This ASX mining share just reported 97% earnings growth

The Maca Ltd (ASX: MLD) share price has dropped lower today by 2%, following the release of its results for the half year ended 31 December 2019.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Maca Ltd (ASX: MLD) share price has dropped 1.71% lower today following the release of its results for the half year ended 31 December 2019. However, it should be pointed out that this drop is less than that of the S&P/ASX 200 (INDEXASX: XJO), which has fallen 2.2% at the time of writing.

Maca is a mining and civil construction company that provides contract mining, civil earthworks, crushing and screening and material haulage solutions in Australia.

What did Maca report?

Maca delivered a half year net profit of $12.0 million for the first half of FY20, which was up by 48% on the prior corresponding period (pcp). Revenue came in at $364 million, which was up by 12% on pcp.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the company saw a dramatic increase of 97% to reach $54.4 million. This EBITDA result was consistent with its previously advised FY20 EBITDA guidance of between $104 and $110 million.

The company declared an interim dividend of 2.5 cents per share, payable on 19 March 2020.

Operational update

The company noted that contract mining operations during the half continued for a range of projects, including its contract for Regis Resources at the Duketon South and Duketon North operations, and for Ramelius Resources at the Mt Magnet operations.

Internationally, Maca noted that it has ceased operations for Avanco Resource, which is now fully owned by Oz Minerals Limited (ASX: OZL), at the Antas project in Brazil. The company continues to develop its Okvau mine for Emerald Resources in Cambodia, with Maca preparing to gear up for a commencement nearing the end of calendar year 2020.

Future developments and prospects

Maca commented that its activity pipeline within the mining sector remains strong and feels that it remains well placed to benefit from the consolidation that is currently underway within the contracting space.

The company anticipates that its civil and infrastructure divisions will deliver significant revenue growth during the second half of FY20.

The company reaffirmed its previous revenue guidance of $770 million and EBITDA guidance of between $104 million and $110 million for the full year. This guidance is supported by its recent mining services wins, further civil construction awards in Victoria, and by its work in hand, which is now sitting at $2.4 billion.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

two men smiling with a laptop in front of them, symbolising a rising share price.
Broker Notes

These ASX 200 shares could rise 25% to 60%

Analysts think these shares are top buys and could rise materially.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a sour note today.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors are sending these four ASX 200 stocks soaring this week. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

Bell Potter says this growing ASX 200 stock can rise over 40%

Big returns could be on the cards for buyers of this stock.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Share Market News

Which delivered superior returns in FY25: CSL, A2 Milk, or Telstra shares?

We review the share price growth and dividend income delivered to investors in FY25.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why IGO, Johns Lyng, Lynas, and Web Travel shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Imricor, Ora Banda, Ventia, and Vulcan shares are dropping today

These shares are ending the week in the red. But why?

Read more »