https://www.engineeringnews.co.za
Coal|Contractor|Efficiency|Financial|Mining|PROJECT|Services|Equipment
Coal|Contractor|Efficiency|Financial|Mining|PROJECT|Services|Equipment
coal|contractor|efficiency|financial|mining|project|services|equipment

Macmahon advances capital-light strategy with sale of mobile equipment

Macmahon MD and CEO Michael Finnegan

Macmahon MD and CEO Michael Finnegan

12th April 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Mining services company Macmahon has taken a strategic step towards enhancing its return on average capital employed (ROACE) performance by agreeing to sell a substantial portion of its mobile equipment fleet at the Dawson South project, in Queensland.

The sale, conducted at market rates that exceeded or matched book value, will result in a cash inflow of A$44-million.

Macmahon, currently serving as the mining contractor at the Dawson South project within the Dawson opencut steelmaking coal mine, has been progressively implementing its capital-light strategy to improve operational efficiency and financial performance.

“I’m pleased we have been able to sell a substantial portion of the Dawson South fleet and progress Macmahon’s capital-light strategy to improve ROACE performance – where our target was recently increased from 15% to 20%,” MD and CEO Michael Finnegan said.

Macmahon’s existing contract at Dawson South is due to end on June 30.

Meanwhile, Macmahon affirmed that it expects to deliver full-year revenue of between A$1.8-billion and A$1.9-billion and underlying earnings before interest, taxes and amortisation of between A$130-million and A$140-million.  

Edited by Creamer Media Reporter

Comments

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/07/2024)
12th July 2024 By: Martin Creamer
Magazine image
Magazine round up | 12 July 2024
12th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.349 0.41s - 270pq - 2rq
Subscribe Now