Macmahon MD and CEO Michael Finnegan
Mining services company Macmahon has taken a strategic step towards enhancing its return on average capital employed (ROACE) performance by agreeing to sell a substantial portion of its mobile equipment fleet at the Dawson South project, in Queensland.
The sale, conducted at market rates that exceeded or matched book value, will result in a cash inflow of A$44-million.
Macmahon, currently serving as the mining contractor at the Dawson South project within the Dawson opencut steelmaking coal mine, has been progressively implementing its capital-light strategy to improve operational efficiency and financial performance.
“I’m pleased we have been able to sell a substantial portion of the Dawson South fleet and progress Macmahon’s capital-light strategy to improve ROACE performance – where our target was recently increased from 15% to 20%,” MD and CEO Michael Finnegan said.
Macmahon’s existing contract at Dawson South is due to end on June 30.
Meanwhile, Macmahon affirmed that it expects to deliver full-year revenue of between A$1.8-billion and A$1.9-billion and underlying earnings before interest, taxes and amortisation of between A$130-million and A$140-million.