Lincoln Crowne & Company Weekly Engineering & Contractors Report Edition 115 for the Australian stock market dated 19th June 2015

1. Report No. 115, 19 June 2015 WWW.LCC.ASIA
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.
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WEEKLYAustralianEngineering&MiningServices
M&A Rumour and Activity
The Australian market finished the week 1.13% higher with the S&P / ASX100 ending at 4665 points, with a broad-based recovery rally on Friday due to
strong gains on Wall Street and higher commodity prices, despite lingering uncertainty over the Greek debt crisis. The Australian dollar was 0.09%
lower for the week to end at US77.52 cents, propped up by bets that the US interest rate hike will occur later than anticipated and assurances from the
US Federal Reserve that the US interest rates will not be raised too quickly (comments which led to a weaker US dollar), despite increasing bets on
another interest rate cut from the Reserve Bank of Australia.
The Australian Financial Review reported that CarVal Investors, a fund manager with a focus in distressed debt, had struck a deal to buy a local
secured lender out of Pilbara-focused Viento Group through a voluntary administration process. The new investor will inject fresh equity and attempt to
keep Viento’s clients on board with a turnaround story. The ASX-listed Viento Group Limited (ASX:VIE) entered into voluntary administration in April
2015, in the wake of $14.5 million loss and the breach of banking covenants.
The AFR also said that many banks are becoming increasingly nervous in the sector, leading to opportunities for special situation/distressed debt funds
such as CarVal Investors to enter the mining services sector. Distressed debt funds are said to be watching US high yield debt in the likes of Barminco
Limited and Ausdrill Limited (ASX:ASL).
Shares of both Skilled Group Limited (ASX:SKE) and Programmed Maintenance Services Limited (ASX:PRG) had been placed into a trading halt
until 24 June 2015 pending the announcement of a potential transaction. While no details on the potential transaction were provided when the trading
halt was announced, SKE had recently entered into active discussions with PRG on a potential merger in May 2015.
Pacific Oilfield Pte. Ltd. agreed to acquire an additional 70% stake in Spindex Energy Services Pte. Ltd. from Spindex Industries Limited (SGX:564)
for SGD1.8 million ($1 million) on 12 June 2015. Spindex Energy Services Pte. Ltd. provides engineering solutions for the oilfield equipment and drilling
industries.
Zhaojin Mining Industry Co Ltd (SEHK:1818) won an auction to acquire 60% stake in Beijing Dongfang Yanjing Mining Engineering Design
Company Limited (“Beijing Dongfang”) from Shandong Zhaojin Group Co. Ltd. for RMB10.1 million ($2.11 million) in cash on 10 June 2015. Beijing
Dongfang provides engineering design and consultation, technology development and technology consultation.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
AJL The Lancashire County Council Planning Officer provided a positive
recommendation on the Preston New Road application, which is an
important step for the development of Cuadrilla’s assets. The Councillors
will make a decision at the end of June
LCM Forager Funds Management Pty Ltd became a substantial shareholder
with 6.79% stake
ANG Awarded (i) a 2-year maintenance contract for the Las Bambas mine site
in Peru and (ii) a supply contract for tray bodies for a large mining
company in Australia’s west coast
MAH Announced that its current banking review period has been extended to
30 June 2015 to allow the banks to work through their internal approval
process
BKN Announced the retirement of CEO Brian Hodges. The Board will be
conducting a search process for a new CEO
MAH Advised that it expects to impair the carrying value of equipment and
inventory assets at a pre-tax charge of $95m-$125m for its FY15 results
(which if further to the $130m impairment recorded in the 1H15 results)
CIM Commenced a tender offer to buy back up to $500m of its 5.95% senior
notes due 2022
MND Lodged a counterclaim ($200m) in response to a claim ($130m) by
Wiggins Island Coal Export Terminal Pty Ltd filed against MMM, a JV
50%-owned by MND
HDX Signed a 3-year agreement (with 1 year extension option) to provide
overburden drilling services to three mines owned and operated by the
Yancoal Group
WDS Updated its earnings guidance for FY15, with a profit downgrade of
c.$2m from $11-13m loss to $14-15m loss. The downgrade is primarily
due to the slower-than-expected ramp up for a short term contract
 Contract Wins Source: Capital IQ, LCC research
 Contract Losses

2. Report No. 115, 19 June 2015 WWW.LCC.ASIA
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 / 2
WEEKLYAustralianEngineering&MiningServices
Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker Company Name (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL AJ Lucas Group Limited 100 0.42 0.38 0.43 0.38 ▼ -10.7% 14.0x NM
ASL Ausdrill Limited 139 0.43 0.45 0.45 0.41 ▲ 3.5% 3.7x 10.5x
AAX Ausenco Limited 39 0.23 0.24 0.24 0.22 ▲ 2.2% NM NM
ANG Austin Engineering Limited 57 0.67 0.68 0.69 0.66 ▲ 1.5% 17.3x NM
BLY Boart Longyear Limited 130 0.16 0.14 0.16 0.14 ▼ -9.7% 39.4x NM
BKN Bradken Limited 378 2.35 2.21 2.35 2.15 ▼ -6.0% 75.0x NM
BYL Brierty Limited 44 0.35 0.35 0.35 0.33 — 0.0% 3.4x 5.3x
BOL Boom Logistics Limited 56 0.12 0.12 0.12 0.12 — 0.0% 4.8x 50.4x
BSA BSA Limited 72 0.17 0.17 0.18 0.17 — 0.0% 5.9x 18.0x
CDD Cardno Limited 498 2.89 3.02 3.07 2.89 ▲ 4.5% 6.2x 7.9x
CGH Calibre Group Limited 65 0.21 0.19 0.21 0.18 ▼ -11.9% 1.5x 3.4x
CIM CIMIC Group Limited 7,051 20.75 20.83 20.84 20.05 ▲ 0.4% 13.7x 66.2x
COF Coffey International Limited 36 0.16 0.14 0.15 0.14 ▼ -9.7% 5.0x 8.0x
DCG Decmil Group Limited 217 1.18 1.30 1.30 1.18 ▲ 10.2% 2.1x 2.3x
DSB DeltaSBD Limited 4 0.08 0.08 0.08 0.07 ▼ -6.3% 26.7x NM
DOW Downer EDI Limited 2,189 5.00 5.06 5.14 4.99 ▲ 1.2% 4.4x 7.5x
EAL E&A Limited 23 0.16 0.17 0.18 0.16 ▲ 6.3% 5.7x 7.4x
EGN Engenco Limited 31 0.10 0.10 0.11 0.10 — 0.0% 4.8x NM
EHL Emeco Holdings Limited 55 0.10 0.10 0.10 0.10 ▼ -2.0% 8.7x NM
EVZ EVZ Limited 3 0.01 0.02 0.02 0.01 ▲ 7.1% 39.4x NM
FWD Fleetwood Corporation Limited 92 1.57 1.51 1.58 1.44 ▼ -3.5% 5.2x 14.2x
GCS Global Construction Services Limited 102 0.52 0.51 0.52 0.49 ▼ -1.9% 6.2x 11.7x
GNG GR Engineering Services Limited 141 0.91 0.94 0.94 0.86 ▲ 3.9% 6.1x 7.6x
HDX Hughes Drilling Pty Limited 37 0.20 0.18 0.18 0.18 ▼ -10.3% 3.4x 6.3x
IMD Imdex Limited 63 0.29 0.29 0.30 0.28 ▲ 1.8% NM NM
LCM Logicamms Limited 51 0.74 0.75 0.75 0.73 ▲ 1.4% 4.5x 5.9x
LYL Lycopodium Limited 55 1.40 1.39 1.40 1.34 ▼ -1.1% 16.3x NM
MLD MACA Limited 186 0.76 0.80 0.82 0.76 ▲ 6.0% 1.2x 1.9x
MAH MacMahon Holdings Limited 61 0.05 0.05 0.05 0.05 — 0.0% 1.0x 4.3x
MYE Mastermyne Limited 18 0.20 0.20 0.20 0.18 — 0.0% 2.2x 7.3x
MIN Mineral Resources Limited 1,407 7.31 7.50 7.58 7.14 ▲ 2.6% 5.0x 11.4x
MCE Matrix Composites & Engineering 47 0.53 0.50 0.56 0.50 ▼ -5.7% 1.2x 3.0x
MND Monadelphous Group Limited 996 10.68 10.69 10.86 10.47 ▲ 0.1% 4.3x 5.0x
MRM MMA Offshore Limited 225 0.58 0.61 0.62 0.58 ▲ 4.3% 2.6x 4.6x
NOD Nomad Building Solutions Limited 33 0.08 0.07 0.08 0.07 ▼ -2.6% NM NM
NWH NRWHoldings Limited 54 0.19 0.20 0.21 0.19 ▲ 2.6% 1.5x 12.8x
OTC OTOC Limited 22 0.08 0.08 0.09 0.08 ▲ 5.1% 3.7x 9.5x
PRG Programmed Maintenance Services 364 3.01 3.07 3.15 2.98 ▲ 2.0% 6.7x 8.3x
RCR RCR Tomlinson Limited 272 1.91 1.97 2.01 1.88 ▲ 2.9% 4.4x 6.5x
SND Saunders International Limited 52 0.66 0.66 0.66 0.63 ▲ 0.8% 3.3x 3.5x
SDM Sedgman Limited 170 0.73 0.75 0.76 0.73 ▲ 2.7% 3.3x 6.2x
SKE SKILLED Group Limited 372 1.50 1.59 1.60 1.49 ▲ 6.0% 6.5x 7.8x
SSM Service Stream Limited 118 0.30 0.31 0.33 0.30 ▲ 1.7% 8.2x 10.2x
SWL Seymour Whyte Limited 103 1.16 1.18 1.19 1.10 ▲ 1.3% 4.2x 5.2x
SXE Southern Cross Electrical Engineering 45 0.29 0.29 0.29 0.29 ▼ -1.7% 0.8x 1.6x
STS SRG Limited 41 0.65 0.65 0.65 0.65 — 0.0% 2.4x 9.7x
SWK Swick Mining Services Limited 24 0.14 0.15 0.15 0.14 ▲ 3.6% 2.3x 9.4x
TPP Tempo Australia Limited 9 0.05 0.05 0.05 0.05 ▼ -2.0% NM NM
TTN Titan Energy Services Limited 7 0.10 0.08 0.10 0.08 ▼ -12.5% 1.5x 2.2x
TSE Transfield Services Limited 784 1.60 1.53 1.60 1.49 ▼ -4.4% 5.7x 8.7x
UGL UGL Limited 447 2.53 2.71 2.72 2.51 ▲ 7.1% NM NM
VMG VDM Group Limited 29 0.01 0.01 0.01 0.01 ▼ -14.3% NM NM
WDS WDS Limited 19 0.11 0.13 0.13 0.11 ▲ 18.2% 2.6x NM
WOR WorleyParsons Limited 2,641 10.18 10.67 10.76 10.12 ▲ 4.8% 6.8x 7.7x
WTP 152 0.83 0.81 0.83 0.80 ▼ -3.0% 0.7x 1.7x
Source: Capital IQ, LCC research
Watpac Limited