Full Year Results to 30 June 2017 23 August 2017 Overview

  • Strong safety and financial performance.

  • Sales revenue of $776.3 million, up 4.5% on prior corresponding period.

  • $1.6 billion in new projects and contract renewals secured.

  • Profit from continuing operations of $31.4 million, up 53.3% on prior corresponding period.

  • Reported profit of $31.2 million, basic earnings per share

    10.0 cents per share.

  • Fully franked final dividend of 2.0 cents per share declared, bringing total dividends for the year to 4.0 cents per share.

  • Strong cash flow generation allowing substantial investment in growth to be cash funded.

  • Strong balance sheet with cash reserves of $166.7 million and improved gearing of 26.0%.

  • Ausdrill is targeting 30-40% profit growth in FY18.

A$million

FY17

% change

Sales revenue

776.3

4.5% ▲

EBITDA

136.8

9.4% ▲

EBIT

74.4

30.3% ▲

Profit before tax

45.3

80.6% ▲

Profit from continuing operations

31.4

53.3% ▲

Loss from discontinued operations

(0.2)

Reported profit after tax

31.2

Operating cash flow

94.6

4.0% ▲

FY17 Performance summary

African Mining Services

  • Revenue and margin growth story continues with significant contract wins and extensions.

  • Strong operational performance at Syama and Siguiri, challenges at Edikan being addressed.

  • Project pipeline expected to deliver growth beyond FY18.

African Underground Mining Services

  • Significant revenue growth with commencement of Subika project and contract expansions at Geita and Yaramoko. Exceptional tender pipeline expected to provide growth beyond FY18.

  • Outstanding operational performance. Margins remain strong.

Drilling Services Australia

  • Key contract extensions for drilling services at the Super Pit and exploration drilling at St Ives and Granny Smith.

  • Loss-making Telfer contract exited February 2017.

  • Competitive market conditions persist.

Equipment Services & Supplies

  • Profit margin improvement driven by increase in rental revenue and cost-out initiatives.

  • Key focus of the business was the mobilisation of equipment and inventory to new African projects.

Other Businesses

  • EDA assets warehoused, major cost savings achieved.

  • Non-core businesses delivered increased profit.

Business

Improvement

  • Shared service model rolled out - annualised savings of $2.0 million expected in FY18.

Project

Client

Services Provided

Location

Term

Yanfolila Gold

Hummingbird Resources

AMS - Open pit mining

Mali

3 years

Boungou Gold (was Natougou)

SEMAFO

AMS - Open pit mining

Burkina Faso

5 years

Mako Gold

Toro Gold

AMS - Open pit mining

Senegal

6 years

Edikan - Esuajah North

Perseus

AMS - Open pit mining

Ghana

3.5 years

Bissa Gold

Nordgold

AMS - Equipment hire

Burkina Faso

1 year

Subika - Ahafo complex

Newmont Ghana Gold

AUMS - Underground mining

Ghana

5 years

St Ives and Granny Smith

Gold Fields

DSA - Exploration drilling

Australia

3 years

Super Pit

KCGM

DSA - Production drilling, grade control

Australia

5 years

Blair Athol Coal

Link Mining Services

DSA - Drill and blast

Australia

5 years

Several mine sites

Peabody Australia

ESS - Equipment hire

Australia

2 years

Ausdrill Limited published this content on 23 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 August 2017 09:57:02 UTC.

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