Lincoln Crowne & Company Weekly Update on developments in the Australian Engineering & Mining Services Sectors. A number of private transactions during the week and rebalancing of the Australian ASX Indexes took place

1. WEEKLY
Australian Engineering & Mining Services
7 March 2014
WWW.LCC.ASIA
M&A Rumour and Activity
The Australian market was up over the week with the S&P / ASX100 ending at 4530 points. The Australian dollar was up, ending the
week at US90.8 cents, as Australia posted a large increase in trade surplus which resulted in its highest positive trade balance since
August 2011.
S&P Dow Jones Indices conducted its quarterly rebalance and announced it will add: RCR to its S&P/All Australia 200 Index, WDS, SWL
to its All Ordinaries Index and remove UGL from S&P/ASX 100 Index, ASL, DCG from S&P/ASX 200 Index, SDM from S&P/ASX 300
Index, COF, GCS, GNG, MCE and MYE from All Ordinaries Index, effective after the close of trading on March 21, 2014.
Leighton Holdings (ASX:LEI) was given an ASX ‘speeding ticket’ after its stock price was up 16% in three days. It has since announced
that major shareholder, Hochtief, intends to make $22.14 cash per share proportional offer under which Hochtief would, if all Leighton’s
shareholders accept, increases its stake in Leighton from 58.77% to 74.23%.
Fugro NV (ENXTAM:FUR) acquired a provider of mapping services and solutions for electricity distribution sector, Roames Asset
Services Pty Ltd. Roames Asset Services has reported revenues of €7 million uses airborne sensors to generate accurate 3D models of
electric power transmission networks and surrounding vegetation.
Fabricor Industries (www.fabricorindustries.com), an engineering, fabrication and construction company based in Western Australia,
acquired FWF Welding Services. Fabricor Industries is planning to expand FWF’s operation to include structural, mechanical and piping
engineering and design, as well electrical, instrumentation and control systems engineering and design.
Savcor Group Limited (ASX:SAV) announced it has entered into a conditional Share Purchase Deed with Soletanche Freyssinet, a
provider of civil engineering and construction services, for the sale of its wholly owned subsidiary, ART Entities. If the proposed sale is
completed, Savcor will be paid upfront consideration of $13.5 million and will be eligible for a conditional earn-out payments of up to $14
million subject to the financial performance of ART Entities.
News Headlines and Key Sector Developments
Ticker News/Event
Ticker News/Event
ANG
Awarded a three year contract for the supply of cranes and spot
services at BHP’s Spence mine in Northern Chile, valued at
approximately $10M
MYE
Announced Colin Bloomfield has been appointed as a NonExecutive Director
BSA
Announced half year earnings with EBITDA of -$13.8M. NPAT
resulted in a net loss of $23.4M
NOD
Announced half year earnings with EBITDA of -$0.5M, an
improvement of 60.9%. NPAT resulted in a net loss of $1.2M,
contrast to previous corresponding net loss of $7.4M
DCG
Announced the appointment of Mr Craig Amos as Chief Financial
Officer
SDM
Announced it has secured a three year extension of its
operating contract at the Red Mountain Joint Venture in the
Bowen Basin, Queensland, valued at approximately $90M
DOW
Awarded a contract by Tecnicas Reunidas S.A. for work on the
Technical Ammonium Nitrate Plant project located near Karratha
in Western Australia, valued at approximately $70M
WOR
Has been appointed to provide detailed engineering and
procurement services for Phase 1 of the North West Redwater
Partnership’s greenfield bitumen refinery project in Canada,
valued at approximately $130M
MIN
Announced it has reached an agreement with Consolidated
Minerals Pty Ltd with respect to a legal dispute between the
parties. The settlement agreement includes a cash payment of
$44M by CML to MRL, a transfer of ownership of the Coobina
tenements to MRL and monetise MRL's rights to manganese
tailings at CML’s Woodie Woodie operations
Source: Capital IQ, Thomson Reuters, LCC research
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from
sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such
information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation
to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be,
nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for
any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 1
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2. WEEKLY
Australian Engineering & Mining Services
7 March 2014
Ticker Company Name
AJL
ASL
AAX
ANG
BLY
BKN
BYL
BOL
BSA
CDD
CGH
COF
DCG
DSB
DOW
EAL
EGN
EHL
EVZ
FWD
FGE
GCS
GNG
HDX
IMD
LEI
LCM
LYL
MLD
MAH
MYE
MIN
MCE
MND
MRM
NOD
NWH
OTC
PRG
RCR
RQL
SND
SDM
SSM
SWL
SXE
STS
SWK
TPP
TSE
UGL
VMG
WDS
WOR
WTP
AJ Lucas Group Limited
Ausdrill Limited
Ausenco Limited
Austin Engineering Limited
Boart Longyear Limited
Bradken Limited
Brierty Limited
Boom Logistics Limited
BSA Limited
Cardno Limited
Calibre Group Limited
Coffey International Limited
Decmil Group Limited
DeltaSBD Limited
Downer EDI Limited
E&A Limited
Engenco Limited
Emeco Holdings Limited
EVZ Limited
Fleetwood Corporation Limited
Forge Group Limited
Global Construction Services Limited
GR Engineering Services Limited
Hughes Drilling Pty Limited
Imdex Limited
Leighton Holdings Limited
Logicamms Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
Mineral Resources Limited
Matrix Composites & Engineering
Monadelphous Group Limited
Mermaid Marine Australia Limited
Nomad Building Solutions Limited
NRW Holdings Limited
OTOC Limited
Programmed Maintenance Services
RCR Tomlinson Limited
Resource Equipment Limited
Saunders International Limited
Sedgman Limited
Service Stream Limited
Seymour Whyte Limited
Southern Cross Electrical Engineering
Structural Systems Limited
Swick Mining Services Limited
Tempo Australia Limited
Transfield Services Limited
UGL Limited
VDM Group Limited
WDS Limited
WorleyParsons Limited
Watpac Limited
WWW.LCC.ASIA
Market Cap Open Price Close Price Week High Week Low
(AUD Million)
(AUD)
(AUD)
(AUD)
(AUD)
245
289
100
199
133
765
43
81
29
921
153
64
369
13
2,248
83
47
150
6
156
79
89
101
52
126
6,988
70
135
462
157
44
2,362
111
1,615
549
15
326
25
344
448
30
73
116
71
140
128
39
42
14
441
1,075
24
164
4,178
175
0.95
0.96
0.61
2.35
0.31
4.21
0.40
0.17
0.12
6.28
0.51
0.23
2.25
0.25
4.98
0.65
0.16
0.24
0.03
2.65
0.92
0.46
0.69
0.27
0.58
18.20
0.91
3.70
2.72
0.12
0.50
12.04
1.22
17.48
2.45
0.05
1.26
0.13
2.98
3.15
0.14
0.93
0.53
0.25
1.63
0.88
0.61
0.26
0.08
0.89
6.37
0.01
1.16
16.44
0.97
0.92
0.93
0.60
2.36
0.29
4.52
0.40
0.17
0.13
6.37
0.49
0.25
2.19
0.27
5.17
0.67
0.15
0.26
0.03
2.58
0.92
0.52
0.67
0.25
0.60
20.72
1.01
3.47
2.62
0.13
0.58
12.68
1.17
17.50
2.36
0.05
1.17
0.13
2.91
3.27
0.12
0.93
0.52
0.25
1.60
0.80
0.62
0.26
0.09
0.86
6.55
0.01
1.13
16.93
0.95
1.00
1.00
0.62
2.54
0.31
4.54
0.40
0.18
0.13
6.45
0.51
0.25
2.25
0.34
5.19
0.67
0.15
0.26
0.03
2.66
0.92
0.54
0.71
0.27
0.65
21.05
1.04
3.70
2.72
0.13
0.61
12.74
1.24
18.12
2.48
0.06
1.29
0.13
3.00
3.33
0.14
0.93
0.55
0.25
1.63
0.90
0.63
0.26
0.09
0.94
6.57
0.01
1.18
17.02
0.97
0.88
0.88
0.57
2.25
0.28
4.08
0.39
0.16
0.10
6.20
0.48
0.23
2.07
0.34
4.90
0.63
0.15
0.23
0.03
2.58
0.92
0.45
0.66
0.25
0.58
17.62
0.88
3.19
2.41
0.12
0.48
11.92
1.17
17.00
2.26
0.05
1.14
0.12
2.81
3.15
0.12
0.93
0.52
0.24
1.57
0.75
0.57
0.25
0.08
0.85
6.36
0.01
1.02
16.22
0.94
Weekly Volume
% Change
▼
▼
▼
▲
▼
▲
—
▲
▲
▲
▼
▲
▼
▲
▲
▲
▼
▲
▼
▼
—
▲
▼
▼
▲
▲
▲
▼
▼
▲
▲
▲
▼
▲
▼
—
▼
▲
▼
▲
▼
—
▼
▲
▼
▼
▲
—
▲
▼
▲
▼
▼
▲
▼
-3.7%
-3.1%
-1.6%
0.4%
-4.9%
7.4%
0.0%
3.0%
8.7%
1.4%
-4.9%
8.7%
-2.7%
8.0%
3.8%
3.1%
-3.2%
7.3%
-10.0%
-2.6%
0.0%
13.0%
-2.9%
-5.7%
4.3%
13.8%
10.4%
-6.2%
-3.7%
4.2%
16.0%
5.3%
-4.1%
0.1%
-3.7%
0.0%
-7.1%
4.0%
-2.3%
3.8%
-11.1%
0.0%
-1.9%
2.0%
-1.8%
-9.1%
1.6%
0.0%
13.9%
-3.4%
2.8%
-11.1%
-2.6%
3.0%
-1.6%
Trend
EV/
EV/
EBITDA
EBIT
NM
NM
3.4x
7.1x
NM
NM
9.4x 14.1x
5.9x
NM
7.7x 12.7x
1.9x
3.5x
3.9x
9.4x
NM
NM
8.1x 10.0x
3.7x
8.4x
10.1x 25.1x
4.2x
4.7x
3.9x 11.5x
4.0x
7.1x
7.0x
8.3x
151.3x
NM
5.2x 187.4x
27.8x
NM
6.0x 11.6x
0.1x
0.1x
3.9x
6.3x
4.2x
4.5x
6.0x
8.4x
7.1x 15.9x
4.0x
8.0x
6.3x
7.3x
4.2x
4.6x
3.0x
4.6x
1.5x
3.4x
3.0x
5.9x
4.5x
6.9x
8.1x 34.7x
6.0x
6.8x
5.5x
8.7x
1.1x
1.5x
2.8x
4.4x
1.9x
2.5x
6.2x
7.5x
8.1x 10.4x
4.9x
NM
6.9x
7.5x
11.9x
NM
NM
NM
5.7x
6.3x
3.0x
3.8x
2.2x
8.1x
2.3x
6.2x
NM
NM
5.8x 11.3x
13.1x 21.1x
NM
NM
3.5x
6.4x
9.7x 10.9x
1.8x
8.5x
So urce: Capital IQ, LCC research
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from
sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such
information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation
to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be,
nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for
any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 2
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