Maca : Half Yearly Report and Accounts (25 pages)

43efa916-eb14-4bb9-82f2-3488309c3826.pdf

MARKET‌‌‌‌‌‌‌‌

ANNOUNCEMENT

24th February 2016

Half Year Accounts and Results Discussion

45 Division St Welshpool WA 6106

PO 625 Welshpool DC WA 6986

P: [phone] | F: [phone] | E: [e-mail]

MACA Limited ('MACA') (ASX: MLD) is pleased to announce that it has delivered a half year profit result with a statutory net profit after tax to December 2015 of $12.4 million on revenue of $208.5 million. The board has resolved to pay an interim dividend of 4.0 cents per share reflecting the strong operating cash- flow generated over the period and continued solid balance sheet position. The dividend will be fully franked and will be payable on 23 March 2016 to eligible shareholders who are recorded on the Company's register as at the record date of 10 March 2016.

Results Summary

FY2016 Half Year results	31 December 2015	%	31 December 2014	%
Revenue	$m	208.5	319.7
EBITDA	$m	42.9	20.6	80.5	25.2
EBIT	$m	16.4	7.9	50.4	15.8
Net Profit Before Tax	$m	16.1	7.7	49.4	15.5
Net Profit After Tax (attributable to members)	$m	12.4	5.9	34.7	10.9
Earnings per share - basic	cps	5.3	15.7
Dividend per share (fully franked)	cps	4.0	7.0

Financial and Operational Highlights

• Revenue of $208.5 million

• EBITDA of $42.9 million

• Net profit after tax of $12.4 million

• Cash on hand at 31 Dec 2015 of $98.2 million

• Interim dividend of 4.0 cents per share fully franked (1H FY15 7.0cps)

• Contract wins include the Antas project in Brazil with Avanco Resources, the Deflector project for Doray Minerals, the Wodgina project for Atlas Iron and subsequent to year end the extension of Moolart Wells for Regis Resources

• Order book remains strong at $1.15 billion as at 31 December 15

• Revenue guidance for FY2016 approximately $420 million

• Strong financial position to pursue new contracts and potential acquisitions

About MACA: MACA Limited is a mining, crushing and civil contractor with major projects throughout Western Australia and Brazil in South America. Employing more than 1000 people, MACA offers a full range of surface mining and crushing services, and civil infrastructure services.

Results Discussion

Revenue for the 6 months period to 31 December 2015 was $208.5 million, down 35% on the previous corresponding period with an operating net profit after tax of $12.4 million. Cash generation was strong with operating cash flow being $30.6 million for the period.

The past six months has remained very challenging for mining companies. Subdued commodity prices and poor market sentiment towards financing the development of mining projects has created a difficult operating environment for mining services and civil construction contractors resulting in ongoing margin pressure across the sectors.

The results were further impacted by a poorly performing road project due to inclement weather causing time and cost overruns. This project has now been completed and led to MACA Civil incurring a loss of $3 million during the period. The results also include approximately $6 million of depreciation of equipment that has been idle during the half.

The company has remained focussed on ensuring the overall cost base of the business reflects the contracts in hand while providing flexibility to reallocate resources across projects. The recent strengthening of the gold price and the associated improving investor sentiment towards gold should provide gold companies with a wider range of financing options to progress the development of their projects. MACA has a strong track record in the gold sector and has been actively assisting gold companies in progressing the development of their projects. Operational activities have further rebalanced towards the gold sector with the contract wins with Doray and extension works for Regis and as a result of the decline in the iron ore activities of the company compared to previous years.

With net cash of $29.4 million as at 31 December 2015 and a strong working capital position, MACA remains well placed to secure further opportunities.

Outlook

Subsequent to the half year end MACA has been awarded an extension of 60 months duration for the Moolart Wells work for Regis Resources (refer ASX release 4 January 2016) and has also acquired a small mining and civil services company Alliance Contracting (refer ASX release 20 January 2016). As at 31 December the Work In Hand position remains strong at $1.15 billion and the strong balance sheet and working capital position means that MACA is well placed to win further contracts. Revenue guidance for FY2016 is approximately $420 million, slightly down from the previously advised $450 million primarily due to mine scheduling changes and an anticipated lower amount of civil work being won in the current market. Notwithstanding this, the tender pipeline remains increasingly positive for projects which may deliver revenue in FY17.

Our strategy is to continue to both;

• support our customers' objectives through solid operational performance, continuous improvement and our 'Can Do' attitude; and

• target organic growth opportunities and potential acquisitions which will deliver profitable returns

without compromising our safety and quality standards.

The Company believes it is well positioned to work through the difficult current market conditions and take advantage of new opportunities as they arise.

For further information please contact:

Chris Tuckwell Peter Gilford

Managing Director Company Secretary

MACA Limited MACA Limited

[phone] (08) 6242 2600

MACA Limited and its Controlled Entities

ABN 42 144 745 782

Half Year Financial Report and Appendix 4D 31 December 2015