Macmahon returns to profitability due to success of new projects

Image: Macmahon Holdings

Contractor Macmahon has released its first half report for 2018, posting $270m in revenue ending December 2017, up $168.3m from the previous period. This has resulted in a return to profitability for the company,  which posted net profits of $8.2m after tax.

Macmahon embarked on a number of new projects in 2017 that helped to contribute to these positive results, including the Byerwen coal project in Queensland and Mt Morgans gold mine in Western Australia, for which Macmahon was awarded a mining contract in December 2017. In the same month, Machmahon entered phase 1 of its Long Island mining strategy

Meanwhile, the company’s flagship Telfer gold contract in the Pilbara, WA, which was launched February 2016, is looking to break even for the 2018 financial year.

Internationally, Macmahon commenced work at Indonesia’s Batu Hijau copper-gold mine, which is now close to phase two — Newmont Mining previously owned a 48.5 per cent stake in the mine’s operator PT Newmont Nusa Tenggara (PTNNT), which it divested last July.

In October 2017, Macmahon was selected by PT Merdeka Copper-Gold to develop its Tujuh Bukit poryphory project, also in Indonesia.

“The last six months have been a busy time for Macmahon,” said company chief executive officer Michael Finnegan. “In Australia, we continued to perform well at Tropicana, where we have a close  and productive relationship with our client [AngloGold Ashanti Australia].

“We are fortunate in that we have contracts secured that underpin our earning for at least five years, which means that we can be more selective with the opportunities we pursue.”

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