Takeover offer for MLD by Thiess @ $1.025

MACA Limited today announces that it has entered into a Bid Implementation Deed ("BID") with Thiess Group Investments Pty Ltd under which Thiess has agreed to make an offer to MACA shareholders to acquire all of the issued shares in MACA by way of a conditional off-market takeover bid (“Offer”).

Offer overview Thiess has agreed to offer MACA shareholders consideration of A$1.025 cash per share for each MACA share they own pursuant to the Offer ("Offer Price"), which is conditional upon the fulfilment or waiver of certain conditions details of which are in this announcement.

Thiess will be entitled to reduce the Offer Price by the amount (if any) of any dividend (or other Rights, as defined in the attached Offer terms) attaching to MACA shares after today.

The MACA Board has not yet determined whether or when any such dividend will be declared or paid. Refer to the BID summary below for further information.

The Offer Price of A$1.025 per share represents: • a 28.1% premium to the last close price of MACA shares on the ASX on 25 July 2022, the trading day prior to this announcement; • a 42.2% premium to the MACA one month VWAP as at 25 July 2022; • a 37.4% premium to the MACA three month VWAP as at 25 July 2022; and • a 32.1% premium to the MACA twelve month VWAP as at 25 July 2022.

The Offer is an all cash offer and delivers a substantial premium to MACA shareholders.

The Offer has minimal conditions, which are included in Annexure A. The Directors of MACA recommend that MACA shareholders accept the Offer, in the absence of a superior proposal and subject to the Independent Expert (to be engaged by MACA to opine on the Offer) concluding, and continuing to conclude, that the Offer is fair and reasonable (or not fair but reasonable) to the MACA shareholders.

3 New contracts for MLD. 2 in WA, hopefully priced to account for staffing difficulties and cost increases.

MACA Limited announces three new civil contract awards with a total value of approximately $115 million:

Rio Tinto’s Western Range Project, which is expected to generate approximately $60 million in revenue. The delivery of the works will commence in the second half of 2022 for a duration of approximately 12 months.

Contract to build the eastern package of the Hall Road Upgrade by Major Road Projects Victoria (‘MRPV’), which is expected to generate approximately $40 million of revenue. Delivery of the works is expected to commence with the design component in mid-2022 and run through to 2024.

MACA has been awarded a further civil works package with Roy Hill Iron Ore Pty Ltd at the Roy Hill iron ore operation in the Pilbara.The package consists of supporting Roy Hill with the Sierra Hydraulic Structure works, and is expected to generate $16 million of revenue, with delivery of the works commencing July 2022 and expected to run through to the end of the calendar year.

"These awards are great examples of MACA’s deliberate pursuit of capital light earnings, improved revenue diversity and attractive delivery models."

Resignation of Managing Director and Appointment of Chief Executive Officer. Effective from 22 July 2022, MACA is pleased to announce that Mr David Greig will take on the role of Chief Executive Officer. 

Mr Greig is a highly experienced mining and resource sector executive and has been an employee of MACA since June 2016. He has previously held the roles of General Manager Business Development, Chief Operating Officer and most recently Chief Development Officer at MACA. Mr Greig holds a Bachelor of Commerce and has over 20 years of experience within roles in International Mining, Construction, Maintenance and Infrastructure industries, including six years at Emeco Holdings Limited. 

Guidance Update MACA expects earnings to be materially in line with guidance previously provided. This is based on unaudited management accounts and full year results are expected to be released to the market in the second half of August 2022. 

MACA sp had been going quite well but the market didn’t like the update of cost blowouts from an Interquip contract.

MACA’s Mining and Civil segments, which together represent over 90% of MACA’s annual revenue, continue to perform in line with expectations. As indicated at the half year, margins in these segments have seen modest improvement in the first three months of this half, although this improvement has been capped by the increased COVID-19 case numbers in Western Australia in March and April 2022 and the impacts of these on our business and workforce. These improvements however have been offset by a single underperforming contract in the MACA Interquip business (which is 60% owned by MACA).

MACA Interquip’s EPC fixed price contract to deliver the King of the Hills process plant has experienced cost overruns. This has primarily been due to the highly constrained construction labour market in the WA resources sector. Despite these challenges, the King of the Hills process plant remains on track to achieve Red 5’s targeted commissioning in the current June Quarter 2022.

Overall, MACA’s revenue remains in line with expectations and MACA reaffirms its previous FY22 revenue guidance of approximately $1.6 billion. Based on the information currently available, the Board anticipates FY22 EBITDA to be in the range of $189 - 191 million (FY21 reported EBITDA: $140.4 million), and NPAT to be in the range of $35 – 37 million (FY21 reported NPAT: $20.7 million).

Not huge contract but continues relationship with Hancock

MACA Limited (‘MACA’) (ASX:MLD) is pleased to announce the award of a mining services contract with Roy Hill Iron Ore Pty Ltd at the Roy Hill iron ore operation in the Pilbara.

The project consists of open pit mining services, including load and haul and drill and blast, and is expected to generate approximately $70 million in revenue for MACA over the 12 month term, commencing early 2022.

MACA CEO Mike Sutton said “This project will be undertaken utilising existing fleet, contributes to MACA’s secured mining work in hand for FY22 and FY23 and further secures our strong position in the Pilbara region.”