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Mackay-based mining contractor Mastermyne has posted a record year for revenue despite the impact of COVID-19 and softer coal prices.

Metallurgical coal projects account for about 95 per cent of its order book and additional development units were brought on for contracts at
at Aquila and Moranbah North mine.

Revenue hit a record $292.7 million – a 23 per cent increase on the previous year, with $28.6 million reported EBITDA (compared to $21 million in the previous year).

“This result demonstrates again the quality of our business and the integral role we play in our client’s operations as they continue to supply high quality product into the global export market,” managing director Tony Caruso said.

“Towards the back end of the financial year we did see some impact from the virus, not in the day-to-day operations, but in the softening of coal prices as demand for coal decreased and the global steel industry dealt with softening demand for steel.

“As we move into the new financial year coal prices remain under pressure
however all indications are that as global economies move to stimulate and accelerate economic recoveries, metallurgical coal prices will benefit strongly.”

Mr Caruso said the firm was well positioned, with an order book of around $240 million going into his financial year.

“The Wilson Mining acquisition has been an excellent example of where we have added complimentary services to the existing Mastermyne suite of services and through leveraging the Mastermyne relationships and networks we have been able to win back and grow new market share,” he said.

“Through the year we have successfully completed projects in the adjacent underground metalliferous sector which is underpinning a strategic and calculated expansion of our services into this adjacent market.

“As we grow this segment of our business we will invest in people and equipment and consider strategic acquisitions to support this area of growth. In parallel to this expansion we are continuing to work on our Whole of Mine projects and we have a number of these projects now working their way through the pipeline.”

The company had plans in place to grow and expand the business, and was financially positioned to deliver on this, he said.

He also highlighted the group’s safety credentials.

“This year the mining sector has unfortunately again seen a number of significant events across underground mines resulting in injuries and damage,” Mr Caruso said.

“Our safety performance continues to counter this trend of major incidents and we are pleased that many of our sites have again completed their work without incident over the full year.

“We will continue to focus heavily on our safety culture and invest in training and our systems to ensure that everyone who comes to work at Mastermyne goes home safely at the completion of every shift.”

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