https://www.engineeringnews.co.za

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 Contract Publishing Editor

     

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

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Monitor Distributors
Monitor Distributors

We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...

VISIT SHOWROOM 
The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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







301

sq:0.274 0.349s - 220pq - 2rq
Subscribe Now