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.
