Annual Report
2024
CONTENTS
2
4
5
Year at a Glance
Our Business
Map of Operations
6
8
10
Our Capabilities
Vision, Values
and Strategy
Letter from
the Chair
12
17
39
MD and
CEO Report
Operational and
Financial Review
Sustainability
45
51
67
Directors’ Report
Remuneration
Report
Financial
Statements
127
128
132
Directors’
Declaration
Independent
Auditor’s Report
Summary of
Consolidated Reports
134
136
ASX Additional
Information
Corporate Directory
and Glossary
This Annual Report is a summary of Macmahon’s operations and financial results for the financial year ended 30 June 2024.
In this report, all references to ‘Macmahon’, ‘the Company’, ‘the Group’, ‘we’, ‘us’ and ‘our’ refer to Macmahon Holdings Limited
(ACN 007 634 406) and its controlled entities unless stated otherwise.
The information in this Annual Report covers all offices, sites and facilities wholly owned and operated by Macmahon, including
the operational footprint that covers Macmahon Holdings Limited and its controlled entities.
References in this report to a ‘year’ are to the financial year ended 30 June 2024 unless stated otherwise. All currency amounts
are in Australian dollars unless stated otherwise.
1
Gold
56
Met Coal
25
Copper/Gold
8
Lithium
7
Other
4
Year at a Glance
FINANCIAL YEAR 2024 HIGHLIGHTS
REVENUE DIVERSIFICATION
FINANCIALS
BY COMMODITY (%)
BY REGION (%)
Australia
93
Southeast Asia
7
BY CLIENT (%)
$2.0b
$301.0m
$351.7m
$4.6b
$140.3m
REVENUE
UNDERLYING OPERATING
CASH FLOW
FY23: $1.9 billion
FY22: $1.7 billion
FY23: $306.0 million
FY22: $269.8 million
FY23: $308.7 million
FY22: $291.4 million
FY23: $5.1 billion
FY22: $5.0 billion
FY23: $116.6 million
FY22: $100.8 million
UNDERLYING EBITDA
ORDER BOOK
UNDERLYING EBIT(A)
BY DIVISION (%)
Surface
66
Underground
25
Mining Support and
Civil Infrastructure
9
AngloGold
19
QCoal
12
Red 5
10
Newmont
9
Anglo America
8
Talison
7
Genesis
6
Other
6
Silver Lake
5
QMetco
4
Calidus
3
PT AMNT
3
PT Agincourt
3
BHP
3
Northern Star
2
(before interest and tax)
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Year at
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2
Macmahon Annual Report 2024
PEOPLE
We invest in building strong teams and seek
individuals who want to make a significant
contribution to our business.
273
STRUCTURED LEADERSHIP
DEVELOPMENT
9,676
1,030
3.64
GROUP WORKFORCE
TOTAL PEOPLE TRAINED
TRIFR
136
36
685
APPRENTICES
GRADUATES
TRAINEES
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Macmahon is a diversified contractor with leading capabilities
in surface and underground mining, and mining support and
civil infrastructure.
As an ASX-listed company, we provide services to many of the largest resources projects in Australia
and Southeast Asia.
Founded in 1963, Macmahon services major resource companies across various commodity sectors.
Our end-to-end mining services encompass mine development and materials delivery through to
engineering, civil construction, onsite mining services, rehabilitation, site remediation, training and
equipment maintenance and refurbishment services.
OUR BUSINESS
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Macmahon Annual Report 2024
MAP OF OPERATIONS
4
Offices
7
Commodities
3
Workshops
20
Total Sites
SOUTHEAST ASIA
2
1
1
1
Surface
Offices
Workshops
Underground
Mining Support and Civil Infrastructure
Due to formatting, map positioning is for illustration purposes only.
AUSTRALIA
1
1
1
4
6
1
2
2
1
1
1
1
INDONESIA
Jakarta
Batu Hijau
Martabe
Tujuh Bukit
MALAYSIA
Selangor
QUEENSLAND
Brisbane
Coppabella
Byerwen
Dawson South
Peak Downs
Foxleigh
VICTORIA
Fosterville
WESTERN
AUSTRALIA
Perth (Head Office)
Perth
Greenbushes
King of the Hills
Telfer
Tropicana
Boston Shaker
Daisy Milano
Deflector
Granny Smith
Gwalia
King of the Hills
Telfer
SOUTH
AUSTRALIA
Lonsdale
Olympic Dam
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SURFACE MINING
Our surface mining division operates in Australia
and Southeast Asia, offering a broad suite of
services including:
•
Bulk and selective mining
•
Mine planning and analysis
•
Drill and blast
•
Crushing and screening
•
Fixed plant maintenance
•
Water management
•
Equipment operation and maintenance
•
Technology solutions partnering
UNDERGROUND MINING
Macmahon has a growing and highly experienced
underground division specialising in underground
mining and engineering services, including:
•
Mine development
•
Mine production
•
Raise drilling
•
Cablebolting
•
Technology solutions partnering
•
Shotcreting
•
Remote shaft lining
•
Production drilling
•
Shaft sinking
•
Paste Fill
MINING SUPPORT SERVICES
Civil Construction
Macmahon offers a wide range of design, civil
earthworks, mine site infrastructure packages,
mine rehabilitation, and closure services to mine
owners, including:
•
Topsoil and overburden stripping
•
Bulk earthworks
•
Road design and construction
•
Mine infrastructure and services
•
Train loading facilities
•
Water infrastructure - dams, creek diversions,
flood levies, and drainage structures
•
Revegetation
•
Rehabilitation monitoring and maintenance
•
Non-process infrastructure
•
Tailings storage facilities (TSF)
Engineering
Macmahon's extensive engineering capabilities
provide clients with tailored mining solutions for
projects both above and below ground with the
ability to undertake design and fabrication and
complete onsite construction.
Macmahon can deliver a comprehensive
engineering, procurement, and construction
offering from design to completion and
maintenance, including:
•
Shaft lining and maintenance
•
Shaft fit out
•
Ore pass liners
•
Winder refurbishment
•
Conveying, crushing, materials handling
•
Emergency egress systems
•
Pump stations and rising mains
•
Site workshops and infrastructure
Business Improvement Consulting
Macmahon offers an advisory operational
improvement service that can provide mine
owners with the benefit of our contracting
experience including:
•
Operator coaching and industry skills training
•
Cultural change programs for employees
•
Advice and assistance with mine planning,
maintenance and employee engagement
Equipment Maintenance, Refurbishment and
Support Services
Macmahon offers comprehensive equipment
maintenance, refurbishment and support services
for a wide range of mining equipment. Our facilities
in Western Australia, Queensland and South
Australia provide Macmahon with the ability to:
•
Service and maintain equipment, full in frame
rebuilds including components, and complete
repairs in workshops and/or in-field.
•
Rapidly and efficiently deploy critical spares,
parts and supplies to client locations.
•
Train apprentices and employ a range
of experienced tradespeople for rapid
deployment to regional and remote sites.
OUR CAPABILITIES
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Values
In everything we do, we think and behave according to our values.
UNITED
Be Inclusive
Work Together
Support Each Other
COURAGE
Be Brave
Speak Up
Challenge Yourself
INTEGRITY
Be Honest
Respect People
Be Accountable
PRIDE
Be Humble
Work Hard
Celebrate Wins
Vision
To be the preferred contracting and services company
For employees to work for
For customers to use
For shareholders to invest in
VISION, VALUES AND STRATEGY
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Macmahon Annual Report 2024
Strategy
Macmahon is focused on expanding and improving its end-to-end mining service capabilities to achieve
sustainable growth and optimise financial returns. Our people are focused on improving efficiencies,
investing in future relevance and diversifying and expanding our service offering.
DIVERSIFY
Position for the next wave of growth
Diversify our business to improve
returns; enable growth through
operating model evolution.
IMPROVE
Improve margins and execution
Consistently deliver our target
margins by improving how we
operate, how we manage contracts,
and how we use systems.
INVEST
Invest in our competitive advantage
and future relevance
Reinforce our positioning through
investment in our people, our operating
technology and our sustainability
propositions.
EXPAND
Focused expansion in current markets
Expand our presence in core markets
through focused, selective work winning.
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Dear Shareholders,
Macmahon has continued with a strong performance for the 2024
financial year, making significant progress both operationally and
financially. This includes delivering on market guidance for the eighth
consecutive year, demonstrating the disciplined execution of the
Company’s strategy across market cycles.
Group revenue was $2.0 billion and underlying
EBIT(A) was at a record level of $140.3 million,
representing a solid financial performance with
improvement in our return on average capital
employed and free cash flow generation. We
ended the year with $2.0 billion of secured work
for FY25 and $4.6 billion of total work in hand.
Importantly, safety performance also improved
during the year as our workforce grew to a
record 9,676 employees. This growth is a notable
achievement, given the ongoing tight skilled labour
market in the Australian mining sector.
The positive FY24 result was achieved during a
period of increased volatility in some commodity
prices. We see the benefit of portfolio diversity in
our business as an important element in this regard
and continue to work with our clients to effectively
manage these challenges.
Macmahon’s strategy is centred around building a
sustainable, diversified and scalable business. Key
to this is reducing capital intensity in the business
and improving diversity of earnings through
further expansion into underground mining,
mining support services and civil infrastructure.
The Company made significant progress on this
front during the year including the acquisition
of key Pit N Portal contracts from Emeco, and
with reduced capital intensity through a long-
term strategic equipment rental partnership with
Emeco. There was also the acquisition of ASX
listed civil contractor Decmil Group Limited, which
will provide the foundation for Macmahon to
accelerate civil infrastructure growth.
Our people are the critical ingredient to a
sustainable company and we are fully committed
to building a safe, respectful and inclusive work
environment. We rolled out a number of programs,
including the industry leading “Strong Mines,
Strong Minds”, Respect@Macmahon and the new
“Macmahon Winning Way” which provide tangible
benefits to our team and communities. Safety
performance and employee wellness will continue
to be of the highest priority.
Operating our business sustainably is a key
objective for the Company, and we continued
to take important steps during the year to
manage our environmental impact and embed
sustainability principles in our business planning,
operations and culture. I encourage you to read
our stand-alone Sustainability Report for ESG
initiatives we are undertaking and how they benefit
Macmahon, our clients and the community.
Macmahon adopts a disciplined approach to
capital management and remains committed
to paying a sustainable dividend in line with the
Company’s capital allocation policy. The Board
is currently targeting a payout ratio of 20-35%
of underlying earnings per share and following
an increased interim dividend at the half-year
is pleased to have declared an increased final
dividend for FY24 of 0.60 cents per share (fully
franked). This brings the full-year dividend to
1.05 cents per share, a 40% increase on the FY23
full-year dividend and representing a payout ratio
of 24.0% of underlying earnings per share.
LETTER FROM THE CHAIR
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Macmahon Annual Report 2024
10
We saw changes to the Macmahon Board during
the 2024 financial year. Eva Skira retired as Chair
at the conclusion of the FY23 Annual General
Meeting and I would like to acknowledge Eva’s
significant service and contribution to Macmahon
over her 12 years on the Board.
Early in the financial year, we sadly announced the
passing of the highly respected Bruce Munro and
previous non-executive director of Macmahon.
We welcomed David Gibbs as the nominee
Director of our major shareholder Amman
following the departure of Alex Ramlie and Arief
Sidarto, who stepped down from the Board in
July due to commitments related to the IPO and
listing of PT Amman Mineral Internasional on the
Indonesia Stock Exchange.
Grahame White joined the Board in February and
is an experienced executive and non-executive
director with a background in the construction,
energy and resources sectors in Australia and Asia.
Dharmendra (Dharma) Chandran also joined the
Board in February and is an experienced executive
and non-executive director with significant
expertise in the mining and civil contracting and
construction sectors.
With these additions to the Board, I am confident
we have an excellent team in place, comprised of
a diverse range of skills and experience that will
make a positive contribution to Macmahon.
I would like to conclude with some important
acknowledgements. On behalf of the Board, I
would like to thank our Managing Director and
CEO, Michael Finnegan, for leading our dedicated
and hard-working team in delivering another
solid result for the year. They have laid important
groundwork for continued growth into the future.
I also extend my thanks to all our team, clients,
suppliers and shareholders for their commitment
and contribution in making FY24 another positive
year for the Company.
The business has a robust balance sheet and is
well positioned with its lower capital intensity and
improved earnings diversity to continue delivering
strong financial performance across commodity
and economic cycles.
HAMISH TYRWHITT
Independent,
Non-Executive Chair
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KEY ACHIEVEMENTS
Macmahon reported another year of growth
in revenue and underlying earnings. The FY24
financial result marked the eighth consecutive
year the Company has met or exceeded its
market guidance.
As with recent years, this consistency in
performance has been delivered in a period
characterised by skilled labour shortages and
volatility in some commodity prices that have
presented operational challenges for our clients
and for our business. I am pleased to say that
notwithstanding these challenges Macmahon
has continued to execute its strategy, which has
delivered a solid financial and operational result
for the year.
We delivered annual revenue of $2.0 billion, which
converted into record underlying earnings of
$351.7 million EBITDA and underlying EBIT(A) of
$140.3 million. This stems from the hard work of
our incredible team, now at over 9,676 people,
whose continual focus on commercial discipline
and driving operational performance has delivered
efficiencies for our clients and another strong year
for Macmahon.
On an underlying basis, NPAT of $91.9 million was
up 36% over the prior year, however, statutory net
profit after tax (NPAT) of $53.2 million, was down
on last year, primarily due to the impairment of
the Company’s $31.8 million exposure to Calidus
Resources who announced the appointment of
Receivers and Managers to its operations at the
end of the period. This is disappointing for us and
other stakeholders, but we are working with the
Receivers to achieve the best outcome.
MD AND CEO REPORT
FY24 KEY OPERATIONAL HIGHLIGHTS
Continued
improvement in group
safety performance,
while increasing the
workforce 15.6% to
9,676 people.
Ending FY24 with a
$4.6 billion order book
including $2.0 billion
secured for FY25.
Securing key new
contract work and
extensions for Boston
Shaker ($352 million)
and Dawson South (up
to $390 million).
Greenbushes project
ramped up successfully
to reach steady state in
April 2024.
Record gold production
at King of the Hills and
Byerwen production
consistently on target.
Pursuing highly filtered
combined civil tender
pipeline of $11.6 billion.
Growing our
underground
business, which is now
contrubuting over 26%
of group revenue, and
we are targeting +50%
growth over the next
2-3 years.
Successful acquisition
of key Pit N Portal
contracts from Emeco,
with around 220
people and projects
fully integrated
into Macmahon’s
underground business.
Actively lowering
capital intensity of
surface projects,
including equipment
sale at Dawson South
($44 million net cash
proceeds collected
over FY24 and FY25)
and entered into a five-
year strategic rental
agreement with Emeco.
In August 2024, $104 million cash paid with the 100% acquisition of
Decmil to accelerate civil business growth across Australia, aligning with
our strategic focus to diversity earnings and reduce capital intensity.
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12
Macmahon generated underlying operating cash
flow of $301.0 million, representing an overall
conversion rate from underlying EBITDA of 85.6%.
This underpinned $74.6 million in free cash flow
generation, with the Company reducing net debt
to $146.6 million at year end.
HEALTH AND SAFETY
The safety and wellbeing of our people is our
highest priority with Macmahon promoting a
culture of continuous improvement. Pleasingly,
our safety performance has continued to improve
in FY24 with Macmahon’s Total Reportable Injury
Frequency Rate (TRIFR) decreasing to 3.64 in
FY24 from 3.94 in FY23, and more importantly,
there were no permanent life altering injuries.
Our commitment to workplace safety and
wellbeing includes the unequivocal commitment
of the leaders at Macmahon to continue building
a safe, respectful and inclusive workplace.
Through the delivery of our Respect@Macmahon
roadmap, which encompasses Psychosocial, Sexual
Harassment, Culture and Winning at Macmahon, we
have rolled out a number of additional training and
culture initiatives, including updating our critical risk
standards and rolling out The Macmahon Winning
Way, a new leadership program to enhance
effective leadership and promote psychosocially
safe work environments, something that is crucial
for the Company's success.
Macmahon’s Strong Minds, Strong Mines program
is an award-winning initiative that continues to
deliver mental, physical and social health support
to our people and the broader mining industry
The program seeks to remove the stigma around
mental health and has been extended with Strong
Minds, Strong Schools successfully piloted in a
number of Western Australian schools during the
year, providing an opportunity for larger scale
deployment.
PEOPLE
Macmahon has continued to be successful in
attracting talent in a challenging labour market.
Our workforce has now grown to 9,676 people,
including welcoming around 220 highly skilled
workers via the Pit N Portal acquisition in February.
Post year end, we also completed the Decmil
acquisition which saw us welcome a further
200 employees to our team.
We continue to focus on the engagement of our
people and developing our culture. Embedding
our evolved Company values, pulse check and
engagement surveys, and the execution of our
Diversity, Equity and Inclusion Roadmap all
contribute towards ensuring Macmahon provides
an inclusive work environment that is reflective of
the diverse communities in which we operate.
Development of our people continues to advance
with ongoing investment in our Grow Our Own
program, involving new to industry and skills
upgrade programs. This saw us conduct 889
traineeships with 236 successfully completing
their programs during FY24.
Macmahon has an agile and flexible workforce, and
this was demonstrated at the end of the fiscal year
with operations at Calidus Resources’ Warrawoona
mine transitioning to care and maintenance
shortly after year end. We have worked with the
Macmahon team at Warrawoona to find suitable
opportunities across other projects where the
Company operates at.
CAPITAL MANAGEMENT AND DIVIDEND
Macmahon’s capital management strategy and
capital allocation policy reflect the importance of
paying stable dividends to our shareholders and
retaining financial flexibility to enable continued
execution of our strategy. Our priorities remain to
keep a resilient balance sheet ensuring appropriate
liquidity and gearing, retain flexibility to fund
organic growth and accretive acquisitions, and
provide increased cash returns to shareholders.
We have been executing on each of these fronts.
Net Debt/EBITDA at 0.42x and gearing at 18.8%
are improvements on last year, and were within our
internal guiderails of 1.0x and 30% respectively.
An increase in total dividends for FY24 to 1.05 cents
per share is also in line with an increased payout
ratio of 20% to 35% of underlying earnings per
share from FY24.
Core objectives include increasing free cash flow
generation to improve our cash backed return on
average capital employed (ROACE). We increased
our ROACE target to 20% having exceeded our
long-term target of 15% in the first half of FY24.
This reflects the completion of a high growth
capital expenditure phase for new projects,
gains we have made around growing, and as this
occurs, we can look to increase dividend returns
to shareholders.
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STRATEGY
Macmahon’s strategy maintains focus on
responsibly growing the business and optimising
margins, increasing cash flow generation and
cash backed ROACE through diversifying the
earnings mix and reducing the capital intensity
of the business.
Capital light is a term we have increasingly used
in conjunction with Macmahon’s growth plans.
We have made progress in reducing the capital
intensity of the business by diversifying and
expanding revenue to include more underground
mining and civil infrastructure projects, which are
typically less capital intensive than surface mining,
and support higher ROACE.
Underground mining has grown to comprise
around 26% of group revenue, compared to
around 7% in FY19. A key step to building scale
in underground was the Pit N Portal transaction
that added a significant skilled employee base in
a tight Australian labour market. As part of that
transaction, an accompanying long term strategic
rental agreement with Emeco facilitates growth
flexibility and enhances free cash flow generation
for the Company. Macmahon has further growth
aspirations for the underground business, targeting
a 50% increase in revenue over the next two to
three years.
Macmahon’s intentions to expand its civil
infrastructure business also took a significant
step forward with the completion of the Decmil
acquisition in August 2024. The acquisition
provides capability, an established and scalable
foundation to accelerate civil growth and is should
improve the Company’s overall ROACE through
its lower capital intensity. It will also bring earnings
and geographic diversification benefits with
less mining commodity exposure and increased
exposure to non-resource work in government
infrastructure (e.g. roads, bridges) and renewables
(e.g. wind farms) to offset the cyclicality of the
mining sector.
Our established surface mining business provides
scale and contract tenure, with our focus
continuing to optimise margins, cost and capital
efficiency whilst pursuing lower capital surface
opportunities and growth.
In addition to investing in the Company’s core
businesses, Macmahon will continue to invest in
the development of its people, systems, processes
and tech-enabled efficiency gains to maintain and
enhance competitive advantage.
OUTLOOK
Macmahon enters FY25 with a positive outlook,
including our $4.6 billion order book and high level
of secured work for the current financial year of
$2.0 billion putting us in a strong position for the
year ahead.
The Company also has a robust $21.4 billion highly
filtered tender pipeline, that continues to support
a positive demand outlook for the business,
and also our objectives to grow in lower capital
intensity segments.
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Macmahon Annual Report 2024
The Decmil acquisition has added approximately
$6.0 billion to Macmahon’s existing tender pipeline
which includes $4.5 billion of civil opportunities
as at the end of FY24. This creates a more
resilient business with less concentrated resource
commodity exposure and provides a natural hedge
to the cyclicality of contract mining.
While the highly skilled labour market is still
challenging, there are some signs that it is easing.
Macmahon will continue to invest internally and
manage any issues that have been prevalent in the
industry for some time now.
Levels of activity in the underground and civil
infrastructure sectors, along with the broader
mining sector, remain strong and Macmahon
has diversity in its order book, client base and
capabilities. Overall, Macmahon is well positioned
to continue its strong performance and capitalise
on high quality growth opportunities ahead.
BOARD
Before I close, I would like to acknowledge the
Board, which has had some changes throughout
the year. Eva Skira retired as Chair, after 12
outstanding years of service on Macmahon’s Board
and more than four as Chair. She was replaced
by Hamish Tyrwhitt who joined Macmahon’s
Board in 2019. I would also like to acknowledge
the sad passing of Non-Executive Director, Bruce
Munro during the period. Bruce had a long and
distinguished career over four decades in the
construction and mining sectors in Australia and
Southeast Asia and is dearly missed as a friend,
trusted colleague and industry champion.
David Gibbs was appointed as the nominee
Director of our major shareholder Amman,
following the departure of Alex Ramlie and Arief
Sidarto, bringing a wealth of operational and
broader sector experience. We also welcomed
Dharma Chandran and Grahame White, who have
both significant expertise in the mining and civil
contracting and construction sectors.
CONCLUSION
In closing, I would like to thank the Board, our
clients, shareholders and all our stakeholders for
their ongoing support. The Macmahon team is
critical to any success, so finally I would like to
express my gratitude to them, and commend our
people for their vital contribution and commitment
during the year.
MICHAEL FINNEGAN
Managing Director and
Chief Executive Officer
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Macmahon Annual Report 2024
Operational
and Financial
Review
Macmahon provides mining, civil infrastructure and support
services to miners throughout Australia and internationally.
Headquartered in Perth, Western Australia, the Group derives revenue from surface
and underground mining and mining support and civil infrastructure activities, which
include civil design and construction (primarily on mine sites), equipment refurbishment
and maintenance, training, design and fabrication of mining infrastructure, and mine site
maintenance and rehabilitation services.
A breakdown of our revenue by activity, country, client and commodity is shown
in the charts on page 2.
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Macmahon's surface mining division offers the full suite of services
including bulk and selective mining, mine planning, drill and blast,
crushing and screening, water management, and equipment
operation and maintenance.
Macmahon’s surface mining fleet currently includes a broad range of excavators, dump trucks, front-end
loaders, dozers, and drill rigs. Macmahon’s fleet is sourced from various providers, including Caterpillar,
Hitachi, Liebherr and Epiroc.
KEY PROJECT ACTIVITY
During the year, Macmahon provided services to
the following projects:
King of the Hills Gold Mine
Macmahon has commenced a five-year contract
with Red 5 to provide surface and underground
mining services at the King of the Hills Project near
Laverton in Western Australia.
Greenbushes Lithium Mine
Macmahon commenced a seven-year contract
with Talison Lithium to provide open-cut mining
services of load and haul, and crusher feed. Mining
operations commenced on 1 July 2023.
Telfer Gold Mine
Macmahon is fulfilling a life of mine contract at the
Telfer project in Western Australia for Newmont.
Tropicana Gold Mine
Macmahon is fulfilling a life of mine contract at
the Tropicana project in Western Australia for
AngloGold Ashanti and joint venture partner,
Regis Resources.
Byerwen Coking Coal Mine
Macmahon has been providing open-cut mining
services at the Byerwen Coking Coal Mine in
Queensland’s Bowen Basin for QCoal since the
establishment of the mine in November 2017.
Dawson South Metallurgical Coal Mine
Macmahon provides surface mining services for
Anglo American’s Dawson South operations, an
open-cut metallurgical coal mine in the Bowen
Basin in Queensland. On 1 July 2024, Macmahon
commenced a one year extension of the contract,
with a further extension option for two years.
Batu Hijau Copper/Gold Mine
Macmahon is performing its life of mine contract to
provide all mining services at the Batu Hijau mine
in Indonesia for PT Amman Mineral Nusa Tenggara.
Batu Hijau is a well-established, world-class
copper/gold deposit. The contract is currently in
Phase 8.
Langkawi Quarry
Macmahon is currently fulfilling a mining services
quarry contract for YTL Cement on Langkawi
Island (Malaysia).
Martabe Gold Mine
Macmahon is contracted by PT Agincourt
Resources to provide mining services at the
Martabe Gold Mine in the North Sumatra province
of Indonesia. The contract is currently in Phase 8
and extended to 2030.
Warrawoona Gold Project
Macmahon provided open-cut mining services at
the Warrawoona Gold project in Western Australia
for Calidus Resources. On 28 June 2024, Calidus
Resources Limited went into administration
and with the operations at Warrawoona placed
into care and maintenance early July 2024, the
receivable of $31.8 million owing to Macmahon has
been fully impaired. This has been excluded from
underlying EBIT(A) at 30 June 2024.
As part of an update on 2 August 2024, the
Receivers and Managers are seeking urgent
expressions of interest for the acquisition and/
or recapitalisation process of Calidus Resources
Limited. At this early stage of the process,
Macmahon anticipates this will be a pathway
for recoverability.
SURFACE MINING
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Macmahon Annual Report 2024
18
Project Extensions
215
PEOPLE
$200 million
VALUE
DAWSON SOUTH
Queensland
Metallurgical Coal
Client: Anglo American
1 year
EXTENSION PROJECT
plus a 2 year option
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Macmahon’s underground mining division offers underground
development and production services, a broad range of ground
support services, as well as services to facilitate ventilation and
access to underground mines, including shaft sinking, raise drilling
and shaft lining.
Macmahon’s underground mining fleet is comprised of trucks, loaders, jumbo drills, long hole production drills,
and raise drills. This equipment is predominantly sourced from Sandvik, Komatsu, Epiroc and Caterpillar.
KEY PROJECT ACTIVITY
During the year, Macmahon provided services to
the following projects:
Gwalia Gold Mine
Macmahon is fulfilling an underground mining
services contract with Genesis Minerals at its
Gwalia Gold Mine in Western Australia. The scope
of work includes mine development, ground
support, production drilling and blasting, loading
and trucking, shotcreting and paste fill reticulation.
Ulysses Gold Mine
Macmahon was engaged by Genesis Minerals to
undertake the initial development at their new
Ulysses underground mine approximately 20km
south of their Gwalia Mine. Development of this
mine commenced in April 2024.
Boston Shaker Gold Mine
Macmahon provides all production and
development mining services at the Boston Shaker
underground mine at the Tropicana site, a joint
venture between AngloGold Ashanti and Regis
Resources. The scope includes the development
of the Tropicana surface ore body through the
Boston Shaker decline.
King of The Hills Gold Mine
Macmahon commenced a five-year contract
with Red 5 to provide surface and underground
services at the King of the Hills Project near
Laverton in Western Australia. The underground
scope of works includes all development and
production.
Deflector Gold Mine
Macmahon is fulfilling a contract to provide
underground mining services to Silverlake
Resources at the Deflector Gold Project in Western
Australia. The underground scope of works
includes all development and production.
Daisy Milano Gold Mine
Macmahon provides mining services to Silverlake
Resources at the Daisy Milano underground mine
near Kalgoorlie in Western Australia.
Tank, Durkin and Cassini Mines
In December 2024, Macmahon entered into an
agreement to acquire Pit N Portal underground
contracts from Emeco, adding the Daisy Milano
and Tank projects owned by Silverlake Resources
and Durkin and Cassini projects owned by Wyloo
Metals to the underground portfolio. While the
Durkin, Cassini, and Tank projects finished in
Q4 of FY24, as expected, the projects provided
Macmahon with a trained an experienced
workforce of approximately 200, which were able
to be offered redeployment opportunities on other
Macmahon sites.
Tujuh Bukit Gold/Copper Mine
Macmahon continued to provide underground
mining services and support, including fixed plant
maintenance and road maintenance for
the exploration decline.
Granny Smith Gold Mine
Macmahon provides cablebolting services to
Goldfields near Laverton in Western Australia.
Fosterville Gold Mine
Macmahon provides cablebolting services to
Kirkland Lake Gold in Victoria.
Leinster Nickel Mine
Macmahon provided production drilling and other
mining services to BHP in the eastern Goldfields in
Western Australia.
UNDERGROUND MINING
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20
Project Extensions
250
PEOPLE
$352 million
VALUE
3 years
EXTENSION PROJECT
BOSTON SHAKER
Western Australia
Gold
Client: AngloGold Ashanti
and Regis Resources
Other
Macmahon provides raise drilling services to various
sites in Australia, including King of the Hills for Red 5
and BHP’s Cliffs Mine near Mt Keith in Western
Australia, Tomingley Gold Mine in Dubbo, New South
Wales for Alkane Resources and at Olympic Dam in
South Australia for BHP, where Macmahon has been
providing raise drill services for over 30 years.
Macmahon’s growing engineering division provides
various services to a number of clients, including
shaft sinking at Agnico Eagle Mines Fosterville Gold
Mine, shaft and winder refurbishment to BHP’s
Olympic Dam Project, and ore pass liners for IGO
Limited’s Cosmos mine.
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Macmahon provides consulting, design, procurement, fabrication,
construction, equipment sales and hire, equipment refurbishment,
maintenance, training services and site rehabilitation services to
the resources sector. Macmahon is focussed on building its civil
infrastructure and construction business in Australia and Southeast
Asia as part of its ongoing strategy to diversify its business.
EQUIPMENT REFURBISHMENT,
MAINTENANCE AND SUPPORT SERVICES
Macmahon owns and operates world-class
purpose-built equipment maintenance facilities,
allowing it to support frontline contracting services
with a full suite of equipment refurbishment,
maintenance and skilled labour services.
Macmahon’s primary workshop, located in
Perth, Western Australia, is a key operational
asset with the ability to rebuild equipment and
components. This facility allows Macmahon to
provide specialised workshop equipment services
to internal and external clients and to rapidly and
efficiently deploy supplies maintenance supplies to
client locations, and conduct essential in-field or
onsite maintenance work.
TRAINING SERVICES
Macmahon is committed to continuous training
and development of our people, providing
workers with the necessary skills and knowledge
to maximise their potential. Underpinning this is
our registered training organisation (RTO) with
two training hubs located at our Coppabella
Queensland and Perth Airport Western
Australia facilities.
Programs offered facilitate face-to-face training
and assessment services involving mining
simulated technologies to a range of new-to-
industry and experienced industry workers. Our
training services include National Traineeship
Programs, apprenticeships, high-risk work licenses,
leadership development and equipment operator
training. We also have an ex-Defence program to
support veterans who are new to industry, utilise
their transferable skills and complete targeted fast
track trade upgrades.
KEY PROJECT ACTIVITY
During the year, Macmahon provided mining
support and civil infrastructure services in Western
Australia, Queensland and Indonesia, including:
Fimiston Gold Mine
Macmahon has completed construction of
Tailings Storage Facility (TSF) 2 for Northern Star
Resources.
Telfer Gold Mine - Civil
Macmahon commenced work on TSF 7 and 8
for Newmont and expect to complete these works
in FY25.
Peak Downs and Saraji Mines
Macmahon provides multiple mining services and
rehabilitation projects in Queensland, including
approximately 56ha of rehabilitation at Peak
Downs and Saraji Mines.
Foxleigh Project
Macmahon has been fulfilling a contract to supply
equipment hire and maintenance services for the
Foxleigh Coal Mine in the Bowen Basin since
March 2021.
Hu'u Copper/Gold Mine
Macmahon has constructed an 11km access road
at the Hu’u copper-gold exploration project and
continues to provide maintenance services for
the access road on Sumbawa Island in Indonesia.
Martabe Gold Mine
Macmahon has commenced the construction of
the new tailings dam at the Martabe Gold Mine in
North Sumatra, Indonesia.
MINING SUPPORT
AND CIVIL INFRASTRUCTURE
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New Project
Other
Macmahon continued to successfully deliver long-
term mining support and civil infrastructure services
in addition to a number of rehabilitation and other
projects to clients in the Bowen Basin. Macmahon
is pursuing numerous additional opportunities to
support its growth strategy in the civil, infrastructure
and rehabilitation areas.
Decmil Acquisition
On 15 April 2024, Macmahon entered into a Scheme
Implementation Deed to acquire all of the fully
paid ordinary shares and redeemable convertible
preference shares on issue in Decmil Group Limited
(‘Decmil’) by way of two separate, inter-conditional
Schemes. Decmil provides multi-disciplinary project
delivery across the infrastructure, resources, and
renewable energy sectors, and has been in operation
for over 40 years. Its core operations add increased
exposure for Macmahon to both the renewable
and government infrastructure sectors which have
a steady growth trajectory. The acquisition of
Decmil supports Macmahon's strategy of achieving
continued earnings growth while diversifying
earnings into less capital-intensive civil
infrastructure business.
Images taken May 2024
TELFER TSF CIVIL
Western Australia
Gold and Copper
Client: Newmont
TAILINGS DAM CIVIL
WORKS
44
PEOPLE
$33m
VALUE
1 year
CONTRACT TERM
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FROM OPERATIONS BEFORE SIGNIFICANT ITEMS
FINANCIAL REVIEW
1H24
$m
2H24
$m
FY24
$m
FY23
$m
Revenue
Australia
871.0
1,014.5
1,885.5
1,543.3
Indonesia
93.8
48.8
142.6
359.9
Other International
1.5
1.7
3.2
3.0
Group Revenue
966.3
1,065.0
2,031.3
1,906.2
EBITDA (underlying)
176.0
175.7
351.7
308.7
EBIT(A) (underlying)
68.1
72.2
140.3
116.6
NPAT (underlying)
39.7
52.2
91.9
67.6
EBITDA (reported)
172.8
140.6
313.4
303.9
EBIT (reported)
65.0
36.7
101.7
106.7
NPAT (reported)
36.5
16.7
53.2
57.7
Note: With the exception of revenue and NPAT (reported) the other measures above are not defined by IFRS and are
unaudited. Refer to Summary of Consolidated Reports section for reconciliation of underlying results.
PROFIT AND LOSS
Macmahon delivered revenue and underlying
earnings growth in line with its publicly stated
guidance. Revenue for the Group increased by
6.6% to $2.0 billion (30 June 2023: $1.9 billion)
mainly attributed to the commencement of
Greenbushes in July 2023, inclusion of the Pit N
Portal contracts acquired on 31 December 2023
and organic growth in existing projects.
Underlying earnings (before interest, tax,
customer contracts amortisation and other
adjusting items (EBIT(A)) for FY24 increased
by 20.3% to $140.3 million (30 June 2023:
$116.6 million). Similarly, underlying earnings
before interest, tax, depreciation and amortisation
(EBITDA) increased by 13.9% to $351.7 million
(30 June 2023: $308.7 million).
On 28 June 2024, Calidus Resources Limited went
into administration and with the operations at
Warrawoona placed into care and maintenance
early July 2024, the receivable of $31.8 million
owing to Macmahon has been fully impaired.
This has been excluded from underlying EBIT(A)
at 30 June 2024.
As part of an update on 2 August 2024, the
Receivers and Managers are seeking urgent
expressions of interest for the acquisition and/
or recapitalisation process of Calidus Resources
Limited. At this early stage of the process,
Macmahon anticipates this will be a pathway
to recoverability.
Depreciation (excluding amortisation on
customer contracts) and Net Finance Costs
Depreciation (excluding customer contract
amortisation) and net finance costs for the year
increased from $191.7 million and $24.3 million,
respectively, to $211.4 million and $26.8 million. The
increase in depreciation attributed to the growth
in property, plant and equipment for new projects,
whilst the increase in net finance costs relate
primarily to increased interest rates and borrowing
costs with the execution/extension of facilities.
Tax
The Group reported a tax expense of $21.7 million
and an effective tax rate of 28.9%. The prior year's
effective tax rate was 30%.
BALANCE SHEET
Net assets increased from $608.8 million to
$633.5 million at 30 June 2024. Total assets and
total liabilities decreased by $13.4 million and
$38.1 million, respectively, due to sales of assets
to Dawson South and generation of operating
cash flow through profitable operations which
were used to repay debts resulting in significant
reduction of net debt from $201.9 million to
$146.6 million.
The Group’s net tangible assets (NTA) increased
by 4.1% to $623.1 million at 30 June 2024 (30 June
2023 $598.3 million). As a result, NTA per share
increased from 27.8 cents per share to 28.9 cents
per share.
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Working Capital
Investment in net working capital increased by 67.8% to
$165.5 million during the period, primarily due to commencement
of new projects during the year, projects acquired from Pit N Portal
during FY24 and timing of receipts for certain receivables.
Current trade and other receivables and inventory increased from
$331.0 million and $92.3 million, respectively, to $382.8 million and
$105.4 million at 30 June 2024. The current trade and other payables
at 30 June 2024, of $322.7 million, remained consistent with the
prior year of $324.7 million.
Net Debt
Net debt at 30 June 2024, reduced from $201.9 million to
$146.6 million, representing a gearing of 18.8%. This comprised
cash on hand at 30 June 2024, of $194.6 million (30 June 2023:
$218.2 million), offset by borrowings of $341.2 million (30 June
2023: $420.1 million). Net debt to EBITDA for 30 June 2024, was
0.42 times.
The decrease in net debt of $55.3 million was primarily due to cash
flow from operations and sale of assets to Dawson South, partially
offset with the payment of dividends.
As at 30 June 2024, cash and unutilised working capital facilities
totalled $280.2 million (30 June 2023: $299.9 million).
CASH FLOW
Underlying operating cash flow (excluding interest, tax, acquisition
and SaaS customisation costs) for the year ended 30 June 2024,
was $301.0 million (30 June 2023: $306.0 million), representing
a conversion rate from underlying EBITDA of 85.6%. Cash
conversion was impacted with Calidus Resources Limited placed
into administration and approximately $11 million cash receipts from
a client being received on 1 July 2024, which was partially offset
with 50% payment from Dawson South for the sale of assets. The
remaining 50% payment is due in 2025.
Capital Expenditure
Capital expenditure for property, plant and equipment for the year
totalled $207.1 million (2023: $239.4 million), comprising $57.1 million
(2023: $46.2 million) acquired through finance leases and
$150.0 million funded in cash (2023: $193.2 million). Excluding
tyres of $33.5 million (2023: $28 million), the capital expenditure
for property, plant and equipment was $173.57 million (2023:
$211 million)
DIVIDEND
The Board has approved the payment of a final dividend of
0.60 cents per share for FY24. This equates to a total dividend
declared for FY24 of 1.05 cents per share.
REVENUE
FY22
$1.7b
FY23
$1.9b
FY24
$2.0b
UNDERLYING EBIT(A)
FY22
$100.8m
FY23
$116.6m
FY24
$140.3m
UNDERLYING EBIT(A)
MARGIN
FY22
FY23
6.1%
FY24
6.9%
UNDERLYING EBITDA
FY22
$291.4m
FY23
$308.7m
FY24
$351.7m
5.9%
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Macmahon defines risk management as the identification, assessment
and management of risks that have the potential to materially impact
on its operations, people, reputation, and financial results.
Given the breadth of operations, the geographies and the markets in which Macmahon operates, a wide
range of risk factors have the potential to impact Macmahon. While Macmahon attempts to mitigate
and manage risks where it is efficient and practicable to do so, there is no guarantee these efforts will
succeed. Macmahon’s corporate governance statement sets out its risk management policy, which
includes an overview of the policy, framework and processes.
Summarised below are the material business risks that may affect the achievement of Macmahon's
strategies, performance and prospects.
PEOPLE AND CULTURE
Given the current shortage in skilled labour and
surge in demand for contract mining services
in Australia, Macmahon could face difficulties
securing specialised skilled employees aligned
with Macmahon’s values and objectives. This
could result in significant operational delays and
inefficiencies, reducing productivity and increasing
operational costs. It can also elevate safety risks,
as inexperienced workers may be more likely to
be involved in workplace accidents.
To mitigate this risk, Macmahon has made culture
a key focus of the business by championing
our values and pursuing a strategy of creating
a rewarding and supportive workplace. The
development and implementation of initiatives
like the Respect@Macmahon Roadmap and
the Diversity, Equity, and Inclusion Roadmap
have further embedded our values across the
business. Additionally, Macmahon has increased
its apprenticeship intake and training programs
and conducts ongoing employee engagement
surveys to continuously assess and improve our
workplace culture. These efforts not only reinforce
our commitment to our values but also ensure a
thriving, inclusive, and motivated workforce.
INDUSTRIAL RELATIONS AND UNION CHANGES
Macmahon aims to maintain strong relations
with our workforce in order to ensure a safe and
productive working environment. Disruptions to
Macmahon's operations and work environment
could occur due to increased union activism, shifts
in the political landscape, or alterations in industrial
relations legislation, which could potentially impact
our ability to provide continuity of supply and/
or work environment. Macmahon has Enterprise
Agreements to cover the majority of the wages
workforce for existing projects.
PSYCHOSOCIAL HARM RISK
Psychosocial harm refers to incidents that may
cause harm to the mental health of our workforce.
Failure to adequately implement workplace policies
or enforcement to prevent harassment or bullying,
effectively report or provide support systems for
affected employees, and provide adequate training
to prevent such incidents could compromise
employee wellbeing. The deteriorating mental
health of employees could lead to increased
absenteeism or turnover, difficulty in attracting
and retaining talent due to negative workplace
culture, potential legal implications, operational
disruptions due to workforce instability, and
potential reputational damage impacting the
Company's ability to retain clients and impacting
operational and financial performance. To mitigate
this risk, Macmahon is committed to ensuring the
safety and wellbeing of our people, communities,
and environment around us. The Respect@
Macmahon Roadmap is always expanding and
continues to drive improvements in this area. We
implement policies and standards, including the
Code of Conduct, Diversity and Inclusion Policy,
Sexual Harassment Policy, Whistleblower Policy,
and the Equal Employment Opportunity Complaint
and Resolution Procedure, designed to protect
our workforce. These underpin our approach
towards managing psychosocial harm, providing
clear guidance on the standards we expect all our
operations to achieve.
FATALITY/SIGNIFICANT EVENT RISK
As a mining services company, our operations
can be disrupted by pandemics, natural disasters,
extreme weather events and major process
or infrastructure failures. Macmahon could be
exposed to multiple fatalities or unable to respond
effectively to significant events such as natural
RISK MANAGEMENT
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disasters due to non-compliance with post-
incident response procedures and lack of attention
to occupational health, safety, and environment
(HSE) practices. Failure to adhere to established
safety protocols or a general lack of emphasis on
occupational HSE practices could result in loss
of life or injury to employees, significant damage
to infrastructure, damage to the Company's
reputation, and increased regulatory scrutiny.
To mitigate this, Macmahon has implemented
internal controls including: HSEQ and HR policies
including critical control standards, an integrated
safety health management system (SHMS), pre-
employment medical screening, healthy lifestyle
programs, drug and alcohol checks, employee
assistance program, life saving rules, fatigue
management, adequate workplace rest facilities
and camp facilities, mental health programs,
internal and external auditing of the SHMS and
testing of response plans (Crisis and Emergency
Management Plan, Emergency Preparedness and
Response Procedure, and Project Emergency
Response Plans).
LOGISTICS AND SUPPLY CHAIN RISK
Macmahon partners with various suppliers and
joint venturers. Current global supply chains are
more fragile due to macroeconomic uncertainty,
which has the potential to impact our business
operations significantly. In the era of globalised
commerce, logistical and supply chain risks
are rising due to geopolitical issues, supplier
disruptions, and broader macroeconomic trends.
Given the dependence on international suppliers
and partners, these risks are particularly relevant
for Macmahon. Macmahon is exposed to global
macroeconomic issues and/or unethical practices
of suppliers and joint venture partners, such as
engagement in modern slavery, which could
disrupt Macmahon’s supply chain. This could
cause potential disruptions to operations due to
supply chain or logistical issues leading to delays
and increased costs, damage to Macmahon's
reputation and potential legal issues if associated
with entities engaging in modern slavery, loss of
trust among stakeholders, and possible sanctions
or penalties from regulatory bodies. To manage
this risk, Macmahon has implemented a regular
review of procurement policies and procedures,
monitoring inventory holdings and regular contact
with key suppliers to optimise critical inventory
needed to meet operational requirements and
commercial teams managing clients to ensure that
cost increase pass-on is optimised.
EXECUTION OF STRATEGIC CONTRACTS
The proper execution of strategic contracts is vital
for business continuity and growth. In the complex
environment of mining operations, challenges such
as project delays, cost overruns and early contract
terminations can severely impact the Company’s
financial health and reputation.
If underperformance of project delivery, inefficient
contract management, and premature contract
termination were to occur, Macmahon could be
exposed to delays and cost overruns, potential
legal and regulatory issues arising from non-
compliance with contract terms, damage to
reputation, and potential loss of future business
opportunities. To mitigate this risk, Macmahon has
implemented continual improvement of contract
management capabilities, emphasising robust
planning, performance tracking and effective
communication with involved parties.
BREACH OF CLIMATE REGULATIONS
As global focus on climate change intensifies,
non-physical climate regulation risks such as
policy changes, regulatory reforms and shifting
investor expectations have emerged as significant
considerations for companies. For Macmahon,
failure to align with these changing expectations
could result in reputational damage, legal penalties
and reduced investment. As a result, potential
regulatory penalties and reputational damage
could occur. To mitigate this risk, Macmahon has
established a three year ESG roadmap based
on specific actions to address material impacts
identified. Also a climate risk and opportunity
assessment process was conducted to integrate
climate considerations into the Macmahon’s
business processes and decision making.
Macmahon’s performance against each of
these topics will be disclosed in its annual
Sustainability Report.
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LEGAL/REGULATORY NON-COMPLIANCE
WITHIN ALL JURISDICTIONS IN WHICH
MACMAHON OPERATE
As well as Australia, Macmahon operates in
international markets, including Indonesia and
Malaysia, which may have a higher sovereign risk
rating than Australia. This exposes Macmahon
to additional adverse economic conditions, civil
unrest, conflicts, terrorism, security breaches,
bribery and corrupt practices. If Macmahon does
not adequately monitor compliance with key legal
or regulatory requirements in the jurisdictions it
operates, then there is a risk of potential fines or
legal proceedings, loss of social license to operate,
impacting business continuity and growth,
damage to reputation, and loss of trust among
stakeholders, including clients and investors.
To mitigate this risk, Macmahon:
•
Monitors political activity, policy, legislative
and regulatory changes in the jurisdictions it
operates.
•
Engages with relevant authorities and agencies
in those jurisdictions.
•
Maintains robust ongoing monitoring of
changes in laws and regulations by HR,
safety and legal teams.
CYBER SECURITY, IT SERVICES AND
IT INFRASTRUCTURES
Cyber security risk has become a significant
concern as the industry increasingly adopts
digitisation and automation, becoming more
vulnerable to cyber threats and attacks. The
potential for cyber attacks, data misuse and
release of sensitive information poses an
ongoing risk to the business. To mitigate this risk,
Macmahon has developed a Cyber Resilience
Strategy and Cyber Security Management
Framework in response to our security maturity
assessment, which continues to evolve in
accordance with industry changes.
INNOVATION RISK
Adopting new technologies to achieve operational
efficiency and cost-effectiveness is needed to
remain competitive in the market. Macmahon
positions itself as an early adopter of new
technologies. Macmahon innovates through the
optimisation of business and operational structures
and processes. There is a risk that unmatched
technological improvements by competitors could
leave Macmahon at a competitive disadvantage
and unable to compete. There is also a risk that
Macmahon does not keep abreast of the changes
in the current business environment, making the
Company less attractive to clients. To mitigate
this risk, Macmahon has a technology roadmap in
surface and underground operations to enhance
safe and efficient productivity.
FINANCING RISK
Macmahon has diversified financing facilities with a
number of external financiers. Our aim is to ensure
that we continue to meet all our obligations under
these facilities regardless of the financial climate.
Default on the obligations of our financing facilities
could cause withdrawal of financial support,
insufficient cash flow to meet debt obligations,
unexpected financial losses, changes in market
conditions impacting the Company's financial
stability, or potential loss of operational flexibility
due to reduced liquidity and reputational damage.
To mitigate this risk, Macmahon’s annual budgeting
process includes forecasting of covenants for the
next three years. Other controls include a prudent
capital expenditure process, ongoing liquidity
monitoring, and internal gearing and liquidity limits
set yearly.
MACROECONOMIC AND CHANGES
IN POLITICAL LANDSCAPE RISK
Macroeconomic and political landscape risks
are becoming increasingly relevant as global
markets continue to intertwine. For Macmahon,
fluctuations in foreign currency exchange (FX)
rates, commodity prices, and changing political
and regulatory environments in the jurisdictions
where Macmahon operates can significantly
affect the bottom line. Macmahon is exposed to
macroeconomic events or geopolitical tensions
changes such as unstable foreign currency
fluctuations, political conflicts, industry and
commodity price volatility, or price inflation may
have a negative impact on the business.
This is due to economic instability or downturns
in the markets Macmahon operates in, political
instability leading to policy changes, unpredictable
fluctuations in foreign currency rates, volatile
commodity prices, or high inflation rates. As a result,
potential financial loss due to unfavourable economic
conditions, challenges in meeting changing
legal or regulatory requirements, operational
disruptions due to political conflicts, decreased
profitability due to currency or commodity price
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fluctuations, and potential reputational damage
if unable to maintain compliance with evolving
legal frameworks could occur. To manage this
risk, developing a flexible business strategy that
includes diversification of markets and products
will further aid in minimising the FX impact/
exposure to intercompany debt and other foreign
currency transactions. Macmahon monitors FX
exposure closely and implements natural hedging
across international operations as required.
CONTINGENT LIABILITIES
Macmahon is exposed to a number of contingent
liabilities, including those described in the notes to
the Annual Report. The conversion of Macmahon's
contingent liabilities into actual liabilities could
result in a negative impact on Macmahon’s
financial position and financial guidance due to
unexpected financial burdens. To mitigate this,
Macmahon has ongoing monitoring of contingent
liabilities, changes to legislation and potential
legal precedents.
CAPITAL STRATEGY AND STRUCTURE
Macmahon aims to manage uncertainty related to
changing macroeconomic conditions. We do the
same when it comes to the volatility in commodity,
currency and capital markets, given the impact
they can have on our earnings, balance sheet and
ability to pursue our strategy.
If Macmahon fails to sufficiently plan capital
spending, raise sufficient funds and meet financial
covenants imposed by lenders, it could be
exposed to potential inadequate capital structure
to fund our strategic objectives, creating balance
sheet risks such as issues with gearing, liquidity,
or covenants. As a result, Macmahon could
face difficulty in executing strategic initiatives
due to a lack of necessary funding, potential
breaches of covenants leading to penalties or
increased borrowing costs, potential liquidity
issues impacting daily operations, and diminished
investor confidence due to perceived financial
instability. To mitigate this risk, Macmahon has
robust financial controls over gearing, liquidity
and banking covenants to manage and structure
capital and fund its strategic objectives.
PIPELINE MAKEUP
Macmahon's performance is impacted by its ability
to win, extend and complete new contracts with
an appropriate economic return (the “pipeline”).
Pipeline degradation of Macmahon's order
book pipeline could occur due to misalignment
of business operations with market strategy
and failure to win or extend new contracts. As
a result, Macmahon could face financial losses
due to uneconomic contracts and operational
inefficiencies leading to resource strain, which
ultimately impact overall financial performance
and position due to failure to win or extend new
contracts. Macmahon has applied a rigorous work
pipeline process to mitigate this risk, including the
authority to bid process and risk and opportunity
standards, a Board review on potential key
projects, and budgets are prepared to consider all
secured work.
STRATEGIC PARTNERSHIP RISK -
SERVICE PROVIDERS
Strategic partnerships are vital in leveraging
resources, sharing knowledge and competencies,
and achieving operational efficiency. Macmahon
strategically partners with providers of non-core
services to grow the Company’s revenue and
market share in targeted markets. A breakdown
in these relationships and/or financial distress
experienced by the partner(s) could lead to
operational disruption, reputational damage and/
or financial losses. This is mitigated by extensive
due diligence and procurement activities that
ensure parties with complementary skill sets will
accelerate our growth in mining support and civil
infrastructure and enable us to secure larger-scale
projects on acceptable commercial terms.
EXECUTIVE AND NON-EXECUTIVE
PERFORMANCE
The performance of Macmahon's leadership team
is a critical determinant of the Company's success.
In a highly competitive mining service industry,
the Company's strategic direction, financial
performance, and stakeholder confidence are all
closely tied to the capability and judgement of
the CEO and the Board. Inadequate leadership
or decision-making by the CEO, inadequate
Board composition, and lack of experience or
capability of the Board and CEO could result in
compromised strategic directions impacting the
Company's growth and competitiveness, financial
underperformance eroding shareholder value, and
reduced decreased stakeholder confidence due
to lack of effective leadership, potential loss of key
personnel, and reputational damage. Macmahon
has implemented a comprehensive performance
management system to mitigate this risk, which is
reviewed regularly. In addition, the effectiveness of
the Board is monitored by use of board evaluation
processes and regular ‘in camera’ discussion.
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BREAKDOWN IN CORPORATE GOVERNANCE
Overseeing governance is a key function of
the Board. Failures in Macmahon's corporate
governance systems could lead to increased
fraud rates, financial inaccuracies, safety issues,
and reputational damage. This may be due to
inadequate or insufficient oversight by the Board,
non-compliance with governance standards,
inadequate poor internal controls and audit
mechanisms, or failure to adhere to regulatory
requirements and ethical standards. Without
the appropriate controls, there is an increased
likelihood of fraudulent activities and financial
misstatements, safety issues leading to employee
harm, loss of life, operational disruptions,
reputational damage attracting adverse reactions
from shareholders, markets, and regulators,
increased risk of litigation against the Company,
and potential penalties or sanctions by
regulatory bodies.
To mitigate this, Macmahon maintains a formal
Corporate Governance Statement and an annual
review occurs of the Company’s main governance
policies and procedures. This is supported by:
•
Internal management review processes.
•
Regular board meetings.
•
Internal and external auditing processes.
•
Representation undertakings by the executive
team to the CEO and CFO every six months.
•
A robust internal function that ensures the
review and regular monitoring of whistleblower
policy and hotline, code of conduct, corrective
action and non-conformance standards.
SOCIAL LICENSE TO OPERATE
Local communities can significantly impact
Macmahon's operations and corporate reputation.
Local communities often depend on the project
for employment, training and local business
opportunities. Social licence to operate represents
the level of acceptance or approval by local
communities and stakeholders of Macmahon’s
operations. With increased public scrutiny of the
mining industry's social and environmental impact,
maintaining a social licence is critical for ongoing
success. If Macmahon fails to effectively manage
environmental and social impacts of operation and
meet the expectations of the community in the
way it operates (e.g. controlling noise pollution,
controlling environmental pollution, preserving
heritage sites, protecting the environment,
considering Native Title rights), Macmahon could
be exposed to damaged reputation, potential
loss of clients or tender and potential legal
consequences for non-compliance with local
regulations or expectations. To mitigate this risk,
Macmahon has implemented active engagement
and support in local community relations and
sponsorship programs. In addition, Macmahon is
ensuring local communities are considered when
hiring and procuring supplies. Macmahon also
supports a positive work environment through
various health and wellbeing programs, and our
Strong Minds, Strong Mines program provides
mental, physical and social health support to our
people and the broader mining industry.
ACQUISITION INTEGRATION RISK
Macmahon's strategy includes the acquisition
and successful integration of Decmil. Failure to
successfully integrate the acquisition into the
Macmahon group could result in synergies not
realised, loss of key employees, customers and
diversified revenue. To mitigate this risk Macmahon
has implemented an integration committee which
incorporates appropriate skilled members from
Macmahon, Decmil and external consultants.
Detailed integration plans have been developed
and will be considered on a regular basis.
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HAMISH TYRWHITT
Independent, Non-Executive Chair
Appointed Director on 1 October 2019
Appointed as Chair on 20 October 2023
Qualifications: MIE Aust CPEng APEC Engineer
(Fellow), ATSE (Fellow), HKIE, and MAICD
Experience and expertise: Mr Tyrwhitt has over
three decades of senior leadership experience
in the global contract mining, engineering and
construction sectors. He worked for Leighton
Group (now CIMIC), at the time the world's largest
contract miner, for 28 years including as Managing
Director for Leighton Asia before leading its global
operations as Group CEO from 2011 to 2014.
Since leaving Leighton Group, Mr Tyrwhitt has held
CEO and non-executive roles with construction
and resources companies listed on the NASDAQ
Dubai, Singapore and London stock exchanges.
Mr Tyrwhitt is a fellow of the Australian Academy
of Technological Sciences and Engineering, a
fellow of the Institution of Engineers Australia,
a member of the Hong Kong Institute of
Engineers, and a member of the College of
Civil Engineers, Australia.
Listed current other directorships: None
Listed former directorships (last three years):
None
Committee memberships:
•
Chair of the Nomination Committee
•
Member of the Remuneration and Culture
Committee
•
Member of the Audit and Risk Committee
Interests in ordinary shares: 829,268
Interests in share rights: 158,500
MICHAEL FINNEGAN
Managing Director and Chief Executive Officer
Appointed as Managing Director on 1 October 2019
Qualifications: BSc (Mining)
Experience and expertise: Mr Finnegan has more
than 25 years of experience in the mining industry,
with the last 20 years primarily spent in senior line
management positions.
Mr Finnegan has a strong commercial and technical
background and has spent time in operations on
the east and west coasts of Australia, as well as a
number of countries throughout Asia.
Listed current other directorships: None
Listed former directorships (last three years):
None
Committee memberships:
•
Member of the Nomination Committee
Interests in ordinary shares: 5,020,008
Interests in performance rights: 15,882,821
OUR BOARD
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DHARMA CHANDRAN
Independent, Non-Executive Director
Appointed on 1 February 2024
Qualifications: Bachelor of Commerce majoring
in Marketing, Bachelor of Laws, and Master
of Commerce majoring in Organisation and
Management
Experience and expertise: Mr Chandran is an
experienced executive and non-executive director
with a background in professional services and
human resource management within the financial
services and, resources and industrial sectors, in
Australia and Asia. He has significant experience
in the contract mining and civil construction
sectors, as the former Chief Human Resources
and Corporate Services Officer for mining and
civil contractor Leighton Holdings, and further
experience in human resource management
through his previous role as Chief People Officer
of the ABC and his current role as Chief People
Officer of Toll Group.
Listed current other directorships: None
Listed former directorships (last three years):
Mortgage Choice
Committee memberships:
•
Chair of the Remuneration and Culture
Committee
•
Member of the Nomination Committee
Interests in ordinary shares: None
Interests in share rights: None
DAVID GIBBS
Non-Independent, Non-Executive Director
(AMNT Nominee) Appointed on 13 July 2023
Qualifications: BSc (Hons), ARSM, C Eng, and
MAICD
Experience and expertise: Mr Gibbs has 40 years
of international experience in large-scale mining
operations with copper and gold, diamonds,
uranium, coal (thermal and coke), talc and
nickel laterite resources. His experience includes
underground and open pit mining across South
Africa, Namibia, Papua New Guinea, Australia,
Thailand, and Indonesia.
Mr Gibbs is also an Associate of The Royal School
of Mines.
Listed current other directorships: PT Amman
Mineral Internasional Tbk (IDX: AMMN)
Listed former directorships (last three years):
None
Committee memberships:
•
Member of the Nomination Committee
Interests in ordinary shares: 260,210
Interests in share rights: 200,210
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DENISE McCOMISH
Independent, Non-Executive Director
Appointed on 1 March 2021
Qualifications: FCA, DipAcctgFoundn (Glam),
MAICD
Experience and expertise: Ms McComish is an
experienced company director with extensive
financial, corporate, ESG and board experience
across multiple sectors. Ms McComish was a
partner with KPMG for 30 years, specialising in
audit and advisory services, and held leadership
positions including KPMG Australia board member
and national mining leader.
Ms McComish has been a member of the Australian
Takeovers Panel since 2013. She also serves as
Advisory Board Chair for the ECU School of
Business and Law, and a WA Division Councillor for
the Australian Institute of Company Directors. Ms
McComish is a Fellow of Chartered Accountants
Australia and New Zealand, and a member of AICD
and Chief Executive Women. In 2018, she was
awarded an Honorary Doctorate in Business from
Edith Cowan University.
Listed current other directorships: Mineral
Resources Limited, Webjet Limited, Gold Road
Resources Limited.
Listed former directorships (last three years):
None
Committee memberships:
•
Chair of the Audit and Risk Committee
•
Member of the Nomination Committee
•
Member of the Remuneration and Culture
Committee
Interests in ordinary shares: 711,743
Interests in share rights: 141,816
GRAHAME WHITE
Independent, Non-Executive Director
Appointed on 1 February 2024
Qualifications: Bachelor of Engineering
(Mechanical) from the University of NSW, MAIDC.
Experience and expertise: Mr White is an
experienced executive and non-executive director
with a background in the construction, energy and
resources sectors in Australia and Asia.
Mr White brings a wealth of experience in
engineering, mining and resources, infrastructure
and civil contracting, strategy, project technical
and commercial analysis, and project development
and operations management. During his career,
he has spearheaded business development
across Hong Kong, Singapore, Thailand,
Vietnam, Philippines, China, and Malaysia in the
infrastructure and civil contracting sector.
Listed current other directorships:
Metals X Limited
Listed former directorships (last three years):
None
Committee memberships:
•
Member of the Audit and Risk Committee
•
Member of the Nomination Committee
Interests in ordinary shares: 500,000
Interests in share rights: None
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EVA SKIRA AM
Independent, Non-Executive Chair
Appointed Director on 26 September 2011
Appointed as Chair on 27 June 2019
Retired from the Board on 20 October 2023
Qualifications: BA (Hons), MBA, Life Mbr SF Fin,
Life Mbr FAIM, FAICD, FGIA, FCIS.
Experience and expertise: Ms Skira has a
background in banking, capital markets,
stockbroking and financial markets, previously
holding executive positions at the Commonwealth
Bank in the Corporate Banking/Capital Markets
divisions and later with stockbroker Barclays de
Zoete Wedd.
Ms Skira has served on a number of boards in
business, government, and the not-for-profit sectors
across a range of industries, including engineering,
infrastructure, health and finance.
Listed current other directorships: None
Listed former directorships (last three years):
None
Interests in ordinary shares at date of retirement:
1,166,736
Interests in share rights: None
BRUCE MUNRO
Independent, Non-Executive Director
Appointed on 1 October 2019 until his passing on
21 August 2023 (Board approved leave of absence
11 April to 10 July 2023)
Qualifications: BE (Hons), FIEAust
Experience and expertise: Mr Munro had more
than 40 years of experience as an engineer and
manager with major construction and mining
contractors in a number of countries, including
Australia, Asia, India and southern Africa.
Listed current other directorships: None
Listed former directorships (last three years):
None
Interests in ordinary shares at date of passing:
2,241,536
Interests in share rights: None
ALEX RAMLIE
Non-Independent, Non-Executive Director
(AMNT Nominee) Appointed on 12 July 2017 and
resigned 13 July 2023
Qualifications: BA, MA (Economics)
Experience and expertise: Mr Ramlie is the
President Director and Chief Executive Officer of
PT Amman Mineral Internasional Tbk (Amman),
which he joined in 2015 as a member of the
founding team and successfully listed on the
Indonesia Stock Exchange in July 2023.
Listed current directorships: PT Amman Mineral
Internasional Tbk (IDX: AMMN)
Listed former directorships (last three years):
None
Interests in ordinary shares at the date of
resignation: 2,619,447
Interests in share rights: None
ARIEF SIDARTO
Non-Independent, Non-Executive Director
(AMNT Nominee) Appointed on 12 July 2017
and resigned 13 July 2023
Qualifications: BSE, BS, MBA
Experience and expertise: Mr Sidarto has
extensive experience in the financial services
and corporate sectors.
Listed current directorships: PT Amman Mineral
Internasional Tbk (IDX: AMMN)
Listed former directorships (last three years):
None
Interests in ordinary shares at the date of
resignation: 2,619,447
Interests in share rights: None
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EXECUTIVE MANAGEMENT TEAM
MICHAEL FINNEGAN
Managing Director and
Chief Executive Officer
Mr Finnegan has
more than 25 years of
experience in the mining
industry, with the last 20
years primarily spent in
senior line management
positions.
Mr Finnegan has a
strong commercial and
technical background
and has spent time
in operations on the
east and west coasts
of Australia, as well as
a number of countries
throughout Asia.
URSULA LUMMIS
Chief Financial Officer
Ms Lummis is a
Chartered Accountant
and holds a Bachelor of
Commerce (Honours)
degree in Accounting,
Auditing and Tax. She
joined Macmahon
in 2018 as Group
Financial Controller and
was appointed Chief
Financial Officer on
1 November 2021.
Before Macmahon, Ms
Lummis had more than
20 years’ experience
with KPMG South Africa
and KPMG Australia,
providing services to
many globally listed
companies in the mining
and mining services
sectors.
DONALD JAMES
Chief Commercial
Officer
Mr James is a Fellow
Chartered Accountant
with extensive financial
and corporate
experience in high value
private and listed public
companies in the mining
and industrial services
sectors. He has held
strategic key executive
leadership positions and
non-executive director
roles in developing and
operational entities,
within which he has
demonstrated a strong
focus on delivering
high return business
outcomes.
PETER POLLARD
Chief Corporate
Development Officer
Mr Pollard holds a
Bachelor of Business
and joined Macmahon
in August 2020 as
Chief Financial Officer.
In November 2021, Mr
Pollard moved into a
strategic consulting role
and was appointed
Chief Corporate
Development Officer
in November 2023.
Mr Pollard has over
40 years’ experience
in the contracting
and services sectors
covering mining, oil and
gas, infrastructure and
telecommunications.
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ELIZABETH GRAY
Executive General
Manager, HSEQ and
Training
Ms Gray joined
Macmahon in 2020
and holds a Graduate
Diploma in Occupational
Health and Safety and
a Bachelor of Nursing.
Ms Gray has more than
20 years of experience
in senior roles in health,
safety, environment,
training and community
engagement. She has
been instrumental in
implementing strategies
to generate positive
HSEQ performance and
drive cultural change.
NICOLA HAMILTON
Executive General
Manager, People
Ms Hamilton
commenced with
Macmahon in February
2021 and holds a
Bachelor of Human
Resource Management
(Honours). She has
over 20 years of
experience in people
management with global
resources companies.
She specialises in
building and leading
HR functions in diverse
environments with
expertise in business
and strategic planning,
change management,
talent management
and development, and
employee relations.
JASON MCCALLUM
Executive General
Manager – East Coast
Operations and
Maintenance
Mr McCallum is a Senior
Executive with over 35
years’ experience in
the mining sector. He
joined Macmahon in
June 2023 as General
Manager East Coast and
Civil Operations and was
appointed Executive
General Manager of
East Coast Operations
and Maintenance
in November 2023.
Before Macmahon, Mr
McCallum held senior
management positions
with BHP, Vale Coal
and Yancoal.
MAHA CHAAR
General Counsel and
Company Secretary
Ms Chaar is a senior
executive and
qualified lawyer with
extensive national and
international experience.
Ms Chaar holds a Master
of Laws, a Bachelor of
Laws (Honours), and
a Bachelor of Science.
She joined Macmahon in
2021 and was appointed
General Counsel in
January 2022 and
Company Secretary
in January 2024. She
has authored several
published, peer reviewed
academic papers
and articles.
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Macmahon Annual Report 2024
Sustainability
Macmahon is committed to sustainability. We believe
that being sensitive to the impact we have on the
environment and communities should be the utmost
priority. We prioritise the health and wellbeing of
our people, as well as our environmental and social
footprint. Our approach to sustainability creates
long-term value for our shareholders.
At Macmahon, the commitment to our workers is driven by our values of United,
Courage, Integrity, and Pride. By fostering an environment that is inclusive
and supportive, encouraging brave and open conversation and maintaining
accountability, we ensure a sustained focus on managing the safety, health, and
wellbeing of our people.
Macmahon is committed to supporting and enriching the communities in which we
operate, aiming to build strong relationships and create more informed and engaged
communities
For further information, please refer to the standalone FY24 Sustainability Report.
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SUSTAINABILITY
YEAR IN REVIEW
440
Suppliers were screened for
sustainable procurement
practices and assessment for
social impact risks
No reported incidents
of corruption
GOVERNANCE
Compliance with ASX
Corporate Governance
Council’s principles, and
all relevant legislative
requirements
Review mechanisms
for advice and concern
about ethics
Initiate Conflict of Interest
reporting process
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Gross
environmental
footprint
established and
tracked monthly
Climate Risk and
Opportunities
workshop
carried out
894
Scope 1 tonnes Co2-e
947
Scope 2 tonnes Co2-e
Implementation
of supplier
Environmental Impact
self-assessment
questionnaire (SAQ)
ENVIRONMENT
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50%
Females in
Executive
Leadership
positions
SOCIAL
4.4%
First Nations People
14%
Female employees across the
whole organisation
31%
Female workforce at Martabe
in Indonesia
16.67%
Female Non-
Executive
Directors
Macmahon is committed to prevent and
eliminate sexual harassment from our
workplaces. FY24 saw the launch of Respect@
Macmahon. The FY24 program included
specific activities aligned to eliminating sexual
harassment, driving the Macmahon values, and
supporting an inclusive and respectful culture.
Respect@Macmahon also included targeted
activities aimed at promoting a psychologically
safe workplace environment.
Macmahon views investing in leadership as
investing in the Company's future. As part of
Respect@Macmahon, FY24 saw the launch
of ‘The Macmahon Winning Way’ frontline
leadership development program. The program
is a testament to its commitment to excellence,
equipping leaders with necessary skills and
knowledge to lead effectively and maintain
a positive, safe working environment.
Respect Macmahon
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INTERNAL AND
EXTERNAL TRAINING
SAFETY AND
WELLBEING
36
Graduates
4% female representation
273
Leadership
development
7% female representation
136
Apprentices
33 completed
7% female representation
17
Ex-Defence
Upskilled Heavy Deisel
Mechanic trade upgrades
and mobilised to site
685
Trainees
349 still registered
in traineeships
38% female representation
Expansion of
Critical Risk
Management
Program
Roll out of The
Macmahon Winning
Way leadership
training
Rolled out targeted
programs to
enhance the health
and safety of our
workforce
Additional
56 Wellness
Champions were
trained, bringing
the total to 104
across our Australian
offices and sites
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Macmahon Annual Report 2024
Directors’ Report
The Directors present their report, together with the
financial statements for the consolidated entity (referred to
as the ’Group’) consisting of Macmahon Holdings Limited
(referred to as the ‘Company’) and the entities it controlled
at the end of, or during, the year ended 30 June 2024.
DIRECTORS
The following persons were Directors of Macmahon during the financial year and up to the
date of this Report, unless otherwise stated:
Hamish Tyrwhitt, Independent, Non-Executive Director (appointed Chair 20 October 2023)
Michael Finnegan, Managing Director and Chief Executive Officer
Dharma Chandran, Independent, Non-Executive Director (appointed 1 February 2024)
David Gibbs, Non-Independent, Non-Executive Director (appointed 13 July 2023)
Denise McComish, Independent, Non-Executive Director
Grahame White, Independent, Non-Executive Director (appointed 1 February 2024)
Eva Skira AM, Chair and Independent, Non-Executive Director (retired 20 October 2023)
Bruce Munro, Independent, Non-Executive Director (passed away 21 August 2023)
Alexander Ramlie, Non-Independent, Non-Executive Director (resigned 13 July 2023)
Arief Widyawan Sidarto, Non-Independent, Non-Executive Director (resigned 13 July 2023)
Particulars of their qualifications, experience, special responsibilities and any directorships
of other listed Australian companies held within the last three years are set out in this
Annual Report under the “Our Board” heading on pages 32 to 35 and form part of
this Report.
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Meetings of Directors
The number of meetings^ of the Company’s Board of Directors and of each Board Committee held during
the year ended 30 June 2024, and the number of meetings attended by each Director were:
Board
Audit and Risk
Committee
Remuneration and
Culture Committee
Nomination
Committee
M
A
M
A
M
A
M
A
H Tyrwhitt
16
16*
4
4
3
3
2
2
D McComish
16
15
4
4
3
3
2
2
G White †
6
6
1
1
N/A
N/A
1
1
D Chandran †
6
5
N/A
N/A
1
1
1
1
D Gibbs
16
15
2
2
1
1
2
2
M Finnegan
16
16
N/A
N/A
N/A
N/A
1
1
E Skira**
6
6
1
1
1
1
N/A
N/A
B Munro◊
2
1
N/A
N/A
N/A
N/A
N/A
N/A
Chair
Member
M The number of meetings held during the period the Director was a member of the Board and/or Committee.
A The number of meetings attended by the Director during the period the Director was a member of the Board and/or Committee.
*
Mr Tyrwhitt attended six Board meetings as a member and 10 meetings as chair. He attended two Remuneration
Committee meetings as Chair and one meeting as a member.
**
Ms Skira ceased to be a director on 21 October 2023.
◊
Mr Munro ceased to be a director on 21 August 2023.
†
Mr White and Mr Chandran were appointed to the Board from 1 February 2024.
^
There were no Board or Committee meetings held prior to Mr Ramlie's and Mr Sidarto's resignations on 13 July 2023.
COMPANY SECRETARIES
Maha Chaar
(appointed 31 January 2024)
Ms Chaar is Macmahon’s General Counsel and
Company Secretary. A summary of Ms Chaar’s
biography is set out on page 37 of this Report.
Ben Secrett
(resigned 31 January 2024)
Mr Secrett was the Company Secretary from
March 2023 until 31 January 2024.
OFFICERS WHO WERE PREVIOUSLY
PARTNERS OF THE AUDIT FIRM
Ms McComish was a Director of the Company
during the financial year and was previously a
partner of the current audit firm, KPMG, at a time
when KPMG undertook an audit of the Group. Ms
McComish retired from the KPMG partnership
on 30 November 2019 and was appointed as a
Director of the Company on 1 March 2021.
CORPORATE GOVERNANCE STATEMENT
The Company's 2024 corporate governance
statement is available from its website site at
www.macmahon.com.au/about/corporate-
governance/#corporate-governance-statement
PRINCIPAL ACTIVITIES
The principal activities of the Group consisted of
providing surface mining, underground mining and
mining support and civil infrastructure services
to mining companies throughout Australia and
Southeast Asia.
Apart from the above, or as noted elsewhere in
this report, there were no significant changes in
the nature of the activities of the Group during the
year under review.
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DIVIDENDS
Declared and paid during FY24
Dividends paid or declared by the Company to
members since the end of the previous financial
year were:
Cents
$
Date of
payment
Interim 2024 ordinary
0.45
9,697,437
11 Apr 2024
Final 2023 ordinary
0.45
9,519,302
11 Oct 2023
Declared after year-end
After the balance sheet date, the following
dividends were declared by the Directors:
Cents
$
Date for
payment
Final 2024 ordinary
0.60
12,803,909
11 Oct 2024
As the final dividend was declared after 30 June
2024, the financial effect of these dividends has
not been brought to account in the consolidated
financial statements of the Group for FY24.
REVIEW OF OPERATIONS
For the year ended 30 June 2024, the Group
reported increases in revenue, underlying EBIT(A),
EBITDA that were driven by the commencement
of new projects including Greenbushes, the
acquisition of key projects from Pit N Portal and
organic growth, the commencement of new
projects including Greenbushes and the acquisition
of key projects from Pit N Portal. The impairment
of Calidus receivables at 30 June 2024 offset
the above benefits resulting in a decrease in net
profit after tax for the year. As part of an update
on 2 August 2024, the Receivers and Managers
are seeking urgent expressions of interest for
the acquisition and/or recapitalisation process of
Calidus Resources Limited. At this early stage of
the process, Macmahon anticipates this will be a
pathway to recoverability.
Information on the operations and financial
position of the Group and its business strategies
and prospects is set out in the operational review
and financial review on pages 17 to 25, and form
part of this Directors' Report.
SIGNIFICANT CHANGES
IN THE STATE OF AFFAIRS
In the opinion of the Directors, there were no other
significant changes in the state of affairs of the
Group that occurred during the year under review.
MATTERS SUBSEQUENT TO THE
END OF THE FINANCIAL YEAR
Dividends
On 19 August 2024 the Board approved a final
dividend on ordinary shares of 0.60 cents per
ordinary share in respect of FY24.
Acquisition of Decmil Group Limited
Subsequent to the end of the financial year
the Group completed its acquisition of Decmil
Group Limited. The acquisition provides an
established foundation to accelerate the Group’s
civil infrastructure growth, which aligns with
its strategic focus to diversify earnings (refer
to note 23 in the financial statements for more
information).
LIKELY DEVELOPMENTS AND EXPECTED
RESULTS OF OPERATIONS
Likely developments in the operations of the Group
in future financial years and the expected results
of those operations have been included generally
within the Annual Report. The Group plans to
continue providing surface mining, underground
mining and mining support and civil infrastructure
services to mining companies throughout Australia
and Southeast Asia.
ENVIRONMENTAL REGULATION
The Group is subject to environmental regulation
in respect of its projects and operations business
activities. The Group aims to ensure that the
appropriate standard of environmental care is
achieved, and in doing so, that it is aware of and
is in compliance with relevant environmental
legislation. The Group is not subject to any
significant environmental regulation under
Australian Commonwealth or State law.
REMUNERATION REPORT (AUDITED)
The audited remuneration report is set out on
pages 51 to 65 and forms part of this Directors'
Report.
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INDEMNITY AND INSURANCE OF OFFICERS
The Company has indemnified the Directors and
executives of the Company for costs incurred in
their capacity as a Director or executive, for which
they may be held personally liable, except where
there is a lack of good faith.
For the year ended 30 June 2024, the Company
paid a premium in respect of a contract to insure
the Directors and executives of the Company
against a liability to the extent permitted by the
Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of liability and
the amount of the premium.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end
of the financial year, indemnified or agreed to
indemnify the auditor of the Company or any
related entity against a liability incurred by
the auditor.
During FY24, the Company has not paid a
premium in respect of a contract to insure the
auditor of the Company or any related entity.
PROCEEDINGS ON BEHALF
OF THE COMPANY
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to
bring proceedings on behalf of the Company
or to 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 part of those proceedings.
NON-AUDIT SERVICES
Details of the amounts paid or payable to the
auditor for non-audit services provided during the
financial year by the auditor are outlined in note 30
to the consolidated financial statements.
The Directors are satisfied that the provision of
non-audit services during the year by the auditor
(or by another person or firm on the auditor’s
behalf) is compatible with the general standard
of independence for auditors imposed by the
Corporations Act 2001.
Based on advice received from the Audit and
Risk Committee, the Directors are of the opinion
that the services as disclosed in note 30 to
the consolidated financial statements do not
compromise the external auditor’s independence
requirements of the Corporations Act 2001 for the
following reasons:
•
All non-audit services have been reviewed and
approved to ensure that they do not impact the
integrity and objectivity of the auditor.
•
None of the services undermines the general
principles relating to auditor independence
as set out in APES 110 Code of Ethics for
Professional Accountants issued by the
Accounting Professional and Ethical Standards
Board, including reviewing or auditing the
auditor’s own work, acting in a management
or decision-making capacity, acting as an
advocate or jointly sharing economic risks and
rewards.
ROUNDING OF AMOUNTS
The Group is of a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191, issued by the
Australian Securities and Investments Commission,
relating to “rounding-off”. Amounts in this report
have been rounded off in accordance with that
Class Order to the nearest thousand dollars, or in
certain cases, the nearest dollar.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration
as required under section 307C of the Corporations
Act 2001 is set out on page 49.
AUDITOR
KPMG continues in office in accordance with
section 327 of the Corporations Act 2001.
RESOLUTION
This report is made in accordance with a resolution
of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
HAMISH TYRWHITT
Independent, Non-Executive Chair
20 August 2024
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KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Macmahon Holdings Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Macmahon Holdings
Limited for the financial year ended 30 June 2024 there have been:
i.
No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
No contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
R Gambitta
Partner
Perth
20 August 2024
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Macmahon Annual Report 2024
Remuneration
Report
This Remuneration Report for the year ended 30 June 2024
has been audited by the Company’s external auditor.
The remuneration report details the remuneration arrangements for Key Management
Personnel (KMP) as defined by and in accordance with the requirement of the Corporations
Act 2001 (the Act) and its regulations. The KMP included in the Remuneration Report
include personnel who planned, directed and were responsible to control all business
activities and not only specific pillars.
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1
EXECUTIVE REMUNERATION
1.1 Overview
The Company’s approach to remuneration is to compensate employees in a way that is cost-effective and
appropriate for current industry conditions, but also sufficient to attract, retain and incentivise the calibre
of personnel needed to effectively manage the Group’s business. To this end, the remuneration packages
offered to executive key management personnel (KMP) have three components:
•
Market competitive fixed remuneration.
•
A short-term incentive opportunity to earn a cash bonus dependent on performance over
an annual period.
•
A long-term incentive opportunity to earn Macmahon shares dependent on performance over
multiple years.
The targeted remuneration mix for executive KMP for the year ended 30 June 2024 is outlined below:
At risk
Fixed
remuneration
Short-term
incentive
Long-term
incentive
Michael Finnegan
Chief Executive Officer (CEO) and Managing Director
34%
33%
33%
Ursula Lummis
Chief Financial Officer (CFO)
45%
33%
22%
Donald James
Chief Commercial Officer (CCO)
45%
33%
22%
1.2 Fixed remuneration
The fixed remuneration paid to executive KMP is based on the size and scope of their role, knowledge and
experience, market benchmarks for that role, and to some extent the Group’s financial circumstances.
Fixed remuneration comprises base salary, any applicable role specific allowances, and superannuation.
Remuneration levels are reviewed annually by the Remuneration Committee through a process that
considers individual and overall performance of the Group. In addition, external advisors and industry
surveys may be used to ensure the KMP’s remuneration is competitive with the market and relevant
industry peers.
During the year, benchmarking was completed by Remsmart, formally BDO Reward WA Pty Limited, for
the CEO’s and other executive KMP’s remuneration. Based on the results of the market benchmarking
review, remuneration increases of 4.0% to the CEO, 16.9% to the CFO and 3.53% to the CCO were
provided from 1 July 2023. These increases were appropriate to ensure that senior executives are being
remunerated commensurate with their responsibilities and remain market competitive.
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1.3 FY24 Short term incentive (“STI”)
During FY24, the STI opportunity provided to executive KMP had the following features:
Description
Executive KMP are eligible to participate in the annual STI plan, which comprises a portion of their
variable remuneration and is subject to performance measures.
Performance
measures and
weighting
A combination of specific Group KPIs are chosen to reflect the core drivers of short-term performance
and to provide a framework for delivering sustainable value to the Group and its shareholders.
The following KPIs were chosen for the 2024 financial year:
•
EBIT(A) (50%)
•
Return on Average Capital Employed (ROACE) (10%)
•
Average Asset Intensity (10%)
•
Contracted EBIT(A) (10%)
•
Health, Safety and Environment Target (10%)
•
People culture (10%)
The STI was structured to commence upon achievement of the Company’s publicly stated EBIT(A)
guidance (gateway), and to increase in line with any additional EBIT(A), up to a cap.
Reasons for using
these targets
The KPIs were chosen to reflect the core drivers of short-term performance and to provide a
framework for delivering sustainable value to the Group and its shareholders.
Performance period
Performance against the STI targets relate to the period from 1 July 2023 to 30 June 2024.
Form of payment and
timing of payment
The STI award is determined after the end of the financial year following a review of performance over
the year against the STI performance measures by the Remuneration Committee. The Board approves
the final STI award based on this assessment of performance after which the STI is paid in cash.
Executive claw back
The after-tax STI payment to executive KMP may be claimed back by the Company at any time up to
two years after payment in the event of:
(a) A restatement of the Group’s financial results (other than a restatement caused by a change in
applicable accounting standards or interpretations), the result of which is that any STI awarded to
the KMP would have been a lower amount had it been calculated based on such restated results.
(b) Fraudulent, dishonest or other improper conduct of the executive KMP.
Board discretion
The Board has the right to modify, reduce or remove the STI opportunity at any time, including if there
is a fatality.
Potential bonus awards
The table below shows the potential bonus awards, as a percentage of total fixed remuneration (“TFR”),
available to the executive KMPs under the FY24 STI Plan.
Performance level
Threshold
(lower end of guidance range
$130 million EBIT(A))
Target
(mid of guidance range
$140 million EBIT(A))
Stretch
(capped at
$150 million EBIT(A))
M Finnegan
0% of TFR
100% TFR
150% TFR
U Lummis
0% of TFR
75% TFR
150% TFR
D James
0% of TFR
75% TFR
150% TFR
The STI metric is pro-rata between the Threshold, Target and Stretch performance level.
For FY25, there will be no significant change to the STI plan.
The Board will have the right to modify, reduce or remove the STI opportunity at any time.
1.4 Long term incentive (LTI)
At the discretion of the Board, the Company provides an LTI opportunity to executive KMP through the
grant of performance rights. These performance rights can vest into fully paid ordinary shares in the
Company, for no consideration, subject to meeting a performance condition and a continued employment
condition. The purpose of this LTI opportunity is to incentivise executive KMP to deliver sustained
increases in shareholder value over the long term.
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Performance condition
The vesting of performance rights granted on 1 July 2023 are subject to the following vesting conditions
weighted at 50% each:
•
Absolute total shareholder return (TSR) over a three-year performance and service period.
•
Strategic objectives subject to the measurement period below and a three-year service period:
–
Year 1
Safety (4%); business mix (14%)
–
Year 2
People culture based on survey score (4%); business mix (14%)
–
Year 3
Business mix (14%)
For the purposes of calculating TSR, the starting share price is based on the volume weighted average
price (VWAP) over the 30 calendar days before the first day of the performance period, and the closing
share price is based on the VWAP over the 30 calendar days up to and including the final day of the
performance period.
For performance rights granted on 1 July 2023, the portion of each grant of rights eligible to vest at
various levels of increase in Compound Annual Growth Rate (CAGR) TSR is:
Company’s TSR performance
over the performance period
Proportion of performance rights that are eligible
to vest at the end of the performance period
Less than 10% CAGR TSR growth
0%
Between 10% and < 15% CAGR TSR growth
50%, plus a straight-line increase in % award until 15% TSR is achieved
At 15% CAGR TSR growth and above
100%
On achievement of all hurdles the maximum LTI award is 100%.
Continued employment condition
Performance rights lapse if a holder ceases employment before the rights vest unless the Board, in its
absolute discretion, determines otherwise. There is no vesting of performance rights based solely on
continued employment.
Change of control
If a change of control occurs or the Company is wound up or delisted, the Board may (in its absolute
discretion) determine that all or a portion of the performance rights on issue will vest, notwithstanding the
time restrictions or performance conditions applicable to the performance rights.
Testing of the performance condition
Performance rights are tested for vesting only once at the end of the performance period. That is, there is
no re-testing of performance rights.
Dividends and voting rights
Performance rights do not have dividend or voting rights. However, the shares allocated upon vesting of
performance rights rank equally with other ordinary shares on issue.
Restriction on disposal of shares
The shares allocated to performance rights holders upon the vesting of those rights are initially held in a
trust and are subject to disposal restrictions in line with the Company’s Securities Trading Policy.
Performance rights granted in FY24
During FY24, a total of 11,037,036 performance rights were granted to current executive KMP. Refer to
Table 6.3 for further details of performance rights granted during the year.
In addition to the performance rights listed above, the Company granted performance rights to other
senior employees of the Group subject to a three-year performance period and continued employment.
Details of all performance rights issued by the Company are set out in note 28 to the consolidated
financial statements included in this Annual Report.
The number of performance rights granted to participants in accordance with the LTI Plan is at the
discretion of the Board.
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1.5 Statutory performance indicators (including variable remuneration measures)
The table below shows measures of the Group’s financial performance over the past five years as required
by the Corporations Act 2001. However, these measures are not all consistent with the measures used in
determining the variable amounts of remuneration to be awarded to executive KMP. Consequently, there
may not always be a direct correlation between statutory key performance measures and the variable
remuneration awarded to executive KMP.
FY24
FY23
FY22
FY21
FY20
Statutory performance indicators
Profit/(loss) after income tax expense
from continuing operations ($m)
53.2
57.7
27.4
75.4
64.9
Reported basic earnings per share from
continuing operations (EPS) (cents)
2.53
2.75
1.30
3.59
3.10
Dividends declared (cents per share)
1.05
0.75
0.65
0.65
0.60
Dividends paid (cents per share)1
0.90
0.65
0.65
0.65
0.75
Share price at 30 June (cents)
29.0
15.5
13.5
19.0
25.5
Total Shareholder Return (TSR) (%)
92.9
19.6
(25.5)
(22.9)
41.9
1
0.90 cents per share includes the final dividend for FY23 of 0.45 cents per share and the interim dividend for FY24 of
0.45 cents per share.
1.6 Employment contracts
The Company’s executive KMP are engaged under ongoing employment contracts with no fixed
termination date. However, these contracts may be terminated by notice from either party.
Key details of the employment contracts of the current executive KMP are set out below:
Annual fixed
remuneration
including
superannuation
Other
remuneration
Notice periods
to terminate
Termination payments
M Finnegan
$977,600
Short-term and
long-term incentive
opportunities as
described above.
3 months’ notice
by either party or
payment in lieu,
except in certain
circumstances
such as
misconduct where
no notice period
applies.
Statutory entitlements; plus
If the executive is terminated or resigns
in certain circumstances following
a change of control or delisting of
Macmahon, a payment equal to 6
months of annual fixed remuneration,
including superannuation. Any unvested
performance rights held by the
executive KMP lapse upon termination
or resignation, unless the Board, in its
absolute discretion, determines otherwise.
U Lummis
$643,000
Statutory entitlements plus
Any unvested performance rights held by
the executive KMP lapse upon termination
or resignation unless the Board, in its
absolute discretion, determines otherwise.
D James
$572,000
Key details of the employment contract of the former executive KMP are set out below:
R McLeod1
$640,900
Short-term and
long-term incentive
opportunities as
described above.
3 months’ notice
by either party or
payment in lieu,
except in certain
circumstances
such as
misconduct where
no notice period
applies.
Statutory entitlements plus
Any unvested performance rights held by
the executive KMP lapse upon termination
or resignation unless the Board, in its
absolute discretion, determines otherwise.
1
Mr Richard McLeod resigned as Chief Operating Officer effective 12 October 2023.
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2
NON-EXECUTIVE DIRECTOR REMUNERATION
The remuneration structure provided to Non-Executive Directors is distinct from that applicable to
executive KMP. Non-Executive Directors only receive fixed remuneration which is not linked to the
financial performance of the Group.
The remuneration provided to Non-Executive Directors in FY24 is set out below:
Cash
remuneration1
$
Salary sacrifice
for share rights
$
Total
$
H Tyrwhitt2
227,813
42,793
270,606
D Chandran3
55,833
-
55,833
D Gibbs4
96,364
54,054
150,418
D McComish
141,712
38,288
180,000
G White3
55,833
-
55,833
E Skira2
86,667
-
86,667
B Munro5
24,286
-
24,286
A Ramlie6
10,833
-
10,833
A Sidarto6
10,833
-
10,833
Total
710,174
135,135
845,309
1
Cash remuneration includes salary, committee fees and superannuation.
2
Mr Tyrwhitt commenced in the role as Non-Executive Chair on 20 October 2023. Ms Skira retired as Non-Executive Chair
effective 20 October 2023.
3
Mr Chandran and Mr White were appointed as Non-Executive Directors, effective 1 February 2024.
4
Mr Gibbs has been appointed as a Non-Executive Director, effective 13 July 2023.
5
Mr Munro passed away on 21 August 2023.
6
Mr Ramlie and Mr Sidarto resigned from the Board, effective 13 July 2023.
The maximum aggregate amount, as approved by Shareholders at the 2021 Annual General meeting,
that can be paid to Non-Executive Directors is $1,300,000 per annum, including superannuation (the
Fee Pool).
Non-Executive Directors have the option to sacrifice a percentage of their fixed remuneration for
share rights.
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Share rights
A Non-Executive Director Salary Sacrifice Plan was initiated by the Company during FY19, pursuant to
which Non-Executive Directors may elect to sacrifice all or a portion of their annual pre-tax directors’
fees and committee fees (excluding superannuation) in the form of share rights. Vesting is contingent
on the Non-Executive Director remaining continuously engaged by the Company as a Non-Executive
Director. Share rights were granted in two tranches on 1 July 2023 (50% vesting on the day after the
release of Macmahon’s half-year results and 50% vesting on the day after the release of Macmahon’s
full-year results). The share rights may be cash settled at the request of the Non-Executive Director
prior to vesting.
For additional information on restrictions or failure to vest, refer to the ASX announcement, dated
5 July 2018.
In accordance with Australian Accounting Standards, as the share rights provide an option over equity,
they have been fair valued as of their grant dates. Details of the share rights are provided in section 6.
3
REMUNERATION GOVERNANCE
The Board oversees the remuneration arrangements of the Company. In performing this function, the
Board is assisted by input and recommendations from the Remuneration Committee (“the Committee”),
external consultants and internal advice. The Committee is responsible for the overview, and
recommendation to the Board, of remuneration arrangements for Non-Executive Directors and executive
KMP. The CEO and Managing Director, in consultation with the Board, sets remuneration arrangements
for other executive KMP. No employee is directly involved in deciding their own remuneration, including
the CEO.
Further details of the role and function of the Committee are set out in the Remuneration Committee
Charter on the Company’s website at www.macmahon.com.au.
The Committee obtains advice and market remuneration data from external remuneration advisors as
required. When advice and market remuneration data is obtained, the Committee follows protocols
regarding the engagement and use of external remuneration consultants to ensure ongoing compliance
with executive remuneration legislation. These protocols ensure that any remuneration recommendation
from an external consultant is free from undue influence by any member of the Company’s executive KMP
to whom it relates.
The protocols for any external consultant providing remuneration recommendations prohibit them
from providing advice or recommendations to executive KMP or Non-Executive Directors before
recommendations are given to the Committee. These arrangements were implemented to ensure that
any external party will be able to carry out its work, including information capture and formation of its
recommendations, free from undue influence by the individuals to whom they relate.
In FY24, the Company engaged Remsmart, formally BDO Reward WA Pty Limited, to provide
benchmarking information about market remuneration levels for the CEO and other KMP respectively
in a peer group of ASX listed companies. This information was not a remuneration recommendation as
defined by the Act, however, was considered by the Board in the FY24 remuneration review process.
The Board is satisfied that the remuneration benchmarking data provided by Remsmart was free from
undue influence by employees of Macmahon.
4
VALUE PROVIDED TO KMP
4.1 Statutory remuneration for the year ended 30 June 2024
Details of the nature and value of each major element of remuneration provided to executive KMP of the
Company during FY24 are set out in the table below. In this table, the value of share-based payments has
been calculated in accordance with Australian Accounting Standards.
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Short-term
Directors
Non-Executive
Salary
Committee
fees
Cash bonus/
STI
Non-monetary
benefits
Total
short-term
Year
$
$
$
$
$
H Tyrwhitt1 (Chair)
2024
198,744
45,045
-
-
243,789
2023
108,597
63,348
-
-
171,946
D Chandran2
2024
48,799
1,501
-
-
50,300
2023
-
-
-
-
-
D Gibbs3
2024
113,399
22,113
-
-
135,512
2023
-
-
-
-
-
D McComish
2024
117,117
45,045
-
-
162,162
2023
108,597
45,249
-
-
153,846
G White2
2024
48,799
1,501
-
-
50,300
2023
-
-
-
-
-
E Skira1 (Chair)
2024
78,078
-
-
-
78,078
2023
234,299
-
-
-
234,299
B Munro5
2024
15,677
6,202
-
-
21,879
2023
84,664
35,207
-
-
119,872
A Ramlie4
2024
9,760
-
-
-
9,760
2023
108,597
-
-
-
108,597
A Sidarto4
2024
9,760
-
-
-
9,760
2023
108,597
-
-
-
108,597
Total compensation for
Non-Executive Directors
2024
640,133
121,407
-
-
761,540
2023
753,352
143,805
-
-
897,157
Short-term
Executives
Salary and
allowances
Committee
fees
STI
bonus
Non-monetary
benefits
Total
short-term
Year
$
$
$
$
$
M Finnegan
Managing Director and
Chief Executive Officer
2024
949,892
-
992,167
1,119
1,943,178
2023
914,524
-
698,301
1,119
1,613,944
U Lummis
Chief Financial Officer
2024
615,390
-
489,436
340
1,105,166
2023
524,532
-
306,435
340
831,307
D James
Chief Commercial Officer
2024
544,297
-
435,393
-
979,690
2023
524,524
-
306,435
-
830,959
R McLeod2
Chief Operating Officer
2024
179,615
-
-
-
179,615
2023
610,625
-
357,081
-
967,706
Total compensation
for executive personnel
2024
2,289,194
-
1,916,996
1,459
4,207,649
2023
2,574,205
-
1,668,252
1,459
4,243,916
Total compensation
for Directors and Executives
2024
2,929,327
121,408
1,916,996
1,459
4,969,189
2023
3,327,557
143,805
1,668,252
1,459
5,141,073
NED footnotes
1
Mr Tyrwhitt commenced in the role as Non-Executive Chair on 20 October 2023. Ms Skira retired as Non-Executive Chair
effective 20 October 2023.
2
Mr Chandran and Mr White were appointed as Non-Executive Directors, effective 1 February 2024.
3
Mr Gibbs has been appointed as a Non-Executive Director effective 13 July 2023.
4
Mr Ramlie and Mr Sidarto resigned from the Board effective 13 July 2023.
5
Mr Munro passed away on 21 August 2023.
6
Represents the fair value at grant date of the share rights issued for salary sacrificed over the vesting period of the award.
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Post-employment
Share-based
payment6
Non-
performance
related
Compensation
consisting of
options and
rights
Other
long-term
benefits
Super-
annuation
Termination
payments
Options
and rights
Performance
related
Total
compensation
$
$
$
%
%
%
$
-
26,817
-
3,235
-
100
-
273,841
-
18,054
-
958
-
100
-
190,958
-
5,533
-
-
-
100
-
55,833
-
-
-
-
-
-
-
-
-
14,906
-
4,087
-
100
-
154,505
-
-
-
-
-
-
-
-
-
17,838
-
2,895
-
100
-
182.895
-
16,154
-
-
-
100
-
170,000
-
5,533
-
-
-
100
-
55,833
-
-
-
-
-
-
-
-
-
8,589
-
-
-
100
-
86,667
-
5,701
-
1,210
-
100
-
241,210
-
2,407
-
-
-
100
-
24,286
-
12,587
-
2,391
-
100
-
134,849
-
1,073
-
-
-
100
-
10,833
-
11,403
-
2,420
-
100
-
122,420
-
1,073
-
-
-
100
-
10,833
-
11,403
-
2,420
-
100
-
122,420
-
83,769
-
10,217
-
100
-
855,526
-
75,301
-
9,399
-
100
-
981,857
Post-employment
Share-based
payment
Non-
performance
related
Compensation
consisting of
options and
rights
Other
long-term
benefits1
Super-
annuation
Termination
payments
Options
and rights
Performance
related
Total
compensation
$
$
$
%
%
%
$
86,303
27,708
-
673,667
61
39
25
2,730,856
85,608
25,476
-
479,572
53
47
22
2,204,600
54,254
27,610
-
174,093
49
51
13
1,361,123
49,193
25,468
-
89,134
40
60
9
995,102
52,115
27,703
-
157,606
49
51
13
1,217,114
51,047
27,986
-
57,797
38
62
6
967,789
16,540
2,459
-
(33,522)
N/A
100
N/A
165,092
58,080
30,275
-
67,044
38
62
6
1,123,105
209,212
85,480
-
971,844
53
47
18
5,474,185
243,928
109,205
-
693,547
45
55
13
5,290,596
209,212
169,249
-
982,061
46
54
16
6,329,711
243,928
184,506
-
702,946
38
62
11
6,272,453
Executives footnotes
1
Other long-term benefits related to movement in annual and long service leave liabilities for each Executive.
2
Mr McLeod resigned as Chief Operating Officer effective 12 October 2023.
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4.2 Voluntary information – Remuneration received by executive KMP for the year ended 30 June 2024
The amounts disclosed below reflect the benefits received by each KMP during the reporting period.
Fixed
remuneration1
$
Awarded
STI (cash)2
$
Realised
remuneration
received
$
M Finnegan
977,600
698,301
1,675,901
U Lummis
643,000
306,435
949,435
D James
572,000
306,435
878,435
R McLeod3
182,074
357,081
539,155
Total
2,374,674
1,668,252
4,042,926
1
Fixed remuneration includes base salaries received and payments made to superannuation funds.
2
The STI paid is the FY23 STI settled in FY24, and the FY24 STI will be paid in FY25.
3
Mr McLeod resigned as Chief Operating Officer effective 12 October 2023.
The amounts disclosed above are not the same as remuneration expensed in relation to each KMP
in accordance with Australian Accounting Standards (see Table 4.1 above).
Nevertheless, the directors believe that remuneration received is relevant information for the
following reasons:
•
The statutory remuneration expense for performance rights is based on the fair value determined
at the grant date for all unvested rights and does not reflect the fair value of the rights vested and
actually received by the KMPs during the year.
•
The statutory remuneration shows benefits before they are actually received by the KMPs (deferral
and claw back of STI payments).
•
Where performance rights do not vest because a market-based performance condition is not satisfied
(e.g. absolute TSR), the Company must still recognize the full amount of expenses even though the
KMPs will never receive any benefits.
The accuracy of information in this section has been audited together with the rest of the
remuneration report.
5
ANALYSIS OF STI BONUSES INCLUDED IN STATUTORY REMUNERATION FOR FY24
Details of the vesting profile of the short-term incentive cash bonuses awarded as remuneration to
executive KMP are as follows:
Included in statutory
remuneration
$
Vested
in year
%
Forfeited in
the year
%
M Finnegan
992,167
101.5
-
U Lummis
489,436
101.5
-
D James
435,393
101.5
-
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The STI Award is structured to commence upon achievement of the Company’s publicly stated
EBIT(A) guidance (gateway), and to increase in line with any additional EBIT(A), up to a cap based
on the following:
KPI
Threshold
Target
Stretch
Actual results
Actual Award STI
STI Award created on EBIT(A)
EBIT (A)
$130m
$140m
$150m
$140.3m
101.5%
The EBIT(A) result creates the maximum STI award which is then allocated to further hurdles as follows:
KPI
Weighting
Threshold
Target
Actual
results
Actual
Award STI
ROACE
10%
15.3%
16.5%
17.2%
Yes
Average Asset Intensity
N/A
47%
44%
39.1%
Yes
Contracted EBIT(A)
Project EBIT(A) from work in hand to be
greater than 3x FY24 Project EBIT(A)
3.59x
Yes
Health, Safety and Environment Target
TRIFR < 3.7 for FY24
3.64
Yes
People culture target based on survey score
WAM Engagement Survey
80% or greater
84%
Yes
STI awarded to KMP
101.5%
The percentage vested during the year was based on the following:
KPI
Weighting
Threshold
Target
Stretch
Actual
Award STI
Reported Underlying EBIT(A)
50% of award
0%
100%
150%
50.7%
ROACE
10% of award
10.1%
Average Asset Intensity
10% of award
10.1%
Contracted EBIT(A)
10% of award
10.1%
Health, Safety and Environment Target
10% of award
10.1%
People culture target based on survey score
10% of award
10.1%
STI awarded to KMP
101.5%
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6
EQUITY INSTRUMENTS
6.1 Rights over equity instruments granted as compensation
Non-Executive Director share rights
Details of share rights over ordinary shares in the Company granted to Non-Executive Directors during
FY24 as part of the NED Salary Sacrifice Plan were as follows:
Salary
sacrificed
$
Number
of rights
granted1
Fair value at
grant date2
$
Vesting
date
H Tyrwhitt
Tranche 1
21,396
158,500
1,429
Feb 24
Tranche 2
21,396
158,500
1,806
Aug 24
D Chandran3
Tranche 1
–
–
–
–
Tranche 2
–
–
–
–
D Gibbs
Tranche 1
27,027
200,210
1,805
Feb 24
Tranche 2
27,027
200,210
2,282
Aug 24
D McComish
Tranche 1
19,144
141,816
1,278
Feb 24
Tranche 2
19,144
141,816
1,616
Aug 24
G White3
Tranche 1
–
–
–
–
Tranche 2
–
–
–
–
E Skira4
Tranche 1
–
–
–
–
Tranche 2
–
–
–
–
B Munro5
Tranche 1
–
–
–
–
Tranche 2
–
–
–
–
A Ramlie6
Tranche 1
–
–
–
–
Tranche 2
–
–
–
–
A Sidarto6
Tranche 1
–
–
–
–
Tranche 2
–
–
–
–
1
Share rights are issued under the NED Salary Sacrifice Plan and are not in addition to their fixed remuneration. Rights
relating to former Non-Executive Directors lapse on retirement, resignation or death.
2
In accordance with Australian Accounting Standards, as the share rights granted include an “option” over ordinary shares,
the option element is required to be fair valued at the grant date. The fair value per share is $0.009 for Tranche 1 and
$0.0133 for Tranche 2.
3
Rights were granted on 1 July 2023 prior to the appointment of Mr Chandran and Mr White as Non-Executive Directors.
4
Ms Skira retired as Non-Executive Chair effective 20 October 2023.
5
Mr Munro passed away on 21 August 2023.
6
Mr Ramlie and Mr Sidarto resigned from the Board, effective 13 July 2023.
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Executive KMP performance rights and ordinary shares
During FY24, the following performance rights were granted as compensation to KMP:
Number
of rights
granted
Vesting
conditions
Grant
date
Fair value
per right at
the grant
date
Fair value at
grant date
$
Earliest
potential
vesting date
M Finnegan
3,481,481
Market
1 Jul 23
0.1260
438,667
1 Jul 26
3,481,481
Non-market
1 Jul 23
0.1840
640,593
1 Jul 26
U Lummis
1,018,518
Market
1 Jul 23
0.1260
128,333
1 Jul 26
1,018,518
Non-market
1 Jul 23
0.1840
187,407
1 Jul 26
D James
1,018,518
Market
1 Jul 23
0.1260
128,333
1 Jul 26
1,018,518
Non-market
1 Jul 23
0.1840
187,407
1 Jul 26
Rights will expire before the termination of the individual’s employment or the day after they are tested by
the Board against the vesting condition and found not to satisfy that condition. In addition to a continuing
performance condition, vesting is conditional on the extent to which the Company achieves increases in
absolute TSR over the performance period, as well as safety, people and business mix targets.
6.2 Details of equity rights affecting current and future remuneration
Details of the vesting profiles of the performance rights over ordinary shares in the Company held by
executive KMP during FY24 are as follows:
Executive
KMP
Grant date
(effective from)
Fair
value on
grant
date
Number
granted
Number
previously
forfeited
Number
forfeited in
2023
Held at
30 June
2023
Financial year
in which the
grant vests,
subject to
performance
Maximum
value yet
to vest1
M Finnegan
1 Jul 20
$0.142
2,467,420
-
(2,467,420)
-
1 July 2024
-
1 Jul 21 (Tranche 1)
$0.099
1,886,792
-
-
1,886,792
1 July 2024
-
1 Jul 21 (Tranche 2)
$0.177
1,886,792
-
(528,301)
1,358,491
1 July 2024
-
1 Jul 22 (Tranche 1)
$0.061
3,050,848
-
-
3,050,848
1 July 2025
$62,034
1 Jul 22 (Tranche 2)
$0.125
3,050,848
-
(427,119)
2,623,729
1 July 2025
$109,322
1 Jul 23 (Tranche 1)
$0.126
3,481,481
-
-
3,481,481
1 July 2026
$292,444
1 Jul 23 (Tranche 2)
$0.184
3,481,481
-
-
3,481,481
1 July 2026
$427,062
U Lummis
1 Jul 22 (Tranche 1)
$0.061
788,644
-
-
788,644
1 July 2025
$16,036
1 Jul 22 (Tranche 2)
$0.125
788,644
-
(110,410)
678,234
1 July 2025
$28,260
1 Jul 23 (Tranche 1)
$0.126
1,018,518
-
-
1,018,518
1 July 2026
$85.556
1 Jul 23 (Tranche 2)
$0.184
1,018,518
-
-
1,018,518
1 July 2026
$124,938
D James
1 Jul 22 (Tranche 1)
$0.061
932,204
-
-
932,204
1 July 2025
$18,955
1 Jul 22 (Tranche 2)
$0.125
932,204
-
(130,509)
801,695
1 July 2025
$33,404
1 Jul 23 (Tranche 1)
$0.126
1,018,518
-
-
1,018,518
1 July 2026
$85,556
1 Jul 23 (Tranche 2)
$0.184
1,018,518
-
-
1,018,518
1 July 2026
$124,938
R McLeod2
1 Jul 22 (Tranche 1)
$0.061
1,081,356
-
(1,081,356)
-
1 July 2025
-
1 Jul 22 (Tranche 2)
$0.125
1,081,356
-
(1,081,356)
-
1 July 2025
-
1
The maximum value of performance rights yet to vest is determined based on the amount of the grant date fair value that
is yet to be expensed.
2
Mr McLeod resigned as Chief Operating Officer effective 12 October 2023.
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6.3 Analysis of movements in performance rights
The movement during the reporting period by the number of performance rights over ordinary shares
in the Company held, directly, indirectly or beneficially, by each KMP, including their related parties,
is as follows:
Held at
1 July 2023
Granted as
compensation
Forfeited
during the year
Held at
30 June 2024
M Finnegan
12,342,700
6,962,962
(3,422,841)
15,882,821
U Lummis
1,577,288
2,037,036
(110,410)
3,503,914
D James
1,864,407
2,037,036
(130,508)
3,770,935
R McLeod1
2,162,712
-
(2,162,712)
-
1
Mr McLeod resigned as Chief Operating Officer effective 12 October 2023.
6.4 Analysis of movements in share rights
The movement during the reporting period, by number of share rights over ordinary shares in the
Company held, directly, indirectly or beneficially, by Non-Executive Directors, including their related parties,
is as follows:
Held at
1 July 2023
Salary Sacrifice
Rights Granted
Vested
during FY24
Held at
30 June 2024
Non-Executive Directors
H Tyrwhitt
145,758
317,000
(304,258)
158,500
D Chandran1
-
-
-
-
D Gibbs2
-
400,420
(200,210)
200,210
D McComish
-
283,632
(141,816)
141,816
G White1
-
-
-
-
E Skira3
-
-
-
-
B Munro4
-
-
-
-
A Ramlie5
-
-
-
-
A Sidarto5
-
-
-
-
1
Rights were granted on 1 July 2023, prior to the appointment of Mr Chandran and Mr White as Non-Executive Directors,
effective 1 February 2024.
2
Mr Gibbs has been appointed as a Non-Executive Director effective 13 July 2023.
3
Ms Skira retired as Non-Executive Chair effective 20 October 2023.
4
Mr Munro passed away on 21 August 2023.
5
Mr Ramlie and Mr Sidarto resigned from the Board effective 13 July 2023.
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6.5 Movements in ordinary shareholdings
The movement during FY24 in the number of ordinary shares in the Company held directly, indirectly or
beneficially, by Non-Executive Directors and executive KMP, including their related parties, is as follows:
Held at
1 July 2023
Vested rights2
Held at
30 June 2024
Non-Executive Directors
H Tyrwhitt
525,010
304,258
829,268
D Chandran3
-
-
-
D Gibbs
-
200,210
200,210
D McComish
569,927
141,816
711,743
G White3
-
-
-
E Skira4
982,621
184,115
N/A1
B Munro5
2,450,276
291,258
N/A1
A Sidarto6
2,251,217
368,230
N/A1
A Ramlie6
2,251,217
368,230
N/A1
Executive KMP
M Finnegan
5,020,008
-
5,020,008
U Lummis
-
-
-
D James
-
-
-
R McLeod7
-
-
-
Total
14,050,276
1,858,117
6,761,229
1
Ceased to be a Non-Executive Director during FY24.
2
Rights refer to share rights for Non-Executive Directors and performance rights for executives.
3
Mr Chandran and Mr White were appointed as Non-Executive Directors, effective 1 February 2024.
4
Ms Skira retired as Non-Executive Chair effective 20 October 2023.
5
Mr Munro passed away on 21 August 2023.
6
Mr Ramlie and Mr Sidarto resigned from the Board effective 13 July 2023.
7
Mr McLeod resigned as Chief Operating Officer effective 12 October 2023.
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Macmahon Annual Report 2024
Financial
Statements
GENERAL INFORMATION
The financial statements cover Macmahon Holdings Limited ("the Company" or "the
Parent") as a consolidated entity (referred to hereafter as "the Group") consisting of
Macmahon Holdings Limited and the entities it controlled at the end of, or during,
the year. The financial statements are presented in Australian dollars, which is the
functional and presentation currency of the Company.
Macmahon Holdings Limited is a public company limited by shares, incorporated and
domiciled in Australia. The Group is a for-profit entity.
A description of the nature of the Group's operations and its principal activities are
included in the Directors' Report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of
Directors, on 20 August 2024.
An accounting policy, critical accounting estimate, assumption or judgement specific
to a note is disclosed within the note itself.
68 Consolidated Statement of Profit or Loss and Other Comprehensive Income
69 Consolidated Statement of Financial Position
70 Consolidated Statement of Changes In Equity
71
Consolidated Statement of Cash Flows
72
Notes to the Consolidated Financial Statements
124 Consolidated Entity Disclosure Statement
127 Directors’ Declaration
128 Independent Auditor’s Report
132 Summary of Consolidated Reports
134 ASX Additional Information
136 Corporate Directory and Glossary
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Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Note
2024
$’000
2023
$’000
Revenue
2
2,031,261
1,906,150
Other income
3
8,262
8,539
Expenses
Materials and consumables used
(395,664)
(517,812)
Employee benefits expense
4
(951,357)
(817,621)
Depreciation and amortisation expense
4
(211,790)
(197,153)
Equipment and other short-term lease expenses
4
(152,911)
(99,258)
Subcontractor costs
(82,380)
(74,627)
Share-based payments expense
29
(2,055)
(898)
Impairment of financial assets
17
(31,805)
-
Other expenses
4
(110,278)
(100,639)
Operating profit
101,283
106,681
Share of profit of equity-accounted investees, net of tax
25
372
294
Operating profit, income and expenses from equity-accounted investees
101,655
106,975
Finance costs
4
(28,506)
(25,652)
Finance income
4
1,739
1,342
Net finance costs
4
(26,767)
(24,310)
Impairment of asset disposal group
-
(252)
Profit before income tax
74,888
82,413
Income tax expense
5
(21,662)
(24,743)
Profit after income tax for the year
53,226
57,670
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation
20
(3,868)
5,271
Items that will not be reclassified to profit or loss:
Equity investments at FVOCI - Net of change in fair value
10
(8,480)
(1,995)
Other comprehensive income for the year, net of tax
(12,348)
3,276
Total comprehensive income for the year attributable to the
owners of the Company
40,878
60,946
Note
2024
Cents
2023
Cents
Earnings per share for profit attributable to
the owners of Macmahon Holdings Limited
Basic earnings per share
6
2.53
2.75
Diluted earnings per share
6
2.48
2.74
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
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Consolidated Statement of Financial Position
Note
2024
$’000
2023
$’000
ASSETS
Current assets
Cash and cash equivalents
8
194,578
218,162
Trade and other receivables
9
382,837
331,009
Inventories
11
105,430
92,252
Income tax receivable
5
17,058
12,033
Total current assets
699,903
653,456
Non-current assets
Investments accounted for using the equity method
25
1,071
792
Trade and other receivables
9
45,096
46,847
Property, plant and equipment
15
671,912
720,057
Intangible assets and goodwill
16
10,379
10,560
Other financial assets
10
-
8,480
Deferred tax asset
5
22,989
24,523
Total non-current assets
751,447
811,259
Total assets
1,451,350
1,464,715
LIABILITIES
Current liabilities
Trade and other payables
12
322,703
324,739
Borrowings
18
104,139
121,861
Income tax payable
5
14,510
-
Employee benefits
13
84,107
70,376
Provisions
14
32,720
26,447
Total current liabilities
558,179
543,423
Non-current liabilities
Trade and other payables
12
4,713
1,959
Borrowings
18
237,026
298,247
Employee benefits
13
4,919
3,934
Deferred tax liability
5
12,998
8,303
Total non-current liabilities
259,656
312,443
Total liabilities
817,835
855,866
NET ASSETS
633,515
608,849
EQUITY
Issued capital
19
563,118
563,118
Reserves
20
(12,443)
(1,628)
Net accumulated profits
82,840
47,359
TOTAL EQUITY
633,515
608,849
The above consolidated statement of financial position should be read in conjunction with the
accompanying notes.
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Consolidated Statement of Changes In Equity
Consolidated
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
Retained
profits
$’000
Total
equity
$’000
Balance at 30 June 2023
563,118
(1,628)
(192,396)
239,755
608,849
Profit after income tax expense for the year
-
-
-
53,226
53,226
Other comprehensive income for the year, net of tax
-
(12,349)
-
-
(12,349)
Total comprehensive income for the year
-
(12,349)
-
53,226
40,877
Transactions with owners in their capacity as owners:
Treasury shares allocated on vesting of performance
rights (note 20)
-
353
-
(51)
302
Treasury shares purchased for
compensation plans (note 20)
-
-
-
-
-
Dividends (note 20)
-
-
-
(19,217)
(19,217)
Share-based payments expense (note 28)
-
2,704
-
-
2,704
Transfer of lapsed performance rights (note 20)
-
(1,523)
-
1,523
-
Balance at 30 June 2024
563,118
(12,443)
(192,396)
275,236
633,515
Consolidated
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
Retained
profits
$’000
Total
equity
$’000
Balance at 30 June 2022
563,118
(5,901)
(192,396)
194,679
559,500
Profit after income tax expense for the year
-
-
-
57,670
57,670
Other comprehensive income for the year, net of tax
-
3,276
-
-
3,276
Total comprehensive income for the year
-
3,276
-
57,670
60,946
Transactions with owners in their capacity as owners:
Treasury shares allocated on vesting of performance
rights (note 20)
-
431
-
-
431
Treasury shares purchased for compensation plans
(note 20)
-
(190)
-
-
(190)
Dividends (note 20)
-
-
-
(13,815)
(13,815)
Share-based payments expense (note 28)
-
1,977
-
-
1,977
Transfer of lapsed performance rights (note 20)
-
(1,221)
-
1,221
-
Balance at 30 June 2023
563,118
(1,628)
(192,396)
239,755
608,849
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Consolidated Statement of Cash Flows
Note
2024
$’000
2023
$’000
Cash flows from operating activities
Receipts from customers
2,195,546
2,140,565
Payments to suppliers and employees
(1,894,641)
(1,834,535)
Payments to suppliers and employees for SaaS costs
(1,243)
(2,941)
Receipts from joint venture entities
100
13
Corporate development costs
(3,156)
(691)
Interest received
1,739
1,342
Interest and other finance costs paid
(24,917)
(24,910)
Income taxes paid
(2,610)
(11,989)
Net cash from operating activities
7
270,818
266,854
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment
6,416
3,630
Payments for property, plant and equipment
15
(149,985)
(193,228)
Payments for intangible assets
16
(48)
(30)
Proceeds from sale of disposal group held for sale
1,209
1,618
Earn-out in relation to previous acquisition
-
(5,130)
Net cash used in investing activities
(142,408)
(193,140)
Cash flows from financing activities
Purchase of own shares
20
-
(190)
Proceeds from interest-bearing loans
18
106,374
108,257
Repayment of interest-bearing loans
18
(156,311)
(64,008)
Repayment of lease liabilities
18
(81,911)
(85,439)
Dividends paid
20
(19,218)
(13,815)
Net cash used in financing activities
(151,066)
(55,195)
Net increase in cash and cash equivalents
(22,656)
18,519
Cash and cash equivalents at the beginning of the financial year
218,162
197,958
Effects of exchange rate changes on cash and cash equivalents
(928)
1,685
Cash and cash equivalents at the end of the financial year
8
194,578
218,162
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Notes to the
Consolidated
Financial Statements
A
Results
73
1
Operating segments
73
2
Revenue
75
3
Other income
76
4
Expenses
76
5
Tax
78
6
Earnings per share
82
B
Cash Flow Information
83
7
Reconciliation of profit after
income tax to net cash from
operating activities
83
C
Working Capital
83
8
Cash and cash equivalents
83
9
Trade and other receivables
84
10 Other financial assets
85
11
Inventories
86
12 Trade and other payables
86
13 Employee benefits
87
14 Provisions
88
D
Fixed Assets
89
15 Property, plant and equipment
89
16 Intangible assets and goodwill
91
E
Risk
93
17 Financial risk management
93
F
Debt and Equity
100
18 Borrowings
100
19 Equity – Issued capital
102
20 Equity – Reserves
103
G
Unrecognised Items
104
21 Contingent liabilities
104
22 Commitments
105
23 Events after the reporting period
105
H
Other Information/
Group Structure
106
24 Interests in subsidiaries
106
25 Interests in joint ventures
107
26 Related party transactions
107
27 Compensation of key
management personnel
108
28 Share-based payments
108
29 Remuneration of auditors
116
30 Deed of cross guarantee
116
31 Parent entity information
119
32 Business combination
120
33 Other material accounting policies 121
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Macmahon Annual Report 2024
A Results
1
OPERATING SEGMENTS
Identification of reportable operating segments
The Group has identified its reportable segments based on the internal reporting, which is reviewed and
used by the Chief Executive Officer (the Chief Operating Decision Maker) in assessing the performance
and in determining the allocation of resources between business units.
Management have identified three operating segments; Surface Mining, Underground Mining and
International Mining. These segments have been aggregated into "Mining" due to all segments exhibiting
similar economic characteristics regarding the nature of the products and services, production processes,
type or class of customers and methods used in rendering their services.
The following describes the operations of each reportable segment:
Mining
The Group provides a broad range of mining services, which includes surface and underground mining,
civil and rehabilitation services, equipment maintenance, rentals and management.
Financial performance is measured with reference to underlying earnings before interest, tax and
customer contract amortisation (EBIT(A)), as included in the internal reporting reviewed by the Chief
Executive Officer, and is measured consistently with profit or loss in the consolidated financial statements.
Segment EBIT(A) is used to measure financial performance, as management believes that such
information is the most relevant in evaluating the results of certain segments relative to other entities that
operate within these industries.
The financial performance of each reportable segment is set out below:
Consolidated – 2024
Mining
$’000
Unallocated
$’000
Total
$’000
Revenue
Revenue from contracts with customers
2,021,086
-
2,021,086
Revenue from contracts with customers - non-cash consideration
10,175
-
10,175
Total revenue
2,031,261
-
2,031,261
Underlying EBITDA
353,520
(1,816)
351,704
Depreciation and amortisation expense
(excluding customer contracts amortisation)
(209,995)
(1,411)
(211,406)
Underlying EBIT(A)
143,525
(3,227)
140,298
Finance income
-
1,739
1,739
Finance costs
(28,116)
(390)
(28,506)
Corporate development costs
-
(3,156)
(3,156)
Share-based payments expense
-
(2,055)
(2,055)
SaaS customisation costs
-
(1,243)
(1,243)
Impairment of financial assets1
(31,805)
-
(31,805)
Amortisation on customer contracts
(384)
-
(384)
Profit/(loss) before income tax expense
83,220
(8,332)
74,888
Segment assets
1,226,729
224,621
1,451,350
Segment liabilities
795,549
22,286
817,835
Capital expenditure
182,825
-
182,825
1
Refer to note 17.
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Consolidated – 2023
Mining
$’000
Unallocated
$’000
Total
$’000
Revenue
Revenue from contracts with customers
1,906,150
-
1,906,150
Total revenue
1,906,150
-
1,906,150
Underlying EBITDA
309,133
(474)
308,659
Depreciation and amortisation expense (excluding customer contracts
amortisation)
(190,565)
(1,452)
(192,017)
Underlying EBIT(A)
118,568
(1,926)
116,642
Finance income
-
1,341
1,341
Finance costs
(25,136)
(516)
(25,652)
Earn-out in relation to previous GBF acquisition
-
-
-
Acquisition costs
-
(691)
(691)
Share-based payments expense
-
(898)
(898)
SaaS customisation costs
-
(2,941)
(2,941)
Impairment of asset disposal group
(252)
(252)
Amortisation on customer contracts
(5,136)
-
(5,136)
Profit/(loss) before income tax expense
88,296
(5,883)
82,413
Segment assets
1,213,565
251,150
1,464,715
Segment liabilities
846,387
9,479
855,866
Capital expenditure
239,385
-
239,385
Geographical revenue from
contracts with customers
Geographical
non-current assets
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Australia
1,885,481
1,543,318
623,902
677,109
Indonesia
142,624
359,862
120,214
126,198
Malaysia
3,156
2,970
7,331
7,952
Others
-
-
-
-
2,031,261
1,906,150
751,447
811,259
Major customers
The revenue information above is based on the location of customers. Revenue from two customers
related to three projects, individually greater than 10%, amounted to $630.968 million (2023: four projects
related to three customers, individually greater than 10%, amounted to $830.500 million), arising from the
provision of mining services.
Operating segments
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group's other components. All operating segments' operating results are regularly reviewed by the
Chief Executive Officer in making decisions about resource allocation and performance assessment, and
for which discrete financial information is available.
Segment results that are reported to the Chief Executive Officer include items directly attributable to
a segment, as well as those that can be allocated on a reasonable basis. Unallocated items comprise of
corporate assets, net foreign exchange differences, finance income, income taxes, share-based payments
and acquisition costs. Segment capital expenditure is the total cost incurred during the year to acquire
property, plant and equipment, and intangible assets other than goodwill.
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2
REVENUE
Consolidated
2024
$’000
2023
$’000
Revenue from contracts with customers
2,021,086
1,906,150
Revenue from contracts with customers (non-cash consideration)
10,175
-
2,031,261
1,906,150
Services revenue
The Group generates revenue from the provision of mining services, which includes surface and
underground mining, civil and rehabilitation services, equipment maintenance, rentals and management.
The activities for each contract were assessed as highly inter-related and, as a result, the Group
determined that one performance obligation exists for each of its mining contracts.
The transaction price for each contract is based on agreed contractual rates to which the Group is
entitled, and may include a variable pricing element which is discussed below.
Revenue for the services is recognised over time based on the work completed and billed to the
customers as the customer receives the benefit. As services are invoices on a monthly basis based on
the actual services provided, or at cost plus margin incurred to date, the Group has used the practical
expedient available under AASB 15 Revenue to recognise revenue based on the right to invoice. This is
on the basis that the invoices amount corresponds directly with the value to the customer of the Group’s
performance completed to date. Amounts billed to customers are not secured and are typically due
within 5–60 days from the invoice issuance.
Sale of goods
The Group generates revenue from the sale of goods in the course of ordinary activities, which is
recognised at point in time when control has been transferred to the customer, generally being when the
goods are delivered and accepted by the customer. Revenue from the sale of goods is measured at the
fair value of the consideration received or receivable, net of trade discounts.
Consolidated
2024
$’000
2023
$’000
Revenue from mining services
1,954,246
1,906,150
Revenue from sale of goods
77,015
-
2,031,261
1,906,150
Variable consideration
Certain contracts with customers include a variable element which is subject to the Group meeting
either certain cost targets or material movement KPIs. Variable consideration is recognised when
it is highly probable that a significant reversal of revenue will not occur in a subsequent period.
For the year ended 30 June 2024, variable consideration amounted to $21.006 million (2023:
$19.540 million) which was carried as a contract asset (note 9) (2023: $10.232 million), and $1.558 million
has been subsequently approved by customers.
Non-cash consideration
Where customers contribute materials to the Group to facilitate the fulfilment of the contract, and the
Group obtains control of the contributed materials, the costs of these materials have been included
as revenue, as non-cash consideration received from the customer and the corresponding expense is
included in materials and consumables used in the consolidated statement of profit or loss and other
comprehensive income.
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3
OTHER INCOME
Consolidated
2024
$’000
2023
$’000
Net gain on disposal of plant and equipment
3,638
1,172
Other
4,624
7,367
8,262
8,539
Other income primarily relates to training rebates received.
4
EXPENSES
Profit before income tax from continuing operations includes the following specific expenses:
Consolidated
Depreciation and amortisation
2024
$’000
2023
$’000
Depreciation
Leasehold improvements
595
191
Plant and equipment
116,074
107,868
Right-of-use assets
94,392
83,631
Amortisation
Software
345
327
Customer contracts
384
5,136
211,790
197,153
Other expenses
Other expenses includes the following:
Consolidated
2024
$’000
2023
$’000
Freight expenses
29,253
27,714
Consulting and other professional services
9,530
7,760
Recruitment, training and other employee incidentals
16,912
17,304
Travel and accommodation expenses
10,503
8,765
Insurance expenses
9,511
9,688
Expected credit loss (ECL) allowance
398
-
Administrative and facilities expenses
12,661
9,102
Information, communication and technology expenses
10,786
10,057
Foreign exchange loss
1,816
474
SaaS customisation costs
1,243
2,941
Corporate development costs
3,156
691
Other expenses
4,509
6,143
110,278
100,639
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Employee benefits expense
Employee benefits expense includes the following:
Consolidated
2024
$’000
2023
$’000
Salaries and Wages (including on-costs)
809,862
695,133
Hired Labour
141,495
122,487
951,357
817,620
The following expenses are also included in Salaries and Wages (including on-costs):
Consolidated
2024
$’000
2023
$’000
Defined contribution superannuation expense
65,599
49,295
Employee shares1
649
1,079
66,248
50,374
1
Shares awarded to employees with no performance vesting hurdles other than service conditions form part of the
total employee benefits expense. For information on the details of the share-based payments arrangement to these
employees, refer to note 28(b).
Net finance costs
Finance costs include interest on lease liabilities and are expensed in the period in which they are
incurred. Borrowing costs capitalised are amortised over the term of the facility.
Consolidated
2024
$’000
2023
$’000
Interest income on term deposits
(1,739)
(1,342)
Interest expense on lease liabilities
9,005
13,007
Interest expense and other facility charges on interest-bearing loans
17,848
9,887
Other borrowing costs
1,653
2,758
26,767
24,310
Lease Expenses
Lease expenses includes the following:
Consolidated
2024
$’000
2023
$’000
Leases under AASB 16 Leases
Depreciation of right-of-use assets
(94,392)
(83,631)
Equipment and other short-term lease expenses
(152,911)
(99,258)
(247,303)
(182,889)
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5
TAX
a)
Income tax expense
Consolidated
2024
$’000
2023
$’000
Income tax expense
Current tax
15,433
5,467
Deferred tax - origination and reversal of temporary differences
6,229
19,276
Income tax expense
21,662
24,743
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
74,888
82,413
Tax at the statutory tax rate of 30%
22,466
24,724
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
811
270
Non-deductible expenses/(non-assessable income)
400
33
Foreign tax rate differential
(1,318)
(2,757)
Net temporary difference previously unrecognised
(731)
294
Current year losses for which no deferred tax asset was recognised
34
(125)
Other1
-
2,304
Income tax expense
21,662
24,743
1 Including withholding tax on dividends from international subsidiaries.
b)
Current assets and liabilities - income tax
Consolidated
2024
$’000
2023
$’000
Income tax receivable/(payable) - Australian operations
(14,510)
-
Income tax receivable/(payable) - International operations
17,058
12,033
c)
Non-current assets - deferred tax
2024
$’000
2023
$’000
Net deferred tax (liability)/asset
At the beginning of the financial year
16,220
35,496
Income tax (charge)/credit recorded in the income statement
(6,229)
(19,276)
Net deferred tax asset
9,991
16,220
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Net Deferred tax
assets Indonesia1
Net Deferred tax
liabilities Australia1
Charged/(credited)
to the income statement
Consolidated
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Deferred tax asset comprises
temporary differences attributable to:
Inventories
-
-
(4,660)
(4,381)
(280)
63
Property, plant and equipment
1,722
943
45,219
16,946
29,052
(28,281)
Property, plant and equipment -
Right of Use assets
-
-
(93,887)
(89,930)
(3,957)
-
Lease liabilities
-
-
44,476
59,427
(14,951)
-
Provision for project closure
-
-
10,922
7,588
3,333
-
Contracted reimbursements for
project closure costs
-
-
(2,571)
(2,571)
-
-
Contract assets
-
-
(49,567)
(45,880)
(3,687)
(747)
Other payables
-
-
13,441
12,680
762
187
Employee benefits
-
-
23,629
24,021
(392)
5,938
Unused tax losses carried forward
21,267
23,580
-
13,796
(16,109)
3,564
Total
22,9892
24,523
(12,998)
(8,303)
(6,229)
(19,276)
1 Net Deferred tax assets and liabilities are disclosed separately where there is no right of offset due to different tax jurisdictions.
2 The Indonesian deferred tax asset of $22.989 million relates primarily to unused tax losses carried forward of
$21.267 million, which are subject to a five-year expiry period, and $1.7 million relating to property, plant and equipment.
Unrecognised deferred tax asset
Available fraction tax losses
5,091
5,608
Other non-deductible differences
3,687
3,797
Unrecognised deferred tax asset
8,778
9,405
Income tax
The effective tax rate for the current year is 28.9% (30 June 2023: 30.0%). There was no withholding
tax on dividends paid in FY24, the effective tax rate excluding withholding tax on dividends paid in FY23
was 27.2%.
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised
in profit or loss except to the extent that it relates to items recognised directly in equity or in other
comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantially enacted at the reporting date, and any adjustment to tax payable in
respect of previous years. Current tax payable also includes any tax liability arising from the declaration
of dividends.
Additional income tax expenses that arise from the distribution of cash dividends are recognised at the
same time that the liability to pay the related dividend is recognised. The Group does not distribute non-
cash assets as dividends to its shareholders.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted
or substantively enacted, except for:
•
When the deferred income tax asset or liability arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting nor taxable profits; or
•
When the taxable temporary difference is associated with interests in subsidiaries, associates or
joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when
they reverse, based on laws that have been enacted or substantively enacted at the reporting date.
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Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax assets and liabilities on a net basis
or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available against which they
can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised. The Indonesian deferred tax asset
relating to tax losses is subject to a five year period.
The Group has adopted Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments to AASB 112 Income Taxes) from 1 July 2023. The amendments narrow the scope of the
initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary
differences – e.g. leases and decommissioning liabilities. For leases and decommissioning liabilities, an
entity is required to recognise the associated deferred tax assets and liabilities from the beginning of
the earliest comparative period presented, with any cumulative effect recognised as an adjustment to
retained earnings or other components of equity at that date. For all other transactions, an entity applies
the amendments to transactions that occur on or after the beginning of the earliest period presented.
The Group previously accounted for deferred tax on leases and decommissioning liabilities by applying
the ‘integrally linked’ approach, resulting in a similar outcome as under the amendments, except that
the deferred tax asset or liability was recognised on a net basis. Following the amendments, the Group
has recognised a separate deferred tax asset in relation to its lease liabilities and provision for contract
closure, and a deferred tax liability in relation to its right-of-use assets and contracted reimbursements for
project closure costs. However, there was no impact on the statement of financial position because the
balances qualify for offset under AASB 112. There was also no impact on the opening retained earnings as
at 1 July 2022 as a result of the change. The key impact for the Group relates to disclosure of the deferred
tax assets and liabilities recognised as noted above.
Tax consolidation
The Company and its wholly-owned Australian resident entities have formed a tax-consolidated group
with effect from 1 July 2003 and are therefore taxed as a single entity from that date. The head entity
within the tax-consolidated group is Macmahon Holdings Limited. Current income tax expense/benefit,
deferred tax liabilities and deferred tax assets arising from temporary differences of the members of
the tax-consolidated group are recognised in the separate financial statements of the members of the
tax-consolidated group using the ‘separate taxpayer within group’ approach by reference to the carrying
amounts of assets and liabilities in the separate financial statements of each entity and the tax values
applying under tax consolidation.
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the
subsidiaries are assumed by the head entity in the tax-consolidated group and are recognised as amounts
payable to/(receivable from) other entities in the tax consolidated group in conjunction with any tax
funding arrangement amounts (refer below). Any difference between these amounts is recognised by
the Group as an equity contribution or distribution.
The Group recognises deferred tax assets arising from unused tax losses of the tax-consolidated group
to the extent that it is probable that future taxable profits of the tax-consolidated group will be available
against which the unused tax losses can be utilised. Any subsequent period adjustments to deferred tax
assets arising from unused tax losses as a result of revised assessments of the probability of recoverability
is recognised by the head entity only.
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Nature of tax funding arrangements and tax sharing arrangements
The head entity, in conjunction with other members of the tax-consolidated group, has entered into a tax
funding arrangement which sets out the funding obligations of members of the tax-consolidated group in
respect of tax amounts. The tax funding arrangements require payments to/(from) the head entity equal
to the current tax asset/(liability) assumed by the head entity and any deferred tax loss asset assumed
by the head entity, resulting in the head entity recognising an inter-entity payable/(receivable) equal in
amount to the tax asset/(liability) assumed. The inter-entity payables/(receivables) are at call.
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and
reflect the timing of the head entity’s obligation to make payments for tax liabilities to the relevant
tax authorities.
The head entity in conjunction with other members of the tax-consolidated group has also entered into
a tax sharing agreement. The tax sharing agreement provides for the determination of the allocation of
income tax liabilities between the entities should the head entity default on its tax payment obligations.
No amounts have been recognised in the financial statements in respect of this agreement as payment
of any amounts under the tax sharing agreement is considered remote.
Income tax
The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgment is
required in determining the provision for income tax. There are many transactions and calculations
undertaken during the ordinary course of business for which the ultimate tax determination is uncertain.
The Group recognises liabilities for anticipated tax audit issues based on the consolidated entity's current
understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such
determination is made.
Pillar Two Global Minimum Top-Up Tax legislation
The Group is monitoring and evaluating the domestic implementation by relevant countries of the
Organisation for Economic Co-operation and Development’s (OECD) Pillar Two which seeks to
apply a 15% global minimum tax. Pillar Two was substantively enacted by Malaysia with effect from
1 January 2025.
The Group has adopted the guidance contained in the IASB issued International Tax Reform - Pillar Two
Model Rules and applies the mandatory temporary exception to recognise and disclose information about
deferred tax assets and liabilities related to Pillar Two income taxes.
The Group is currently evaluating the cash tax implications and other impacts of the Pillar Two Model
Rules and does not expect the impact on the Group to be significant.
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6
EARNINGS PER SHARE
Consolidated
2024
$’000
2023
$’000
Profit after income tax attributable to the owners of Macmahon Holdings Limited
53,226
57,670
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
2,107,475,001
2,100,686,298
Adjustments for calculation of diluted earnings per share:
Effect of performance rights on issue
35,104,169
3,786,014
Weighted average number of ordinary shares used in calculating diluted earnings per share
2,142,579,170
2,104,472,312
Cents
Cents
Earnings per share for profit attributable to owners of Macmahon Holdings Limited
Basic earnings per share
2.53
2.75
Diluted earnings per share
2.48
2.74
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to the owners of
Macmahon Holdings Limited, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares (if any), and the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary shares.
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B Cash Flow Information
7
RECONCILIATION OF PROFIT AFTER INCOME TAX
TO NET CASH FROM OPERATING ACTIVITIES
Consolidated
2024
$’000
2023
$’000
Profit after income tax expense for the year from continuing operations
53,226
57,670
Adjustments for:
Depreciation and amortisation expense
211,790
197,153
Net (gain)/loss on disposal of plant and equipment
(3,638)
(1,172)
Share of profit of equity accounted investees, net of tax
(372)
(294)
Share based payments expense
2,704
1,977
Net foreign exchange loss/(gain)
1,816
474
Remeasurement of ECL allowance
398
-
Impairment of asset disposal group
-
252
Impairment of financial assets
31,805
-
Other
(3,218)
742
Net gain on acquisition of subsidiary
-
-
Income tax expense
21,662
24,743
Income taxes paid
(2,610)
(11,989)
Net cash received from equity accounted investees
100
13
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
(90,644)
(60,424)
Decrease/(increase) in inventories
(8,416)
(2,286)
Increase/(decrease) in trade and other payables
38,612
51,427
Increase in employee benefits
11,014
7,501
Increase/(decrease) in provisions
6,589
1,067
Net cash from operating activities
270,818
266,854
C Working Capital
8
CASH AND CASH EQUIVALENTS
Consolidated
2024
$’000
2023
$’000
Cash on hand
11
12
Cash at bank
194,567
218,150
194,578
218,162
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other
short-term highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and subject to an insignificant risk of changes in value.
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9
TRADE AND OTHER RECEIVABLES
Consolidated
2024
$’000
2023
$’000
Current
Trade receivables1
72,318
64,236
Contract assets1
238,646
204,534
Less: Provision for ECL
(798)
(3,433)
310,166
265,337
Other receivables
65,032
56,129
Prepayments
7,639
9,543
382,837
331,009
Non-current
Contract assets
9,031
12,146
Other receivables
4,088
8,839
Agency receivables
31,977
25,862
45,096
46,847
1
On 28 June 2024, Calidus Resources Limited went into administration and with the operations at Warrawoona placed into
care and maintenance early July 2024, the trade receivable and contract assets of $31.8 million owing to the Group has
been fully impaired.
Trade and other receivables
Trade receivables are initially recognised at the fair value of the services provided to the customer
and subsequently at amortised cost less expected credit loss allowances. Other receivables are initially
recognised at fair value and subsequently measured at amortised cost less expected credit loss
allowances (ECL).
Due to the short term nature of these receivables, their carrying amount approximates their fair value.
Other receivables include:
•
Contracted reimbursements for project closure costs of $8.569 million (2023: $8.569 million) relating
to the costs recognised as part of the provision for contract closure. Refer to note 14.
•
VAT receivable of $32.762 million (2023: $32.913 million) relating to input tax credits collected on
goods and services consumed has been classified as current, in part, to the extent that the Group
expects to receive this within the next 12 months. A VAT receivable of $3.329 million is classified as
non-current as at 30 June 2024 (2023: $8.869 million).
Agency receivables
The Group entered into a tripartite agreement with a customer and financier regarding certain mining
equipment acquired for the mining contract. The tripartite agreement provides the financier with a
put option and the customer with a call option over the equipment, whilst the Group acts as an agent
between the financier and the customer, to source and maintain the equipment. The feature of the put/
call transaction results in control and risk or reward of the equipment not being with the Group. Lease
costs paid by the Group in relation to the equipment (including interest) in excess to the receipts from the
customer is recovered from the customer on the earlier of the life of the asset or exercise of the put/call,
which is represented by a non-current receivable at the end of the contract.
Contract assets
Contract assets include $233.900 million (2023: $200.582 million) for the Group's right to consideration
of mining services rendered but not billed as at 30 June 2024. Contract assets are transferred to trade
receivables when the Group issues an invoice to the customer.
Included in contract assets are also current mobilisation costs of $4.745 million (2023: $6.203 million)
capitalised at the commencement of the projects, where the recovery of these costs is included in
future rates. These costs are amortised over the contract period as the income is earned. A balance
of $9.031 million of capitalised mobilisation costs is classified as non-current as at 30 June 2024
(2023: $9.895 million) as the contract term for the projects is over 12 months.
The balance of contract assets varies and is dependent on the scale of mining services rendered for the
claim period, which is ordinarily a calendar month, immediately preceding the end of the reporting period.
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10 OTHER FINANCIAL ASSETS
Consolidated
2024
$’000
2023
$’000
Non-current investments
Equity securities - at FVOCI
-
8,480
-
8,480
In FY23, the Group participated in the capital raising by Calidus Resources Limited with an equity
investment by way of conversion of existing receivables. Calidus Resources Limited went into
administration on 28 June 2024, as a result the investment in equity securities has been reduced
to nil as at 30 June 2024.
As part of an update on 2 August 2024, the Receivers and Managers are seeking urgent expressions of
interest for the acquisition and/or recapitalisation process of Calidus Resources Limited.
Equity securities designated as at FVOCI
The Group irrevocably designated the investments shown below as equity securities at fair value through
other comprehensive income (FVOCI) at initial recognition because these equity securities represent
investments that are not held for trading and the Group considers this classification to be more relevant.
Fair value
Dividend income recognised
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Investment in Calidus Resources Limited
-
8,480
-
-
-
8,480
-
-
No strategic investments were disposed of during 2024, and there were no transfers of any cumulative
gain or loss within equity relating to these investments.
Fair value movements - Investment in Calidus Resources Limited
Consolidated
2024
$’000
2023
$’000
Fair value at 1 July
8,480
-
Additions
-
10,475
Fair value movements in other comprehensive income
(8,480)
(1,995)
Fair value at 30 June
-
8,480
Other financial assets
The Group classifies its financial assets to be measured subsequently at fair value (either through OCI
or through profit or loss). The classification depends on the entity's business model for managing the
financial assets and the contracted terms of the cash flows. For assets measured at fair value, gains and
losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not
held for trading, this will depend on whether the Group has made an irrevocable election at the time of
initial recognition to account for the equity investment at FVOCI.
Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets, including their levels
in the fair value hierarchy. Fair values are categorised into different levels in a fair value hierarchy based on
the inputs used in the valuation techniques as follows:
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
•
Level 2: inputs other than quoted rices included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
•
Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
•
The FY23 investment was classified as a level 1 in the fair value hierarchy.
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11
INVENTORIES
Consolidated
2024
$’000
2023
$’000
Inventories
110,564
97,664
Less: Allowance for obsolescence
(5,134)
(5,412)
Inventories at the lower of cost and net realisable value
105,430
92,252
Inventories are measured at the lower of cost and net realisable value. There was no write-down to net
realisable value that was recognised as an expense during 2024.
The cost of inventories is based on the weighted average principle and includes expenditure incurred
in acquiring the inventories and other costs incurred in bringing them to their existing location and
condition. Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and estimated costs to sell.
Allowance for obsolescence
The provision for impairment of inventories assessment requires a degree of estimation and judgment.
The level of the provision is assessed by taking into account the recent sales experience, current market
conditions, the ageing of inventories and other factors that affect inventory obsolescence.
12 TRADE AND OTHER PAYABLES
Consolidated
2024
$’000
2023
$’000
Current
Trade payables
138,504
157,541
Accrued expenses
147,268
132,421
Other payables
36,931
34,777
322,703
324,739
Non-current
Other payables
4,713
1,959
4,713
1,959
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial year and unpaid. Due to their short-term nature, they are measured at amortised cost and are
not discounted. The amounts are unsecured and are usually paid within 30 to 60 days of recognition
based on the credit terms.
Accrued wages and salaries between the last pay period and 30 June 2024 of $12.341 million (2023:
$8.502 million) are included within accrued expenses.
Refer to note 17 for further details on financial instruments.
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13 EMPLOYEE BENEFITS
Consolidated
2024
$’000
2023
$’000
Current
Annual leave
54,151
47,411
Long-service leave
10,173
8,683
Other employee benefits
19,783
14,282
84,107
70,376
Non-current
Long-service leave
4,919
3,934
4,919
3,934
Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave, long service leave and
accumulating sick leave expected to be settled within 12 months of the reporting date are recognised
in current liabilities in respect of employees' services up to the reporting date and are measured at the
amounts expected to be paid when the liabilities are settled. Non-accumulating sick leave is expensed to
profit or loss when incurred.
Long service leave
The liability for long service leave is recognised in current and non-current liabilities, depending on the
unconditional right to defer settlement of the liability for at least 12 months after the reporting date. The
liability is measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date using the projected unit credit method. Consideration
is given to expected future wage and salary levels, experience of employee departures and periods of
service. Expected future payments are discounted using market yields on high quality corporate bonds at
the reporting date with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed
contributions into a separate entity and will have no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution plans are recognised as an employee
benefit expense in profit or loss in the periods during which services are rendered by employees. Prepaid
contributions are recognised as an asset to the extent that a cash refund or reduction in future payments
is available. Contributions to a defined contribution plan which are due more than 12 months after the end
of the period in which the employees render the service are discounted to their present value.
Termination benefits
Termination benefits are recognised as an expense when the Group is committed demonstrably, without
realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the
normal retirement date, or to provide termination benefits as a result of an offer made to encourage
voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense
if the Group has made an offer encouraging voluntary redundancy, it is probable that the offer will be
accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than
12 months after the reporting date, then they are discounted to their present value.
Other employee benefits
Other employee benefits include short-term incentive plans (prior years deferred entitlements and
current year estimates), site performance bonuses, sick leave accruals, religious holiday allowance for
certain international staff and other short-term benefits.
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14 PROVISIONS
Movements in each class of provision during the current financial year are set out below:
Project
closure
$’000
Other
$’000
Total
$’000
At 1 July 2023
25,293
1,154
26,447
Arising during the year
9,686
-
9,686
Reclassified from employee costs
(333)
-
(333)
Released during the year
(794)
-
(794)
Utilised during the year
(1,430)
(856)
(2,286)
At 30 June 2024
32,422
298
32,720
Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of
a past event, if it is probable the Group will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation at the reporting date, taking into account
the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions
are discounted using a current pre-tax discount rate specific to the liability. The increase in the provision
resulting from the passage of time is recognised as a finance cost.
Provision for project closure
The provision for project closure requires a degree of estimation and judgement around contractual term
and expected redundancy and demobilisation costs. The provision is assessed by taking into account past
history of contract closures and likelihood of contract extensions.
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D Fixed Assets
15 PROPERTY, PLANT AND EQUIPMENT
Set out below are the carrying amounts of property, plant and equipment and right-of-use assets
recognised and movements for the period:
Right-of-use assets
Consolidated
Buildings
$’000
Plant and
equipment
$’000
Leasehold
improvements
$’000
Plant and
equipment
$’000
Total
$’000
At 30 June 2022
9,917
290,600
54
372,005
672,576
Additions
-
72,313
3,490
163,552
239,355
Disposals
-
(901)
-
(1,389)
(2,290)
Depreciation expense
(1,452)
(82,179)
(191)
(107,868)
(191,690)
Transfers
-
(7,346)
-
9,252
1,906
Exchange differences
-
28
-
172
200
At 30 June 2023
8,465
272,515
3,353
435,724
720,057
At 1 July 2023
8,465
272,515
3,353
435,724
720,057
Additions
-
118,460
219
63,598
182,277
Disposals
-
(581)
-
(2,476)
(3,057)
Depreciation expense
(1,411)
(92,981)
(595)
(116,074)
(211,061)
Transfers
-
(9,952)
-
(5,228)
(15,180)
Exchange differences
-
(344)
-
(780)
(1,124)
At 30 June 2024
7,054
287,117
2,977
374,764
671,912
Cost
14,485
488,673
3,999
919,614
1,426,771
Accumulated depreciation
and impairment losses
(6,020)
(216,158)
(646)
(483,890)
(706,714)
Carrying amount at 30 June 2023
8,465
272,515
3,353
435,724
720,057
Cost
14,485
539,195
4,218
876,360
1,434,258
Accumulated depreciation and
impairment losses
(7,431)
(252,078)
(1,241)
(501,596)
(762,346)
Carrying amount at 30 June 2024
7,054
287,117
2,977
374,764
671,912
Security
Leasehold improvements and plant and equipment are subject to a registered charge to secure banking
facilities. Refer to note 18.
Property, plant and equipment
Property, plant and equipment is measured at cost, less accumulated depreciation and accumulated
impairment losses, if any.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the assets to a working condition for their intended use, the costs of dismantling and removing
the items and restoring the site on which they are located, and capitalised borrowing costs. Cost may also
include transfers from equity of any gain or loss on qualifying cash flow hedges from foreign currency
purchases of property, plant and equipment. Purchased software that is integral to the functionality of the
related equipment is capitalised as part of that equipment.
The fair value of property, plant and equipment recognised as a result of a business combination is based
on market values. The market value of plant and equipment is the estimated amount for which plant and
equipment could be exchanged, on the date of valuation between a willing buyer and a willing seller in
an arm’s length transaction after proper marketing, wherein the parties had each acted knowledgeably,
prudently and without compulsion. The market value of plant and equipment is based on external market
appraisals from accredited, independent valuation specialists.
When parts of an item of plant and equipment have different useful lives, the items are accounted for as
separate items (i.e. major components) of plant and equipment.
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Depreciation and amortisation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual
assets are assessed, and if a component has a useful life that is different from the remainder of that asset,
that component is depreciated separately.
Depreciation on buildings, leasehold improvements and minor plant and equipment is calculated on a
straight-line basis. Depreciation on major plant and equipment and components is calculated on machine
hours worked or straight-line over their estimated useful life. Leased assets are depreciated using the
straight-line method from the commencement date to the end of the lease term, unless the lease transfers
ownership of the underlying asset to the Group by the end of the lease term, or the cost of the right-of-
use asset reflects that the Group will exercise a purchase option. In that case, the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined on the same basis as those
property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses,
if any, and adjusted for certain remeasurements of the lease liability.
Depreciation methods, useful lives and residual values are reviewed on regular basis with annual
reassessments for major items and adjusted if appropriate.
The expected useful lives for the current and comparative years are as follows:
•
Leasehold improvements: Period of the lease
•
Plant and equipment: 3-12 years
•
Right-of-use assets: Period of the lease
Depreciation on certain components allocated to property, plant and equipment, including tyres, are
based on their measure of usage.
The carrying amounts of the Group's assets, other than inventories (see inventory accounting policy)
and deferred tax assets (see income tax accounting policy), are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any such indication exists, the asset’s
recoverable amount is estimated (see impairment of non-financial assets below).
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired
period of the lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future
economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds
are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred
directly to profits reserve.
Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the
carrying amount of the item if it is probable that the future economic benefits embodied within the
component will flow to the Group, and its cost can be measured reliably. The carrying amount of the
replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment
are recognised in profit or loss as incurred.
Estimation of useful lives of assets
The Group determines the estimated useful lives and related depreciation and amortisation expenses
for its property, plant and equipment and finite life intangible assets. The depreciation and amortisation
expense will increase where the useful lives are less than previously estimated lives, or technically obsolete
or non-strategic assets that have been abandoned or sold will be written off or written down.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The Group assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the Group and to the
particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount
of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations,
which incorporate a number of key estimates and assumptions; including the continued performance of
contracted work, growth rates of the estimated future cash flows and discount rates based on the current
cost of capital.
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16 INTANGIBLE ASSETS AND GOODWILL
Set out below are the carrying amounts of intangible assets recognised and movements for the period:
Consolidated
Goodwill
$’000
Customer
contracts
$’000
Software
$’000
Total
$’000
Cost
At 30 June 2022
8,808
13,655
2,774
25,237
Additions
-
-
30
30
At 30 June 2023
8,808
13,655
2,804
25,267
Additions
-
500
48
548
At 30 June 2024
8,808
14,155
2,852
25,815
Accumulated amortisation and impairment
At 30 June 2022
-
(8,519)
(725)
(9,244)
Amortisation
-
(5,136)
(327)
(5,463)
At 30 June 2023
-
(13,655)
(1,052)
(14,707)
Amortisation
-
(384)
(345)
(729)
At 30 June 2024
-
(14,039)
(1,397)
(15,436)
Net book value
At 30 June 2023
8,808
-
1,752
10,560
At 30 June 2024
8,808
116
1,455
10,379
Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at
their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised
at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less
any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any
impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible
assets are measured as the difference between net disposal proceeds and the carrying amount of the
intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes
in the expected pattern of consumption or useful life are accounted for prospectively by changing the
amortisation method or period.
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Goodwill
Goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
Group's cash-generating units that are expected to benefit from the combination, irrespective of whether
other assets or liabilities of the acquiree are assigned to those units.
For the purposes of impairment testing, goodwill has been allocated to the Group’s cash generating units
(CGU) or operating divisions as follows:
Consolidated
2024
$’000
2023
$’000
Current
Surface mining
3,025
3,025
Underground mining
5,783
5,783
8,808
8,808
The recoverable amount was determined by calculating the higher of Fair Value less Cost of Disposal
(FVLCD) and Value in Use (VIU) for each of the Group's CGUs. The key assumptions in determining the
estimated recoverable amount are the discount rate and budgeted EBITDA. The discount rate was a
pre-tax measure weighted average cost of capital for the Group of 13.5%. The budgeted EBITDA was
based on expectations of future outcomes taking into account past experience, adjusted for anticipated
revenue growth. The cash flow projections included specific estimates for three years and a terminal
value thereafter. The terminal value was determined based on management’s estimate of the long-term
annual EBITDA.
Customer contracts
Customer contracts are a separately identifiable intangible asset equal to the present value of future post-
tax cash flows attributed to the portfolio of incomplete underground mining services contracts assumed
at acquisition date through a business combination.
Customer contracts are carried at cost, less accumulated depreciation and impairment losses.
Amortisation of customer contracts is included in depreciation and amortisation expenses in the
consolidated statement of profit or loss and other comprehensive income. The expected useful life
of customer contracts ranges from two to three years.
Software
Development expenditure is capitalised only if development costs can be measured reliably or the
process is technically and commercially feasible, future economic benefits are probable, and the Group
intends to and has sufficient resources to complete development and to use the asset. The software
expenditure capitalised includes the cost of materials, direct labour and overhead costs directly
attributable to preparing the asset for its intended use. Other development expenditure is recognised
in profit or loss as incurred.
Capitalised software development expenditure is measured at cost less accumulated amortisation and
impairment losses. The amortisation is included in depreciation and amortisation expenses. The expected
useful life of software is five years.
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation,
and are tested annually for impairment, or more frequently if events or changes in circumstances indicate
that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
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E Risk
17 FINANCIAL RISK MANAGEMENT
Consolidated
2024
$’000
2023
$’000
Financial assets
Cash and cash equivalents
194,578
218,162
Equity investments
-
8,480
Trade and other receivables
346,250
294,908
540,828
521,550
Financial liabilities
Trade and other payables
311,251
308,780
Borrowings
341,165
420,108
652,416
728,888
Trade and other receivables excludes prepayments of $7.639 million (2023: $9.543 million), contract
closure reimbursements of $8.569 million (2023: $8.569 million), VAT receivable of $36.091 million (2023:
$41.782 million), non-financial contract assets of $13.776 million (2023: $16.098 million), and other non-
financial assets of $15.608 million (2023: $6.956 million).
Trade and other payables excludes GST and other taxes payable of $16.165 million (2023: $17.918 million).
Fair value of financial assets and financial liabilities
Fair value of cash and cash equivalents, receivables and trade payables approximate their carrying
amounts largely due to the short-term maturities of these instruments.
Financial risk management objectives
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. This framework is designed to identify, monitor and manage the material risks
throughout the Group to ensure risks remain within appropriate limits.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and
the Group's activities. The Group, through its training and management standards and procedures, aims
to develop a disciplined and constructive control environment in which all employees understand their
roles and obligations.
The Board of Directors oversees how management monitors compliance with the Group’s risk
management policies and procedures, and reviews the adequacy of the risk management framework
in relation to the risks faced by the Group. The Board of Directors is assisted in its oversight role by the
Audit and Risk Committee. Internal audits undertaken are reviews of controls and procedures, the results
of which are reported to the Audit and Risk Committee.
The Group has exposure to the following risks from its use of financial instruments:
•
17(a) Market risk
•
17(b) Credit risk
•
17(c) Liquidity risk
This note presents qualitative and quantitative information about the Group's exposure to each of
the above risks, their objectives, policies and processes for measuring and managing risk, and the
management of capital.
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17(a) Market risk
This note presents qualitative and quantitative information about the Group's exposure to each of
the above risks, their objectives, policies and processes for measuring and managing risk, and the
management of capital.
Currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a
currency other than respective functional currencies of entities within the Group, which are primarily the
Australian Dollar (AUD), but also the US Dollar (USD), Indonesian Rupiah (IDR), Malaysian Ringgit (MYR),
and Singapore Dollar (SGD). The Group is also exposed to foreign currency risk on plant and equipment
purchases that are denominated in a currency other than AUD. The currencies giving rise to this risk are
primarily USD and IDR.
The contracts for mining services and purchases are primarily denominated in the functional currencies
of entities within the Group to minimise the foreign exchange currency risk.
In respect of other monetary assets and liabilities held in currencies other than the AUD, the Group
ensures that the net exposure is kept to an acceptable level by buying or selling foreign currencies at
spot rates when necessary to address short-term imbalances.
The average exchange rates and reporting date exchange rates applied were as follows:
Average exchange rates
Reporting date exchange rates
Australian Dollars
2024
2023
2024
2023
USD
0.6557
0.6731
0.6668
0.6617
IDR
10,267
10,192
10,919
9,920
MYR
3.0782
3.0211
3.1456
3.0908
SGD
0.8840
0.9181
0.9041
0.8975
The carrying amount of foreign currency denominated financial assets and financial liabilities at 30 June
were as follows:
Financial assets
Financial liabilities
Consolidated
2024
$’000
2023
$’000
2024
$’000
2023
$’000
USD
12,351
12,239
(21)
(1,605)
IDR1
84,787
101,006
(58,767)
(93,271)
Other
326
9,258
(241)
(263)
97,464
122,503
(59,029)
(95,139)
1
The Group is paid in IDR for services performed in Indonesia; however, the amount of these IDR payments are adjusted
according to movements in the IDR:USD exchange rate up to the date of invoice.
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The following analysis demonstrates the increase/(decrease) of profit or loss and other comprehensive
income at the reporting date, assuming a 10% strengthening and a 10% weakening of the following
transaction currencies against the functional currencies of the Group companies where the financial
assets and liabilities are recorded. This analysis also assumes that all other variables, in particular interest
rates, remain constant. The analysis is performed on the same basis as 2023.
Weakened by 10%
Strengthened by 10%
Consolidated - 2024
Effect
on profit
before tax
$’000
Effect on
other
comprehensive
income
$’000
Effect
on profit
before tax
$’000
Effect on
other
comprehensive
income
$’000
USD
(1,182)
-
1,182
-
IDR
(2,602)
-
2,602
-
Other
(9)
-
9
-
(3,793)
-
3,793
-
Weakened by 10%
Strengthened by 10%
Consolidated - 2023
Effect
on profit
before tax
$’000
Effect on
other
comprehensive
income
$’000
Effect
on profit
before tax
$’000
Effect on
other
comprehensive
income
$’000
USD
(1,063)
-
1,063
-
IDR
(773)
-
773
-
Other
(900)
-
900
-
(2,736)
-
2,736
-
Price risk
Price risk is the risk that changes in market prices e.g. Equity prices - will effect the Group's income or the
value of its holdings of financial instruments. Under this policy, pricing rate exposures are managed on an
ongoing basis.
At 30 June, the Group was exposed to market price risk on financial instruments as follows:
Consolidated
2024
$’000
2023
$’000
Equity securities - at FVOCI
8,480
10,475
Fair value movements through OCI
(8,480)
(1,995)
Net exposure to price risk
-
8,480
Calidus Resources Limited went into administration on 28 June 2024, as a result the fair value of the
investment has been reduced to nil as at 30 June 2024.
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Interest rate risk
Interest rate risk on variable rate borrowings is managed under the Group’s approved Treasury Policy.
Under this policy, interest rate exposures are managed by entering fixed rate finances for equipment
purchases.
At 30 June, the Group was exposed to variable interest rate risk on financial instruments as follows:
Consolidated
2024
$’000
2023
$’000
Cash and cash equivalents
150,576
191,804
Interest-bearing loans
(154,402)
(174,217)
Net exposure to interest rate risk
(3,826)
17,587
Cash flow sensitivity analysis for variable rate instruments
The following analysis demonstrates the increase/(decrease) to profit or loss and other comprehensive
income at 30 June 2024, assuming a change in interest rates of 50 basis points. This analysis also
assumes that all other variables, in particular foreign currency rates, remain constant.
50 basis point
increase
50 basis point
decrease
Consolidated - 2024
Effect on
profit before
taxes
$’000
Effect on
profit before
taxes
$’000
Cash and cash equivalents
753
(753)
Interest-bearing loans
(772)
772
(19)
19
50 basis point
increase
50 basis point
decrease
Consolidated - 2023
Effect
on profit
before taxes
$’000
Effect
on profit
before taxes
$’000
Cash and cash equivalents
959
(959)
Interest-bearing loans
(871)
871
88
(88)
17(b) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Group's trade receivables and
contract assets from customers.
Impairment losses on trade receivables and contract assets recognised in profit or loss were as follows:
Consolidated
2024
$’000
2023
$’000
Impairment loss on trade receivable and contract assets
arising from contracts with customers
(31,805)
-
(31,805)
-
On 28 June 2024, Calidus Resources Limited went into administration and with the operations at
Warrawoona placed into care and maintenance early July 2024, the receivable of $31.805 million owing to
Macmahon has been fully impaired.
As part of an update on 2 August 2024, the Receivers and Managers are seeking urgent expressions of
interest for the acquisition and/or recapitalisation process of Calidus Resources Limited.
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Cash and cash equivalents
The Group limits its exposure to credit risk for cash and cash equivalents by placing funds with highly
rated international banks.
Guarantees
The Group’s policy is to provide financial guarantees only to or for subsidiaries. Details of outstanding
guarantees are provided in note 21.
Trade and other receivables
The Group’s exposure to credit risk is influenced mainly by the characteristics of each individual customer.
The demographics of the Group's customer base, including the default risk of the industries and countries
in which customers operate, has less influence on credit risk. For the year ended 30 June 2024, 31.1%
of the Group's revenue is attributable to revenue transactions with two customers related to three
projects (2023: 43.6% attributed to three customers related to four projects). Geographically, the primary
concentration of credit risk is in Australia and Indonesia.
Under the Group's systems and procedures, each new customer is analysed individually for
creditworthiness before the Group's standard payment and delivery terms and conditions are offered.
The exposure to credit risk is monitored on an ongoing basis. The Group's analysis includes external
ratings, when available, and in some cases bank references. Credit risk is minimised by managing payment
terms and receiving advance payments.
Exposure to credit risk
The carrying amount of the Group's financial assets represents its maximum credit exposure as follows:
Consolidated
2024
$’000
2023
$’000
Cash and cash equivalents
194,578
218,162
Trade receivables
71,520
60,803
Contract assets
233,901
198,331
Other receivables
8,852
9,912
Agency receivables
31,977
25,862
Credit risk exposure
540,828
513,070
Trade and other receivables excludes prepayments of $7.639 million (2023: $9.543 million), contract
closure reimbursements of $8.569 million (2023: $8.569 million), VAT receivable of $36.091 million (2023:
$41.782 million), non-financial contract assets of $13.776 million (2023: $16.098 million), and other non-
financial assets of $15.608 million (2023: $6.956 million).
The profile of trade and other receivables and contract assets by segment is as follows:
Consolidated
2024
$’000
2023
$’000
Mining customers
347,048
298,341
Less: Provision for expected credit losses
(798)
(3,433)
Credit risk exposure by customer
346,250
294,908
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At 30 June, the exposure to credit risk for trade and other receivables by geographic region was as follows:
Consolidated
2024
$’000
2023
$’000
Country
Australia
293.538
251,541
Indonesia
52,607
45,999
Other
903
801
347,048
298,341
Expected credit loss allowance
2024
2023
Consolidated
Gross
carrying
amount
$’000
Loss
allowance
$’000
Gross
carrying
amount
$’000
Loss
allowance
$’000
Current (not past due)
325,809
(312)
277,370
(69)
Past due 0 - 30 days
16,272
(71)
13,376
(60)
Past due 31-60 days
1,238
(5)
1,006
(7)
Over 90 days overdue
3,729
(410)
6,589
(3,297)
347,048
(798)
298,341
(3,433)
In determining the provision for ECLs, the Group allocates its exposure to a credit risk based on data
that is determined to be predictive of the risk of loss (including, but not limited to external credit
ratings, audited financial statements and available public information) and applying experienced credit
judgement. Loss rates applied to credit risk ratings are sourced from external credit rating agencies.
The following table provides summarised information of the exposure to credit risk on trade receivables
as at 30 June 2024:
Credit rating
Credit
impaired
Loss rate
%
Gross
carrying
amount
$’000
Loss
allowance
$’000
A- to AAA
No
0.014
1,022
(0)
BBB- to BBB+
No
0.030
1,991
(1)
BB- to BB+
No
0.114
576
(1)
B+ to B-
No
0.014
343,065
(402)
C to CCC
Yes
N/A
-
-
D
Yes
100.000
394
(394)
347,048
(798)
The movement in the provision for ECLs is as follows:
Consolidated
2024
$’000
2023
$’000
Opening balance
3,433
3,403
Net remeasurement of provision for ECL
398
-
Loss allowance on trade and other receivables arising during the period
31,805
-
Loss allowance on trade and other receivables written off during the period1
(34,556)
-
Exchange differences
(282)
30
798
3,433
1
The loss allowance on trade and receivables written off during the period includes $31.805 million for Calidus Resources
Limited and $2.6 million for trade receivables provided for in previous financial periods.
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The Group recognises a provision for ECLs on financial assets measured at amortised cost and contract
assets at an amount equal to lifetime ECLs. When determining whether the credit risk of a financial asset
has increased significantly since initial recognition, and when estimating ECLs, the Group considers
reasonable and supportable information that is relevant and available without undue cost or effort.
This includes both quantitative and qualitative information and analysis, based on the Group's historical
experience and informed credit assessment. The Group assumes a financial asset to be in default when
the debtor is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to
actions, such as realising security (if any is held) or the financial asset is more than 90 days past due.
17(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
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, without incurring unacceptable losses or risking
damage to the Group's reputation.
The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities
by continuously monitoring actual and forecast cash flows, and matching the maturity profiles of financial
assets and liabilities.
Information about changes in term facilities during the year is disclosed in note 18.
Remaining contractual maturities
The following tables detail the Group's remaining contractual maturity for its financial liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the financial liabilities are required to be paid. The tables include both interest and principal
cash flows disclosed as remaining contractual maturities, and therefore these totals may differ from their
carrying amount in the statement of financial position.
Consolidated – 2024
1 year
or less
$’000
Between
1 and 2
years
$’000
Between
2 and 5
years
$’000
Over
5 years
$’000
Remaining
contractual
maturities
$’000
Trade payables
(138,504)
-
-
-
(138,504)
Accrued expenses
(147,268)
-
-
-
(147,268)
Other payables
(36,931)
(4,713)
-
-
(41,644)
Borrowings
(116,530)
(101,113)
(146,020)
-
(363,663)
Total non-derivatives
(439,233)
(105,826)
(146,020)
-
(691,079)
Consolidated – 2023
1 year
or less
$’000
Between
1 and 2
years
$’000
Between
2 and 5
years
$’000
Over
5 years
$’000
Remaining
contractual
maturities
$’000
Trade payables
(157,541)
-
-
-
(157,541)
Accrued expenses
(132,421)
-
-
-
(132,421)
Other payables
(34,777)
(1,959)
-
-
(36,736)
Borrowings
(132,949)
(89,253)
(218,595)
(1,646)
(442,443)
Total non-derivatives
(457,688)
(91,212)
(218,595)
(1,646)
(769,141)
The cash flows in the maturity analysis are not expected to occur significantly earlier than contractually
disclosed above.
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F Debt and Equity
18 BORROWINGS
Currency
Interest
rate (%)
Maturity
Consolidated
2024
$’000
2023
$’000
Current borrowings
Lease liabilities
AUD, USD
3.03-7.40
2024-2025
60,709
84,242
Interest-bearing loans
AUD, USD, IDR
3.29-6.47
2024-2025
43,430
37,619
104,139
121,861
Non-current borrowings
Lease liabilities
AUD, USD
3.28-7.24
2025-2029
87,544
113,848
Interest-bearing loans
AUD, IDR
3.49-8.06
2025-2028
149,482
184,399
237,026
298,247
The movement in the carrying amount of borrowings is set out below:
Interest-bearing loans
Lease liabilities
Consolidated
2024
$’000
2023
$’000
2024
$’000
2023
$’000
At 1 July
222,017
174,309
198,091
239,161
New borrowings
124,162
103,317
39,335
41,746
Refinancing cash arrangement
-
-
-
10,286
Principal repayments
(156,311)
(61,367)
(81,911)
(88,080)
Disposals
-
-
(1,735)
-
Transfers
5,544
5,272
(5,544)
(5,272)
Exchange differences
(2,459)
486
(24)
250
At 30 June
192,953
222,017
148,212
198,091
Refer to note 17 for further information on financial instruments.
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Lease liabilities
The Group leases offices, plant and equipment, and vehicles across the countries in which it operates.
Lease contracts are for fixed periods between 6 months and 10 years and may include extension options.
During February 2024, the Group extended the syndicated asset finance facility for another year.
After repayments, the total amount available is $88.556 million which supports the Group's capital
requirements. As at 30 June 2024, $74.314 million was utilised (30 June 2023: $96.266 million).
Interest Bearing Loans
During July 2023, the Group expanded the existing syndicated multi-option debt facility by $50.000
million. After repayments, the total amount available under this facility is $222.000 million. The Group
has drawn a total of $132.000 million as cash and $4.338 million as bank guarantees as at 30 June 2024.
(As at 30 June 2023: $154.000 million as cash and $5.046 million drawn for bank guarantees).
Assets pledged as security
The Group's lease liabilities and specific loans are secured by the relevant assets and in the event of
default, the assets revert to the lessor or financier. All remaining assets of the Group are pledged as
security under the multi-option facility.
Borrowings
Borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date, borrowings are classified as non-current.
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19 EQUITY – ISSUED CAPITAL
Consolidated
2024
Shares
2023
Shares
2024
$'000
2023
$'000
Ordinary shares - fully paid
2,154,985,818
2,154,985,818
563,118
563,118
Less: Treasury shares
(43,487,855)
(48,937,554)
(11,067)
(11,987)
Ordinary shares
2,111,497,963
2,106,048,264
552,051
551,131
Number of Ordinary Shares
2024
2023
On issue at 1 July
2,154,985,818
2,154,985,818
On issue at 30 June
2,154,985,818
2,154,985,818
Ordinary shares
Ordinary shares are classified as equity and entitle the holder to participate in dividends and the proceeds
on the winding up of the Parent in proportion to the number of and amounts paid on the shares held. The
fully paid ordinary shares have no par value, and the Parent does not have authorised capital. Incremental
costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the capital proceeds.
On a show of hands, every member present at a meeting in person or by proxy shall have one vote, and
upon a poll each share shall have one vote.
Treasury shares
Ordinary shares purchased on market by the Company are recognised at cost, less incremental costs
directly attributable to the ordinary shares purchased.
Capital risk management
The Group's objective when managing capital is to safeguard its ability to continue as a going concern
so that it may provide returns for shareholders and benefits for other stakeholders and to maintain an
optimum capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company was seen
as value-adding relative to the Parent entity's current share price at the time of the investment.
The Group is subject to certain financing arrangement covenants, and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements
during the financial year.
The Group monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by
total equity and net debt. Net debt is calculated as 'borrowings' less 'cash and cash equivalents', as shown
in the consolidated statement of financial position. Total equity is as shown in the consolidated statement
of financial position. At 30 June 2024, the Group was in a net debt position.
The gearing ratio at 30 June is as below:
Consolidated
2024
$’000
2023
$’000
Borrowings
341,165
420,108
Less: Cash and cash equivalents
(194,578)
(218,162)
Net debt
146,587
201,946
Equity
633,515
608,849
Gearing ratio
18.79%
24.91%
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20 EQUITY – RESERVES
Consolidated
2024
$’000
2023
$’000
Reserve for own shares (net of tax)
(11,067)
(11,987)
Fair value reserve (net of tax)
(10,475)
(1,995)
Foreign currency reserve (net of tax)
5,492
9,361
Share based payments
3,607
2,993
(12,443)
(1,628)
Reserve for own shares
The reserve for Company's own shares comprises the cost (net of tax) of the Company's shares held by
the trustee of the Group's equity compensation plans which were purchased on-market in anticipation
of vesting of share-based payment awards under the equity compensation plans. During the year, no
shares were purchased by the Company. In FY23, 1,059,620 shares were purchased for the non-executive
directors' salary sacrifice plan. At 30 June 2024, there were 43,487,855 unallocated shares held in trust
(2023: 48,937,554 shares).
Foreign currency reserve
The foreign currency reserve is used to recognise exchange differences arising from the translation of
the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and
losses on the net investments in foreign operations. The foreign currency translation reserve is reclassified
to the profit and loss either on sale or cessation of the underlying foreign operation.
Share based payments reserve
The share based payments reserve is used to record the value of share based payments and
performance rights to employees, including KMP, as part of their remuneration, as well as non-employees.
Refer to note 28.
Fair value reserve
The fair value reserve comprises of the cumulative net change in the fair value of equity investments
designated at FVOCI.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Reserve
for own
shares
$’000
Fair value
reserve
$'000
Foreign
currency
$’000
Share-
based
payments
$’000
Total
$’000
Balance at 30 June 2022
(12,910)
-
4,090
2,919
(5,901)
Equity investments at FVOCI - net change in value
-
(1,995)
-
-
(1,995)
Share buy-back
(190)
-
-
-
(190)
Foreign currency translation
-
-
5,271
-
5,271
Treasury shares allocated on vesting of performance rights
444
-
-
(13)
431
Share based payments expense (note 28)
-
-
-
1,977
1,977
Transfer of expired performance rights to retained earnings
-
-
-
(1,221)
(1,221)
Balance at 30 June 2023
(12,656)
(1,995)
9,361
3,662
(1,628)
Equity investments at FVOCI - net change in value
-
(8,480)
-
-
(8,480)
Foreign currency translation
-
-
(3,869)
-
(3,869)
Treasury shares allocated on vesting of performance rights
1,589
-
-
(1,237)
353
Share based payments expense (note 28)
-
-
-
2,704
2,704
Transfer of expired performance rights to retained earnings
-
-
-
(1,522)
(1,522)
Balance at 30 June 2024
(11,067)
(10,475)
5,492
3,607
(12,443)
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Dividends
The Parent has paid and proposed dividends as set out below:
2024
$’000
2023
$’000
Cash dividends on ordinary shares declared and paid:
Final dividend for 2023: 0.45 cents per share (2022: 0.35 cents per share)
9,519
7,351
Interim dividend for 2024: 0.45 cents per share (2023: 0.30 cents per share)
9,698
6,464
19,217
13,815
Subsequent to year end - Proposed dividends on ordinary shares:
Final cash dividend for 2024: 0.60 cents per share (2023: 0.45 cents per share)
12,804
9,451
12,804
9,451
Dividend franking account at 30 June
Amount of franking credits available to shareholders of the Company for future years
105
105
As part of the acquisition of Decmil Group Limited on 15 August 2024, the Group acquired $53.845 million
franking credits. The Group will utilise $4.95 million franking credits to pay FY24's final dividend, resulting
in a franking account balance of $49.000 million after the payment is made. Refer to note 23.
G Unrecognised Items
21 CONTINGENT LIABILITIES
The following contingent liabilities existed at 30 June 2024:
Consolidated
2024
$’000
2023
$’000
Bank guarantees (syndicated multi-option debt facility)
4,351
5,047
Insurance performance bonds
8,357
8,148
12,708
13,195
Bank guarantees and insurance bonds are issued to contract counterparties in the ordinary course
of business as security in certain circumstances for the performance by the Group of its contractual
obligations. The Group is also called upon to provide guarantees and indemnities to contract
counterparties in relation to the performance of contractual and financial obligations. The value of these
guarantees and indemnities is indeterminable.
Other contingent liabilities
The Group has the normal contractor’s liability in relation to its current and completed contracts (for
example, liability relating to design, workmanship and damage), as well as liability for personal injury and
property damage during a project. Potential liability may arise from claims, disputes and/or litigation by
or against Group companies. The Group is currently managing a number of claims, disputes and litigation
processes in relation to its contracts, as well as in relation to personal injury and property damage arising
from project delivery.
The Group notes that on 16 December 2022 its subsidiary, TMM Group (Operations) Pty Ltd, commenced
proceedings in the Supreme Court of Western Australia against Coburn Resources Pty Ltd (a subsidiary
of Strandline Resources Ltd) (see ASX announcement dated 28 December 2022). The proceedings are
in connection with variation and extension of time claims under a contract for bulk earthworks, access
road construction and drainage work at the Coburn Mineral Sands project. TMM is seeking declarations,
damages, costs, interest and return of security against Coburn totalling approximately $24.4 million (of
which $6.5 million was received by TMM from Coburn following a successful adjudication determination).
Coburn filed a counterclaim against TMM seeking $7.8 million. The Directors are of the opinion that the
disclosure of any further information on this dispute would be prejudicial to the interests of the Group.
There were no contingent assets recognised as at 30 June 2024 or 30 June 2023.
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22 COMMITMENTS
At 30 June 2024, the Group has contracted capital expenditure commitments, but not provided for in the
financial statements, of $2.297 million (2023: $10.505 million).
23 EVENTS AFTER THE REPORTING PERIOD
Dividends
Subsequent to 30 June 2024, the Directors declared a final fully franked dividend of 0.60 cents per share.
Decmil Group Limited acquisition
Subsequent to the end of the financial year the Group completed its acquisition of Decmil Group Limited.
The acquisition provides an established foundation to accelerate the Group’s civil infrastructure growth,
which aligns with its strategic focus to diversify earnings.
The acquisition was implemented through two inter-conditional schemes of arrangement under which
Macmahon acquired 100% of issued ordinary shares and redeemable convertible preference shares in
Decmil (Schemes). The Group also acquired $53.845 million franking credits as noted in note 20.
On 31 July 2024, Decmil’s shareholders voted in favour of the Schemes. On 5 August 2024, the Supreme
Court of WA made orders approving the Schemes. Implementation of the Schemes and payment of the
Schemes' consideration by Macmahon took place on 15 August 2024. Using the Group's 30 June 2024
closing share price of 29 cents per share, the face value of the share consideration is $6.521 million.
The consideration transferred to Decmil’s shareholders comprised:
•
Cash consideration: $103.977 million
•
Share consideration: 22,486,841 Macmahon Holdings Limited shares in lieu of Decmil's existing
management performance rights. The acquisition date fair value of the share consideration will be
determined in accordance with AASB 2 Share-based payments. Using the Group's 30 June 2024
closing share price of 29 cents per share, the face value of the share consideration is $6.521 million.
The acquisition the Group is being funded through cash and existing debt facilities.
The Group is not in a position to present information related to the acquisition fair value of the assets
acquired and liabilities assumed along with any goodwill that may arise from the acquisition of Decmil
Group Limited due to the proximity of the acquisition date of 15 August 2024 to the date of release of
these financial statements.
Syndicated Debt facility
On 13 August 2024, the Group increased the syndicated finance facility (SFA) by $80 million. The increase
matures in September 2026, in line with the existing SFA.
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H Other Information/Group Structure
24 INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries:
Country of
incorporation
Ownership interest
Incorporated subsidiaries
2024
%
2023
%
Macmahon Contractors Pty Ltd
Australia
100
100
Macmahon Mining Services Pty Ltd
Australia
100
100
Doorn-Djil Yoordaning Mining and Construction Pty Ltd
Australia
100
100
Macmahon Underground Pty Ltd
Australia
100
100
Macmahon Contracting International Pte Ltd
Singapore
100
100
PT Macmahon Indonesia
Indonesia
100
100
Macmahon Constructors Sdn Bhd
Malaysia
100
100
TMM Group Pty Ltd*
Australia
100
100
TMM Group (Consult) Pty Ltd
Australia
100
100
TMM Group (IP) Pty Ltd*
Australia
100
100
TMM Group (Operations) Pty Ltd
Australia
100
100
Macmahon East Pty Ltd
Australia
100
100
Macmahon Maintenance Masters Pty Ltd
Australia
100
100
Macmahon (Southern) Pty Ltd1
Australia
100
100
Macmahon Africa Pty Ltd*
Australia
100
100
Macmahon Malaysia Pty Ltd*
Australia
100
100
Macmahon Sdn Bhd*
Malaysia
100
100
PT Macmahon Contractors Indonesia
Indonesia
100
100
Macmahon Singapore Pte Ltd*
Singapore
100
100
Macmahon Contractors Nigeria Ltd*
Nigeria
100
100
Macmahon Contractors Ghana Limited*
Ghana
100
100
Macmahon Botswana (Pty) Ltd*
Botswana
100
100
Strong Minds Strong Mines Pty Ltd
Australia
100
100
GF Holdings (WA) Pty Ltd
Australia
100
100
GBF Mining and Industrial Services Pty Ltd
Australia
100
100
GBF North Pty Ltd
Australia
100
100
GBF Number 6 Pty Ltd
Australia
100
100
GBF Project Services S.R.O2
Australia
0
100
PT Macmahon Mining Services
Indonesia
100
100
MBMS Contractors Pty Ltd
Australia
100
0
Interest in trusts
Macmahon Holdings Limited Employee Share Ownership Plans Trust
Australia
100
100
*
Entities were dormant for the financial year ended 30 June 2024.
1
Macmahon (Southern) Pty Ltd is incorporated and operates in Australia and has a registered branch in South Africa. The
branch operations are dormant.
2
GBF Project Services S.R.O was deregistered in FY24.
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25 INTERESTS IN JOINT VENTURES
Interest in joint ventures are accounted for using the equity method of accounting. Information relating to
joint ventures that are material to the Group are set out below:
Ownership Interest
Incorporated joint venture
Country of incorporation
2024
%
2023
%
PT Macmahon Labour Services
Indonesia
49
49
MAHBYS Fleet Rental Pty Ltd
Australia
50
0
Consolidated
2024
$’000
2023
$’000
At 1 July
792
476
Share of profit of equity-accounted investees, net of tax
372
294
Exchange differences
(93)
22
At 30 June
1,071
792
Joint ventures
A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity
that is subject to joint control. Investments in joint ventures are accounted for using the equity method.
Under the equity method, the share of the profits or losses of the joint venture is recognised in profit or
loss, and the share of the movements in equity is recognised in other comprehensive income.
26 RELATED PARTY TRANSACTIONS
Parent entity
Macmahon Holdings Limited is the ultimate parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Joint ventures
Interests in joint venture arrangements are set out in note 25.
Key management personnel
Disclosures relating to key management personnel are set out in note 28 and the remuneration report
Transaction with related parties - Joint venture
The following transactions occurred with related parties:
Consolidated
2024
$’000
2023
$’000
Transactions recognised in profit or loss
Costs incurred by the Group on behalf of and recharged to the joint venture
105
15
Costs incurred by the joint venture on behalf of and recharged to the Group
-
-
Receivable from/(payable to) joint venture
Receivable from/(payable to) joint venture
1
1
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Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Transactions with significant shareholders - AMNT
AMNT (including its related entities) is a significant shareholder of the Company. The following
transactions occurred with AMNT in relation to the provision of mining services for the Batu Hijau mine,
which is wholly owned by AMNT:
Consolidated
2024
$’000
2023
$’000
Transaction recognised in profit or loss
Revenue recognised from shareholder
66,968
267,035
Receivables/(payables) from significant shareholders
Trade receivables and contract assets
33,655
36,647
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
27 COMPENSATION OF KEY MANAGEMENT PERSONNEL
Key management personnel compensation for the financial year was as follows:
Consolidated
2024
$
2023
$
Short-term employee benefits
4,969,191
5,141,073
Long-term employee benefits
209,212
243,928
Post-employment benefits
169,249
184,506
Share-based payments
982,061
702,946
6,329,713
6,272,453
28 SHARE-BASED PAYMENTS
The Group has the following equity compensation arrangements to remunerate non-executive, executive
and employees of the Group:
•
Macmahon Executive Equity Plan (EEP);
•
Senior Manager Long Term Incentive Plan (LTIP);
•
Non-Executive Director Salary Sacrifice Plan (SSP); and
•
Macmahon Employee Share Rights Plan (ESRP).
28(a) Executives and Senior Management Plans
EEP and LTIP Plans
The LTIP and EEP provides Executive and senior management with the opportunity to receive fully paid
ordinary shares in the Company for no consideration, subject to specified time restrictions, continuous
employment and performance conditions being met. Each performance right will entitle participants to
receive one fully paid ordinary share at the time of vesting. The LTIP and EEP are designed to assist with
employee retention, and to incentivise employees to maximise returns and earnings for shareholders. The
allocation and granting of rights to employees under the LTIP and EEP are subject to Board approval.
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Performance rights granted under prior years EEP plans are set out below:
EEP Performance Rights 2021
Performance rights effective on
01/07/2020
Grant date
01/09/2020
Vesting date
01/07/2023
Service period
3 years
Tranche and number of performance rights
9,558,547
Remaining number of rights at 30 June 2024
-
Fair value on grant date
$0.1420
Vesting performance condition
Less than 17% CAGR in TSR
0%
17% CAGR in TSR
50%
25% or more CAGR in TSR
100%
Between 17% and 25% CAGR in TSR
Pro-rata between
50% and 100%
LTIP Performance Rights 2021
Performance rights effective on
01/07/2020
Grant date
01/09/2020
Vesting date
01/07/2023
Service period
3 years
Number of performance rights
4,220,275
Remaining number of rights at 30 June 2024
-
Fair value on grant date
$0.1420
Vesting performance condition
Less than 15% CAGR in TSR
0%
15% CAGR in TSR
50%
25% or more CAGR in TSR
100%
Between 15% and 25% CAGR in TSR
Pro-rata between 50% and 100%
LTIP Performance Rights 2022
Tranche 1
Performance rights effective on
01/07/2021
Grant date
30/09/2021
Vesting date
01/07/2024
Service period
3 years
Number of performance rights
8,135,369
Remaining number of rights at 30 June 2024
3,609,519
Fair value on grant date
$0.0993
Vesting performance condition
Less than 10% CAGR in TSR
0%
10% CAGR in TSR
50%
15% or more CAGR in TSR
100%
Between 10% and 15% CAGR in TSR
Pro-rata between 50% and 100%
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LTIP Performance Rights 2022
Tranche 2
Performance rights effective on
01/07/2021
Grant date
30/09/2021
Vesting date
01/07/2024
Service period
3 years
Number of performance rights
8,135,369
Remaining number of rights at 30 June 2024
2,598,856
Fair value on grant date
$0.1769
Vesting performance condition (strategic objectives)
During FY22
Safety – Improve TRIFR1 to 4.8 (20% improvement)
8%
Business Mix – 5% or more Mining Support of Group Revenue
14%
Business Mix – 25% or more Underground of Group Revenue
14%
During FY23
People – Improve employee engagement score year-over-year
8%
Business Mix – 10% or more Mining Support of Group Revenue
14%
Business Mix – 30% or more Underground of Group Revenue
14%
During FY24
Business Mix – 15% or more Mining Support of Group Revenue
14%
Business Mix – 33% or more Underground of Group Revenue
14%
1
TRIFR – Total Recordable Injury Frequency Rate
LTIP Performance Rights 2023
Tranche 1
Performance rights effective on
01/07/2022
Grant date
30/09/2022
Vesting date
01/07/2025
Service period
3 years
Number of performance rights
10,098,439
Remaining number of rights at 30 June 2024
8,211,672
Fair value on grant date
$0.0610
Vesting performance condition
Less than 10% CAGR in TSR
0%
10% CAGR in TSR
50%
15% or more CAGR in TSR
100%
Between 10% and 15% CAGR in TSR
Pro-rata between 50% and 100%
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Macmahon Annual Report 2024
110
LTIP Performance Rights 2023
Tranche 2
Performance rights effective on
01/07/2022
Grant date
30/09/2022
Vesting date
01/07/2025
Service period
3 years
Number of performance rights
10,098,439
Remaining number of rights at 30 June 2024
7,062,039
Fair value on grant date
$0.1250
Vesting performance condition (strategic objectives)
During FY23
Safety – Improve TRIFR1 to <4.4
8%
Business Mix – 8% or more Mining Support of Group Revenue
14%
Business Mix – 27% or more Underground of Group Revenue
14%
During FY24
People – Improve employee engagement score year-over-year
8%
Business Mix – 15% or more Mining Support of Group Revenue
14%
Business Mix – 28% or more Underground of Group Revenue
14%
During FY25
Business Mix – 20% or more Mining Support of Group Revenue
14%
Business Mix – 33% or more Underground of Group Revenue
14%
1
TRIFR – Total Recordable Injury Frequency Rate
Performance rights granted during the current year are set out below:
LTIP Performance Rights 2024
Tranche 1
Performance rights effective on
01/07/2023
Grant date
12/01/2024
Vesting date
01/07/2026
Service period
3 years
Number of performance rights
13,151,949
Remaining number of rights at 30 June 2024
13,151,949
Fair value on grant date
$0.1260
Vesting performance condition
Less than 10% CAGR in TSR
0%
10% CAGR in TSR
50%
15% or more CAGR in TSR
100%
Between 10% and 15% CAGR in TSR
Pro-rata between 50% and 100%
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LTIP Performance Rights 2024
Tranche 2
Performance rights effective on
01/07/2023
Grant date
30/09/2022
Vesting date
01/07/2026
Service period
3 years
Number of performance rights
13,151,949
Remaining number of rights at 30 June 2024
13,151,950
Fair value on grant date
$0.1840
Vesting performance condition (strategic objectives)
During FY24
Safety – Improve TRIFR1 to =<3.7
8%
Business Mix – >= % of Civil Infrastructure of Group Revenue
14%
Business Mix – >= % of Underground of Group Revenue
14%
During FY25
People – Improve employee engagement score year-over-year
8%
Business Mix – >= % of Civil Infrastructure of Group Revenue
14%
Business Mix – >= % of Underground of Group Revenue
14%
During FY26
Business Mix – >= % of Civil Infrastructure of Group Revenue
14%
Business Mix – >= % of Underground of Group Revenue
14%
1
TRIFR – Total Recordable Injury Frequency Rate
The following inputs were used in the measurement of the fair values at grant date of the 2024 LTIP
performance rights:
LTIP Performance Rights 2024
Tranche 1
Tranche 2
Fair value at grant date
$0.1260
$0.1840
Share price at grant date
$0.2000
$0.2000
Exercise price
Nil
Nil
Expected volatility (weighted average volatility)
50.00%
50.00%
Option life (expected weighted average life)
3 years
3 years
Dividend yield
3.50%
3.50%
Risk-free interest rate (based on government bonds)
3.68%
3.68%
Valuation model
Monte-Carlo
Simulation
Monte-Carlo
Simulation
Expected volatility is estimated taking into account historic average share price volatility.
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Non-Executive Director (NED) Salary Sacrifice Plan (SSP)
The SSP provides Non-Executive Directors with the option to sacrifice a portion of their salary in return
for a fixed number of rights over ordinary but restricted shares, which will vest equally within 8 months
and 14 months from grant date. Once vested, the shares will be held on trust on behalf of the recipients
but will be subject to certain restrictions, which limit the recipients’ ability to sell the shares. Trading
restrictions will generally end on the earliest of ceasing to be a NED, the date a change of control occurs
or 15 years after the date the relevant NED share rights were granted.
The following assumptions were applied in the measurement of the fair values of NED share rights using
the Black-Scholes option pricing model:
NED Share Rights 2023
NED Share Rights 2024
Tranche 1
Tranche 2
Tranche 1
Tranche 2
Share rights effective on
01/07/2022
01/07/2022
01/07/2023
01/07/2023
Grant date
11/07/2022
11/07/2022
01/07/2023
01/07/2023
Vesting date
26/02/2023
30/08/2023
23/02/2024
20/08/2024
Service period
8 months
14 months
8 months
14 months
Tranche and number of share rights
1,587,995
1,587,993
500,526
500,526
Remaining number of share rights at 30 June 2024
-
-
-
500,526
Share price at grant date
$0.135
$0.135
$0.155
$0.155
Discount for lack of marketability
30%
30%
30%
30%
Implied fair value of restricted shares
$0.095
$0.095
$0.109
$0.109
Exercise price
$0.148
$0.148
$0.135
$0.135
Risk-free interest rate
3.01%
3.01%
4.00%
4.00%
Volatility factor
50%
50%
50%
50%
Dividend yield
1.35%
2.70%
2.50%
5.00%
Implied discount to share price at grant date
98%
97%
94%
91%
Fair value at grant date
$0.002
$0.004
$0.009
$0.013
Information about performance rights and share rights outstanding at year end.
The following unvested unlisted performance rights were outstanding at year end:
LTIP and EEP
Performance Rights
SSP Share Rights
2024
Number
2023
Number
2024
Number
2023
Number
Balance at start of year
31,673,100
33,150,636
1,587,993
1,059,620
Granted during the year
26,303,898
20,196,878
1,001,052
3,175,988
Vested during the year
-
(5,834,804)
(2,088,519)
(2,647,615)
Forfeited during the year
(10,191,014)
(15,839,610)
-
-
Balance at end of year
47,785,984
31,673,100
500,526
1,587,993
28(b) Employee Share Rights Plan
The ESRP provides selected permanent employees who are not a part of the EEP and LTIP arrangements
with the opportunity to receive fully paid ordinary shares in the Company for no consideration, subject
to specified time restrictions being met. Each right will entitle participants to receive one fully paid
ordinary share at the time of vesting. The ESRP is designed to assist with employee retention in a
competitive market.
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Share rights granted during the current year under the ESRP plan is set out below.
ESRP
Performance
Rights
Tranche 1
ESRP
Performance
Rights
Tranche 2
ESRP
Performance
Rights
Tranche 3
Grant date
01/01/2023
01/01/2023
01/01/2023
Vesting date
31/03/2023
31/03/2024
31/03/2025
Service period
3 months
1 year 3 months
2 years 3 months
Percentage vesting
30%
30%
40%
Tranche and number of performing rights
4,387,948
4,387,948
5,850,597
Remaining number of rights at 30 June 2024
-
0
4,509,881
Fair value on grant date
$0.155
$0.155
$0.155
Information about employee share rights outstanding at year end
The following unvested unlisted employee rights were outstanding at year end:
ESRP Share Rights
2024
Number
2023
Number
Balance at start of year
9,306,858
-
Granted during the year
-
14,626,493
Vested during the year
(3,586,428)
(4,294,362)
Forfeited during the year
(1,210,549)
(1,025,273)
Balance at end of year
4,509,881
9,306,858
The following share-based payment expenses were recognised net of forfeitures, to profit or loss,
disaggregated by equity-compensation arrangement:
Consolidated
2024
$'000
2023
$'000
LTIP performance rights
2,049
901
EEP performance rights
-
(14)
NED share rights
6
11
Employee share rights
649
1,079
2,704
1,977
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by referencing the fair value
of the equity instruments at the date at which they were granted. The fair value is determined by using
the Binomial, Black-Scholes or Monte Carlo model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets and liabilities with the
next annual reporting period, but may impact profit or loss and equity.
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Share-based payments
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange
of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial, Monte Carlo or Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution, the share price at
grant date and expected price volatility of the underlying share, the expected dividend yield and the risk
free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the Group receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase
in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the
grant date fair value of the award, the best estimate of the number of awards that are likely to vest,
and the expired portion of the vesting period. The amount recognised in profit or loss for the period
is the cumulative amount calculated at each reporting date less amounts already recognised in
previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has
been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification
has not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date of
modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the Group or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the
remaining vesting period unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
If any performance rights have been forfeited for failure to complete a service period, the costs of the
performance rights are trued up, i.e. amounts previously expensed are no longer incurred and accordingly
reversed in the current year. This policy is applied irrespective of whether the employee resigns voluntarily
or is dismissed by the Company.
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29 REMUNERATION OF AUDITORS
The auditor of Macmahon Holdings Limited is KPMG Australia. Amounts paid or payable for services
provided by KPMG and other non-KPMG audit firms are as follows:
Consolidated
2024
$
2023
$
Group auditors
Audit and review services - KPMG
Audit or review of the financial statements - Australia
520,212
527,155
Additional scope for June 2023 audit - Australia
-
56,470
520,212
583,625
Other services - KPMG
Taxation services - Australia
57,278
55,808
Taxation services - Network firms
17,693
16,459
Other assurance services - Australia
32,085
34,828
Other advisory services - Financial due diligence - Australia
258,750
326,400
365,806
433,495
886,018
1,017,120
Subsidiary auditors
Audit and review services
Audit of the financial statements - Foo Kun Tan LLP
20,363
19,606
Audit of the financial statements - PwC Indonesia
129,547
130,491
149,910
150,097
1,035,928
1,167,217
30 DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 (the Instrument),
the wholly-owned subsidiaries listed below are relieved from the Corporations Act 2001 (the Act)
requirements for preparation, audit and lodgement of their financial statements and Directors' report.
It is a condition of the Instrument that the Parent and each of its subsidiaries (Extended Closed Group)
below enter into a Deed of Cross Guarantee (Deed). The effect of the Deed is that the Parent guarantees
to each creditor, payment in full of any debt in the event of winding up of any of the subsidiaries under
certain provisions of the Act. If a winding up occurs under other provisions of the Act, the Company will
only be liable in the event that after six months any creditor has not been paid in full. The subsidiaries
have also given the same guarantees in the event that the Company is wound up.
The following entities are party to the Deed under which each member guarantees the debts of
the others:
•
Macmahon Contractors Pty Ltd
•
Macmahon Underground Pty Ltd
•
Macmahon Mining Services Pty Ltd
•
TMM Group Pty Ltd
•
TMM Group (Operations) Pty Ltd
•
GF Holdings (WA) Pty Ltd
•
GBF North Pty Ltd
•
GBF Mining and Industrial Services Pty Ltd
Set out below is a consolidated statement of profit or loss and other comprehensive income, summary
of movements in consolidated retained earnings and consolidated statement of financial position,
comprising the Company and its controlled entities which are a party to the Deed, after eliminating
transactions between parties to the Deed:
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Statement of Profit or Loss and Other Comprehensive Income
Consolidated
2024
$’000
2023
$’000
Revenue
1,872,578
1,539,788
Other income
10,522
11,400
Materials and consumables used
(393,775)
(312,542)
Employee benefits expense
(878,663)
(754,028)
Subcontractor costs
(80,467)
(61,839)
Depreciation and amortisation expense
(189,629)
(174,168)
Equipment and other operating lease expenses
(129,632)
(84,605)
Net finance costs
(24,693)
(23,899)
Other expenses
(126,475)
(62,923)
Profit before income tax expense
59,766
77,184
Income tax expense
(18,325)
(12,517)
Profit after income tax expense
41,441
64,667
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Statement of Financial Position
Consolidated
2024
$’000
2023
$’000
ASSETS
Current assets
Cash and cash equivalents
143,220
176,394
Trade and other receivables
291,942
244,281
Inventories
105,236
91,742
Income tax receivable
-
231
Total current assets
540,398
512,648
Non-current assets
Trade and other receivables
87,367
75,933
Other financial assets
17,770
26,250
Property, plant and equipment
572,131
618,415
Intangible assets and goodwill
10,338
10,531
Deferred tax asset
(15,089)
(3,813)
Total non-current assets
672,517
727,316
Total assets
1,212,915
1,239,964
LIABILITIES
Current liabilities
Trade and other payables
272,811
266,033
Borrowings
98,266
110,475
Income tax payable
(7,725)
-
Employee benefits
80,895
68,633
Provisions
22,988
19,874
Total current liabilities
467,235
465,015
Non-current liabilities
Trade and other payables
4,713
1,959
Borrowings
211,115
275,184
Employee benefits
2,742
2,311
Total non-current liabilities
218,570
279,454
Total liabilities
685,805
744,469
NET ASSETS
527,110
495,495
EQUITY
Issued capital
563,118
563,118
Reserves
(17,934)
(10,989)
Net accumulated losses
(18,074)
(56,634)
TOTAL EQUITY
527,110
495,495
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31 PARENT ENTITY INFORMATION
Set out below is the supplementary financial information of the Parent as follows:
Statement of Profit or Loss and Other Comprehensive Income
2024
$’000
2023
$’000
(Profit)/Loss after income taxes of the Parent
(487,320)
150,847
Total comprehensive (profit)/loss of the Parent
(487,320)
150,847
Statement of Financial Position
2024
$’000
2023
$’000
Current assets
735,837
14,118
Total assets
985,302
263,587
Current liabilities
(289,410)
(7,012)
Total liabilities
(406,097)
(164,540)
Equity
Issued capital
563,118
563,118
Share-based payments reserve
4,628
2,583
Reserve for own shares
(12,292)
(12,656)
Accumulated losses
(472,334)
(472,334)
Retained profits
496,084
18,335
Total equity
579,204
99,046
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The Parent has entered into a Deed with the effect that the Parent guarantees the debt of members of
the Extended Closed Group. Further details of the Deed and the Extended Closed Group are disclosed
in note 30.
Material accounting policies
The accounting policies of the Parent are consistent with those of the Group.
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32 BUSINESS COMBINATION
On 31 December 2023, the Group acquired key contracts from Pit N Portal underground services business
from Emeco Holdings Limited. The acquisition also included inventory, site fixed infrastructure assets
and light vehicles. The Group also entered into employment contracts with the workforce delivering the
relevant acquired contracts.
The acquisition of Pit N Portal's assets and the transferred workforce align with the Group's strategy
of growing its underground mining services. The acquisition has been accounted for as a business
combination.
Consideration transferred
Total consideration on acquisition of $8.833 million was satisfied via plant and equipment sale.
Impact of acquisition on the results of the Group
The underground services contracts acquired from Pit N Portal were completed in FY24 as expected.
For the six months ended 30 June 2024, the business contributed revenue of $54.722 million and profit
of $3.520 million to the Group's results. If the acquisition has occurred on 1 July 2023, management
estimates that the consolidated revenue would have been $109.443 million and consolidated profit for the
year would have been $7.040 million. In determining these amounts, management has assumed that the
fair value adjustments, that arose on the date of acquisition would have been the same if the acquisition
had occurred on 1 July 2023.
Acquisition related costs
The Group incurred acquisition costs of $1.448 million on legal fees and due diligence costs. These costs
have been included in "Other expenses".
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the
date of acquisition.
$’000
Customer contracts
500
Inventory
4,790
Property, plant and equipment
8,838
Accrued expenses
(1,343)
Employee benefits
(3,952)
Total identifiable net assets acquired
8,833
Measurement of fair values
The valuation techniques for measuring the fair value of material assets acquired were as follows:
Assets acquired
Property, plant and equipment
Market comparison technique and cost technique: The valuation model
considers market prices for similar items when they are available, and
depreciated replacement cost when appropriate. Depreciated replacement
cost reflects adjustments for physical deterioration as well as functional and
economic obsolescence.
Inventories
Market comparison technique: The fair value is determined based on the
estimated selling price in the ordinary course of business less the estimated
costs of completion and sale, and a reasonable profit margin based on the
effort required to complete and sell the inventories.
If new information obtained within one year of the date of acquisition about facts and circumstances
that existed at the date of acquisition identifies adjustments to the above amounts, or any additional
provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised.
Business combinations
The Group accounts for business combinations using the acquisitions method when control is transferred
to the Group. The consideration transferred in the acquisition is measured at fair value, as are the
identifiable assets acquired and liabilities assumed. Any gain on acquisition is recognised in profit or loss
immediately. Goodwill is recognised when the fair value of the purchase consideration exceeds the fair
value of identifiable assets.
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33 OTHER MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below.
The Group also adopted Disclosure of Accounting Policies (Amendments to AASB 101 Presentation
of Financial Statements and IFRS Practice Statement 2) from 1 July 2023. The amendments require
the disclosure of ‘material’, rather than ‘significant’, accounting policies. The amendments also provide
guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide
useful, entity-specific accounting policy information that users need to understand other information in
the financial statements. Management reviewed the accounting policies and noted no changes to the note
below. Furthermore, the amendments did not result in any changes to the accounting policies themselves
and they did not impact the accounting policy information disclosed in the financial statements.
The Group has not elected to early adopt any new or amended standards or interpretations that are
issued but not yet effective.
New Accounting Standards and Interpretations not effective for the Group at 30 June 2024
or early adopted
A number of new standards, amendments of standards and interpretations are effective for annual
periods beginning from 1 July 2024 and earlier application is permitted, however, the Group has not early
adopted these standards in preparing these consolidated financial statements.
The Group has reviewed these standards and interpretations and has determined that none of these
new or amended standards and interpretations will significantly affect the Group's accounting policies,
financial position or performance.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB)
and the Corporations Act 2001 as appropriate for for-profit orientated entities. These financial statements
also comply with International Financial Reporting Standards issued by the International Accounting
Standards Board (IASB).
The consolidated financial statements provide comparative information in respect of the previous period.
For consistency with the current year's presentation, where required, comparative information has been
reclassified.
The financial statements have been prepared under the historical cost basis, except for contingent
consideration and certain other financial assets and financial liabilities, which are measured at fair value.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgment in the process of applying the Group's accounting
policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the financial statements, are included in the respective notes to the financial
statements:
Note 2 - revenue recognition: estimate of variable consideration
Note 5 - recognition of deferred tax assets: availability of future taxable profit against which deductible
temporary differences and tax losses carried forward can be utilised
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 31.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Macmahon
Holdings Limited as of 30 June 2024 and the results of all subsidiaries for the year then ended. Macmahon
Holdings Limited and its subsidiaries together are referred to in these financial statements as the 'Group'.
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Subsidiaries
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when
the Group 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
consolidated from the date on which control is transferred to the Group. Entities are deconsolidated from
the date that control ceases.
Interest in equity accounted investees
The Group's interests in equity-accounted investees comprise interests in joint ventures.
A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to
the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in joint ventures are accounted for using the equity method and are initially recognised at cost,
including transaction costs. Subsequent to initial recognition, the consolidated financial statements
include the Group's share of the profit or loss, and other comprehensive income of equity accounted
investees, until the date on which significant influence or joint control ceases.
Transactions eliminated on consolidation
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.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Macmahon Holdings Limited's
functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions, and from the translation at the reporting date exchange rates of monetary assets, and
liabilities denominated in foreign currencies are recognised in the profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange
rates at the reporting date. Monetary assets and liabilities denominated in foreign currency at the
reporting date are translated to the functional currency at the exchange rate at that date. The income and
expenses of foreign operations are translated into Australian dollars at the average exchange rates for the
period. Foreign currency differences are recognised in other comprehensive income, and presented in the
foreign currency translation reserve in equity.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a
monetary item are recognised to form part of a net investment in a foreign operation and are recognised
in other comprehensive income, and are presented in the foreign currency translation reserve in equity.
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Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in normal operating cycle; it is held primarily for the purpose of trading; it is expected to
be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least 12 months after the reporting
period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in normal operating cycle; it
is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting
period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after
the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Goods and Services Tax (GST), Value Added Tax (VAT) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other
payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the tax authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the tax authority.
Rounding of amounts
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports)
Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to
'rounding-off'. Amounts in this report have been rounded off in accordance with that Class Order to the
nearest thousand dollars, or in certain cases, the nearest dollar.
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Consolidated
Entity Disclosure
Statement
The consolidated financial statements incorporate the assets, liabilities and results of the
following subsidiaries:
Country of
incorporation
Body
corporate,
partnership
or trust
Australian
or Foreign
tax
resident
Jurisdiction
for Foreign
tax resident
Ownership
interest
Incorporated subsidiaries
2024
%
2023
%
Macmahon Contractors Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Macmahon Mining Services Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Doorn-Djil Yoordaning Mining
and Construction Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Macmahon Underground Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Macmahon Contracting International Pte Ltd
Singapore
Body corporate
Foreign
Singapore
100
100
PT Macmahon Indonesia
Indonesia
Body corporate
Foreign
Indonesia
100
100
Macmahon Constructors Sdn Bhd
Malaysia
Body corporate
Foreign
Malaysia
100
100
TMM Group Pty Ltd*
Australia
Body corporate
Australia
N/A
100
100
TMM Group (Consult) Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
TMM Group (IP) Pty Ltd*
Australia
Body corporate
Australia
N/A
100
100
TMM Group (Operations) Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Macmahon East Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Macmahon Maintenance Masters Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
Macmahon (Southern) Pty Ltd1
Australia
Body corporate
Australia
N/A
100
100
Macmahon Africa Pty Ltd*
Australia
Body corporate
Australia
N/A
100
100
Macmahon Malaysia Pty Ltd*
Australia
Body corporate
Australia
N/A
100
100
Macmahon Sdn Bhd*
Malaysia
Body corporate
Foreign
Malaysia
100
100
PT Macmahon Contractors Indonesia
Indonesia
Body corporate
Foreign
Indonesia
100
100
Macmahon Singapore Pte Ltd*
Singapore
Body corporate
Foreign
Singapore
100
100
Macmahon Contractors Nigeria Ltd*
Nigeria
Body corporate
Foreign
Nigeria
100
100
Macmahon Contractors Ghana Limited*
Ghana
Body corporate
Foreign
Ghana
100
100
Macmahon Botswana (Pty) Ltd*
Botswana
Body corporate
Foreign
Botswana
100
100
Strong Minds Strong Mines Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
GF Holdings (WA) Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
GBF Mining and Industrial Services Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
GBF North Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
GBF Number 6 Pty Ltd
Australia
Body corporate
Australia
N/A
100
100
GBF Project Services S.R.O2
Australia
Body corporate
Australia
N/A
0
100
PT Macmahon Mining Services
Indonesia
Body corporate
Foreign
Indonesia
100
100
MBMS Contractors Pty Ltd
Australia
Body corporate
Australia
N/A
100
0
Interest in trusts
Macmahon Holdings Limited Employee Share
Ownership Plans Trust
Australia
Trust
Australia
N/A
100
100
*
Entities were dormant for the financial year ended 30 June 2024.
1
Macmahon (Southern) Pty Ltd is incorporated and operates in Australia and has a registered branch in South Africa.
The branch operations are dormant.
2
GBF Project Services S.R.O was deregistered in FY24.
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124
KEY ASSUMPTIONS AND JUDGEMENTS
Determination of Tax Residency
Section 295 (3A) of the Corporations Act 2001 requires that the tax residency of each entity which is
included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an
entity which was an Australian resident, “Australian resident” has the meaning provided in the Income
Tax Assessment Act 1997. The determination of tax residency involves judgment as the determination
of tax residency is highly fact dependent and there are currently several different interpretations that
could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
•
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having
regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5.
•
Foreign tax residency
The consolidated entity has applied current legislation and where available judicial precedent in
the determination of foreign tax residency. Where necessary, the consolidated entity has used
independent tax advisers in foreign jurisdictions to assist in its determination of tax residency to
ensure applicable foreign tax legislation has been complied with.
Partnerships and Trusts
Australian tax law does not contain specific residency tests for partnerships and trusts. Generally, these
entities are taxed on a flow-through basis so there is no need for a general residence test. There are some
provisions which treat trusts as residents for certain purposes, but this does not mean the trust itself is an
entity that is subject to tax. Additional disclosures on the tax status of partnerships and trusts have been
provided where relevant.
Branches (permanent establishments)
Foreign branches of Australian subsidiaries are not separate level entities and therefore do not have a
separate residency for Australian tax purposes. Generally, the Australian subsidiary that the branch is a
part of will be the relevant tax resident, rather than the branch operations. Additional disclosures on the
tax status of Australian subsidiaries having a foreign branch with a taxable presence in that jurisdiction
have been provided where relevant.
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Macmahon Annual Report 2024
Directors’
Declaration
IN THE DIRECTORS’ OPINION:
•
The consolidated financial statements and notes, and the Remuneration Report
in the Directors’ Report, comply with and are made in accordance with the
Corporations Act 2001, the Accounting Standards, the Corporations Regulations
2001 and other mandatory professional reporting requirements.
•
The consolidated financial statements and notes comply with International
Financial Reporting Standards as issued by the International Accounting Standards
Board as described in note 33.
•
The consolidated entity disclosure statement on pages 124 and 125 at the end of
the financial year is true and correct.
•
The consolidated financial statements and notes give a true and fair view of
the Group’s financial position as at 30 June 2024, and of its performance for
the financial year ended on that date, and comply with Australian Accounting
Standards and the Corporations Regulations 2001.
•
There are reasonable grounds to believe that the Group will be able to pay its
debts as and when they become due and payable. At the date of this declaration,
there are reasonable grounds to believe that the members of the Extended Closed
Group will be able to meet any obligations or liabilities to which they are, or may
become, subject by virtue of the deed of cross guarantee (pursuant to ASIC
Corporations (Wholly-owned Companies) Instrument 2016/785) described in note
31 to the financial statements.
The Directors have been given the declarations from the Chief Executive Officer and
the Chief Financial Officer for the financial year ended 30 June 2024 as required by
section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
HAMISH TYRWHITT
Independent Non-Executive Chair
20 August 2024
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Independent Auditor’s Report
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a
scheme approved under Professional Standards Legislation.
Independent Auditor’s Report
To the shareholders of Macmahon Holdings Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Macmahon Holdings Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company gives a true and fair
view, including of the Group’s financial position
as at 30 June 2024 and of its financial
performance for the year then ended, in
accordance with the Corporations Act 2001, in
compliance with Australian Accounting
Standards and the Corporations Regulations
2001.
The Financial Report comprises:
• Consolidated Statement of financial position as
at 30 June 2024;
• Consolidated Statement of profit or loss and
other comprehensive income, Consolidated
Statement of changes in equity, and
Consolidated Statement of cash flows for the
year then ended;
• Consolidated entity disclosure statement and
accompanying basis of preparation as at
30 June 2024;
• Notes, including material accounting policies;
and
• Directors’ Declaration.
The Group consists of the Company and the
entities it controlled at the year end or from time to
time during the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 Corporations Act 2001 and the ethical
requirements of the Accounting Professional and 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 fulfilled our other ethical responsibilities in accordance with
these requirements.
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.
This matter was 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 this matter.
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Revenue recognition ($2,031 million)
Refer to Note 2 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The majority of the Group’s revenue arises from
rendering mining and mining related services
based on contracts with customers. Service
revenue recognised is based on contractual
rates or on a cost reimbursement plus margin
basis as performance obligations are met.
This is a key audit matter due to its significant
value in the Group’s financial report and audit
effort associated with a large number of
customer contracts.
Our procedures included:
Evaluating the Group’s revenue recognition
policies and revenue recognition on key
contracts with customers against the
requirements of the relevant accounting
standards;
Understanding the Group’s process and key
controls for accounting for revenue across
different contracts, considering the terms in the
customer contracts;
Testing key controls in the revenue recognition
process such as approval of monthly progress
claims by the customers prior to billing;
Checking satisfaction of the performance
obligation for a statistical sample of revenue
transactions, by inspecting documentation such
as customer approved progress claims;
Testing a statistical sample of contract assets
by checking satisfaction of the performance
obligation to underlying documentation;
Testing a sample of invoices recognised around
year end, to the underlying progress claims to
check revenue recognition in the correct period;
Obtaining significant credit notes recognised
post year end to check the Group’s recognition
of revenue in the correct period;
For key contracts where variable consideration
is recognised, evaluating the Group’s evidence
for these amounts, such as contract
documents, correspondence with customers
and subsequent approval of variable
consideration;
Evaluating the Group’s disclosures against our
understanding obtained from our testing and
the requirements of the accounting standards.
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Other Information
Other Information is financial and non-financial information in Macmahon Holdings Limited’s annual
report which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In
doing so, we 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.
We are required to report if we conclude that there is a material misstatement of this Other Information,
and based on the work we have performed on the Other Information that we obtained prior to the date
of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• Preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true
and fair view of the financial position and performance of the Group, and in compliance with
Australian Accounting Standards and the Corporations Regulations 2001;
• Implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the financial
position and performance of the Group, and that is free from material misstatement, whether due to
fraud or error;
• Assessing the Group and Company’s ability to continue as a going concern and whether the use of
the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless they either intend
to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do
so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
• 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 Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They 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 the 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_2020.pdf. This description forms part of our
Auditor’s Report.
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Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report of
Macmahon Holdings Limited for the year ended
30 June 2024, complies with Section 300A of the
Corporations Act 2001.
Directors’ responsibilities
The Directors of the Company are responsible for
the preparation and presentation of the
Remuneration Report in accordance with Section
300A of the Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report
included in pages 51 to 65 of the Directors’ report
for the year ended 30 June 2024.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit
conducted in accordance with Australian Auditing
Standards.
KPMG
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Partner
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20 August 2024
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Profit and loss ($’m)
2024
2023
2022
Restated1
2021
2020
Revenue from continuing operations
2,031.3
1,906.2
1,698.0
1,351.5
1,380.4
Underlying EBITDA
351.7
308.7
291.4
249.9
238.7
Depreciation and amortisation (excluding customer
contracts)
(211.4)
(192.0)
(190.6)
(153.6)
(147.1)
Underlying EBIT
140.3
116.6
100.8
96.2
91.6
Other exclusions from underlying items2
(38.6)
(9.9)
(35.6)
(2.3)
(4.3)
Reported EBIT
101.7
106.7
65.1
93.9
87.3
Net interest
(26.8)
(24.3)
(19.0)
(14.6)
(14.8)
Profit/(loss) before income taxes
74.9
82.4
46.1
79.3
72.5
Income tax expense
(21.7)
(24.7)
(18.7)
(3.9)
(7.5)
Profit/(loss) after taxes from continuing operations
53.2
57.7
27.4
75.4
64.9
Minority interests
-
-
-
-
-
Profit/(loss) after taxes attributed to Macmahon
53.2
57.7
27.4
75.4
64.9
Other exclusions from underlying items (net of tax)2
38.6
9.9
35.6
15.5
4.3
Underlying net profit/(loss) after taxes attributed to
Macmahon
91.8
67.6
63.0
59.9
69.2
Balance sheet ($'m)
Plant and equipment
671.9
720.1
672.6
582.7
457.0
Total assets
1,451.3
1,464.7
1,338.3
1,143.5
923.0
Net assets
633.5
608.8
559.5
535.9
497.8
Equity attributable to the Group
633.5
608.8
559.9
535.9
497.8
Net debt/(net cash)
146.6
201.9
215.5
130.4
60.9
Cash flow ($'m)
Underlying EBITDA
351.7
308.7
291.4
249.9
238.7
Net interest paid
(23.2)
(23.6)
(19.1)
(15.9)
(14.8)
Income tax (paid)/refund
(2.6)
(12.0)
(17.5)
(10.4)
(8.5)
Decrease/(increase) in working capital,
provisions and other non-cash items
(55.1)
(6.3)
(26.9)
(15.4)
(21.7)
Net operating cash flows, including joint venture
270.8
266.9
227.9
239.0
193.7
Investing and financing cash flows (net)
(293.5)
(248.3)
(216.0)
(195.9)
(165.7)
Effect of exchange rates on cash
(0.9)
1.7
4.0
(2.8)
0.6
Cash at beginning of financial year
218.2
198.0
182.1
141.8
113.2
Closing cash and cash equivalents
194.6
218.2
198.0
182.2
141.8
1
30 June 2021 balances have been restated to reflect the Group's change in accounting policy for costs related to
configuration and customisation of Software-as-a-Service (SaaS) arrangements. Refer to note 15 for more details.
2
Other exclusions from underlying items consist of:
•
2024 consists of acquisition costs, share-based payment expenses, SaaS costs, impairment of financial assets and
amortisation on customer contracts recognised on acquisitions.
•
2023 consists of acquisition costs, share-based payment expenses, SaaS costs, impairment of asset disposal group
and amortisation on customer contracts recognised on acquisitions.
•
2022 consists of earn-out in relation to previous acquisition, acquisition costs, share-based payment expenses, SaaS
costs, impairment of asset disposal group and amortisation on customer contracts recognised on acquisitions.
•
2021 consists of earn-out in relation to previous acquisition, acquisition costs, share-based payment expenses, fair
value uplift on investment in joint venture, gain on acquisition of subsidiary and amortisation on customer contracts
recognised on acquisitions.
•
2020 consists of acquisition costs, share-based payment expenses and amortisation on customer contracts
recognised on acquisitions.
SUMMARY OF
CONSOLIDATED REPORTS
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2024
2023
2022
Restated1
2021
2020
People and safety
Number of employees
9,676
8,368
7,848
6,082
5,229
LTIFR
0.3
0.1
0.2
0.1
0.1
TRIFR
3.6
3.9
4.8
6.4
3.8
Order book
Work in hand ($b)
4.6
5.1
5.0
5.0
4.5
New contracts and extension ($b)
1.5
2.0
1.7
2.3
1.4
Revenue growth (%)
6.6
12.3
25.6
(2.1)
25.1
Reported NPAT/Revenue (%)
2.6
3.0
1.6
5.6
4.7
Underlying NPAT/Revenue (%)3
4.5
3.5
3.7
4.4
5.0
EBIT interest cover (x)
3.8
4.4
3.4
6.4
5.9
Reported basic EPS from continuing
operations (cents)
2.53
2.75
1.30
3.59
3.10
Underlying basic EPS from
continuing operations (cents)
4.36
3.22
3.00
2.85
3.30
Balance sheet ratios
Gearing ratio
18.8
24.9
27.8
19.6
10.9
Reported return on average capital employed
(ROACE) (%)
12.5
13.3
9.0
15.3
16.4
Underlying ROACE (%)2
17.2
14.5
13.9
15.6
17.2
Reported return on equity (ROE) (%)
8.6
9.9
5.0
14.6
13.7
Underlying ROE (%)2
14.8
11.6
11.5
11.6
14.6
Reported return on assets (ROA) (%)
3.7
4.1
2.2
7.3
7.4
Underlying ROA (%)2
6.3
4.8
5.1
5.8
7.9
Net tangible assets (NTA) per share ($)
0.29
0.28
0.25
0.24
0.22
Cash flow ratios ($'m)
Net operating cash flow per share (cents)
12.6
12.4
10.6
11.1
9.0
Shareholders
Shares on issue ('m) at 30 June
2,155.0
2,155.0
2,155.0
2,155.0
2,155.0
Share price at 30 June (cents)
29.0
15.5
13.5
19.0
25.5
Dividends declared (cents)3
1.05
0.75
0.65
0.65
0.60
Percentage franked (%)
-
-
-
20.0
30.0
Market capitalisation ($'m)
624.9
334.0
290.9
409.4
549.5
Enterprise value (EV)
771.5
535.9
506.4
539.8
610.4
Price/NTA ($)
1.0
0.6
0.5
0.8
1.2
1
30 June 2021 balances have been restated to reflect the Group's change in accounting policy for costs related to
configuration and customisation of Software-as-a-Service (SaaS) arrangements. Refer to note 15 for more details.
2
Underlying items are adjusted for other exclusions as per footnote 1 on page 130.
3
Subsequent to 30 June 2024, the Board approved the payment of a final dividend of 0.60 cents per share. For the year
ended 30 June 2024, the payment of an interim dividend of 0.45 cents per share was also approved by the Board.
The Summary of Consolidated Reports uses non-IFRS financial information, such as underlying EBIT(A) and EBITDA, to
measure the financial performance of the Group. Non-IFRS measures of financial performance are unaudited.
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Additional information required by the Australian Securities
Exchange and not disclosed elsewhere in this report is set
out below. The information was current as at 16 August 2024.
NUMBER AND DISTRIBUTION OF EQUITY
SECURITIES
The Company has a single class of equity securities
on issue, being fully paid ordinary shares. The
distribution schedule of the Company's shares
is detailed below.
1–1,000
616
0.01%
1,001–5,000
1,941
0.25%
5,001–10,000
980
0.35%
10,001–100,000
2,219
3.65%
100,001 and over
538
95.73%
Total
6,294
100%
There were 1,096 holders of less than a marketable
parcel of shares (1,755 shares or fewer) based on
the closing price on 16 August 2024 ($0.285) of
Macmahon shares listed on ASX.
SUBSTANTIAL HOLDERS
The following shareholders have declared a
relevant interest in the number of voting shares at
the date of giving a substantial shareholder notice
under Part 6C.1 of the Corporations Act 2001.
Holders giving notice
Number of ordinary
shares in which
interest is held
Amman Mineral Contractors
(Singapore) Pte Ltd
954,064,924
Paradice Investment Management
Pty Ltd
145,996,305
There may be differences between this information
and the list of the top 20 largest shareholders due
to differences between registered holder details,
the nature of a holder’s relevant interest in voting
shares, or movements of less than 1 percent which
do not require disclosure.
VOTING RIGHTS
The voting rights attaching to fully paid ordinary
shares are detailed below:
Each holder present at a general meeting (whether
in person, online, by proxy or by representative)
is entitled to one vote on a show of hands, or on a
poll, one vote for each share, subject to any voting
restrictions that may apply.
ON-MARKET SHARE BUY-BACK
The Company is not currently conducting an
on-market buy-back of its shares listed on the ASX.
RESTRICTED SECURITIES AND VOLUNTARILY
ESCROWED SECURITIES
There are no securities on issue which are
restricted securities.
There are no which are subject to
voluntary escrow.
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Macmahon Annual Report 2024
134
Equity Security Holders
The names of the 20 largest holders of quoted equity securities (fully paid ordinary shares) are listed below.
Rank
Name
Shares
%
1
Amman Mineral Contractors (Singapore) Pte Ltd
954,064,924
44.30
2
Paradice Investment Management Pty Ltd
145,996,305
6.80
3
Dimensional Fund Advisors LP
79,527,845
3.70
4
Cbus Super
68,315,432
3.20
5
Ryder Capital
67,176,601
3.10
6
Macmahon Employee Holdings
63,956,155
3.00
7
Mitsubishi UFJ Financial Group, Inc
63,894,009
3.00
8
Perpetual Limited
50,000,000
2.30
9
Longwave Capital Partners Pty Ltd
24,025,102
1.10
10
QVG Capital Pty Ltd
20,000,000
0.90
11
Nicholas Debenham
18,368,000
0.90
12
Macquarie Group Limited
17,883,070
0.80
13
1851 Capital Pty Ltd
17,102,971
0.80
14
Nicholas & Annette Debenham
16,093,000
0.70
15
BrightSphere Investment Group
16,040,777
0.70
16
Precision Funds Management Pty Ltd
15,244,445
0.70
17
Forager Funds Management Pty Ltd
13,831,113
0.60
18
Alceon Liquid Strategies Pty Ltd
12,800,000
0.60
19
Ophir Asset Management Pty Ltd
11,921,269
0.60
20
Goldman Sachs Group
9,707,265
0.50
Top 20 Holders
1,685,948,283
78.2
Remaining Holders Balance
469,037,535
21.8
Total Shares on Issue
2,154,985,818
100.00
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DIRECTORS
Hamish Tyrwhitt
Independent, Non-Executive Chair
Michael Finnegan
Managing Director and Chief Executive Officer
Dharma Chandra
Independent, Non-Executive Director
David Gibbs
Non-Independent, Non-Executive Director
Denise McComish
Independent, Non-Executive Director
Grahame White
Independent, Non-Executive Director
CHIEF FINANCIAL OFFICER
Ursula Lummis
COMPANY SECRETARY
Maha Chaar
REGISTERED OFFICE AND BUSINESS ADDRESS
15 Hudswell Road
Perth Airport WA 6105 Australia
Phone: +61 8 9232 1000
Fax: +61 8 9232 1001
POSTAL ADDRESS
PO Box 198
Cannington WA 6987 Australia
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000 Australia
Phone: 1300 850 505
www.computershare.com.au
web.queries@computershare.com.au
STOCK EXCHANGE LISTING
Macmahon Holdings Limited fully paid ordinary
shares are listed on the Australian Securities
Exchange with an ASX code of “MAH”.
AUDITOR
KPMG
235 St Georges Terrace
Perth WA 6000 WA
INCORPORATION
Macmahon Holdings Limited is incorporated and
domiciled in Australia as a public company limited
by shares.
ACN 007 634 406
ABN 93 007 634 406
KEY DATES (SUBJECT TO CHANGE)
2024 Annual General Meeting – 29 October 2024
(at a time and place to be announced)
Release of FY25 Half Year Results – February 2025
Release of FY25 Full Year Results – August 2025
GLOSSARY
AMNT
PT Amman Mineral Nusa Tenggara
EBIT
Earnings before net interest expense
and tax expense
EBIT(A)
Earnings before net interest expense,
tax expense and customer contract
amortisation
EBITDA
Earnings before net interest expense,
tax expense, depreciation and
amortisation
EV
Enterprise value, being market
capitalisation plus net debt
Gearing ratio
Net debt/equity plus net debt
LTIFR
Lost time injury frequency rate
TRIFR
Total recordable injury frequency rate
NPAT
Net profit after tax
NTA
Net tangible assets
ROACE
Return on average capital employed
– EBIT(A)/average capital employed,
where capital employed is total assets
excluding cash less current liabilities
excluding current debt
ROE
Return on equity – Underlying NPAT/
average net assets
ROA
Return on assets – Underlying NPAT/
average assets
Note: Refer to Summary of Consolidated Reports for
reconciliation to underlying results.
CORPORATE DIRECTORY
AND GLOSSARY
ASX Additional
Information
Directory
and Glossary
Financial
Statements
CEDS
Directors'
Declaration
Remuneration
Report
Directors’
Report
Sustainability
Summary
of Reports
Operational and
Financial Review
Our
Business
Our
Capabilities
Vision, Values
and Strategy
Letter from
the Chair
MD and
CEO Report
Year at
a Glance
Macmahon Annual Report 2024
136
Macmahon Holdings Limited
ACN 007 634 406
15 Hudswell Road
Perth Airport WA 6105
Australia
+61 8 9232 1000
info@macmahon.com.au
macmahon.com.au
linkedin.com/company/macmahon
facebook.com/macmahonmining
instagram.com/macmahonmining/
@macmahon_mining
youtube.com/@macmahon9047