Emeco Holdings Limited
Emeco Holdings Limited
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Australian nickel specialist Mincor Resources is promising an exciting ride for Western Australia’s renowned Kambalda nickel province following board approval to end a five-year shutdown and redevelopment of its Kambalda Nickel Operations.
West Australian miner Mincor Resources has given the go-ahead for the $A68M redevelopment of its 100%-owned Kambalda Nickel Operations in the state’s renowned nickel district, aiming for first nickel-in-concentrate production for late in the March 2022 quarter.
Mincor has directed underground mining contractor Pit N Portal to commence mobilisation within 60 days to start full-scale construction and development in the Dec qtr.
Strong growth in the Australian iron ore and gold mining sectors alongside its mainstay of coal production have enabled equipment supplier Emeco lift operating NPAT to $A87.5M in the June year (FY20), from $63.1M a year earlier.
The combination of extensive local experience and the resources of a new national owner has proved crucial in Mincor Resources’ decision to award the underground mining contract for its Kambalda nickel project to Emeco unit Pit N Portal.
With the award of the major underground mining contract at Mincor Resources’ Kambalda nickel operations in Western Australia to its recently acquired Pit N Portal business, diversified equipment supplier Emeco is now forecasting operating EBITDA of $244-247M for the year to June 2020.
West Australian nickel miner Mincor Resources has moved closer to the recommencement of high-grade production at its 100%-owned Kambalda project with the award of the underground mining contract to specialist contractor Pit N Portal.
The Kalgoorlie-based contractor, recently acquired by Emeco, will conduct underground operations at the new Cassini mine for 5 years and the brownfields Durkin North and Long nickel mines for 3 years with a 2-year option.
Strong demand in the metallurgical coal sector and improving market conditions in Western Australia helped equipment renter Emeco lift Dec half-year (H1FY20) NPAT to $A42.1M, from $31.7M a year earlier, on operating revenue of $246.5M (H1FY19: $224.3M).
Operating EBITDA also rose to $119.1M ($102.8M) and EBIT to $67.5M ($60M). Operating cashflow reached $75.1M ($63.2M) and free cashflow $23.3M ($12.3M).
Australian heavy equipment renter Emeco is expanding into a new market with a $A72M deal to acquire 100% of hard rock underground mining equipment and services supplier Pit N Portal.
Established in 2002, Pit N Portal operates Australia’s largest underground equipment rental fleet from depots in Perth and Kalgoorlie as well as customer sites across the country.
Heavy equipment renter Emeco is looking for more earnings growth and debt reduction after trebling its operating NPAT to $A63.1M for the June year (FY19), from $20.1M a year earlier.
The continuing turnaround since its 2017 restructure saw the Australian-based company lift operating revenue to $464.5M (FY18: $381M), generating operating EBITDA of $214M ($153M).
Operating free cash-flow rose to $90.1M ($77.7M), enabling it to repay $33.8M of its 9.25% senior notes and supporting $85.1M investment in strategic growth assets.