a3466a9f72f16e872eafcf.pdf



CORPORATE DIRECTORY

MACA Limited

ABN 42 144 745 782



Directors

Andrew Edwards

Non-executive Chairman


Chris Tuckwell

Managing Director/Chief Executive Officer (appointed 4 August 2014)


Geoff Baker

Operations Director


Linton Kirk

Non-executive Director


Robert Ryan

Non-executive Director (appointed 18 August 2015)


Peter Gilford

Company Secretary


Registered Office

45 Division Street

WELSHPOOL WA 6106

Telephone (08) 6242 2600

Facsimile (08) 6242 2677


Solicitors

Steinepreis Paganin Lawyers and Consultants Level 4, The Read Buildings 16 Milligan Street

PERTH WA 6000


Auditors

Moore Stephens

Level 3, 12 St Georges Terrace

PERTH WA 6000


Share Registry

Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace

PERTH WA 6000


Stock Exchange Listings

MACA Limited shares are listed on the Australian Securities Exchange


ASX Code : MLD


Website Address

www.maca.net.au



Standing from left to right:

Linton Kirk Non-Executive Director, Geoff Baker Operations Director, Andrew Edwards Non-Executive Chairman,

Chris Tuckwell Managing Director, Peter Gilford Company Secretary, Inset: Robert Ryan Non-Executive Director


CONTENTS

About MACA 2

Chairman's Address 3

Managing Director's Review of Operations 4

Directors' Report 12

Remuneration Report - Audited 20

Corporate Governance Statement 33

Auditor's Independence Declaration 38

Consolidated Statement of Profit and Loss

and Other Comprehensive Income 39

Consolidated Statement of Financial Position 40

Consolidated Statement of Changes in Equity 41

Consolidated Statement of Cash Flows 42

Notes to the Financial Statements 43

Directors' Declaration 77

Independent Audit Report 78

Shareholder Information 80


MACA LIMITED ANNUAL REPORT 2015 1


ABOUT MACA


MACA IS A SUCCESSFUL MINING SERVICES AND CIVIL CONSTRUCTION GROUP PROVIDING OPEN PIT CONTRACTING SERVICES TO THE MINING INDUSTRY INCLUDING LOADING AND HAULING, DRILLING AND BLASTING, CRUSHING AND SCREENING AND CIVIL INFRASTRUCTURE SERVICES TO PUBLIC AND PRIVATE INDUSTRY.

Incorporated as a private company in November 2002, MACA was admitted to the Australian Securities Exchange ('ASX') in November 2010 following a highly successful initial public offering ('IPO').

MACA has consistently delivered on its earnings forecasts and maintains continuing positive forward projections based on its solid financial and operational capacity. Since listing in November 2010 MACA has paid a total of $1.075 per share in dividends to shareholders.

In 2014 the company commenced overseas work with the Tucano gold project for Beadell Resources in Brazil being the first offshore venture for the company. Since the end of the financial year MACA has received a Letter of Intent for a copper project with Avanco Resources at their Antas North operation also in Brazil.

MACA's mining business specialises in providing mining and crushing services predominantly to mid-size mining projects across a range of commodities. Through its dedicated

civil construction business, MACA provides a broad range of civil infrastructure services to government and private organisations. The Group currently employs a workforce in excess of 1,050 employees and sub-contractors.



2 MACA LIMITED ANNUAL REPORT 2015

CHAIRMAN'S ADDRESS


2015 PROVIDED A VERY CHALLENGING ENVIRONMENT FOR THE MINING AND CIVIL SERVICES SECTORS. WEAK COMMODITY PRICES AND A SUBDUED ECONOMIC OUTLOOK RESULTED IN DIFFICULT TRADING CONDITIONS, PARTICULARLY IN THE SECOND HALF OF THE YEAR, WHICH IN TURN HAVE WEIGHED ON YOUR COMPANY'S SHARE PRICE.

Against this background I am very pleased to report that MACA delivered a full year net profit after tax of $54.4 million, only slightly less than the previous year. This is testament to the resilience of MACA's business and our people, as well as the preparedness to work hard with our clients to achieve mutually beneficial outcomes. A good example of this is the innovative Collaboration Agreement entered into with Atlas Iron following suspension of operations at the Abydos mine.

The Company's financial result reflects a solid operating performance on continuing projects plus the winning of new contracts at Tucano (Beadell Resources in Brazil), Andy Well (Doray Minerals), Wodgina (Atlas Iron) and the Hinge Project (Karara Mining), as well as a number of resources and road- works project awarded to MACA Civil. The Tucano Project is MACA's first overseas venture and should be followed in due course by the Antas North operation (Avanco Resources) as announced in the Letter of Intent received after year end.

These projects increase MACA's geographical footprint and continue to rebalance activities away from iron ore.

During the year operations ceased at Peculiar Knob (Atlas Iron), Paroo Station (Rosslyn Hill Mining), Ellendale (Kimberley Diamonds) and Blue Hills (Sinosteel Midwest Corporation). Pleasingly, the Company was able to successfully deploy personnel and plant and equipment from terminated contracts into other projects.

Operating cash flow was very strong at $136.5 million.

The Company retains a strong balance sheet with a cash balance at 30 June 2015 of $118.5 million and net cash (after deducting interest bearing debt) of $42.3 million.

Your Directors have declared a final dividend of 7.5 cents per share taking the total dividends for the year to 39.5 cents fully franked, including the special dividend of 25 cents per share paid in October 2014. This represents a 60% dividend payout ratio (excluding the special dividend) which is consistent with the Company's targeted guideline and the Board's objective to both provide a return to shareholders and retain cash resources to fund future growth plans.

MACA has a solid level of work in hand ($1.2 billion as at 30 June 2015) and a balance sheet that provides the

capability to support its strategy to pursue organic growth opportunities and potential acquisitions. Nevertheless, trading conditions are expected to remain challenging in the current financial year. As previously announced, MACA is expecting revenue to fall in FY2016 but still exceed $450 million, of which in excess of 85% is contracted.

I would like to especially thank our leadership team and staff for their efforts over the past year in a very trying operating environment. Our people have again

demonstrated their capability to successfully support our clients and continue delivering strong operating, safety and financial outcomes.

At Board level we farewelled one of MACA's founders, Ross Williams, during the year. We wish Ross all the best in his future endeavours and thank him for his significant contribution to the Company's success. I am delighted to welcome Robert Ryan to the Board and look forward to his

future contribution. Thank you to all my fellow Directors for their wise counsel and support.

Your Company's Board and management believe that MACA is well positioned to take advantage of future opportunities, including those presented by upturns in the commodities cycle, and we will be actively pursuing our growth strategy to secure these.



Andrew Edwards

Chairman


MACA LIMITED ANNUAL REPORT 2015 3


MANAGING DIRECTOR'S REVIEW OF OPERATIONS


ON THIS, THE 12TH YEAR OF OPERATION OF MACA AND OUR FIFTH SINCE LISTING IN 2010, I AM PLEASED TO PRESENT A REVIEW OF THE COMPANY'S PERFORMANCE TO SHAREHOLDERS OF MACA LIMITED.

The full year earnings result demonstrates the strength of MACA's business, despite what has been a very challenging operating environment for the mining and civil sectors due to weak commodity prices and poor market sentiment. In November 2014, MACA commenced work overseas with

the Tucano gold project in Brazil. Since the end of the financial year MACA has also received a Letter of Intent from Avanco Resources at their Antas North copper operation.

Operational activities have rebalanced away from iron ore with these contract wins in Brazil with Beadell and Avanco Resources. This increased geographical presence and experience, coupled with a strong balance sheet has MACA well placed to secure further opportunities.


HIGHLIGHTS


Operating revenue up 1.0% to $601.4 million

EBITDA up 2.7% to

$138.2 million

Net profit after tax down 1.8% to $54.4 million

Cash from operating activities $136.5 million


4 MACA LIMITED ANNUAL REPORT 2015


MACA continues to perform well across its broad spectrum of projects in both the mining and civil sectors. During the period MACA continued operations at Rosemont, Garden Well and Moolart Well for Regis Resources and Abydos

for Atlas Iron. Projects commenced during the year were the Hinge project for Karara Mining, Andy Well for Doray Minerals, Wodgina for Atlas Iron and the company's first off-shore operation at Tucano in Brazil, South America for Beadell Resources. Operations at Rosslyn Hill Mining,

Peculiar Knob for Arrium, Blue Hills for Sinosteel Midwest and Ellendale for Kimberley Diamonds were closed during the second half with MACA successfully deploying personnel and equipment to other MACA projects.

The results have been achieved once again through a number of success factors including:

  • A strong and maintained focus on the management and execution of our operations.

  • Commitment to our clients and the relationships in our business.

  • Financial performance driven by high levels of utilization and a disciplined approach to operational and overhead management.

  • The daily delivery of services and outcomes through the talent of our workforce who demonstrate the Company's commitment to working safely every day.

  • A demonstrated commitment to our 'Can Do' culture and our promise; We care; We deliver and We are flexible.

  • Innovative ways of extending a business relationship with a Collaboration Agreement and a new business relationship with a share placement participation and a Preferred Contractor Status Agreement.



Full year dividends up 3.6% to 14.5 cents fully franked

The Company paid a special dividend of 25 cents per share in October 2014 taking the full year dividends to 39.5 cents

Strong balance sheet with a net cash position of $42.3 million


MACA LIMITED ANNUAL REPORT 2015 5

MANAGING DIRECTOR'S REVIEW OF OPERATIONS


FINANCIAL PERFORMANCE


30 June 2015

30 June 2014

Movement

Revenue

$601.4m

$595.4m

1.0%

EBITDA

$138.2m

$134.6m

2.7%

EBIT

$79.1m

$82.1m

(3.7)%

Net Profit Before Tax

$77.6m

$79.6m

(2.5)%

Net Profit After Tax

$54.4m

$55.4m

(1.8)%

Contracted Work in Hand

$1,223m

$1,307m

(6.4)%

Operating Cash Flow

$136.5m

$46.8m

292%

Earnings per share - basic

24.0 cents

30.3 cents

(20.8)%

Dividends per share (fully franked)

39.5 cents

44.0 cents

(10.2)%



Group revenue increased overall with continued growth in the core mining segment of 4.8% and a revenue decline in the civil business of 23.7%.

The after tax profit has decreased by 1.8%, from $55.4 million in 2014 to $54.4 million for the year ended 30 June 2015.

EBITDA (Earnings before interest, tax, depreciation and amortisation) grew from $134.6 million in FY2014 to

$138.2 million for the period ending 30 June 2015, again demonstrating consistency in returns of the group.

DIVIDEND

On the 18th August 2015, the board of MACA Limited declared a final dividend for the financial year ending 2015 of 7.5 cents per share. This represents a 60% payout ratio (excluding the special dividend) which is consistent with our targeted guideline and the Board's objective to both provide a return to shareholders and retain cash resources to pursue future growth opportunities.

The total dividend paid during the year was $89.657 million (2014: $81.761 million). This included a 7.5 cent per share final dividend and interim dividend of 7.0 cents per share equaling $31.5 million and a 25 cent per share special dividend equaling $58.2 million. This brings the full year dividends to 39.5 cents per share fully franked.


6 MACA LIMITED ANNUAL REPORT 2015

MANAGING DIRECTOR'S REVIEW OF OPERATIONS



OPERATING CASH FLOW AND CAPITAL EXPENDITURE

Operating cash flow for the 12 months ending 30 June 2015 was $136.5 million.

Capital expenditure for the financial year was $50.9 million. Capital was prioritised for the purchase of new and replacement equipment funded through a combination of cash and commercial hire purchase agreements in both our onshore and offshore jurisdictions.

Assets were purchased primarily for the new contract works in Brazil and other assets in Australia purchased to replace specific plant and equipment previously hired and also plant sold off to match activity levels.


BALANCE SHEET AND GEARING

Despite the slight increase in revenue and assets employed, the group as at 30 June 2015 remains in a strong financial position with a net cash position of $42.3 million and with cash on hand of $118.5 million. During the period MACA successfully raised $58.5 million (before costs) in a capital raising on the back of declaring the special dividend. This


Gold

} Mining services Commencement Beadell Resources at Tucano (Brazil,

South America) in November 2014

Doray Minerals at Andy Well in

January 2015 Continuation Regis Resources at Moolart Well

Regis Resources at Garden Well

Regis Resources at Rosemont

Base Metals

} Mining services

Completed Rosslyn Hill Mining at Paroo Station

(to care and maintenance)

Other Minerals

} Mining services

Completed Kimberley Diamonds at Ellendale in

April 2015

Mining and crushing contracts by sector commenced subsequent to June 2015 include:

Copper

} Mining services

raising had minimal effect on the net cash position and

Letter of Intent

Avanco Resources at Antas (Brazil,

balance sheet strength of the Group as it essentially involved an exchange of retained earnings for share capital (equity).


ORDER BOOK

As at 30 June 2015 the Company had work-in-hand of $1,223 million with an average mining contract term of 36 months.


OPERATIONS

Mining and Crushing

The division's revenue of $542 million represented 90% of the total group revenue and was derived from continuing operations, the completion of four projects and the commencement of four new projects during the period.

Mining and crushing contracts by sector commenced, continued and completed from July 2014 include:

Iron Ore

} Mining services and crushing and screening services Commencement Karara Mining at Hinge in July 2014

Atlas Iron at Wodgina in May 2015 Continuation Atlas Iron at Abydos

Completed Arrium at Peculiar Knob in April 2015

Sinosteel Midwest Corporation at Blue Hills in April 2015

received South America) in August 2015


Civil

The civil business maintained its strong relationship with Main Roads Western Australia by completing the delivery of the Browns Range Alliance and the Safelinks Program Alliance projects during the period. In addition, MACA Civil was awarded and completed a number of resource projects for Rio Tinto and Calibre, and a number of road-

works projects both as the principal contractor and in joint venture. MACA Civil achieved re-certification in the National pre-qualification system to R4 level and has successfully completed two Federal Safety Commissioner Audits retaining its accreditation to the Office of Federal Safety.

This allows continued participation on or competing for federally funded public infrastructure projects.


MACA LIMITED ANNUAL REPORT 2015 7


MANAGING DIRECTOR'S REVIEW OF OPERATIONS


Civil contracts by sector commenced, continued and completed from July 2014 include:

Mining sector

Rio Tinto - Maitland and Murray Camp Rail Sidings

Bulk earthworks for formation extensions to key passing track sidings on the Deepdale Line for Rio Tinto's railway (completed August 2014)


Rio Tinto - B2/B4 Access Road

Construction of 13km of sealed access road between Brockman 2 and Brockman 4 mine sites including bulk earthworks, drainage structures, pavements and seal (completed May 2015)

Public sector

Main Roads Department of Western Australia Browns Range Alliance

Construction of flood levee banks (completed November 2014)


Safe Links Alliance

Reconstruction and widening of roads within the Midwest regions (completed November 2014)


NWCH - Manilya to Mia Mia section

Construct Only project - Widening, reconstruction and overlay of 40km of major North West Coastal Highway (NWCH) including replacement of all under road culverts (due for completion December 2015)


Marble Bar Road Upgrade

Construct Only project - Reconstruction of road alignment, construction of new floodways and major drainage structures (completed June 2015)


Bussell Highway - Vasse Bypass

Construct Only project - Works includes all earthworks, pavements, seal work, bridge works and precast concrete underpass (due for completion February 2016)


8 MACA LIMITED ANNUAL REPORT 2015


MANAGING DIRECTOR'S REVIEW OF OPERATIONS


HEALTH, SAFETY AND ENVIRONMENT

MACA manages risk through the continual improvement,

People and safety performance

measurement and review of its systems and processes targeted specifically to prevent incidents. Quarterly audits are conducted across all projects with compliance measured against our certified Occupational Health and Safety Management Systems (AS/NZS: 4801) and Environmental Management Systems (ISO: 14001) to provide a safe workplace for its employees, contractors and visitors.

We acknowledge that the successful leadership in safety is critical to our business success and it is an enduring philosophy of ours that each employee return home every day safe and in the same way they began the day.

Focus on the development of new safety standard initiatives continues as one of our key business drivers with the goal of 'Zero Harm' underpinning every task we perform in the

Workforce - MACA Mining

Frequency rate of injuries per million hours worked

15


10


5


Jun-12

Dec-12

Jun-13

0



LTIFR

Workforce - MACA Civil


Dec-13

Jun-14

LTIFR (Industry)

Workforce - Brazil


2,000

1,800

Number of Personnel

1,600

1,400

1,200

1,000

800

600

400

200

Dec-14

Jun-15

0

workplace.

The continued focus on health and safety through our audit and compliance processes has seen our Lost Time Injury Frequency Rate (LTIFR) at zero for FY15 and thus remain below industry benchmarks, a good outcome considering the business growth in the first half and closure of some projects in the second half.

Industry source - Department of Mines and Petroleum (Resources Safety)


During the third quarter MACA Mining and MACA Civil both completed a re-certification of all systems within OHSMS (AS/NZS: 4801) and EMS (ISO: 14001) and MACA

Civil gained accreditation to the Federal Building and Construction OHS Scheme. This safety accreditation facilitates access to tender opportunities listed as federally funded projects.


MACA LIMITED ANNUAL REPORT 2015 9

MANAGING DIRECTOR'S REVIEW OF OPERATIONS



QUALITY MANAGEMENT

MACA Mining and MACA Civil completed re-certification for its Quality Management Systems (ISO: 9001) during the year and continues to develop their systems to support growth through continual measurement and review.


HUMAN RESOURCES

As at 30 June 2015 the Group had a total workforce of approximately 1,050 employees and subcontractors.

Imperative to our business success is the skills and experience of our people and their ability to work in a safe and productive manner. The labour market has eased allowing the Group an opportunity to attract new talent whilst building on its retention strategies.

MACA maintains a proactive approach to diversity through the monitoring of employment outcomes particularly

for female and indigenous groups. Policies have been established to meet our commitment to embrace diversity and recruitment and retention strategies have been established to fulfil this goal.

MACA continues to develop and improve a number of programs to enhance the performance and satisfaction of our workforce even when the industry in general has retracted. Internal and external leadership programs, scholarships for mining and civil engineers, and the in- house development of our key people ensures the skills and capability of our workforce is enabled to meet future business challenges.

MACA's apprenticeship scheme also continued to grow in the 2015 financial year with an intake of critical trade first year and mature age apprentices. Pleasingly MACA's engineering scholarship program has seen the first

participants continue through the organization to become Project Managers. MACA's key strength resides in the ability to retain the business culture that has delivered successful outcomes and the business recognises the importance of retaining these values as the company continues to grow.


COMMUNITY

MACA, with the support of its employees, suppliers and stakeholders maintains a strong link to the regions and communities in which it operates. The Company actively contributes and supports many regional and local groups across a diverse range of activities as part of our focus to be a solid community participant.

MACA has increased its sponsorship level to Title Sponsor for the 'Ride to Conquer Cancer (RTCC)' which directly supports the Harry Perkins Institute of Medical Research (Perkins). The support of 'Perkins' and the ride will continue in the current year with MACA workforce and stakeholders united in its efforts to raise in excess of $1.5m with 300 participating riders for this year's event.

During the year MACA continued its long-term association with the Princess Margaret Hospital Foundation, through the provision of funds for medical equipment. The Company is also involved in various forms of sponsorship with the West Australian Symphony Orchestra and the Hawaiian Ride for Youth.




Chris Tuckwell

Managing Director, CEO



10 MACA LIMITED ANNUAL REPORT 2015

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