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Coal|Contractor|Efficiency|Financial|Mining|PROJECT|Services|Equipment
coal|contractor|efficiency|financial|mining|project|services|equipment

Macmahon advances capital-light strategy with sale of mobile equipment

Macmahon MD and CEO Michael Finnegan

Macmahon MD and CEO Michael Finnegan

12th April 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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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.  

Edited by Creamer Media Reporter

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