled to retirement benefits.
Non-Executive Directors
$ / Chairman
Member
Geoff Baker
$170,500
Board
Audit Committee
Risk Committee
Remuneration Committee
Robert Ryan
$102,900
Remuneration
Audit Committee
Risk Committee
Remuneration Committee
Nick Marinelli
$102,900
Risk
Audit Committee
Risk Committee
Remuneration Committee
David Flanagan
$92,700
Audit Committee
Risk Committee
Remuneration Committee
Rachel Rees
$102,900
Audit
Audit Committee
Risk committee
Remuneration Committee
DIRECTORS’ REPORT
REMUNERATION REPORT CONTINUED
8.0 OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONS AND/OR RELATED PARTIES
Key management person and/or related party
Transaction
2022
$
2021
$
Partnership of which current director Mr G Baker is a
25% partner.
Expense - Rent on
Division St business
premises.
1,623,640
1,578,801
Gateway Equipment Parts & Services Pty Ltd
- a company of which current director Mr G.Baker’s
Family Trust is a 20% benefi cial shareholder.
Hire of equipment
and purchase of
equipment, parts and
services.
4,823,700
5,851,769
Gateway Equipment Parts & Services Pty Ltd
- a company of which current director Mr G.Baker’s
Family Trust is a 20% benefi cial shareholder.
Sale of equipment
(Revenue)
150,000
-
Amounts payable at year end arising from the above
transactions (Receivables Nil).
Gateway Equipment Parts & Services Pty Ltd - a company
of which current director Mr G.Baker’s Family Trust is a
20% benefi cial shareholder.
202,287
919,751
This Directors’ report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of
Directors.
On behalf of the Directors
Geoffrey Baker
Non-Executive Chairman
22 August 2022
Perth
57
MACA LIMITED ANNUAL REPORT 2022
58
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
AUDITOR’S INDEPENDENCE
DECLARATION
The Board of MACA Limited
is committed to ensuring that
the Company’s obligations and
responsibilities to its stakeholders
are fulfilled through its corporate
governance practices. MACA’s Vision is
to “Be Number 1 in what we do”, and
we achieve this by demonstrating the
Core Values of the Company – People
First, Exceed Expectations, Continuous
Improvement, Accountability and
Community. Our Core Values are
underpinned by our commitment to our
Promise – We Care, We are Flexible and
We Deliver. We believe that operating
in accordance with the corporate
governance guidelines enhances the
delivery of the above expectations.
This checklist reports on MACA’s
key governance principles and
practices which are reviewed and
revised as appropriate to reflect
changes in law and developments in
corporate governance. A complete
Corporate Governance Statement and
all Charters, Policies, Procedures,
Disclosures, Definitions, Codes and
Strategies are available for viewing
on the Company’s website under the
Corporate Governance tab.
As required by the Australian Securities
Exchange Limited (“ASX”) Listing
Rules, the Corporate Governance
Statement contained on the Company
website and in reference to this
checklist reports on:
- The extent to which the Company
has followed the Corporate
Governance recommendations
contained in the ASX Corporate
Governance Council’s Corporate
Governance Principles and
Recommendations (4th Edition);
and
- The reasons for any departures
from the Corporate Governance
Council’s Corporate Governance
Principles and Recommendations
(4th Edition), in compliance with the
“if not, why not” regime.
OVERALL APPROACH TO
CORPORATE GOVERNANCE
The Board as a whole reviews
and makes changes in line with
recommendations made by
individual Board members and as
a result of this focus, the Board is
satisfied that the Company meets
the Corporate Governance Council’s
Corporate Governance Principles and
Recommendations with departures
as disclosed below. There were no
departures during the year.
A checklist cross-referencing the
Corporate Governance Council’s
Corporate Governance Principles and
Recommendations to the relevant
sections of the Companies Corporate
Governance Statement (CGS) is
shown below.
CORPORATE GOVERNANCE
STATEMENT CHECKLIST
ASX CORPORATE GOVERNANCE
PRINCIPLES AND BEST PRACTICE RECOMMENDATIONS
REFERENCE AND
IF COMPLIANT
PRINCIPLE 1 - LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
A listed entity should clearly delineate the respective roles and responsibilities of its board
and management and regularly review their performance.
Recommendation 1.1
1.1
Board Charter in CGS
A listed entity should have and disclose a board charter setting out:
(a) the respective roles and responsibilities of its board and management; and
(b) those matters expressly reserved to the board and those delegated to management.
Recommendation 1.2
1.2
Board Charter in CGS
A listed entity should:
(a) undertake appropriate checks before appointing a director or senior executive or putting
someone forward for election as a director; and
(b) provide security holders with all material information in its possession relevant to a
decision on whether or not to elect or re-elect a director.
Recommendation 1.3
1.3
Remuneration Report in CGS
A listed entity should have a written agreement with each director and senior executive
setting out the terms of their appointment.
Recommendation 1.4
1.4
Board Charter in CGS
The company secretary of a listed entity should be accountable directly to the board,
through the chair, on all matters to do with the proper functioning of the board.
✓
✓
✓
✓
✓
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION
307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS
OF MACA LIMITED & CONTROLLED ENTITIES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 202Ϯ there have
been no contravenƟons of:
i.
the auditor independence requirements as set out in the CorporaƟons Act 2001 in relaƟon to
the audit; and
ii.
any applicable code of professional conduct in relaƟon to the audit.
SL TAN
MOORE AUSTRALIA AUDIT (WA)
PARTNER
CHARTERED ACCOUNTANTS
Signed at Perth this 2ϮŶĚ day of ƵŐƵƐƚ 202Ϯ
59
MACA LIMITED ANNUAL REPORT 2022
60
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
ASX CORPORATE GOVERNANCE
PRINCIPLES AND BEST PRACTICE RECOMMENDATIONS
REFERENCE AND
IF COMPLIANT
Recommendation 1.5
1.5
Diversity Procedure in CGS
A listed entity should:
(a) have and disclose a diversity policy;
(b) through its board or a committee of the board set measurable objectives for achieving
gender diversity in the composition of its board, senior executives and workforce generally;
and
(c) disclose in relation to each reporting period:
(1) the measurable objectives set for that period to achieve gender diversity;
(2) the entity’s progress towards achieving those objectives;
(3) either:
(A) the respective proportions of men and women on the Board, in senior executive
positions and across the whole workforce (including how the entity has defined
“senior executive” for these purposes); or
(B) if the entity is a “relevant employer” under the Workplace Gender Equality Act,
the entity’s most recent “Gender Equality Indicators”, as defined in and published
under the Act.
Recommendation 1.6
1.6
Disclosure - Performance
Evaluation in CGS
A listed entity should:
(a) have and disclose a process for periodically evaluating the performance of the board, its
committees and individual directors; and
(b) disclose for each reporting period whether a performance evaluation has been undertaken
in accordance with that process during or in respect of that period.
Recommendation 1.7
1.7
Disclosure - Performance
Evaluation in CGS
A listed entity should:
(a) have and disclose a process for evaluating the performance of its senior executives at least
once every reporting period; and
(b) disclose for each reporting period whether a performance evaluation has been undertaken
in accordance with that process during or in respect of that period.
PRINCIPLE 2 - STRUCTURE THE BOARD TO BE EFFECTIVE AND ADD VALUE
The board of a listed entity should be an appropriate size and collectively have the skills,
commitment and knowledge of the entity and the industry in which it operates, to enable it to
discharge its duties effectively and to add value.
Recommendation 2.1
2.1
Directors Report
Board Charter in CGS
Nomination Committee
Charter in CGS
The board of a listed entity should:
(a) have a nomination committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director, and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times the committee met throughout
the period and the individual attendances of the members at those meetings; or
(b) if it does not have a nomination committee, disclose the fact and the processes it employs
to address board succession issues and to ensure that the board has the appropriate balance
of skills, knowledge, experience, independence and diversity to enable it to discharge its
duties and responsibilities effectively.
CORPORATE GOVERNANCE STATEMENT CHECKLIST CONTINUED
✓
✓
✓
✓
ASX CORPORATE GOVERNANCE
PRINCIPLES AND BEST PRACTICE RECOMMENDATIONS
REFERENCE AND
IF COMPLIANT
Recommendation 2.2
2.2
A listed entity should have and disclose a Board skills matrix setting out the mix of skills that
the Board currently has or is looking to achieve in its membership.
Recommendation 2.3
2.3
Definition of
Independence in CGS
A listed entity should disclose:
(a) the names of the directors considered by the Board to be independent directors;
(b) if a Director has an interest, position, or relationship of the type described in the
recommendations but the board is of the opinion that it does not compromise the
independence of the director, the nature of the interest, position or relationship in question
and an explanation of why the board is of that opinion; and
(c) the length of service of each director.
Recommendation 2.4
2.4
A majority of the board of a listed entity should be independent directors.
Recommendation 2.5
The chair of the board of a listed entity should be an independent director and, in particular,
should not be the same person as the CEO of the entity.
2.5
Refer to commentary in CGS
Recommendation 2.6
2.6
Board Charter in CGS
Nomination Committee
Charter in CGS
A listed entity should have a program for inducting new directors and for periodically
reviewing whether there is a need for existing directors to undertake professional
development to maintain the skills and knowledge needed to perform their role as directors
effectively.
PRINCIPLE 3 - INSTIL A CULTURE OF ACTING LAWFULLY, ETHICALLY AND RESPONSIBLY
A listed entity should instil and continually reinforce a culture across the organisation of acting
lawfully, ethically and responsibly.
Recommendation 3.1
3.1
Corporate Code of
Conduct in CGS
A listed entity should articulate and disclose its values.
Recommendation 3.2
A listed entity should:
3.2
Corporate Code of
Conduct in CGS
(a) have and disclose a code of conduct for its directors, senior executives and employees; and
(b) ensure that the board or a committee of the board is informed of any material breaches of
that code.
Recommendation 3.3
3.3
Whistleblower
Procedure in CGS
A listed entity should:
(a) have and disclose a whistleblower policy; and
(b) ensure that the board or a committee of the board is informed of any material incidents
reported under that policy.
Recommendation 3.4
3.4
Anti-Bribery and
Corruption Procedure
in CGS
A listed entity should:
(a) have and disclose an anti-bribery and corruption policy; and
(b) ensure that the board or a committee of the board is informed of any material incidents
reported under that policy.
✓
✓
✓
✓
✓
✓
✓
✓
61
MACA LIMITED ANNUAL REPORT 2022
62
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
ASX CORPORATE GOVERNANCE
PRINCIPLES AND BEST PRACTICE RECOMMENDATIONS
REFERENCE AND
IF COMPLIANT
PRINCIPLE 4 - SAFEGUARD THE INTEGRITY OF CORPORATE REPORTS
A listed entity should have appropriate processes to verify the integrity of its corporate reports.
Recommendation 4.1
4.1
Audit Committee Charter in
CGS
The board of a listed entity should :
(a) have an audit committee which:
(1) has at least three members, all of whom are non-executive directors and a majority of
whom are independent directors; and
(2) is chaired by an independent director, who is not chair of the board, and disclose:
(3) the charter of the committee;
(4) the relevant qualifications and experience of the members of the committee; and
(5) in relation to each reporting period, the number of times the committee met throughout
the period and the individual attendances of the members at those meetings.
Recommendation 4.2
4.2
The Board of a listed entity should, before it approves the entity’s financial statements for a
financial period, receive from its Managing Director and Chief Financial Officer a declaration
that, in their opinion the financial records of the entity have been properly maintained and that
the financial statements comply with the appropriate accounting standards and give a true
and fair view of the financial position and performance of the entity and that the opinion has
been formed on the basis of a sound system of risk management and internal control which is
operating effectively.
Recommendation 4.3
4.3
A listed entity should disclose its process to verify the integrity of any periodic corporate
report it releases to the market that is not audited or reviewed by an external auditor.
PRINCIPLE 5 - MAKE TIMELY AND BALANCED DISCLOSURE
A listed entity should make timely and balanced disclosure of all matters concerning it that a
reasonable person would expect to have a material effect on the price or value of its securities.
Recommendation 5.1
5.1
Continuous
Disclosure in CGS
Compliance
Procedure in CGS
A listed entity should have and disclose a written policy for complying with its continuous
disclosure obligations under Listing Rule 3.1.
Recommendation 5.2
5.2
A listed entity should ensure that its board receives copies of all material announcements
promptly after they have been made.
Recommendation 5.3
5.3
A listed entity that gives a new and substantive investor or analyst presentation should release
a copy of the presentation materials on the ASX Market Announcements Platform ahead of the
presentation.
CORPORATE GOVERNANCE STATEMENT CHECKLIST CONTINUED
✓
✓
✓
✓
✓
✓
ASX CORPORATE GOVERNANCE
PRINCIPLES AND BEST PRACTICE RECOMMENDATIONS
REFERENCE AND
IF COMPLIANT
PRINCIPLE 6 - RESPECT THE RIGHTS OF SECURITY HOLDERS
A listed entity should provide its security holders with appropriate information and facilities to
allow them to exercise their rights as security holders effectively.
Recommendation 6.1
6.1
Shareholder
Communication
Strategy in CGS
A listed entity should provide information about itself and its governance to investors via its
website.
Recommendation 6.2
6.2
A listed entity should have an investor relations program that facilitates effective two-way
communication with investors.
Recommendation 6.3
6.3
Investor Centre in CGS
A listed entity should disclose how it facilitates and encourages participation at meetings of
security holders.
Recommendation 6.4
6.4
Shareholder
Communication
Strategy
in CGS
A listed entity should ensure that all substantive resolutions at a meeting of security holders
are decided by a poll rather than by a show of hands.
Recommendation 6.5
6.4
Shareholder
Communication
Strategy in CGS
A listed entity should give security holders the option to receive communications from, and
send communications to, the entity and its security registry electronically.
PRINCIPLE 7 - RECOGNISE AND MANAGE RISK
A listed entity should establish a sound risk management framework and periodically review
the effectiveness of that framework.
Recommendation 7.1
7.1
Risk Committee
Charter in CGS
The Board of a listed entity should:
(a) have a committee or committees to oversee risk, each of which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director, and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times the committee met throughout
the period and the individual attendances of the members at those meetings.
Recommendation 7.2
7.2
Disclosure -
Risk Management in CGS
The board or a committee of the board should:
(a) review the entity’s risk management framework at least annually to satisfy itself that it
continues to be sound and that the entity is operating with due regard to the risk appetite set
by the board; and
(b) disclose, in relation to each reporting period, whether such a review has taken place.
✓
✓
✓
✓
✓
✓
✓
63
MACA LIMITED ANNUAL REPORT 2022
64
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
ASX CORPORATE GOVERNANCE
PRINCIPLES AND BEST PRACTICE RECOMMENDATIONS
REFERENCE AND
IF COMPLIANT
Recommendation 7.3
7.3
In CGS
A listed entity should disclose:
(a) if it has an internal audit function, how the function is structured and what role it performs;
and
(b) if it does not have an internal audit function, that fact and the processes it employs for
evaluating and continually improving the effectiveness of its governance, risk management
and internal control processes.
Recommendation 7.4
A listed entity should disclose whether it has any material exposure to environmental or social
risks and, if it does, how it manages those risks.
7.4
In CGS
PRINCIPLE 8 - REMUNERATE FAIRLY AND RESPONSIBLY
A listed entity should pay director remuneration sufficient to attract and retain high quality
directors and design its executive remuneration to attract, retain and motivate high quality
senior executives and to align their interests with the creation of value for security holders and
with the entity’s values and risk appetite.
Recommendation 8.1
8.1
Remuneration Report
in CGS
Remuneration Committee
Charter in CGS
The board of a listed entity should:
(a) have a remuneration committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director, and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
as at the end of each reporting period, the number of times the committee met throughout the
period and the individual attendances of the members at those meetings.
Recommendation 8.2
8.2
Remuneration Report
in CGS
A listed entity should separately disclose its policies and practices regarding the remuneration
of non-executive directors and the remuneration of executive directors and other senior
executives.
Recommendation 8.3
8.3
Remuneration Report
in CGS
A listed entity which has an equity-based remuneration scheme should :
(a) have a policy on whether participants are permitted to enter into transactions (whether
through the use of derivatives or otherwise) which limit the economic risk of participating in
the scheme; and
(b) disclose that policy or a summary of it.
CORPORATE GOVERNANCE STATEMENT CHECKLIST CONTINUED
✓
✓
✓
✓
✓
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1. The financials set out on pages 67 to 115 are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards which as stated in the accounting policies included in the financial statements,
constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and
(b) give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year ended on
that date of the company and consolidated group;
2. Chief Executive Officer and Chief Finance Officer have each declared that:
(a) the financial records of the Group for the financial year have been properly maintained in accordance with s286 of
the Corporations Act 2001;
(b) the financial statements and notes for the financial year comply with the International Financial Reporting
Standards; and
(c) the financial statements and notes for the financial year give a true and fair view of the financial performance and
results of the entity.
In the Directors’ opinion there are reasonable grounds to believe that the Group will be able to pay its debts as and when
they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Geoffrey Baker
Non-Executive Chairman and Non Executive Director
Dated at 22 August 2022
65
MACA LIMITED ANNUAL REPORT 2022
66
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
CONSOLIDATED STATEMENT OF
PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2022
Section
30 June
2022
$’000
(Restated)*
30 June
2021
$’000
Continuing Operations
Revenue
3.1(a)
1,650,522
1,173,920
Other Income
3.1(b)
35,580
36,679
Direct Costs
3.3
(1,589,838)
(1,130,110)
Finance Costs
(10,563)
(8,521)
Impairment of Assets
3.3
(1,035)
(3,221)
Foreign Exchange Gains / (Losses)
2,547
(2,445)
Stamp Duty for Acquisition of Mining West
-
(9,392)
Other Expenses from Ordinary Activities
(35,231)
(24,997)
Profi t Before Income Tax
51,982
31,913
Income Tax Expense
3.6.1(a)
(14,405)
(11,246)
Profi t Aft er Tax from Continuing Operations
37,577
20,667
Discontinued Operations
Profit / (Loss) After Tax from Discontinued Operations
3.7
(1,831)
(3,666)
Transfer of Foreign Exchange Reserve on Discontinued Operations
62
(806)
Profi t / (Loss) for the Year
35,808
16,195
Other Comprehensive Income:
Exchange Differences on Translating Foreign Operations
5.7(b)
1,299
-
Total Comprehensive Income for the Year
37,107
16,195
Profit / (Loss) Attributable to:
- Non-Controlling Interest
(6,957)
1,784
- Members of the Parent Entity
42,765
14,411
35,808
16,195
Total Comprehensive Income Attributable to:
- Non-Controlling Interest
(6,957)
1,784
- Members of the Parent Entity
44,064
14,411
37,107
16,195
Earnings per Share
From Continuing and Discontinued Operations:
- Basic Earnings per Share (cents)
3.8
12.51
4.72
- Diluted Earnings per Share (cents)
3.8
12.31
4.64
From Continuing Operations:
- Basic Earnings per Share (cents)
3.8
13.03
6.18
- Diluted Earnings per Share (cents)
3.8
12.82
6.08
From Discontinued Operations:
- Basic Earnings per Share (cents)
3.8
(0.52)
(1.46)
- Diluted Earnings per Share (cents)
3.8
(0.51)
(1.44)
* The comparative Consolidated Statement of Profi t or Loss and Other Comprehensive Income for the year ended 30 June 2021 has
been restated for the change in fair value of Mining West Business according to AASB3 Busines Combinations. Refer to 6.1 for details.
The accompanying Sections form part of these Financial Statements.
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
As at 30 June 2022
Section
30 June
2022
$’000
(Restated)*
30 June
2021
$’000
Current Assets
Cash and Cash Equivalents
5.1.1
91,582
122,346
Trade and Other Receivables
4.1
278,607
279,789
Inventory
4.2
81,207
49,914
Other Financial Assets
4.1
6,939
30
Assets Held for Sale
4.3
31,694
-
Other Assets
4.4
1,327
8,418
Total Current Assets
491,356
460,497
Non-Current Assets
Trade and Other Receivables
4.1
7,281
9,469
Property, Plant and Equipment^
4.5
439,935
478,779
Loans to Other Companies
4.1
-
26,841
Other Assets
4.4
852
1,175
Other Financial Assets
4.1
1,267
-
Intangible Assets
4.6
2,046
4,139
Deferred Tax Assets
3.6.2(a)
29,661
23,406
Total Non-Current Assets
481,042
543,809
Total Assets
972,398
1,004,306
Current Liabilities
Trade and Other Payables
4.7
242,106
246,622
Deferred Consideration Payable
4.7
-
38,500
Interest Bearing Liabilities
5.2.1
104,311
97,331
Current Tax Liabilities
3.6.2(b)
6,151
10
Short-Term Provisions
4.8
34,953
32,431
Total Current Liabilities
387,521
414,894
Non-Current Liabilities
Deferred Tax Liabilities
3.6.2(b)
1,250
1,099
Interest Bearing Liabilities
5.2.1
181,333
205,240
Total Non-Current Liabilities
182,583
206,339
Total Liabilities
570,104
621,233
Net Assets
402,294
383,073
Equity
Issued Capital
5.6
342,267
342,267
Reserves
5.7
(3,999)
(5,298)
Retained Profits
66,466
40,787
Parent Interest
404,734
377,756
Non-Controlling Interest
(2,440)
5,317
Total Equity
402,294
383,073
* The comparative Consolidated Statement of Profi t or Loss and Other Comprehensive Income for the year ended 30 June 2021 has
been restated for the change in fair value of Mining West Business according to AASB3 Busines Combinations. Refer to 6.1 for details.
^Includes Right-Of-Use Assets
The accompanying Sections form part of these Financial Statements
67
MACA LIMITED ANNUAL REPORT 2022
68
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
CHANGES OF EQUITY
For the Year Ended 30 June 2022
Issued
Capital
Retained
Profi ts
Outside
Equity
Interest
General
Reserves
Option
Reserve
FX
Reserve
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance at 1 July 2020
269,806
41,619
3,533
(5,888)
590
-
309,660
Restated Profit / (Loss)
for the Year*
-
14,411
1,784
-
-
-
16,195
SUB-TOTAL
269,806
56,030
5,317
(5,888)
590
-
325,855
Other Comprehensive Income:
Forex in Translating
Foreign Operations
-
-
-
-
-
-
-
SUB-TOTAL
269,806
56,030
5,317
(5,888)
590
-
325,855
Shares Issued (net of costs)
72,461
-
-
-
-
-
72,461
Dividends Paid
-
(15,243)
-
-
-
-
(15,243)
Balance at 30 June 20210
342,267
40,787
5,317
(5,888)
590
-
383,073
Balance at 1 July 2021
342,267
40,787
5,317
(5,888)
590
-
383,073
Profit / (Loss) for the Year
-
42,765
(6,957)
-
-
-
35,808
SUB-TOTAL
342,267
83,552
(1,640)
(5,888)
590
-
418,881
Other Comprehensive Income:
Forex in Translating Foreign
Operations
-
-
-
-
-
1,299
1,299
SUB-TOTAL
342,267
83,552
(1,640)
(5,888)
590
1,299
420,180
Dividends Paid
-
(17,086)
(800)
-
-
-
(17,886)
Balance at 30 June 2022
342,267
66,466
(2,440)
(5,888)
590
1,299
402,294
CONSOLIDATED STATEMENT OF
CASH FLOWS
For the Year Ended 30 June 2022
Section
30 June
2022
$’000
30 June
2021
$’000
Cash Flows From Operating Activities
Receipts from Customers
1,656,160
1,040,442
Payments to Suppliers and Employees
(1,498,923)
(901,306)
Interest Received
164
289
Interest Paid
(10,563)
(8,521)
Income Tax Paid
(14,368)
(12,154)
Net Cash Provided By / (Used In) Operating Activities
5.1.2
132,470
118,750
Cash Flow From Investing Activities
Proceeds from Sale of Property, Plant and Equipment
20,409
2,838
Purchase of Property, Plant and Equipment*
(78,705)
(91,980)
Net Loans Repaid by / (Provided to) Customers
-
(100)
Purchase of Investments
(7,079)
-
Acquisition of Mining West
(38,500)
(136,500)
Net Cash Provided By / (Used In) Investing Activities
(103,875)
(225,742)
Cash Flow From Financing Activities
Net Proceeds from Share Issue
-
72,461
Proceeds from Borrowings*
61,513
144,939
Repayment of Borrowings
5.1.2
(104,141)
(85,212)
Dividends Paid by the Parent
(17,886)
(15,243)
Net Cash Provided by / (Used In) Financing Activities
(60,514)
116,945
Net Increase/(Decrease) in Cash Held
(31,919)
9,953
Effect of Forex Rate Changes
1,155
(2,257)
Cash and Cash Equivalents at the Beginning of the Year
122,346
114,650
Cash and Cash Equivalents at the End of the Year
5.1.1
91,582
122,346
* Non-Cash Financing and Investing Activities
During the period ended 30 June 2022 the Group acquired $21.8 million (2021:$50.9m) in plant and equipment by means of
finance leases (included in right-of-use assets), directly from original equipment manufacturers. These acquisitions are not
reflected above.
The accompanying Sections form part of these Financial Statements
CONSOLIDATED STATEMENT OF
* The comparative Profi t or Loss for the year ended 30 June 2021 has been restated for the change in fair value of Mining West
Business according to AASB3 Busines Combinations. Refer to 6.1 for details.
The accompanying Sections form part of these Financial Statements.
69
MACA LIMITED ANNUAL REPORT 2022
70
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTION 1 GENERAL INFORMATION
1.1 REPORTING ENTITY
MACA Limited (MLD) is a limited company incorporated
in Australia. The addresses of the Company’s registered
office and principal place of business are disclosed in
the Corporate Directory. The principal activities of the
Company are described in the Directors’ Report.
The Financial Statements were authorised for issue by
the Directors on 22nd August 2022.
1.2 BASIS OF PREPARATION
The financial statements are general purpose financial
statements that have been prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements
of the Australian Accounting Standards Board and the
Corporations Act 2001. The Company is a for profit
entity for financial reporting purposes under Australian
Accounting Standards. These financial statements also
comply with International Financial Reporting Standards
as issued by the International Accounting Standards
Board (IASB).
Australian Accounting Standards set out accounting
policies that the AASB has concluded would result in
financial statements containing relevant and reliable
information about transactions, events and conditions.
Compliance with Australian Accounting Standards
ensures that the financial statements and notes also
comply with International Financial Reporting Standards
as issued by the IASB. Material accounting policies
adopted in the preparation of these financial statements
are presented below and have been consistently applied
unless otherwise stated.
These financial statements have been prepared on
an accruals basis and are based on historical costs,
modified, where applicable, by the measurement at fair
value of selected non-current assets, financial assets
and financial liabilities. These financial statements
are presented in Australian dollars and rounded to the
nearest thousand ($’000), unless otherwise stated,
in accordance with ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191.
1.3 BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the
assets and liabilities of all subsidiaries of MACA Limited
(the ‘Company’) as at 30 June 2022 and the results of
all subsidiaries for the year then ended. MACA Limited
and its subsidiaries together are referred to in these
financial statements as the “Group” or “Consolidated”.
Subsidiaries are all those entities over which the
Company has control. The Company controls an entity
when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability
to affect those returns through its power to direct
the activities of the entity. Subsidiaries are fully cons
lidated from the date on which control is transferred to
the Group.
Intercompany transactions, balances and unrealised
gains on transactions between entities in the Group
are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies
of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the
Group.
The acquisition of subsidiaries is accounted for using
the acquisition method of accounting. A change in
ownership interest, without the loss of control, is
accounted for as an equity transaction, where the
difference between the consideration transferred and
the book value of the share of the non-controlling
interest acquired is recognised directly in equity
attributable to the parent.
Non-controlling interest in the results and equity of
subsidiaries are shown separately in the statement
of profit or loss and other comprehensive income,
statement of financial position and statement of
changes in equity of the Group.
1.4 NEW ACCOUNTING STANDARDS ADOPTED BY THE
GROUP DURING THE YEAR
The Group has considered the implications of new or
amended Accounting Standards, but determined that
their application to the financial statements is either
not relevant or not material.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
1.5 NEW ACCOUNTING STANDARDS FOR
APPLICATION IN FUTURE PERIODS
A number of new accounting standards, amendments to
standards and interpretations are not yet effective for the
30 June 2022 reporting period and have not been early
adopted in preparing these financial statements.
- AASB 2020-1: Amendments to Australian Accounting
Standards – Classifi cation of Liabilities as Current or
Non-current
- AASB 2020-3: Amendments to Australian Accounting
Standards – Annual Improvements 2018-2020 and
Other Amendments
AASB 2020-3: Amendments to Australian Accounting
Standards – Annual Improvements 2018-2020 and Other
Amendments is an omnibus standard that amends AASB
1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB 141.
- AASB 2021-2: Amendments to Australian Accounting
Standards – Disclosure of Accounting Policies and
Defi nition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB
108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the
following International Financial Reporting Standards:
Disclosure of Accounting Policies (Amendments to
IAS 1 and IFRS Practice Statement 2) and Definition of
Accounting Estimates (Amendments to IAS 8).
- AASB 2021-5: Amendments to Australian Accounting
Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendment amends the initial recognition
exemption in AASB 112: Income Taxes such that it is not
applicable to leases and decommissioning obligations
– transactions for which companies recognise both an
asset and liability and that give rise to equal taxable and
deductible temporary differences.
The Directors’ assessment of these new accounting
standards (to the extent relevant to the Group) and
interpretations is that they are not expected to have a
material effect on the financial statements of the Group.
1.6 COMPARATIVE FIGURES
When required by Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial year.
When the Group applies an accounting policy
retrospectively, makes a retrospective restatement
or reclassifies items in its financial statements, a
statement of financial position as at the beginning of
the earliest comparative period will be disclosed.
The comparative Consolidated Statement of Financial
Position as at 30 June 2021 and of its performance
for the year ended 30 June 2021 have been restated
for the change in fair value of Mining West Business
according to AASB3 Business Combinations. Refer to
Note 6.1 for details.
SECTION 2 CRITICAL ACCOUNTING ESTIMATES
AND JUDGEMENTS
The
Directors
evaluate
estimates
and
judgments
incorporated into the financial report based on historical
knowledge and best available current information. Estimates
assume a reasonable expectation of future events and are
based on current trends and economic data, obtained both
externally and within the Group.
KEY ESTIMATES AND JUDGEMENTS
Impairment - Property, Plant and Equipment
The Group assesses impairment at the end of each reporting
period by evaluating conditions and events specific to
the Group that may be indicative of impairment triggers.
Recoverable amounts of relevant assets are reassessed
using value-in-use calculations which incorporate various key
assumptions.
The value in use calculations with respect to assets require
an estimation of the future cash flows expected to arise
from each cash generating unit and a suitable discount rate
to apply to these cash flows to calculate net present value.
The Directors have determined that there is no adjustment
required to the carrying value of assets in the current
reporting period.
Impairment - Trade and Other Receivables (including
contract assets) and Loans to Other Companies
As at 30 June 2022, the Group’s trade and other receivables
(including contract assets) and loans to other companies
amounted to $285.9m (30 June 2021: $317.1m), before
recognition of any impairment.
Based on the Group’s historical credit loss experience, trade
receivables and loans to other companies exhibit different
loss patterns for each revenue segment. Where the Group
has common customers across the different geographical
regions it applies credit evaluations firstly by segment,
where payment profiles exceed 12 months. Receivables
identified within each revenue segment, are then evaluated
on an individual basis. Management has assessed and
impaired receivables by $267k, being bad debts written off
through the profit and loss (30 June 2021: $4.2m).
Taxation
Balances disclosed in the financial statements and the
notes thereto, related to taxation, are based on best
estimates. These estimates take into account both the
financial performance and position of the Group as they
pertain to current income taxation legislation, and the
Group’s understanding thereof. No adjustment has been
made for pending or future taxation legislation. The current
income tax position represents that best estimate, pending
an assessment by the Australian Taxation Office.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
71
MACA LIMITED ANNUAL REPORT 2022
72
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
Estimation of Useful Lives of Assets
The estimation of the useful lives of property, plant and
equipment is based on historical experience and is reviewed
on an ongoing basis. The condition of the assets is assessed
at least annually against the remaining useful life with
adjustments made when considered necessary.
Acquisition of Mining West Business
On 1 February 2021, MACA acquired Mining West Business
for a total consideration of $175m at which time the value of
the assets acquired and liabilities assumed were recognised.
During the half year period, the fair value of certain assets
acquired has been amended and the retrospective impact
on the financial statements is summarised in Note 6.1. The
goodwill of $0.48m represents the residual value of the
purchase price over the fair value of the identifiable assets
acquired and liabilities assumed.
Impairment - Investment in Wiluna Mining Corporation
Limited
Subsequent to 30 June 2022, the shares of Wiluna Mining
Corporation Limited (“Wiluna”) have been suspended from
quotation immediately under Listing Rule 17.3, following
the appointment of voluntary administrators. As a result,
an impairment of
$1.035m has been made for the remaining value of the
investment in Wiluna for the year ended 30 June 2022.
SECTION 3 RESULTS FOR THE YEAR
This section focuses on the results and performance of the Group and includes disclosures explaining the Group’s results
for the year, segment information, capital commitments, taxation, profit/(loss) from discontinued operations and EPS.
3.1 REVENUE
Accounting Policies
Revenue Recognition
Under AASB 15, revenue is recognised when the performance
obligations are considered met, which can be at a point
in time, or over time, depending on the various service
offerings. Major activities of the Group are detailed below.
Contract Services
Contracts for services includes contract mining, drill and
blast, excavation, earthmoving, crushing, infrastructure
and road construction and maintenance.
The relevant performance obligations are fulfilled over time
as the Group enhances assets which the customer controls,
for which the Group does not have an alternative use and for
which the Group has a right to payment for performance to
date and as such revenue is recognised over time.
Revenue is measured and recognised monthly using the
outputs method, either based on units of production
(typically for contract mining services, which is the largest
segment in the Group) or on the achievement of milestones
(generally for civil and infrastructure projects) at agreed
contract rates that are aligned with the stand alone selling
prices for each performance obligation. The majority of the
Group’s revenue (i.e. in respect of mining services) is paid
one month in arrears and therefore gives rise to a process
of invoicing or accruing revenue monthly, based on the
achievement of contractually agreed production related
measures, as noted above.
For rental of equipment, as the customer simultaneously
receives and consumes the benefits, the Group has an
enforceable right to payment, based on agreed contract
rates, and as such the performance obligation is fulfilled
over time.
The total transaction price for contract services may include
variable consideration. Variable consideration is only
recognised and recorded in the accounts to the extent that it
is highly probable that a significant reversal in the amount of
revenue recognised will not occur.
Sale of Inventory
Revenue recognised at a point in time is only 0.08% of
the Group’s trading revenue. This is noted under note 3.2
Operating Segments and refers only to Interquip revenues
of which 0.9% of their trading revenues comprise the sale
of inventory. At the point of recognising the revenue the
Group has agreed the price of the transaction, transferred
the physical asset and the customer has accepted control of
the asset and its intended use of the asset.
Other Revenue
Other revenue and other income primarily includes profit or
loss on sale of assets or investments, dividends received,
government rebates (including diesel fuel rebates) and
interest income which is recognised on an accrual basis.
All dividends received are recognised as revenue when the
right to receive the dividend has been established.
All revenue is stated net of the amount of goods and services
tax (GST).
2.0 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.2 OPERATING SEGMENTS
Identifi cation of Reportable Segment
The Group identifies its operating segments based on internal
reports that are reviewed and used by the Board of Directors
(chief operating decision maker) in assessing performance
and determining the allocation of resources.
The Group operates in three businesses and currently
three geographical segments. The business segments are
for the provision of contract mining, civil & infrastructure,
and structural, mechanical and piping (through Interquip)
services to the resource sector. The three geographical
segments being Australia, Brazil and Cambodia. Operations in
Brazil have been discontinued since 2020 and are presented
separately in the table below.
Basis of Accounting for Purposes of Reporting by
Operating Segments
Accounting Policies Adopted
Unless otherwise stated, all amounts reported to the Board
of Directors as the chief operating decision maker, are in
accordance with accounting policies that are consistent to
those adopted in the financial statements of the Group.
Inter-segment transactions
Inter-segment loans payable and receivable are initially
recognised at the consideration received net of transaction
costs. If inter- segment loans receivable and payable are
not on commercial terms, these are not adjusted to fair
value based on market interest rates. This policy represents
a departure from that applied to the statutory financial
statements.
Segment assets
Where an asset is used across multiple segments, the
asset is allocated to the segment that receives the
majority of economic value from the asset. In the majority
of instances, segment assets are clearly identifiable on the
basis of their nature and physical location.
Unless indicated otherwise in the segment assets note,
investments in financial assets, deferred tax assets and
intangible assets have not been allocated to operating
segments.
Segment liabilities
Liabilities are allocated to segments where there is direct
nexus between the incurrence of the liability and the
operations of the segment. Segment liabilities include
trade and other payables and certain direct borrowings.
Unallocated items
The following items of revenue and expense are not
allocated to operating segments as they are not considered
part of the core operations of any segment:
- Dividends, interest, foreign exchange, head office and
other administration expenditure.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.1 REVENUE (CONTINUED)
The following is an analysis of the Group’s revenue and other income for the year:
30 June
2022
30 June
2021
Continuing Operations
Section
$’000
$’000
3.1(a) Revenue from Continuing Operations
Contract Trading Revenue
1,649,890
1,173,423
Interest Received
41
79
Other Revenue
591
418
Total Revenue from Continuing Operations
1,650,522
1,173,920
3.1(b) Other Income from Continuing Operations
Profit / (Loss) on Disposal of Property, Plant and Equipment
1,632
1,020
Unrealised Gain on Other Financial Assets
2,131
-
Rebates
31,817
35,659
Total Other Income from Continuing Operations
35,580
36,679
73
MACA LIMITED ANNUAL REPORT 2022
74
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.2 OPERATING SEGMENTS (CONTINUED)
3.2 OPERATING SEGMENTS (CONTINUED)
Consolidated - 30 June 2022
Mining
Civil/
Infrastructure
Interquip^
Unallocated
Total
$’000
$’000
$’000
$’000
$’000
Revenue
Reportable Segment Revenue
1,356,977
159,417
133,708
420
1,650,522
Other Revenue
32,833
46
(131)
2,832
35,580
Total Revenue
1,389,810
159,463
133,577
3,252
1,686,102
EBITDA*
204,178
6,149
(21,846)
2,384
190,865
Depreciation and Amortisation
(124,064)
(1,373)
1,889)
-
(127,326)
EBIT
80,114
4,776
(23,735)
2,384
63,539
Non-Recurring Transactions 1
-
-
(1,035)
-
(1,035)
Interest Revenue
41
-
-
-
41
Finance Costs
(10,332)
(158)
(73)
-
(10,563)
Net Profi t/(Loss) Before Tax
69,823
4,618
(24,843)
2,384
51,982
Income Tax Expense
(14,405)
Net Profi t Aft er Tax
37,577
Net Loss After Tax from Discontinued Operations
(1,769)
Profi t / (Loss) for the Year
35,808
Assets
Segment Assets
810,051
68,898
41,317
52,132
972,398
Total Assets
972,398
Liabilities
Segment Liabilities
492,289
48,831
23,034
5,950
570,104
Total Liabilities
570,104
Capital Expenditure
97,280
548
4,479
-
102,307
*EBITDA is Earnings Before Interest, Income Tax, Non-Recurring Transactions, Depreciation and Amortisation of Continuing
Operations.
1Non-Recurring Transactions include the impairment of investment in Wiluna Mining Corporation Limited.
Disaggregation of Revenue
^ 0.9% of Interquip segment revenue has been derived at a point in time. This represents only 0.08% of the Group’s total
trading revenue. All other Group revenue is derived over time.
Consolidated - 30 June 2021
(Restated)#
Mining
Civil/
Infrastructure
Interquip^
Unallocated
(Restated)#
$’000
$’000
$’000
$’000
$’000
Revenue
Reportable Segment Revenue
870,524
210,263
95,573
(2,440)
1,173,920
Other Revenue
36,606
22
51
-
36,679
Total Revenue
907,130
210,285
95,624
(2,440)
1,210,599
EBITDA*
148,834
(960)
10,924
(1,252)
157,546
Depreciation and Amortisation
(92,883)
(1,747)
(1,309)
-
(95,939)
EBIT
55,951
(2,707)
9,615
(1,252)
61,607
Non-Recurring Transactions^
(15,586)
-
(3,221)
(2,445)
(21,252)
Interest Revenue
66
8
-
5
79
Finance Costs
(8,383)
(101)
(37)
-
(8,521)
Net Profi t/(Loss) Before Tax
32,048
(2,800)
6,357
(3,692)
31,913
Income Tax Expense
(11,246)
Net Profi t Aft er Tax
20,667
Net Loss After Tax from Discontinued Operations
(4,472)
Profi t / (Loss) for the Year
16,195
Assets
Segment Assets
855,855
60,802
40,952
46,697
1,004,306
Total Assets
1,004,306
Liabilities
Segment Liabilities
554,191
38,032
26,481
2,529
621,233
Total Liabilities
621,233
Capital Expenditure
277,664
1,056
3,406
-
282,126
# The comparative operating segments for the year ended 30 June 2021 has been restated for the change in fair value of
Mining West Business according to AASB3 Business Combinations. Refer to Note 6.1 for details.
*EBITDA is Earnings Before Interest, Income Tax, Non-Recurring Transactions, Depreciation and Amortisation of Continuing
Operations.
^Non-Recurring Transactions include forex losses and Bluff cessation costs.
75
MACA LIMITED ANNUAL REPORT 2022
76
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.2 OPERATING SEGMENTS (CONTINUED)
30 June
2022
$’000
30 June
2021
$’000
30 June
2022
$’000
(Restated)#
30 June
2021
$’000
Geographical Information
Australia
1,597,055
1,157,118
454,039
514,363
Cambodia
53,467
16,802
27,003
29,445
Brazil (Discontinued Operations)
238
211
-
1
Total
1,650,760
1,174,131
481,042
543,809
# The comparative Non-Current Assets as at 30 June 2021 has been restated for the change in fair value of Mining West
Business according to AASB3 Business Combinations. Refer to Note 6.1 for details.
Major Customers
The Group has a number of customers to whom it provides both products and services. The Group supplies 3 single external
customers in the mining segment which account for 12.2%, 8.9% and 7.1% of external revenue. (2021: 20.6%, 9.4% and
7.3%). The next most significant client across the Group accounts for 5.1% (2021: 6.7%) of external revenue.
3.3 OPERATING COSTS FROM CONTINUING OPERATIONS
30 June
30 June
2022
2021
Expenses
Section
$’000
$’000
Depreciation and Amortisation
– Plant and Equipment
119,429
91,418
– Motor Vehicles
407
1,271
– Other
7,490
3,250
Total Depreciation and Amortisation Expense
127,326
95,939
The amount above excludes the depreciation of $nil (2021: $23k) for discontinued operations.
Employee Benefits Expense
601,514
444,075
Repairs, Service and Maintenance
169,715
105,194
Materials and Supplies
289,990
179,746
Hire of Plant and Equipment
101,784
72,799
Subcontractor Costs
73,862
66,601
Others
225,647
165,756
Total Direct Costs
1,589,838
1,130,110
The comparatives for operating costs only include Mining West since acquisition date 1 February 2021.
Impairment of Assets
Impairment of Receivables
-
3,221
Impairment of Investment in Wiluna Mining Corporation Limited
1,035
-
Total Impairment
1,035
3,221
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.4 CAPITAL AND LEASING COMMITMENTS
Accounting Policies
Leases
AASB 16 Leases was adopted by the Group at 1 July 2019 and contains significant changes to the accounting treatment
of leases around how to recognise, measure and disclose. The new standard provides a single lessee accounting model,
requiring lessees to recognise assets and liabilities for all leases, with exception of short term (less than 12 months) and low
value leases.
The Group manages its owned and leased assets to ensure there is an appropriate level of equipment to meet its current
obligations and to tender for new work. The decision as to whether to lease or purchase an asset is dependent on the finance
available at the time and the residual risk of ownership following the anticipated completion of the project.
30 June
2022
$’000
30 June
2021
$’000
(a) Capital Expenditure Commitments
Plant and Equipment Purchases
Payable
– Not Later Than 12 Months
69,890
28,384
– Between 12 Months and 5 Years
-
-
– Greater Than 5 Years
-
-
Total Minimum Commitments
69,890
28,384
$69.9m of commitments for property, plant and equipment expenditure existed at 30 June 2022 (2021: $28.4m)
3.5 AUDITOR’S REMUNERATION
30 June
30 June
30 June
30 June
2022
2022
2021
2021
Auditor’s Remuneration - Moore Australia (WA)
Auditor’s Remuneration - Moore Australia (WA)
$’000
$’000
$’000
$’000
Audit or Review of the Financial Report
Audit or Review of the Financial Report
249
249
245
245
Other Non-Audit Services
Other Non-Audit Services
- -
- -
Taxation Services
Taxation Services
- -
- -
Total Auditor’s Remuneration
Total Auditor’s Remuneration
249
249
239
239
77
MACA LIMITED ANNUAL REPORT 2022
78
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.6 TAXATION
Accounting Policies
Income tax
The income tax expense (revenue) for the year comprises
current income tax expense (income) and deferred tax
expense (income).
Current income tax expense charged to the profit or loss
is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially
enacted, as at the end of the reporting period. Current tax
liabilities (assets) are therefore measured at the amounts
expected to be paid to (recovered from) the relevant taxation
authority.
Deferred income tax expense reflects movements in deferred
tax asset and deferred tax liability balances during the year
as well as unused tax losses. Current and deferred income
tax expense (income) is charged or credited directly to equity
instead of the profit or loss when the tax relates to items that
are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based
on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the
financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions
are available. No deferred income tax will be recognised
from the initial recognition of an asset or liability, excluding a
business combination, where there is no effect on accounting
or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax
rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates
enacted or substantively enacted at the end of the reporting
period. Their measurement also reflects the manner in which
management expects to recover or settle the carrying amount
of the related asset or liability.
Deferred tax assets relating to temporary differences and
unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against
which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments
in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where
the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in
the foreseeable future.
Current tax assets and liabilities are offset where a legally
enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the
respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of
set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities where it
is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred tax
assets or liabilities are expected to be recovered or settled.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Taxation Office. In these
circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the statement of cashflows on
a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating
cash flows.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.6 TAXATION (CONTINUED)
Continuing Operations
Section
30 June
2022
$’000
(Restated)*
30 June
2021
$’000
3.6.1 Income Tax Expense
(a) The Components of Tax Expense Comprise:
Current
20,509
8,920
Deferred
3.6.3 (a)
(6,104)
2,326
Income Tax Expense
14,405
11,246
(b) Reconciliation:
Prima Facie Tax Payable on Profit From Ordinary Activities Before Income Tax at 30% (2021: 30%)
15,595
9,574
Add Tax Effect of
– Dividend Imputation
2,351
1,960
– Other Non-Allowable Items
1,268
1,772
– Other Taxable Items
3,737
5,007
– Under/(Over) provision of Prior Years’ Tax Expense
304
(441)
Less Tax Effect of
– Franking Credits on Dividends Received
(7,837)
(6,533)
– Other Deductible Items
(1,013)
(93)
Income tax attributable to the Group
14,405
11,246
The Applicable Weighted Average Effective Tax Rate as
28%
31%
* The comparative Income Tax for the year ended 30 June 2021 has been restated for the change in fair value of Mining West Business
according to AASB3 Business Combinations. Refer to Note 6.1 for details.
30 June
2022
$’000
(Restated)*
30 June
2021
$’000
Section
3.6.2 Tax Assets and Liabilities
(a) Tax Assets
Non-Current
Deferred Tax Assets comprise:
Provisions
3.6.3(c)
12,745
12,043
Losses
3.6.3(c)
10,676
7,054
Other
3.6.3(c)
6,240
4,309
Total Non-Current Tax Assets
29,661
23,406
(b) Tax Liabilities
Current
Income tax
6,151
10
Total Current Tax Liabilities
6,151
10
Non-Current
Deferred Tax Liabilities comprises:
Depreciation
-
1,099
Other
1,250
-
Total Non-Current Tax Liabilities
3.6.3(b)
1,250
1,099
* The comparative Deferred Tax Assets as at 30 June 2021 has been restated for the change in fair value of Mining West Business
according to AASB3 Business Combinations. Refer to Note 6.1 for details.
79
MACA LIMITED ANNUAL REPORT 2022
80
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.6 TAXATION (CONTINUED)
30 June
(Restated)*
30 June
2022
2021
Section
$’000
$’000
3.6.3 Reconciliations
(a) Gross Movements
The Overall Movement In the Deferred Tax Account is as follows:
Opening Balance
22,307
23,558
(Charge)/Credit To Income Statement
6,104
(2,326)
(Charge)/Credit To Equity
-
1,075
Closing Balance
28,411
22,307
(b) Deferred Tax Liabilities
The Movement In Deferred Tax Liabilities For Each Temporary Difference During the Year is as follows:
Depreciation and Other:
Opening Balance
1,099
-
Charge/(Credit) To Income Statement
151
1,099
Closing Balance
1,250
1,099
(c) Deferred Tax Assets
The Movement In Deferred Tax Assets For Each Temporary Difference During the Year is as follows:
Provisions:
Opening Balance
12,043
5,725
(Charge) / Credit to Equity
-
1,075
Credit To Income Statement
702
5,244
Closing Balance
12,745
12,043
Losses:
Opening Balance
7,054
2,733
(Charge)/Credit To Income Statement
3,622
4,321
Closing Balance
10,676
7,054
Other:
Opening Balance
4,309
15,101
(Charge)/Credit To Income Statement
1,931
(10,792)
Closing Balance
6,240
4,309
*The comparative Deferred Tax Assets as at 30 June 2021 has been restated for the change in fair value of Mining West Business according
to AASB3 Business Combinations. Refer to Note 6.1 for details.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.7 PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS
Accounting Policies
A discontinued operation is a component of the entity
that either has been disposed of, ceased operation or is
classified as heldfor sale, and
- represents a separate major line of business or
geographical area of operations;
- is part of a single co-ordinated plan to dispose of a
separate major line of business or geographical area of
operations; or
- is a subsidiary acquired exclusively with a view to resale.
Profit or loss from discontinued operations, including prior
year components of profit or loss, is presented in a single
amount in the Consolidated Statement of Profit or Loss and
Other Comprehensive Income. This amount comprises the
post-tax profit or loss of discontinued operations and the
post-tax gain or loss resulting from the measurement and
disposal of assets classified as held for sale (if any).
Discontinued Operations
On 21 January 2020, the Group announced the cessation
of the operations in Brazil. This followed the termination of
the contract at Antas for AVB Mineracao Ltda, a subsidiary
of Oz Minerals Ltd. The Group had relocated the plant and
equipment back to Australia for deployment to existing and
new projects.
The financial performance of the discontinued operations,
is included in profit / (loss) from discontinued operations
on the face of Consolidated Statement of Profit or Loss and
Other Comprehensive Income, is as follows:
Section
30 June
2022
$’000
30 June
2021
$’000
Revenue
238
211
Other Income
-
102
Direct Costs
(1,803)
(3,051)
Impairment of Receivables
(266)
(981)
Finance Costs
-
-
Foreign Exchange Gains / (Losses)
-
53
Profit / (Loss) Before Income Tax
(1,831)
(3,666)
Income Tax Expense
-
-
Profit / (Loss) After Tax from Discontinued Operations
(1,831)
(3,666)
The net cash flows of the discontinued operations, which have been incorporated into the Consolidated Statement of Cash
Flows, are as follows:
Net Cash Provided By / (Used In) Operating Activities
(519)
10,558
Net Cash Provided By / (Used In) Investing Activities
-
859
Net Cash Provided By / (Used In) Financing Activities*
(1,865)
(7,508)
Net Cash Increase / (Decrease) in Cash Held
(2,384)
3,909
*Included in the net cash used in financing activities for the year ended 30 June 2022, is an amount of $2.38m (2021:
$7.5m) loan repayment made to the parent entity.
81
MACA LIMITED ANNUAL REPORT 2022
82
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
3.8 EARNINGS PER SHARE
Accounting Policies
Basic EPS
Basic EPS is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing
equity other than ordinary shares, by the weighted average number of ordinary shares during the financial year.
Diluted EPS
Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares and performance rights for
the effects of all dilutive potential ordinary shares.
30 June
2022
$’000
(Restated)*
30 June
2021
$’000
Reconciliation Of Earnings To Profi t and Loss
Profit After Tax from Continuing Operations
37,577
20,667
(Profit) / Loss Attributable To Non-Controlling Interest
6,957
(1,784)
Profit Attributable to Members of Parent Entity from Continuing Operations
44,534
18,883
Profit / (Loss) Attributable to Members of Parent Entity from Discontinued Operations
(1,769)
(4,472)
Profit / (Loss) Attributable to Members of Parent Entity from Continuing and Discontinued
Operations
42,765
14,411
From Continuing and Discontinued Operations
Earnings Used To Calculate Basic EPS
42,765
14,411
Earnings Used in the Calculation of Dilutive EPS
42,765
14,411
From Continuing Operations
Earnings Used To Calculate Basic EPS
44,534
18,883
Earnings Used in the Calculation of Dilutive EPS
44,534
18,883
From Discontinued Operations
Earnings Used To Calculate Basic EPS
(1,769)
(4,472)
Earnings Used in the Calculation of Dilutive EPS
(1,769)
(4,472)
Weighted Avg. No. of Ord. Shares Outstanding During the Year (Basic EPS) (’000)
341,711
305,418
Weighted Average Number of Dilutive Options Outstanding (’000)
5,595
4,985
Weighted Avg. No. of Ord. Shares Outstanding During the Year (Diluted EPS) (’000)
347,306
310,403
* The comparative Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June
2021 has been restated for the change in fair value of Mining West Business according to AASB3 Business Combinations.
Refer to Note 6.1 for details.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
SECTION 4 ASSETS AND LIABILITIES
This Section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a result.
Liabilities relating to the Group’s financing activities are addressed in Section 5.
4.1 TRADE AND OTHER RECEIVABLES, LOANS TO OTHER COMPANIES AND OTHER FINANCIAL ASSETS
Accounting Policies
Trade and other receivables represent the asset outstanding at the end of the reporting period for goods and services
provided by the Group during the reporting period which remain unpaid. The balance is recognised as a current asset with
the amount normally being received within 30 to 60 days of recognition of the receivable. The Group’s impairment loss
allowance accounting policy for receivables is outlined in note 5.3.
A contract asset is recognised when the Group recognises revenue as set out in Note 3.1(a) before being unconditionally
entitled to the consideration under the payment terms set out in the contract. Contract assets are assessed for expected
credit losses (“ECLs”) in accordance with the policy set out in this note and are reclassified to receivables when the right to
the consideration has become unconditional.
A contract liability is recognised when the customer pays consideration before the Group recognises the related revenue
as set out in note 3.1(a). A contract liability would also be recognised if the Group has unconditional right to receive the
consideration before the Group recognises the related revenue. In such cases, a corresponding receivable would also be
recognised.
30 June
30 June
2022
2021
Trade and Other Receivables
Section
$’000
$’000
Trade and Other Debtors - Current
274,590
281,543
Less: Provision for Impairment
5.3
-
(981)
274,590
280,562
Contact Assets - Current
150
(4,862)
Debtors Subject to Payment Arrangements - Current
3,867
4,089
Total Current
278,607
279,789
Debtors Subject to Payment Arrangements - Non-Current
7,281
9,469
Total Trade and Other Receivables
285,888
294,120
Loans to Other Companies
Loans to Other Companies - Current
-
-
Loans to Other Companies - Non-Current
-
26,841
Total Loans to Other Companies
-
26,841
Other Financial Assets
Shares in Listed Corporations at Fair Value Through Profit or Loss - Current
6,939
30
Shares in Listed Corporations at Fair Value Through Profit or Loss - Non-Current
1,267
-
Total Other Financial Assets
8,206
30
83
MACA LIMITED ANNUAL REPORT 2022
84
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.1 TRADE AND OTHER RECEIVABLES, LOANS TO OTHER COMPANIES AND OTHER FINANCIAL ASSETS (CONTINUED)
Credit Risk
The Group has approximately 13% (2021: 14%) of post-impairment credit risk with a single counterparty or group of
counterparties. Failure or default of a major counterparty would have a material impact on earnings. Management of credit
risk is discussed in Section 5.3 Financial Risk Management. The class of assets described as trade and other receivables
(including contract assets) and loans to other companies are considered to be the main source of credit risk related to the
Group.
On 26 October 2021, MACA entered into a binding agreement for the disposal of Bluff PCI Mine, one of the securities pledged
for the loan facility to Carabella Resources Pty Ltd (“Carabella”), to Bowen Coking Coal Ltd (“Bowen”). The agreement
provided a settlement through both cash and shares issued by Bowen totalling $5m and a royalty, based on the selling price
and sales volume, over the lifetime of the mine from Bowen. Further on 24 June 2022 the court ordered the transfer of 100%
of the existing fully paid shares in Wealth Mining Pty Ltd, the owner of Grosvenor West Tenements, to MACA. Management
intends to dispose of the royalty from the future coal sales and Grosvenor West Tenements to recover the remaining
outstanding trade and loan amounts made to Carabella totalling $31.7m as at 30 June 2022.
As a result, the outstanding amounts of $31.7m have been transferred to the assets held for sale which consist of Grosvenor
West Tenements and Royalty in Note 4.3.
The following table details the Group’s trade and other receivables exposed to credit risk (prior to collateral and other credit
enhancements) with ageing analysis and impairment provided for thereon. There is no ageing analysis for contract assets as
these mainly relate to variable considerations which have yet to be invoiced. Amounts are considered as ‘past due’ when the
debt has not been settled within the terms and conditions agreed between the Group and the customer or counterparty to
the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are
provided for where there are specific circumstances indicating that the debt may not be fully repaid to the Group.
The balance of receivables that remain within initial trade terms (as detailed in the table) are considered to be of acceptable
credit quality.
Gross
amount
Past due
and impaired
Past due but
not impaired
Within initial
trade terms
$’000
$’000
$’000
$’000
30 June 2022
Trade and Term Receivables
264,102
-
15,053
249,049
Other Receivables
21,636
-
-
21,636
Total Trade and Other Receivables
285,738
-
15,053
270,685
30 June 2021
Trade and Term Receivables
277,777
(4,202)
28,749
244,826
Other Receivables
20,545
-
-
20,545
Total Trade and Other Receivables
298,322
(4,202)
28,749
265,371
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.2 INVENTORY
30 June
30 June
Receivables and Loans as Financial Assets measured
at Amortised Cost
2022
2021
$’000
$’000
Trade and Other Receivables
- Total Current (net of impairment)
278,607
279,789
- Total Non-Current
7,281
9,469
Total Trade and Other Receivables
285,888
289,258
Loans to Other Companies
- Total Current
-
-
- Total Non-Current
-
26,841
Total Loan to Other Companies
-
26,841
Accounting Policies
Inventory is measured at the lower of cost or net realisable value. The cost of manufactured products includes direct
materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of
normal operating capacity. Costs are assigned on the basis of weighted average costs.
30 June
30 June
2022
2021
Inventory
$’000
$’000
Inventory
81,207
49,914
Total Inventory
81,207
49,914
4.3 ASSETS HELD FOR SALE
Non-current assets and disposal groups are classified as held for sale and generally measured at the lower of carrying
amount and fair value less costs to sell, where the carrying amount will be recovered principally through sale as opposed to
continued use. No depreciation or amortisation is charged against assets classified as held for sale.
Classification as “held for sale” occurs when: management has committed to a plan for immediate sale; the sale is expected
to occur within one year from the date of classification; and active marketing of the asset has commenced. Such assets are
classified as current assets.
Impairment losses are recognised for any initial or subsequent write-down of an asset (or disposal group) classified as held
for sale to fair value less costs to sell. Any reversal of impairment recognised on classification as held for sale or prior to such
classification is recognised as a gain in profit or loss in the period in which it occurs.
The Grosvenor West Tenements and Royalty from the future coal sales are classified as Assets Held for Sale and measured
at the carrying amount of the trade and loan amounts made to Carabella Resources Pty Ltd (“Carabella”) as at 30 June 2022.
The Directors are of opinion that the carrying amount is recoverable through the disposal of Grosvenor West Tenements and
the royalties from future coal sales due to:
- the valuation of Grosvenor West Tenements conducted by an independent licensed valuer; and
- the valuation of the royalty is based on the production and sale commitment by Bowen Coking Coal Ltd (“Bowen”) and
forecast market price for PCI coal from the independent market analyst for the next five years, and discounted at weighted
average cost of capital (“WACC”) of 10.9% per annum.
85
MACA LIMITED ANNUAL REPORT 2022
86
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.3 ASSETS HELD FOR SALE (CONTINUED)
30 June
30 June
Assets Held for Sale
2022
2021
$’000
$’000
Grosvenor West Tenements and Royalty
31,694
-
Total Assets Held for Sale
31,694
-
4.4 OTHER ASSETS
30 June
30 June
Other Assets
2022
2021
$’000
$’000
Prepayments
651
2,565
Deposit
351
5,528
Loan Establishment Fee^
325
325
Total Other Assets - Current
1,327
8,418
Loan Establishment Fee^
852
1,175
Total Other Assets - Non-Current
852
1,175
^In relation to the $130m loan from Commonwealth Bank of Australia for the acquisition of Mining West and being
amortised over the remaining period of the loan.
4.5 PROPERTY, PLANT AND EQUIPMENT
Accounting Policies
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
Property
Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between
knowledgeable willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external
independent valuers, less subsequent depreciation for buildings.
Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in equity.
Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity, all other
decreases are charged to the statement of comprehensive income. Each year the difference between depreciation based on
the revalued carrying amount of the asset charged to the statement of profit or loss and other comprehensive income and
depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained earnings.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the
net amount is restated to the revalued amount of the asset.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.5 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their
present values in determining recoverable amounts.
The cost of fixed assets constructed within the Group includes the cost of materials, direct labour, borrowing costs and an
appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to the profit and loss statement during the financial period
in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding freehold land, is
depreciated on a diminishing value or straight line basis over the asset’s useful life to the Group commencing from the time
the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of
the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Leasehold Improvements
10% – 66.7%
Plant and Equipment
10% – 40.0%
Low Value Pool
18.75% – 37.5%
Motor Vehicles
18.75% – 50%
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included
in the revaluation surplus relating to that asset are transferred to retained earnings.
Leases
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group
anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
87
MACA LIMITED ANNUAL REPORT 2022
88
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Options to Extend or Terminate
The options to extend or terminate are contained in several
of the property leases of the Group. There were no extension
options for equipment leases. These clauses provide the
Group opportunities to manage leases in order to align with
its strategies. All of the extension or termination options
are only exercisable by the Group. The extension options or
termination options which management were reasonably
certain to be exercised have been included in the calculation
of the lease liability.
Impairment of Property, Plant and Equipment
The Group monitors market conditions for indications of
impairment of its operating assets. Where a trigger event
occurs which indicates an impairment may have occurred, a
formal impairment assessment is performed. The following
trigger events have occurred at 30 June 2022:
- The carrying amount of the Group’s net assets ($402.3M)
exceeded the Company’s market capitalisation as at 30 June
2022 ($225.5M).
As a result, an assessment has been made of the
recoverable amounts of each of the Operating Segments.
The Group’s Mining Services segment is split into Mining
and Crushing CGU’s for evaluation of impairment. Similarly,
Civil and Infrastructure are also assessed as independent
CGU’s. Cash flows have been projected for 5 years from the
continuing use of assets within each CGU as well as the
disposal of any assets, and have been discounted using a
Weighted Average Cost of Capital (WACC) rate using the
debt/equity ratio as at 30 June 2022. Projected future cash
flows from the continuing use of assets for FY23 have been
based on current contracted work in hand plus an allowance
for estimated new work, thereafter real growth (net of
inflation) has been allowed at 2.0% and with a terminal
growth rate of 2.0% has been applied.
The assessment results have indicated nil impairment for
all CGU’s. Accordingly, no impairment to property, plant and
equipment has been recognised for the group.
Key Assumptions used for value in use calculations
- EBITDA Margin
- Discount Rates
- Growth rates used to extrapolate cash flows beyond the
forecast period
- Capital expenditure
The EBITDA Margin is based on management’s best estimate
taking into account past performance and expected market
conditions. Working Capital has been adjusted to reflect the
required working capital for the forecast future cashflows.
Capital expenditure has considered both required
replacement capital and idle equipment which could be
utilised to sustain the current Work in Hand schedule.
Capital expenditure has been matched to depreciation levels
in the terminal year.
As disclosed above management have made judgements
and estimates in respect of impairment testing of plant and
equipment. Any adverse changes to key assumptions may
result in an impairment in the future. The sensitivities are as
follows:
Sensitivity Analysis
CGU
Decrease in Revenue required
to incur an impairment
Increase in Discount Rate
to incur an impairment
Crushing
6.0%
> 100%
Mining
6.5%
> 100%
Civil
14.9%
> 100%
Infrastructure
7.1%
> 100%
Interquip
8.9%
> 100%
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.5 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
4.5 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Movements in Carrying Amounts
Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current financial period are as follows:
30 June
30 June
2022
2021
$’000
$’000
Plant and Equipment – at Cost
- Owned
634,884
600,634
- Right-Of-Use Assets
326,718
318,572
Total Cost
961,602
919,206
Accumulated Depreciation
- Owned
(417,546)
(344,082)
- Right-Of-Use Assets
(120,823)
(115,467)
Total Accumulated Depreciation
(538,369)
(459,549)
Carrying Amount - Plant and Equipment
423,233
459,657
Motor Vehicles – at Cost
- Owned
3,776
3,759
- Right-Of-Use Assets
2,707
4,884
Total Cost
6,483
8,643
Accumulated Depreciation
- Owned
(2,979)
(2,992)
- Right-Of-Use Assets
(2,109)
(1,962)
Total Accumulated Depreciation
(5,088)
(4,954)
Carrying Amount - Motor Vehicles
1,395
3,689
Land and Building
- Owned at Fair Value
2,321
3,272
- Right-Of-Use Assets
20,928
18,065
Total
23,249
21,337
Accumulated Depreciation
- Owned at Fair Value
(534)
(519)
- Right-Of-Use Assets
(8,856)
(7,033)
Total Accumulated Depreciation
(9,390)
(7,552)
Carrying Amount - Land and Building
13,859
13,785
Low Value Pool – at Cost
674
567
Accumulated Depreciation
(518)
(456)
Carrying Amount - Low Value Pool
156
111
Leasehold Improvements – at Cost
3,925
3,661
Accumulated Depreciation
(2,633)
(2,124)
Carrying Amount - Leasehold Improvements
1,292
1,537
Total Carrying Amounts - Owned
221,370
261,720
Total Carrying Amounts - Right-Of-Use Assets
218,565
217,059
Total Carrying Amounts - Property, Plant and Equipment
439,935
478,779
The Group’s lease portfolio includes buildings, plant and equipment and motor vehicles.
89
MACA LIMITED ANNUAL REPORT 2022
90
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.6 INTANGIBLE ASSETS
Accounting Policies
Goodwill
Goodwill is carried at cost less any accumulated impairment
losses. Goodwill is calculated as the excess of the sum of:
(i) the consideration transferred;
(ii) any non-controlling interest (determined under either
the full goodwill or proportionate interest method); and
(iii) the acquisition date fair value of any previously held
equity interest;
over the acquisition date fair value of net identifiable assets
acquired.
The acquisition date fair value of the consideration
transferred for a business combination plus the acquisition
date for fair value of any previously held equity interest shall
form the cost of the investment in the separate financial
statements.
Fair value remeasurements in any pre-existing equity
holdings are recognised in profit or loss in the period
in which they arise. Where changes in the value of such
equity holdings had previously been recognised in other
comprehensive income, such amounts are recycled to profit
or loss.
The amount of goodwill recognised on acquisition of
each subsidiary in which the Group holds less than 100%
interest will depend on the method adopted in measuring
the non-controlling interest. The Group can elect in most
circumstances to measure the non-controlling interest in
the acquiree either at fair value (full goodwill method) or
at the non-controlling interest’s proportionate share of the
subsidiary’s identifiable net assets (proportionate interest
method). In such circumstances, the Group determines which
method to adopt for each acquisition and this is stated in the
respective notes to these financial statements disclosing the
business combination.
Under the full goodwill method, the fair value of the non-
controlling interest is determined using valuation techniques
which make the maximum use of market information where
available. Under this method, goodwill attributable to the
non-controlling interest is recognised in the consolidated
financial statements.
Goodwill on acquisition of subsidiaries is included in
intangible assets. Goodwill on acquisition of associates is
included in investments in associates.
Goodwill is tested for impairment annually and is allocated
to the Group’s cash-generating units or groups of cash-
generating units, representing the lowest level at which
goodwill is monitored and not larger than an operating
segment. Gains and losses on the disposal of an entity
include the carrying amount of goodwill related to the entity
disposed of.
Changes in the ownership interests in a subsidiary that do
not result in a loss of control are accounted for as equity
transactions and do not affect the carrying amounts of
goodwill.
Impairment of Assets
At the end of each reporting period, the Group assesses
whether there is any indication that an asset may be
impaired. The assessment will include the consideration
of external and internal sources of information including
dividends received from subsidiaries, associates or jointly
controlled entities deemed to be out of pre-acquisition
profits. If such an indication exists, an impairment test
is carried out on the asset by comparing the recoverable
amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, to the asset’s
carrying value. Any excess of the asset’s carrying value over
its recoverable amount is expensed to the statement of
profit or loss and other comprehensive income.
Where it is not possible to estimate the recoverable amount
of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset
belongs.
Allocation of Goodwill to Cash Generating Unit
Goodwill is allocated to the Group’s cash generating units
identified according to operating segment. Goodwill is not
amortised but is subject to impairment testing on an annual
basis or whenever there is an indication of impairment.
Impairment Test for Goodwill
There are no indicators goodwill is impaired at 30 June 2022.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Plant and
Equipment
Motor
Vehicles
Land and
Buildings
Right-Of-
Use Assets
Low Value
Pool
Leasehold
Improvement
Total
Consolidated:
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance at 01 July 20
80,529
563
2,785
208,014
65
1,362
293,318
Additions
70,580
479
-
74,925
86
681
146,751
Acquisition through
business combination
135,375
-
-
-
-
-
135,375
Disposals
(1,296)
(423)
-
-
-
-
(1,719)
Reallocation from ROUA
29,198
1,365
-
(30,563)
-
-
-
Forex movements
144
-
-
-
-
-
144
Depreciation expense
(57,978)
(1,217)
(32)
(35,317)
(40)
(506)
(95,090)
Balance at 30 June 21
256,552
767
2,753
217,059
111
1,537
478,779
Balance at 01 July 21
256,552
767
2,753
217,059
111
1,537
478,779
Additions
19,020
199
-
82,717
107
264
102,307
Disposals
-
(82)
(941)
(17,796)
-
-
(18,819)
Reallocation from ROUA
22,293
320
-
(22,613)
-
-
-
Forex movements
2,901
-
-
-
-
-
2,901
Depreciation expense
(83,428)
(407)
(25)
(40,802)
(62)
(509)
(125,233)
Balance at 30 June 22
217,338
797
1,787
218,565
156
1,292
439,935
AASB 16 related amounts recognised in the income statement for the year ended
30 June
2022
$’000
30 June
2021
$’000
Depreciation charge related to right-of-use assets
40,802
35,317
Interest expense on lease liabilities (under finance cost)
8,163
7,257
Short-term leases expense
121
191
4.5 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
91
MACA LIMITED ANNUAL REPORT 2022
92
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.7 TRADE AND OTHER PAYABLES
Accounting Policies
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services
received by the Group during the reporting period which remains unpaid. The balance is recognised as a current liability
with the amount being normally paid within 45 days of recognition of the liability.
30 June
30 June
2022
2021
Payables
$’000
$’000
Current
Unsecured Liabilities:
Trade Creditors
139,103
157,260
Sundry Creditors and Accruals
103,003
89,362
Total Trade and Other Payables
242,106
246,622
Secured Liabilities:
Deferred Consideration Payable - Downer
-
38,500
Total Payables
242,106
285,122
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
4.8 PROVISIONS
Accounting Policies
Employee Benefi ts
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to balance
date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be
paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value
of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to
employee wages increases and the probability that the employee may satisfy vesting requirements. Those cash outflows
are discounted using market yields on national government bonds with terms to maturity that match the expected timing of
cash flows.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured.
30 June
30 June
2022
2021
$’000
$’000
Employee Entitlements
34,953
32,431
Movement in Provisions
Opening Balance
32,431
15,976
Additional Provisions
41,187
4,606
Acquisition through business combination
-
16,704
Amounts Used
(38,665)
(4,855)
Closing balance
34,953
32,431
30 June
(Restated)*
30 June
2022
2021
Goodwill
Section
$’000
$’000
Fair Value
476
-
Acquisition through business combination
6.1
-
476
Less: Accumulated Impairment Losses
-
-
Goodwill Carrying Amount
476
476
30 June
30 June
2021
2020
Customer Contracts
$’000
$’000
Fair Value
4,535
-
Acquisition through business combination
-
4,535
Less: Accumulated Amortisation
(2,965)
(872)
Customer Contracts Carrying Amount
1,570
3,663
Total Carrying Amount - Intangible Assets
2,046
4,139
* The comparative Intangible Assets as at 30 June 2021 has been restated for the change in fair value of Mining West Business according to
AASB3 Business Combinations. Refer to Note 6.1 for details.
Intangible Assets - Customer Contracts
The acquisition price of Mining West sites was based on the fair value of inventory, plant and equipment, using an independent
valuation. The customer contracts ceded to MACA were valued based on the expected net results and discounted using MACA’s
Weighted Average Cost of Capital (“WACC”) to present value. Management believe the customer contracts are fully recoverable
and as a result, an intangible asset was recognised at acquisition date (1st February 2021) and has been amortised on a straight-
line basis over the average duration of the contracts, see table below.
All payables are non-interest bearing and settled at various terms up to 45 days.
30 June
30 June
2022
2021
Payables as Financial Liabilities measured at Amortised Cost
$’000
$’000
Payables
- Total Current
242,106
285,122
- Total Non-Current
-
-
Total Payables
242,106
285,122
4.6 INTANGIBLE ASSETS (CONTINUED)
4.7 TRADE AND OTHER PAYABLES (CONTINUED)
93
MACA LIMITED ANNUAL REPORT 2022
94
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTION 5 CAPITAL STRUCTURE AND FINANCING COSTS
This Section outlines how the Group manages its capital structure, including its balance sheet liquidity and access to capital
markets.
The Directors determine the appropriate capital structure of MLD, specifically, how much is raised from shareholders (equity)
and how much is borrowed from financial institutions (debt) in order to finance the Group’s activities both now and in the
future. The Directors consider the Group’s capital structure and dividend policy at least annually and do so in the context of
its ability to continue as a going concern, to execute the strategy and to deliver its business plan.
5.1 CASH AND CASH EQUIVALENTS
Accounting Policies
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts. The Group does not have any bank overdraft facilities.
30 June
30 June
2022
2021
Section
$’000
$’000
5.1.1 CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents
91,582
102,346
Term Deposit-Convertable to cash*
-
20,000
Total Cash and Cash Equivalents
91,582
122,346
* Classified as cash & cash equivalents as the term deposit can be readily converted to cash.
5.1.2 CASH FLOW INFORMATION
Reconciliation of Cash Flow from Operations with Profi t / (Loss) for the Year
Profit / (Loss) for the Year
35,808
16,195
Non-Cash Flows in Profi t
Depreciation and Amortisation
3.3
127,326
95,962
Impairment
3.3, 3.7
1,301
4,202
Net (Gains) / Losses on Disposal of Plant and Equipment
3.1(b)
(1,632)
(1,120)
Fair value losses on Financial Assets
(2,131)
39
Foreign Exchange (Gains) / Losses
(615)
2,115
Total Non-Cash Flows in Profit
124,249
101,198
Movements in Working Capital
(Increase) / Decrease in Trade and Other Receivables
(1,751)
(132,678)
(Increase) / Decrease in Other Assets
7,414
(3,944)
(Increase) / Decrease in Inventories
(31,293)
8,591
Increase / (Decrease) in Trade and Other Payables
(4,516)
130,544
Increase / (Decrease) in Income Tax Payable
6,141
(2,159)
Increase / (Decrease) in Deferred Tax
(6,104)
1,252
Increase / (Decrease) in Provisions
2,522
(249)
Total Working Capital Movements
(27,587)
1,357
Net Cash Increase / (Decrease) from Operating Activities
132,470
118,750
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.1 CASH AND CASH EQUIVALENTS (CONTINUED)
5.1.3 NON-CASH FINANCING AND INVESTING ACTIVITIES
During the year the Group acquired $21.8m in plant and equipment (2021: $50.9m) by means of finance leases (included in
right- of-use assets), directly from original equipment manufacturers. These acquisitions are not reflected in the statement of
cash flows.
Shares Issued
No share issued during the year. 58,530,982 and 15,172,156 new shares were issued at $1.02 per share on 23 December
2020 and 15 January 2021 respectively for the acquisition of Mining West.
Insurance Bonding and Bank Guarantee Facilities
The Group has insurance bonding and bank guarantee facilities totalling $73.7 million. At 30 June 2022 the amount drawn on
the facilities was $36.5 million (2021: $29.1 million).
5.2 INTEREST BEARING LIABILITIES
Accounting Policies
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a
substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as
the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.
30 June
30 June
2022
2021
Section
$’000
$’000
5.2.1 FINANCIAL LIABILITIES MEASURED AT AMORTISED COST
Current
Secured Lease Liability
75,111
68,080
Secured Bank Loan
26,000
26,000
Unsecured Lease Liability
3,200
3,251
Total Current Interest Bearing Liabilities
104,311
97,331
Non-Current
Secured Lease Liability
107,422
103,550
Secured Bank Loan
65,000
91,000
Unsecured Lease Liability
8,911
10,690
Total Non-Current Interest Bearing Liabilities
181,333
205,240
Total Current and Non-Current Interest Bearing Liabilities
285,644
302,571
95
MACA LIMITED ANNUAL REPORT 2022
96
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.3 FINANCIAL RISK MANAGEMENT
The Group’s financial instruments consist mainly of deposits
with banks, local money market instruments, short-term
investments, accounts receivable and payable, loans to
other companies and leases.
The totals for each category of financial instruments,
measured in accordance with AASB 139 as detailed in the
accounting policies to these financial statements are as
follows:
Accounting Policies
The Board of Directors (“the Board”) is responsible for,
amongst other issues, monitoring and managing financial
risk exposures of the Group. The Board monitors the
Group’s financial risk management policies and exposures
and approves financial transactions within the scope of
its authority. It also reviews the effectiveness of internal
controls relating to commodity price risk, counterparty credit
risk, liquidity risk, currency risk, financing risk and interest
rate risk.
The Board’s overall risk management strategy seeks
to assist the Group in meeting its financial targets,
while minimising potential adverse effects on financial
performance. Its functions include the review of the use of
hedging derivative instruments (if any), credit risk policies
and future cash flow requirements.
30 June
30 June
2022
2021
Section
$’000
$’000
Financial Assets
Financial Assets at Amortised Cost:
— Cash and Cash Equivalents
5.1.1
91,582
122,346
— Trade and Other Receivables
4.1
285,888
289,258
— Loans to Other Companies
4.1
-
26,841
Financial Assets at Fair Value Through Profit or Loss:
— Listed Investments
4.1
8,206
30
Total Financial Assets
385,676
438,475
Financial Liabilities
Financial Liabilities at Amortised Cost:
— Trade and Other Payables (incl. Deferred Consideration Payable)
4.6
242,106
285,122
— Interest Bearing Liabilities
5.2.1
285,644
302,571
Total Financial Liabilities
527,750
587,693
Specifi c Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial
instruments are credit risk, liquidity risk and market risk
consisting of interest rate risk, foreign currency risk and
equity price risk.
Credit Risk
Exposure to credit risk relating to financial assets arises from
the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to the Group.
The Group has approximately 13% (2021: 14%) of post-
impairment credit risk with a single counterparty or group
of counterparties. Failure or default of a major counterparty
would have a material impact on earnings. The classes of
assets described as Trade and Other Receivables (including
contract assets) and Loans to Other Companies are
considered to be main source of credit risk related to the
Group.
Credit risk is managed through the maintenance of
procedures (such procedures include the utilisation of
systems for the approval, granting and renewal of credit
limits, regular monitoring of exposures against such limits
and monitoring of the financial stability of significant
customers and counterparties), ensuring to the extent
possible, that customers and counterparties to transactions
are of sound credit worthiness. Such monitoring is used in
assessing receivables for impairment. Depending on the
division within the Group, credit terms are generally 30 to 60
days from the invoice date.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Secured
Bank Loan
$’000
Unsecured
and
Secured
Lease
Liabilities
$’000
30 June
Total
$’000
5.2.2 MOVEMENTS IN INTEREST BEARING LIABILITIES
Balance at 1 July 2020
-
188,072
188,072
New loans / lease liabilities*
130,000
69,711
199,711
Repayments
(13,000)
(72,212)
(85,212)
Exchange Differences
-
-
-
Balance at 30 June 2021
117,000
185,571
302,571
Balance at 1 July 2021
117,000
185,571
302,571
New loans / lease liabilities*
-
85,113
85,113
Repayments
(26,000)
(78,141)
(104,141)
Exchange Differences
-
2,101
2,101
Balance at 30 June 2022
91,000
194,644
285,644
* Include the fi nancing arrangements of $21.8m (2021: $50.9m) directly from the original equipment manufacturers and
new operating lease liabilities of $1.8m (2021: $3.9m) which are accounted for under the AASB 16.
The bank loan is secured by the first ranking general security interest over all present and after acquired property (including
all shares held in any subsidiary).
During FY22, the Group is in compliance with all of the following financial covenants of its primary facility with
Commonwealth. Bank of Australia:
- Minimum equity must be at least $300 million;
- Debt Service Cover Ratio must be at least 1.3; and
- Senior Leverage Ratio must not exceed 1.5.
97
MACA LIMITED ANNUAL REPORT 2022
98
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Management has assessed all trade receivables and
identified and impaired $267k through profit and loss.
Management’s assessment concluded that all other
trade receivables were not subject to material credit loss.
There has been no change in the estimation techniques or
significant assumptions made during the financial period.
Provision for
Impairment and
Expected Credit Losses
of Trade Receivables
Section
30 June
2022
$’000
30 June
2021
$’000
Opening Balance
981
48,415
Provision (reversed) /
recognised during
the year
-
4,202
Receivables written off
during the year
as uncollectable
(981)
(51,636)
Closing Balance
4.1
-
981
Other Receivables
The Group applies the general approach to provide for the
ECL for other receivables. Under the general approach,
the loss allowance is measured at an amount equal to the
12-month ECL at initial recognition.
At each reporting date, the Group assesses whether
the credit risk of a financial instrument has increased
significantly since initial recognition. When credit risk
has increased significantly since initial recognition, loss
allowance is measured at an amount equal to lifetime ECL.
Credit risk related to balances held with banks and other
financial institutions are only invested with counterparties
with a Standard & Poor’s rating of at least AA-.
Liquidity Risk
Liquidity risk arises from the possibility that the Group
might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The
Group manages this risk through the following mechanisms:
- preparing forward looking cashflow analysis in relation to
its operational, investing and financing activities;
- monitoring undrawn credit facilities;
- obtaining funding from a variety of sources;
- maintaining a reputable credit profile;
- managing credit risk related to financial assets;
- only investing surplus cash with major financial
institutions; and
- comparing the maturity profile of financial liabilities with
the realisation profile of financial assets.
The Group’s policy is to ensure that all lease agreements
entered into, are over a period that will ensure that adequate
cash flows will be available to meet repayments.
The tables below reflect an undiscounted contractual
maturity analysis for financial liabilities. Financial guarantee
liabilities are treated as payable on demand since the Group
has no control over the timing of any potential settlement of
the liabilities.
Cash flows realised from financial assets reflect
management’s expectation as to the timing of realisation.
Actual timing may therefore differ from that disclosed. The
timing of cash flows presented in the table to settle financial
liabilities reflects the earliest contractual settlement dates
and does not reflect management’s expectations that
banking facilities will be rolled forward.
5.3 FINANCIAL RISK MANAGEMENT (CONTINUED)
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Credit Risk (continued)
Where the Group is unable to ascertain a satisfactory credit
risk profile in relation to a customer or counterparty, the
risk may be further managed through title retention clauses
over goods or obtaining security by way of personal or
commercial guarantees over assets which may be claimed
against in the event of any default. Risk is also minimised
through investing surplus funds in financial institutions that
maintain a high credit rating, or in entities that the Board
has otherwise cleared as being financially sound.
The maximum exposure to credit risk by class of recognised
financial assets at balance date, excluding the value of any
collateral or other security held, is equivalent to the carrying
value and classification of those financial assets (net of
any provisions) as presented in the statement of financial
position. Credit risk also arises through the provision of
financial guarantees, as approved at Board level, given to
parties securing the liabilities of certain subsidiaries (refer
Section 6.7 Parent Entity Disclosures for details).
Trade Receivables (including Contract Assets)
The Group applies the simplified approach to provide for the
Expect Credit Loss (“ECL”) for all trade receivables (including
contract assets). The simplified approach required the loss
allowance to be measured at an amount equal to the lifetime
ECL.
The Group uses a provision matrix to measure the lifetime
ECL allowance for trade receivables (including contract
assets). In measuring the ECL, trade receivables (including
contract assets) are grouped based on shared credit risk
characteristics and days past due.
Internal
Rating
Grades
Defi nition
Basis for
Recognition
and
Measurement
of ECL
Performing
The counterparty has
a low risk of default
and does not have
any past due amounts
12-mth ECL
Under-
Performing
There has been a
significant increase in
credit risk since initial
recognition
Lifetime ECL
(not credit-
impaired)
Non-
Performing
There is evidence
indicating that the
asset is credit-
impaired
Lifetime
ECL (credit-
impaired)
In calculating the ECL rates, the Group considers historical
loss rates for each category of customers and adjust for
forward looking macroeconomic data.
The Group considers the trade receivables as in default
when the counterparty fail to make contractual payments
for a prolonged period of time when they fall due, and the
Group may also consider financial or economic conditions
that are expected to cause a significant change to the
debtors’ ability to meet their obligations. Trade receivables
are written off when there is no reasonable expectation of
recovering the contractual cash flow. When trade receivables
have been written off, the Group continues to engage in
enforcement activity to attempt to recover the debts. Where
recoveries are made, these are recognised in profit or loss.
Receivables for which an impairment/expected credit
loss provision was recognised are written off against
the provision when there is no expectation of recovering
additional cash.
The creation and release of the provision for impaired and
expected credit loss receivables has been shown separately
in the consolidated statement of profit or loss.
The Group’s credit risk exposure in relation to Trade
Receivables at 30 June 2022 is set out in Section 4.1.
Trade and other receivables that remain within initial trade
terms are considered to be of acceptable quality and fully
recoverable.
On 26 October 2021, MACA entered into a binding
agreement for the disposal of Bluff PCI Mine, one of
the securities pledged for the loan facility to Carabella
Resources Pty Ltd (“Carabella”), to Bowen Coking Coal Ltd
(“Bowen”). The agreement provided a settlement through
both cash and shares issued by Bowen totalling $5m and a
royalty, based on the selling price and sales volume, over
the lifetime of the mine from Bowen. Further on 24 June
2022 the court ordered the transfer of 100% of the existing
fully paid shares in Wealth Mining Pty Ltd, the owner
of Grosvenor West Tenements, to MACA. Management
intends to dispose of the royalty from the future coal sales
and Grosvenor West Tenements to recover the remaining
outstanding trade and loan amounts made to Carabella
totalling $31.7m as at 30 June 2022.
As a result, the outstanding amounts of $31.7m have been
transferred to the assets held for sale which consist of
Grosvenor West Tenements and Royalty in Note 4.3.
5.3 FINANCIAL RISK MANAGEMENT (CONTINUED)
99
MACA LIMITED ANNUAL REPORT 2022
100
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.3 FINANCIAL RISK MANAGEMENT (CONTINUED)
Price Risk
The Group is also exposed to securities price risk on
investments held for trading or for medium to longer terms.
The risk associated with these investments has been
assessed as reasonably not having a significant impact on
the Group.
Foreign Exchange Risk
The Group is exposed to fluctuations in foreign currencies.
The currency exposure relates to Brazilian Real and US
Dollar being cash in bank, trade receivables subject to
repayment and intercompany loan. Both Brazilian Real
and US Dollar are unhedged. The original investment into
the Brazilian subsidiary is exposed to fluctuations in the
Brazilian Real. On 21 January 2020, the Group announced
its decision to cease the operations in Brazil, which resulted
in the realisation of the foreign currency translation reserve
to income statement. The operations in Cambodia are
denominated in USD and commenced during the FY21.
Summarised Sensitivity Analysis
The following illustrates sensitivities to the Group’s
exposures to changes in interest rates, foreign exchange
and equity prices. The table indicates the impact on how
profit and equity values reported at the end of the reporting
period would have been affected by changes in the relevant
risk variable that management considers to be reasonably
possible.
These sensitivities assume that the movement in a particular
variable is independent of the other variables.
Profi t
Equity
$’000
$’000
Year ended 30 Jun 2022
+/- 2% in Interest Rates
+/-3,881
+/-3,881
+/- 10% in the Value of Listed Investments
+/- 694
+/- 694
+/- 10% in AUD/BRL Exchange Rate
+/- 163
+/- 160
+/- 10% in AUD/USD Exchange Rate
+/- 1,100
+/- 1,100
Year ended 30 Jun 2021
+/- 2% in Interest Rates
+/- 3,068
+/- 3,068
+/- 10% in the Value of Listed Investments
+/- 3
+/- 3
+/- 10% in AUD/BRL Exchange Rate
+/- 367
+/- 392
+/- 10% in AUD/USD Exchange Rate
+/- 1,787
+/- 1,787
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Liquidity Risk (Continued)
5.3 FINANCIAL RISK MANAGEMENT (CONTINUED)
Financial Liability and
Financial Asset Maturity Analysis
Within 1 Year
1 to 5 Years
Over 5 Years
Total
2022
2021
2022
2021
2022
2021
2022
2021
Section
‘000
‘000
‘000
‘000
‘000
‘000
‘000
‘000
Financial Liabilities Due for Payment
Trade and Other Payables
4.7
242,106
285,122
-
-
-
-
242,106
285,122
Interest Bearing Liabilities
5.2.1
104,311
97,331
181,333
205,240
-
-
285,644
302,571
Total Contractual Outflows
346,417
382,453
181,333
205,240
-
-
527,750
587,693
Total Expected Outflows
346,417
382,453
181,333
205,240
-
-
527,750
587,693
Financial Assets - Cash Flows Realisable
Cash and Cash Equivalents
5.1.1
91,582
122,346
-
-
-
-
91,582
122,346
Trade and Other Receivables
4.1
278,607
279,789
7,281
9,469
-
-
285,888
289,258
Investments and Loan Receivables
4.1
6,939
30
1,267
26,841
-
-
8,206
26,871
Total Anticipated Inflows
377,128
402,165
8,548
36,310
-
-
385,676
438,475
Net (Outflow)/Inflow on Financial
Instruments
30,711
19,712 (172,785) (168,930)
-
- (142,074) (149,218)
All financial assets have been pledged as security under Commonwealth Bank of Australia facility agreement.
Market Risk
Interest Rate Risk
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rates on those financial assets and financial
liabilities, is as follows:
Floating
Interest Rate
Fixed Interest Rate
Non-interest
Bearing
Total
Weighted
Average
Eff ective
Interest Rate
Within 1 Year
1 to 5 Years
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
‘000
‘000
‘000
‘000
‘000
‘000
‘000
‘000
‘000
‘000
%
%
Financial Assets
Cash
91,582 122,346
-
-
-
-
-
-
91,582 122,346
0.20
0.10
Trade and Other Receivables
-
-
-
-
-
- 285,888 289,258 285,888 289,258
N/A
N/A
Loans to Other Companies
-
-
-
-
-
26,841
-
-
-
26,841
N/A
9.00
Total Financial Assets
91,582 122,346
-
-
-
26,841 285,888 289,258
377,470 438,445
Financial Liabilities
Interest Bearing Liabilities
91,000 117,000
78,311
71,331
116,333 114,240
-
- 285,644 302,571
3.89
3.15
Trade and Other Payables
-
-
-
-
-
- 242,106 285,122 242,106 285,122
N/A
N/A
Total Financial Liabilities
91,000 117,000
78,311
71,331
116,333 114,240 242,106 285,122
527,750 587,693
101
MACA LIMITED ANNUAL REPORT 2022
102
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
Financial Assets (Continued)
The Group initially designates a financial instrument as
measured at fair value through profit or loss if:
- it eliminates or significantly reduces a measurement
or recognition inconsistency (often referred to as
“accounting mismatch”) that would otherwise arise from
measuring assets or liabilities or recognising the gains
and losses on them on different bases;
- it is in accordance with the documented risk management
or investment strategy, and information about the
groupings was documented appropriately, so that the
performance of the financial liability that was part of a
group of financial liabilities or financial assets can be
managed and evaluated consistently on a fair value basis;
- it is a hybrid contract that contains an embedded
derivative that significantly modifies the cash flows
otherwise required by the contract.
The initial designation of the financial instruments to
measure at fair value through profit or loss is a one-time
option on initial classification and is irrevocable until the
financial asset is derecognised.
Financial assets are classified at ‘fair value through profit or
loss’ when they are either held for trading for the purpose
of short- term profit taking, derivatives not held for hedging
purposes, or when they are designated as such to avoid an
accounting mismatch or to enable performance evaluation
where a group of financial assets is managed by key
management personnel on a fair value basis in accordance
with a documented risk management or investment strategy.
Such assets are subsequently measured at fair value with
changes in carrying value being included in profit or loss.
Equity instruments
At initial recognition, as long as the equity instrument is
not held for trading and not a contingent consideration
recognised by an acquirer in a business combination to
which AASB 3:Business Combinations applies, the Group
made an irrevocable election to measure any subsequent
changes in fair value of the equity instruments in other
comprehensive income, while the dividend revenue received
on underlying equity instruments investment will still be
recognised in profit or loss.
Regular way purchases and sales of financial assets
are recognised and derecognised at settlement date in
accordance with the Group’s accounting policy.
De-recognition
Derecognition refers to the removal of a previously
recognised financial asset or financial liability from the
statement of financial position.
Derecognition of fi nancial liabilities
A liability is derecognised when it is extinguished (ie when
the obligation in the contract is discharged, cancelled or
expires). An exchange of an existing financial liability for a
new one with substantially modified terms, or a substantial
modification to the terms of a financial liability is treated as
an extinguishment of the existing liability and recognition of
a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
Derecognition of fi nancial assets
A financial asset is derecognised when the holder’s
contractual rights to its cash flows expires, or the asset is
transferred in such a way that all the risks and rewards of
ownership are substantially transferred.
All of the following criteria need to be satisfied for
derecognition of financial asset:
- the right to receive cash flows from the asset has expired
or been transferred;
- all risk and rewards of ownership of the asset have been
substantially transferred; and
- the Group no longer controls the asset (ie the Group has
no practical ability to make a unilateral decision to sell the
asset to a third party).
On derecognition of a financial asset measured at amortised
cost, the difference between the asset’s carrying amount
and the sum of the consideration received and receivable is
recognised in profit or loss.
On derecognition of a debt instrument classified as at fair
value through other comprehensive income, the cumulative
gain or loss previously accumulated in the investment
revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was
elected to be classified under fair value through other
comprehensive income, the cumulative gain or loss
previously accumulated in the investment revaluation
reserve is not reclassified to profit or loss, but is transferred
to retained earnings.
5.4 FINANCIAL INSTRUMENTS (CONTINUED)
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.4 FINANCIAL INSTRUMENTS
Initial recognition and measurement
Financial assets and financial liabilities are recognised when
the Group becomes a party to the contractual provisions to
the instrument. For financial assets, this is equivalent to the
date that the Group commits itself to either the purchase or
sale of the asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are
initially measured at fair value plus transaction costs, except
where the instrument is classified ‘at fair value through
profit or loss’, in which case transaction costs are expensed
to profit or loss immediately. Where available, quoted prices
in an active market are used to determine fair value.
Trade receivables are initially measured at the transaction
price if the trade receivables do not contain a significant
financing component or if the practical expedient was
applied as specified in AASB 15.63.
Classifi cation and subsequent measurement
Financial Liabilities
Financial instruments are subsequently measured at:
- amortised cost; or
- fair value through profit or loss.
A financial liability is measured at fair value through profit
and loss if the financial liability is:
- a contingent consideration of an acquirer in a business
combination to which AASB 3: Business Combinations
applies;
- held for trading; or
- initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at
amortised cost using the effective interest method.
The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period.
The effective interest rate is the internal rate of return of the
financial asset or liability. That is, it is the rate that exactly
discounts the estimated future cash flows through the
expected life of the instrument to the net carrying amount at
initial recognition.
A financial liability is held for trading if:
- it is incurred for the purpose of repurchasing or repaying
in the near term;
- part of a portfolio where there is an actual pattern of
short-term profit taking; or
- a derivative financial instrument (except for a derivative
that is in a financial guarantee contract or a derivative that
is in a effective hedging relationships).
Any gains or losses arising on changes in fair value are
recognised in profit or loss to the extent that they are not
part of a designated hedging relationship are recognised in
profit or loss.
The change in fair value of the financial liability attributable
to changes in the issuer’s credit risk is taken to other
comprehensive income and are not subsequently
reclassified to profit or loss. Instead, they are transferred
to retained earnings upon derecognition of the financial
liability. If taking the change in credit risk in other
comprehensive income enlarges or creates an accounting
mismatch, then these gains or losses should be taken to
profit or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
Financial Assets
Financial Assets are subsequently measured at:
- amortised cost;
- fair value through other comprehensive income,: or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
- the contractual cash flow characteristics of the financial
assets; and
- the business model for managing the financial assets.
A financial asset that meets the following conditions is
subsequently measured at amortised cost:
- the financial asset is managed solely to collect contractual
cash flows; and
- the contractual terms within the financial asset give rise
to cash flows that are solely payments of principal and
interest on the principal amount outstanding on specified
dates.
A financial asset that meets the following conditions
is subsequently measured at fair value through other
comprehensive income:
- the contractual terms within the financial asset give rise
to cash flows that are solely payments of principal and
interest on the principal amount outstanding on specified
dates;
- the business model for managing the financial assets
comprises both contractual cash flows collection and the
selling of the financial asset.
By default, all other financial assets that do not meet the
measurement conditions of amortised cost and fair value
through other comprehensive income are subsequently
measured at fair value through profit or loss.
103
MACA LIMITED ANNUAL REPORT 2022
104
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.4 FINANCIAL INSTRUMENTS (CONTINUED)
Impairment
The Group recognises a loss allowance for expected credit
losses on:
- financial assets that are measured at amortised cost or
fair value through other comprehensive income;
- lease receivables;
- contract assets (eg amounts due from customers under
construction contracts);
- loan commitments that are not measured at fair value
through profit or loss; and
- financial guarantee contracts that are not measured at
fair value through profit or loss.
Loss allowance is not recognised for:
- financial assets measured at fair value through profit or
loss; or
- equity instruments measured at fair value through other
comprehensive income.
Expected credit losses are the probability-weighted
estimate of credit losses over the expected life of a financial
instrument. A credit loss is the difference between all
contractual cash flows that are due and all cash flows
expected to be received, all discounted at the original
effective interest rate of the financial instrument.
The Group uses the following approaches to impairment, as
applicable under AASB 9: Financial Instruments:
- the general approach; and
- the simplified approach
General approach
Under the general approach, at each reporting period, the
Group assesses whether the financial instruments are credit-
impaired, and if:
- the credit risk of the financial instrument has increased
significantly since initial recognition, the Group measures
the loss allowance of the financial instruments at an
amount equal to the lifetime expected credit losses; or
- there is no significant increase in credit risk since initial
recognition, the Group measures the loss allowance for
that financial instrument at an amount equal to 12-month
expected credit losses.
Simplifi ed approach
The simplified approach does not require tracking of
changes in credit risk at every reporting period, but instead
requires the recognition of lifetime expected credit loss at all
times. This approach is applicable to:
- trade receivables or contract assets that result from
transactions within the scope of AASB 15: Revenue from
Contracts with Customers and which do not contain a
significant financing component; and
- lease receivables.
In measuring the expected credit loss, a provision matrix
for trade receivables was used taking into consideration
various data to get to an expected credit loss (ie diversity
of customer base, appropriate groupings of historical loss
experience, etc).
Recognition of expected credit losses in fi nancial
statements
At each reporting date, the Group recognises the movement
in the loss allowance as an impairment gain or loss in the
statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at
amortised cost includes the loss allowance relating to that
asset.
Assets measured at fair value through other comprehensive
income are recognised at fair value, with changes in fair
value recognised in other comprehensive income. Amounts
in relation to change in credit risk are transferred from other
comprehensive income to profit or loss at every reporting
period.
5.5 FAIR VALUE MEASUREMENTS
The Group measures and recognises only the shares in listed
and unlisted companies at fair value on a recurring basis
after initial recognition.
The Group does not subsequently measure any liabilities at
fair value on a recurring basis, or any assets or liabilities at
fair value on a non-recurring basis.
a. Fair Value Hierarchy
AASB 13 requires the disclosure of fair value information
by level of the fair value hierarchy, which categorises fair
value measurements into one of three possible levels based
on the lowest level that an input that is significant to the
measurement can be categorised into as follows:
Level 1
Level 2
Level 3
Measurements
based on quoted
prices (unadjusted)
in active markets
for identical assets
or liabilities that
the entity can
access at the
measurement date.
Measurements
based on inputs
other than
quoted prices
included in
Level 1 that are
observable for
the asset or
liability, either
directly or
indirectly.
Measurements
based on
unobservable
inputs for the
asset or liability.
The fair values of assets and liabilities that are not traded
in an active market are determined using one or more
valuation techniques. These valuation techniques maximise,
to the extent possible, the use of observable market data.
If all significant inputs required to measure fair value are
observable, the asset or liability is included in Level 2. If
one or more significant inputs are not based on observable
market data, the asset or liability is included in Level 3.
Valuation techniques
The Group selects a valuation technique that is appropriate in
the circumstances and for which sufficient data is available to
measure fair value. The availability of sufficient and relevant
data primarily depends on the specific characteristics of the
asset or liability being measured. The valuation techniques
selected by the Group are consistent with one or more of the
following valuation approaches:
- Market approach uses prices and other relevant
information generated by market transactions for identical
or similar assets or liabilities.
- Income approach converts estimated future cash flows
or income and expenses into a single discounted present
value.
- Cost approach reflects the current replacement cost of an
asset at its current service capacity.
Each valuation technique requires inputs that reflect the
assumptions that buyers and sellers would use when
pricing the asset or liability, including assumptions about
risks. When selecting a valuation technique, the Group
gives priority to those techniques that maximise the use of
observable inputs and minimise the use of unobservable
inputs. Inputs that are developed using market data (such
as publicly available information on actual transactions)
and reflect the assumptions that buyers and sellers
would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market
data is not available and therefore are developed using
the best information available about such assumptions are
considered unobservable.
The following table provide the fair values of the Group’s
assets and liabilities measured and recognised on a recurring
basis after initial recognition and their categorisation within
the fair value hierarchy:
30 June 2022
Recurring fair value measurements
Section
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
Financial assets
Financial assets at fair value through income and loss:
- shares in listed companies
4.1
6,939
-
-
6,939
- shares in unlisted companies
4.1
-
1,267
-
1,267
Total
6,939
1,267
-
8,206
105
MACA LIMITED ANNUAL REPORT 2022
106
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
5.7 RESERVES
Accounting Policies
Equity Settled Employee Benefi ts Reserve
The equity-settled employee benefits reserve relates
to performance rights granted by the Company to its
Executives and employees under its Employee Long-Term
Incentive Plan. Rights granted during the year were made
via an Employee Share Trust and as a result there was no
movement in the Equity Settled Employee Benefits Reserve.
Foreign Operations
The financial transactions of foreign operations whose
functional currency is different from the presentation
currency are translated at the exchange rates prevailing
at the date of the transaction. At the end of the reporting
period, assets and liabilities are re-translated at the rates
prevailing at that date. Income and expenses are re-
translated at average exchange rates for the period.
Exchange differences arising on translation of foreign
operations are transferred directly to the foreign currency
translation reserve in the Consolidated Statement of
Financial Position. These differences are recognised in profit
and loss in the period in which the operation is disposed or
discontinued.
Foreign Currency Translation Reserve
Exchange differences arising on translation of foreign
controlled operations are taken to the exchange fluctuation
reserve. Gains or losses accumulated in equity are
recognised in the income statement when a foreign
operation is disposed or discontinued.
General Reserves
The general reserves represent funds associated with the
acquisition of non-controlling interests of controlled entities
from previous years.
Section
30 June
2022
$’000
30 June
2021
$’000
Reserves
Equity-Settled Employee Benefits Reserve
590
590
Foreign Currency Translation Reserve
1,299
-
General Reserves
(5,888)
(5,888)
Total Reserves
(3,999)
(5,298)
(a) General Reserves
Balance at the Beginning of the Year
(5,888)
(5,888)
Transactions with Members
-
-
Balance at the End of the Year
(5,888)
(5,888)
(b) Foreign Currency Translation Reserve
Balance at the Beginning of the Year
-
-
Exchange Differences Arising on Translating the Foreign Operations
1,299
-
Transfer of Forex Reserve on Discontinued Operations
-
-
Balance at the End of the Year
1,299
-
5.6 EQUITY
30 June
2022
No.
30 June
2021
No.
30 June
2022
$’000
30 June
2021
$’000
Issued Capital - Ordinary Shares
At the Beginning of the Reporting Period
341,710,846
268,007,708
342,267
269,806
Shares Issued During the Year (net of costs)
- 23 December 2020 @ $1.02 per share
-
58,530,982
-
57,544
- 15 January 2021 @ $1.02 per share
-
15,172,156
-
14,917
At the End of the Reporting Period
341,710,846
341,710,846
342,267
342,267
The Company has no authorised share capital. Ordinary shares participate in dividends and the proceeds on winding up of
the parent entity in proportion to the number of shares held. At the shareholders’ meetings each ordinary share is entitled to
one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
Performance Rights
For information relating to performance rights, including details of performance rights issued, exercised and lapsed during
the financial year, refer to Section 5.9.
Capital Management
Management controls the capital of the Group in order to maintain a prudent debt to equity ratio, provide the shareholders
with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
here are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing
the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These
responses include the management of debt levels, distributions to shareholders and share issues.
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.5 FAIR VALUE MEASUREMENTS (CONTINUED)
There were no transfers between Levels 1 and Level 2 for recurring fair value measurements during the 2022 and 2021
financial years.
a. Valuation inputs and relations to fair value
Changes in the fair value of unlisted equity securities are analysed at least each reporting period and any fair value
movements are based on recent transactions of the unlisted equity securities, considering the financial information and
performance of the unlisted equity securities.
30 June 2021
Recurring fair value measurements
Section
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
Financial assets
Financial assets at fair value through income and loss:
- shares in listed companies
4.1
30
-
-
30
Total
30
-
-
30
5.6 EQUITY (CONTINUED)
Section
30 June
2022
$’000
30 June
2021
$’000
Total Borrowings
5.2.1
285,644
302,571
Less Cash and Cash Equivalents
5.1.1
(91,582)
(122,346)
Net Debt/(Cash)
194,062
180,225
Total Equity
402,294
383,073
Total Capital
596,356
563,298
Net Debt/Equity Ratio
48%
47%
107
MACA LIMITED ANNUAL REPORT 2022
108
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.8 DIVIDENDS
No final dividend has been declared In respect of FY22.
30 June 2022
30 June 2021
Cents Per
Share
$’000
Cents Per
Share
$’000
Distributions Paid/Payable
Interim Dividend in respect of FY22 / FY21
2.5
8,543
2.5
8,543
Final Dividend in respect of FY22 / FY21
-
-
2.5
8,543
Total
2.5
8,543
5.0
17,086
Balance of franking account at year end
57,836
54,133
5.9 SHARE-BASED COMPENSATION
Options
There were no options issued for the year ended 30 June 2022. The weighted average fair value of options granted during the
previous year was Nil.
Performance Rights
The Company issues performance rights to Senior executives in accordance with the terms of the Long-Term Incentive Plan
and the Performance Rights Plan as approved by Shareholders. When vested, each performance right is converted into one
ordinary share for no consideration. Performance rights granted carry no dividend or voting rights.
During the 2022 financial year 1,591,349 (2021: 2,843,084) performance rights were granted under the Group’s Performance
Rights Plan and 1,161,085 (2021: 1,529,493) performance rights were forfeited. Subject to the achievement of designated
performance hurdles, these performance rights will vest in June 2024. As at 30 June 2022 there were 4,434,433 (2021:
4,004,169) performance rights outstanding.
The following performance rights arrangement was in existence at 30 June 2022:
Number
Expiry Date
Unlisted Performance Rights
2,843,084
30-Jun-23
Unlisted Performance Rights
1,591,349
30-Jun-24
30 June
2022
Number
30 June
2021
Number
Outstanding at the Beginning of the Year
4,004,169
2,690,578
Granted
1,591,349
2,843,084
Vested
-
-
Cancelled or Expired
(1,161,085)
(1,529,493)
Outstanding at the End of the Year
4,434,433
4,004,169
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
5.9 SHARE-BASED COMPENSATION (CONTINUED)
Performance Rights (Continued)
An independent valuation was completed on performance rights granted during the year. Market based vesting conditions
were valued using a hybrid share option pricing model that simulates the share price of the Company as at the test date
using a Monte- Carlo simulation model. For non-market based vesting conditions no discount was made to the underlying
valuation model.
The weighted average fair value of the performance rights granted during the year ended 30 June 2022 was $0.43 per right.
Payments were made to the MACA ERT Trust for delivery of shares under the Performance Rights Plan. Inputs used to
determine the fair value of performance rights granted during the year ended 30 June 2022 were:
- Share price $0.808 being the 30 day VWAP of the Company on the last trading day prior to 30 June 2021
- Exercise price: Nil
- Volatility: 50.31%
- Option life: 3 years
- Dividend yield: 7.2%
- Risk Free Rate 0.20%
SECTION 6 OTHER
6.1 BUSINESS COMBINATIONS
Accounting Policies
Business combinations occur where an acquirer obtains control over one or more businesses, and is to be completed within
a 12 month period.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or
businesses under common control. The business combination will be accounted for from the date that control is obtained,
whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is
recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity
is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an
asset or liability is remeasured in each reporting period to fair value, recognising any change to fair value in profit or loss,
unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to business combinations, other than those associated with the issue of a financial
instrument, are recognised as expenses in profit or loss when incurred.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase. The gain from a
bargain purchase is recognised in profit or loss immediately and is not deductible for tax purpose.
Change in Fair Value of Mining West Business During the Measurement Period
On 1 February 2021, MACA acquired Mining West Business for a total consideration of $175m at which time the value of the
assets acquired and liabilities assumed were recognised. During the measurement period, the fair value of the certain assets
acquired has been amended and the retrospective impact on the financial statements is summarised below. Under AASB 3:
Business Combinations, acquirers have a 12 month “measurement period” from the original acquisition date to finalise or
adjust the assets and liabilities acquired.
109
MACA LIMITED ANNUAL REPORT 2022
110
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
6.1 BUSINESS COMBINATIONS (CONTINUED)
Original fair value
at 1 February 2021
$‘000
Final fair value at
1 February 2021
$‘000
Purchase Consideration - Cash
175,000
175,000
Less:
- Inventory
40,004
40,004
-Debtors subject to Payment Arrangements
11,315
11,315
- Plant & Equipment
135,375
135,375
- Deferred Tax Asset
5,010
-
- Employee Entitlements
(16,704)
(16,704)
- Intangible - Customer Contracts
4,535
4,535
Identifiable Assets Acquired and Liabilities Assumed
179,535
174,524
Goodwill / (Gain) on Business Combination
(4,535)
16,195
As a result of the above re-measurement during the period, the following non-cash changes have been retrospectively
adjusted in the 30 June 2021 comparatives as follows:
(a) Consolidated Statement of Profi t or Loss and Other Comprehensive Income
As previously
reported
$‘000
Adjustments
$‘000
As restated
$’000
For the year ended 30 June 2021
Gain on Business Combination
4,535
(4,535)
-
Profit Before Income Tax
36,448
(4,535)
31,913
Profit After Tax from Continuing Operations
25,202
(4,535)
20,667
Profit / (Loss) for the Year (Continuing and Discontinued Operations)
20,730
(4,535)
476
(b) Consolidated Statement of Financial Position
As previously
reported
$‘000
Adjustments
$‘000
As restated
$’000
Balances as at 30 June 2021
Intangible Assets
3,663
476
4,139
Deferred Tax Assets
28,417
(5,011)
23,406
Non-Current Assets
548,344
(4,535)
543,809
Total Assets
1,008,841
(4,535)
1,004,306
Net Assets
387,608
(4,535)
383,073
Retained Profits
45,322
(4,535)
40,787
Parent Interest
382,291
(4,535)
377,756
Total Equity
387,608
(4,535)
383,073
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
6.2 CONTROLLED ENTITIES
Details of the Company’s subsidiaries at the end of the reporting period are as follows:
Percentage Owned (%)
Country of
Incorporation
30 June
2022
30 June
2021
Parent Entity:
MACA Limited
Australia
Subsidiaries:
MACA Mining Pty Ltd
Australia
100%
100%
MACA Plant Pty Ltd
Australia
100%
100%
MACA Crushing Pty Ltd
Australia
100%
100%
MACA Civil Pty Ltd
Australia
100%
100%
Riverlea Corporation Pty Ltd
Australia
100%
100%
MACA Mineracao e Construcao Civil Ltda
Brazil
100%
100%
Alliance Contracting Pty Ltd
Australia
100%
100%
MACA Infrastructure Pty Ltd
Australia
100%
100%
MACA Resources Pty Ltd
Australia
100%
-
Marniyarra Mining and Civils Pty Ltd
Australia
50%
50%
Interquip Pty Ltd
Australia
60%
60%
Interquip Construction Pty Ltd*
Australia
60%
60%
OPMS Cambodia Co Ltd
Cambodia
100%
100%
*Interquip Construction Pty Ltd wholly owned by Interquip Pty Ltd
6.3 JOINT ARRANGEMENTS
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous
decisions about relevant activities are required.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to
each liability of the arrangement. The Group’s interests in the assets, liabilities, revenue and expenses of joint operations are
included in the respective line items of the consolidated financial statements.
Information about Joint Operations
MACA Civil Pty Ltd (“Company”) holds a 9.4% interest in South West Gateway Alliance (“Joint Operation”), a joint
arrangement structured as a strategic partnership between the Company, Acciona Construction Australia Pty Ltd, Aurecon
Australasia Pty Ltd and NRW Contracting Pty Ltd. The principal place of business of Joint Operation is Bunbury, Western
Australia and the primary purpose of the joint arrangement is to facilitate the road design and construction services on
behalf of the joint operators. The arrangement also enables the parties to source materials for their respective manufacturing
processes that meet their individual specifications. Under the Joint Operation agreement, the Company has a 9.4% direct
interest in all of the assets used, the revenue generated and the expenses incurred by the joint arrangement. The Company
is also liable for 9.4% of any liabilities incurred by the joint arrangement. In addition, pursuant to the joint Operation
agreement, the Company has 9.4% of the voting rights in relation to the Joint Operation.
MACA Civil Pty Ltd (“Company”) holds a 50% interest in Bocol MACA Joint Venture (“Joint Operation”), a joint arrangement
structured as a strategic partnership between the Company and Bocol Constructions Pty Ltd. The principal place of business
of the Joint Operation is Perth, Western Australia and the primary purpose of the joint arrangement is to facilitate design and
construction of public bridge and road structures on behalf of the joint operators.
111
MACA LIMITED ANNUAL REPORT 2022
112
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
6.3 JOINT ARRANGEMENTS (CONTINUED)
The arrangement also enables the parties to source materials for their respective manufacturing processes that meet their
individual specifications. Under the Joint Operation agreement, the Company has a 50% direct interest in all of the assets
used, the revenue generated and the expenses incurred by the joint arrangement. The Company is also liable for 50% of any
liabilities incurred by the joint arrangement. In addition, pursuant to the Joint Operation agreement, the Company has 50%
of the voting rights in relation to the Joint Operation.
South West Gateway Alliance and Bocol MACA Joint Venture are contractually established entities and are classified as joint
operation. Accordingly, the Company’s interests in the assets, liabilities, revenues and expenses attributable to the joint
arrangements have been included in the appropriate line items in the consolidated financial statements.
The Group’s share of the assets employed the Joint Operations that are included in the consolidated financial statements are
as follows:
30 June 2022
$’000
30 June 2021
$’000
South West
Gateway
Alliance
Bocol MACA
Total
South West
Gateway
Alliance
Bocol
MACA
Total
Current Assets
Trade and Other Receivables
22,662
-
22,662
6,667
447
7,114
Work In Progress
(1,782)
-
(1,782)
(1,451)
282
(1,169)
Total Current Assets
20,880
-
20,880
5,216
729
5,945
Current Liabilities
Trade and Other Payables
19,167
-
19,167
4,764
99
4,863
Net interest in Joint Operations
1,713
-
1,713
452
630
1,082
6.4 RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated. Transactions with related parties:
Key Management Personnel
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or
indirectly, including any director (whether executive or otherwise) of that entity, are considered key management personnel.
Information regarding individual directors or executives remuneration is provided in the Remuneration Report included in
the Director’s Report.
The total of remuneration paid to KMP’s of the Group during the year was as follows:
30 June
2022
$’000
30 June
2021
$’000
Short-Term Employee Benefits
2,380
2,413
Post-Employment Benefits
106
99
Other Long-Term Benefits
-
-
Long-Term Incentive Payments
511
335
Total Remuneration
2,997
2,847
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
6.4 RELATED PARTY TRANSACTIONS (CONTINUED)
Controlled Entities
Interests in controlled entities are set out Section 6.2.
During the year, funds have been advanced between
entities within the Group for the purposes of working
capital requirements.
Other Related Parties
Other related parties include entities over which key
management personnel exercise significant influence.
Transactions between related parties are on normal
commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
Key Management Person and/or Related Party
Transaction
30 June
2022
$’000
30 June
2021
$’000
Partnership of which current director Mr G.Baker is a 25%
partner.
Rent on Division St Business
premises.
1,624
1,578
Gateway Equipment Parts & Services Pty Ltd
- a company of which current director Mr G.Baker’s Family
Trust is a 20% beneficial shareholder.
Hire of equipment and purchase
of equipment.
4,824
5,852
Gateway Equipment Parts & Services Pty Ltd
- a company of which current director Mr G.Baker’s Family
Trust is a 20% beneficial shareholder.
Sale of equipment (Revenue)
150
-
Amounts payable at year end arising from the above transactions
Gateway Equipment Parts & Services Pty Ltd - a company of which current director Mr G.Baker’s
Family Trust is a 20% beneficial shareholder
202
920
6.5 CONTINGENT LIABILITIES
Performance Guarantees
MLD has indemnified its bankers and insurance bond providers in respect of bank guarantees, insurance bonds and letters
of credit to various customers and suppliers for satisfactory contract performance and warranty security, in the following
amounts:
30 Jun 2022: $36.5 million 30 Jun 2021: $29.1 million
Claims
Certain claims arising out of engineering and construction contracts have been made by, or against, controlled entities in the
ordinary course of business. The Directors do not consider the outcome of any of these claims will be materially different to
the position taken in the financial accounts of the Group.
113
MACA LIMITED ANNUAL REPORT 2022
114
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SECTIONS TO THE FINANCIAL STATEMENTS
For the Year Ended 30 June 2022
6.6 EVENTS AFTER BALANCE SHEET DATE
The Directors have elected not to pay a final dividend.
Subsequent to the year end, the following matters have been announced by the Group:
- Award of 3 civil contracts that comprise Rio Tinto Western Range Project Early Works, MRPV Hall Road Upgrade and Roy
Hill Civil Works with a total value of approximately $115 million;
- Mr Michael Sutton resigned as Managing Director and Chief Executive Officer of MACA effective on 22 July 2022. Mr David
Greig has been appointed to the role of Chief Executive Officer;
- On 26 July 2022, MACA entered into a Bid implementation Deed (‘BID’) with Thiess Group Investments Pty Ltd (“Thiess”),
under which Thiess has agreed to make an off-market takeover offer to MACA shareholders at the consideration of
$1.025 cash per share for each MACA Share. The Directors of MACA unanimously recommend the offer in the absence of a
superior proposal and subject to the Independent Expert concluding, and continuing to conclude, that the Offer is fair and
reasonable (or not fair but reasonable) to the MACA shareholders. On 19 August 2022, MACA announced its assessment of
the non-binding, conditional and indicative proposal received from NRW Holdings Limited (“NRW”), for the acquisition of
all MACA shares by way of a scheme of arrangement. After careful consideration of the NRW Indicative Proposal as a whole,
and of each of its components, and after taking professional advice and liaising confidentially with NRW, the MACA Board
unanimously concluded that the NRW Indicative Proposal is not superior to the existing conditional off-market takeover
offer from Thiess to acquire all MACA shares. MACA informed NRW that if NRW could remove or reduce the risks that the
NRW Indicative Proposal asked MACA shareholders to assume and increase the total consideration offered, then MACA
considered that there was a basis for further discussion, and would have welcomed such discussion (refer to the market
announcement on 19 August 2022 for further details). MACA’s Target’s Statement was released to shareholders on 25
August 2022. On 29 August 2022, Thiess increased the offer price to $1.075 per share. On 30 August 2022, NRW announced
that it had determined that continuing to pursue a transaction to acquire MACA would not be in the best interests of NRW’s
shareholders at present. MACA released supplementary Target’s Statements on 1 September 2022 and 16 September
2022. On 27 September 2022 Thiess waived all remaining conditions and the offer was declared unconditional.
Other than the above, there has not been any matter or circumstance occurring subsequent to the end of the financial year
that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial years.
6.7 PARENT ENTITY DISCLOSURES
The following information has been extracted from the books and records of the Company and has been prepared in
accordance with Accounting Standards
Statement of Financial Position
30 June
2022
$’000
30 June
2021
$’000
Assets
Current Assets
22,189
18,173
Total Assets
458,431
449,790
Liabilities
Current Liabilities
4,699
2,529
Total Liabilities
5,949
2,529
Equity
Issued Capital
434,790
434,790
Reserves
591
591
(Accumulated Losses) / Retained Profits
17,101
11,880
Total Equity
452,482
447,261
Statement of Financial Performance
Profit For the Year (Including Interco Dividends)
22,307
12,720
Total Comprehensive Income
22,307
12,720
Guarantees
MACA Limited entered into guarantees for certain equipment finance facilities and loan in FY2021, in relation to the debts
entered into by its subsidiaries.
INDEPENDENT AUDIT REPORT
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF MACA LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of MACA Limited (the Company) and its subsidiaries (the “Group”), which
comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year then ended; and
ii.
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the “Code”)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Group, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation
115
MACA LIMITED ANNUAL REPORT 2022
116
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
INDEPENDENT AUDIT REPORT (CONTINUED)
Existence and Ownership of Assets – Inventories and Plant & Equipment
Refer to Notes 4.2 “Inventories” and 4.5 “Property, Plant and Equipment”
Existence and ownership of inventories and plant &
equipment are key audit matters.
It is due to the material balances and location of
these assets that this is a key area of audit focus.
Most of the Group’s plant and equipment are
located at remote sites mainly across Western
Australia (WA), Victoria and Cambodia. Similarly,
inventories are held at these sites as well as holding
facilities in Perth/Northam, WA
Our procedures included:
x We agreed a sample of inventories and plant &
equipment additions to supplier invoices
including capital expenditure request Forms (for
appropriate authority).
x We agreed a sample of plant and equipment to
hire purchase financing agreements.
x We agreed a sample of inventories and
plant/equipment to date-stamped photography
taken by senior MACA personnel in remote sites.
x We
attended
physical
stock
counts
of
inventories held in Perth/Northam & obtained
confirmation of stocks held by a third party.
Impairment Assessment of Property Plant & Equipment
Refer to Note 4.5 “Property, Plant and Equipment”
Refer to Section 2 Key Estimates & Judgements – “Impairment of Property, Plant & Equipment”
Property, plant and equipment (“PPE”) represents
the Group’s largest asset with a carrying book value
of approximately $440 million. Given the Group’s
net asset position exceeded its market capitalisation
at balance date, an impairment trigger event has
arisen under AASB 136 Impairment.
As a result, an impairment assessment has been
made by management of the recoverable amounts
of each of the Group’s operating segments or Cash
Generating Units (CGUs). An impairment is
recognised if the carrying amount of the Group’s
PPE is less than its recoverable amounts, being the
higher of fair value less costs of disposal and value-
in-use (VIU).
During the year, a valuation appraisal for a
substantial number of the Group’s PPE was
undertaken by an independent expert.
The impairment assessment undertaken for both
VIU and Fair Value approaches has resulted in no
impairment to the PPE employed in all CGUs.
The recoverable amount of the Group’s PPE were
key audit matters due to the significant judgment
involved in forecasting future cash flows and the
selection of assumptions adopted by management
and by the independent expert.
Our procedures included, amongst others:
x Evaluating the value-in-use (VIU) discounted
cash flow model developed by management to
assess the recoverable amount of the underlying
assets including assessing the reasonableness of
the key assumptions:
- discount & growth rates
- forecast cash flows and capital expenditure
- terminal growth rate
Where possible, we corroborated assumptions
by reference to external data and contracts
awarded to-date
x Checking the mathematical accuracy of the cash
flow models & reviewing the sensitivity analysis
performed under the impairment model for
reasonableness
x Reviewing the independent valuation appraisal
report which placed a higher value of the
appraised assets compared to their respective
year-end carrying amounts. We assessed the
valuer’s methodology, assumptions, objectivity,
accreditations/qualifications for
reasonableness.
x Assessing the appropriateness of the relevant
disclosures in the financial statements
Key Audit Matters (continued)
Key Audit Matters (continued)
INDEPENDENT AUDIT REPORT (CONTINUED)
Recognition of Revenue
Refer to Note 3.1 “Revenue and Other Income”
The Group’s revenue is predominantly derived from
the rendering of mining and other services, all of
which are based on contracts which determine the
services, products and rates to be charged.
The accurate recording of revenue is highly
dependent upon the following key factors:
x Knowledge of the individual characteristics and
status of contracts
x Management’s invoicing process including:
accurate measurement of work-done and
services provided each month
invoices prepared in compliance with
contract terms such as services performed &
rates charged
by reference to the stage of completion of
the contract activity (using the input method
under AASB 15) at balance date for
civil/infrastructure works.
x Recognition of variations and claims, in
accordance with contractual terms and based on
an assessment as to when the Group believes it
is highly probable that a significant reversal in
the amount of revenue recognised will not occur
when the uncertainty associated with the
variable consideration is subsequently removed.
The above determinations will also impact on
account balances such as Contract Assets (Work in
Progress/WIP), Accrued Income and Unearned
Revenue
We focused on this matter as a key audit matter due
to the significance of contract-based revenue to the
Group combined with the need to comply with a
variety of contractual conditions, leading to
judgemental
risk
associated
with
revenue
recognition.
Our procedures included, amongst others:
x We
evaluated
management’s
processes
regarding existence and valuation of the Group’s
contract revenues. We tested internal controls
in relation to preparation and authorisation of
monthly revenue invoices for compliance with
the
Group’s
policy
relating
to
revenue
recognition
x We selected a sample of sales invoices raised
during the year (and post year-end) and
performed the following procedures:
agreed to contractual terms
agreed to general ledger accounts and
subsequent receipts from the customer
for variations or claims, we checked they
were in accordance with contract terms and
evaluated for risk of non-recovery
revenue cut-off testing
x We evaluated and tested, on a sample basis,
inputs such as materials, subcontractors etc
used by management in their estimation of total
costs to complete
x We recomputed the percentage of completion
based on actual cumulative contract costs
incurred to-date to the total estimated contract
costs for individually significant projects.
x We evaluated contract performance during and
post year-end up to audit opinion date to reflect
on year-end revenue recognition judgements. As
part of this process, we challenged the
appropriateness of variations and claims
included in the computation of contract revenue
and whether it is highly probable that the
revenue recognised will not subsequently be
reversed
x We also reviewed and assessed the adequacy of
the disclosures in relation to key accounting
estimates
117
MACA LIMITED ANNUAL REPORT 2022
118
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
INDEPENDENT AUDIT REPORT (CONTINUED)
Valuation of Receivables / Assets Held for Sale
Refer to Notes 4.1 & 4.3 “Trade and Other Receivables” and “Assets Held for Sale”
Refer to Note 5.3 “Financial Risk Management”
Valuation of receivables and assets held for sale are
key audit matters.
It is due to the size of the account balances and the
judgements required in determining their carrying
values that these are key areas of audit focus.
Trade and other debtors amounted to a total of
$286 million at 30 June 2022. The Group assesses
periodically and at each year-end the expected
credit loss (“ECL”) associated with its receivables.
Assets Held for Sale of $32 million are measured at
the carrying amount of the historical trade and
secured loan receivable from Carabella Resources
Pty Ltd (“Carabella”). The underlying assets include
mining tenements (previously secured against the
loan) now controlled by MACA and royalty from
future coal sales under the terms of the sale
agreement with Bowen Coking Coal Ltd (“Bowen”)
for the Bluff Coal Project during the year.
The valuation of the mining tenements was subject
to an independent expert valuation whilst the
internal valuation of the royalty is based on the
production and sale commitment by Bowen and
forecast market price for PCI coal discounted by a
weighted average cost of capital.
The ECL / valuation assessment undertaken above
has resulted in no adjustments to either
trade/other receivables or assets held for sale.
Our procedures included, amongst others:
x Review of subsequent sales invoices and related
claim documentation in respect of accrued
revenue.
Review
of
subsequent
receipt
collections from debtors.
x Review of AASB 9 ECL workings and assessments
prepared by management in relation to trade
and other receivables.
x Discussion with management and the directors
as to the existence of any arrears with trade
debtors and the impact these factors have had
on the assessment and adequacy of the ECL
assessment undertaken and consideration of
any impairment provision to be recognised.
x Assessment of the financial viability and future
prospects of debtors based on publicly available
information and other information available to
the Company.
x Review classification of receivables between
current
and
non-current
ensuring
that
classification reflects the agreements entered
into with customers.
x An evaluation of management’s conclusions on
the classification of the assets held for sale and
performing procedures to ensure these assets
are carried at lower of carrying value and fair
value less costs to sell in terms of AASB 5: Non-
Current Assets Held for Sale.
x With the valuation of the mining tenements held
for sale, we evaluated the
competence,
accreditation/capabilities and objectivity of the
independent expert.
x With the royalty held for sale, we evaluated the
assumptions
and
methodology
used
in
management’s valuation model to ensure they
were consistent with the agreement with
Bowen, their publicly released production
estimates for Bluff Coal & other forecast
information. We assessed the mathematical
accuracy
of
the
model
and
challenged
management, primarily on their assumptions
applied and verified key inputs to external
sources where applicable.
x Review of disclosures made in the notes to the
financial statements.
INDEPENDENT AUDIT REPORT (CONTINUED)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2022, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2021.pdf.
This description forms part of our audit report.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2022.
In our opinion, the Remuneration Report of MACA Limited, for the year ended 30 June 2022 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
SL TAN
MOORE AUSTRALIA AUDIT (WA)
PARTNER
CHARTERED ACCOUNTANTS
Signed at Perth on the 22nd day of August 2022
Key Audit Matters (continued)
Key Audit Matters (continued)
119
MACA LIMITED ANNUAL REPORT 2022
120
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT 2022
SHAREHOLDER INFORMATION
NUMBERS OF HOLDERS OF EQUITY
Ordinary Share Capital
341,710,846 fully paid ordinary shares are held by 7,551 individual shareholders.
Listed Options
There are no listed options.
Unlisted Options
There are no unlisted options.
Distribution of Shareholdings
Number of
Number of
% of Issued
Fully Paid Ordinary Shares
Shareholders
Shares
Capital
1 -1,000 shares
1,240
783,761
0.23%
1,001 –5,000 shares
2,786
7,835,478
2.29%
5,001 –10,000 shares
1,415
10,604,534
3.10%
10,001 –100,000 shares
1,954
52,744,191
15.44%
100,001 and over shares
156
269,742,882
78.94%
Total
7,551
341,710,846
100.00%
Substantial Share and Option Holders
An extract of the Company’s register of substantial shareholders (who held a relevant interest in 5% or more of issued
capital is set out below:
Substantial Shareholder
Fully Paid
Ordinary Shares
% of Total
Shares
Mr Kenneth Rudy Kamon
21,856,681
6.4%
Dimensional Entities, being various entities and
persons associated with Dimensional Fund Advisors
20,568,160
6.0%
Samuel Terry Asset Management Pty Ltd
17,413,222
5.1%
There were no substantial option holders listed in the Company’s register as at 31 August 2022.
Other Information
The voting rights attached to ordinary shares are governed by the Constitution of the Company. On a show of hands every
person present who is a Member or representative of a Member shall have one vote on a poll, every Member present in
person or by proxy or by attorney or duly authorised representative shall have one vote for each share held. None of the
options have any voting rights.
Unmarketable Parcels
As at 31 August 2022 there were 281 holders who held shares that were unmarketable parcels.
As at 31 August 2022
MACA’S TOP TWENTY SHAREHOLDERS
Registered Shareholder
Fully paid
Ordinary shares
% of total
shares
CITICORP NOMINEES PTY LIMITED
48,478,804
14.19
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
39,757,552
11.63
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
25,371,726
7.42
MR KENNETH RUDY KAMON
21,856,681
6.40
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
15,328,101
4.49
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT DRP)
13,145,427
3.85
GEMBLUE NOMINEES PTY LTD (THE G A BAKER FAMILY A/C)
12,863,816
3.76
NATIONAL NOMINEES LIMITED
11,856,506
3.47
MR FRANCIS JOSEPH MAHER + MS SHARON JANE MAHER (THE MAHER FAMILY A/C)
11,800,000
3.45
NEWECONOMY COM AU NOMINEES PTY LIMITED (900 ACCOUNT)
6,492,230
1.90
BNP PARIBAS NOMINEES PTY LTD (AGENCY LENDING DRP A/C)
5,742,994
1.68
MR KENNETH JOSEPH HALL (HALL PARK A/C)
5,210,000
1.52
CIMIC GROUP INVESTMENTS NO 2 PTY LIMITED
5,125,663
1.50
MR JAMES EDWARD MOORE + MS JULIA CATHERINE MOORE
4,606,250
1.35
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
3,538,364
1.04
UBS NOMINEES PTY LTD
2,820,232
0.83
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
2,273,285
0.67
BNP PARIBAS NOMS PTY LTD (DRP)
1,839,622
0.54
MR FRANCIS JOSEPH MAHER + MRS SHARON JANE MAHER (THE MAHER FAMILY A/C)
1,837,500
0.54
AUSTRAL CAPITAL PTY LTD (AUSTRAL EQUITY FUND A/C)
1,650,000
0.48
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
241,594,753
70.70
Total Remaining Holders Balance
100,116,093
29.30
Restricted Securities
There were no restricted securities at the date of this report.
Voting Rights
Ordinary Shares: For all ordinary shares, voting rights are on a show of hands whereby every member present in person or
by proxy shall have one vote and upon a poll, each share shall have one vote.
Other Information
MACA Limited is incorporated and domiciled in Australia and is a publicly listed company limited by shares.
COMPANY DETAILS
The registered office is:
The principal place of business:
MACA Limited
MACA Limited
45 Division Street
45 Division Street
Welshpool, Western Australia, 6106
Welshpool, Western Australia, 6106
SHAREHOLDER INFORMATION (CONTINUED)
121
MACA LIMITED ANNUAL REPORT 2022
122
MACA LIMITED ANNUAL REPORT 2022
CONTENTS
ABOUT US
LEADERSHIP
OPERATIONAL REVIEW
DIRECTORS’ REPORT
FINANCIAL REPORT
FINANCIAL REPORT
123
MACA LIMITED ANNUAL REPORT 2022
MACA Limited and its Controlled Entities
ABN 42 144 745 782
Perth
45 Division Street,
Welshpool WA 6106
E: Info@maca.net.au
T: +61 8 6242 2600
maca.net.au