Lincoln Crowne & Company weekly update on deal and valuation activity in the Australian Engineering & Mining Services Sector for the week ended 10th October 2014

1. 10 October 2014 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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WEEKLY
Australian Engineering & Mining Services
M&A Rumour and Activity
The Australian market was down 2.4 percent over the week with the S&P / ASX100 ending at 4316 points, amid growing concerns about the pace of
global growth which saw German exports suffer its biggest monthly fall in more than five years. In addition to these global growth jitters, China
announced that it will reintroduce import tariffs on Australian coal, effective from 15 October 2014, in an attempt to aid its ailing domestic coal
producers. Despite the lingering effects of an earlier than anticipated future US interest rate hike and renewed global uncertainty causing the US dollar
to appreciate, the AUD rode out a very volatile week to finish higher at US87.2 cents. The RBA decided to keep the cash rate unchanged for a
thirteenth consecutive month, at 2.5 percent.
Singaporean private equity firm, Southern Capital Group (www.southerncapitalgroup.com), has agreed to make a public offer to acquire UE E&C
Limited (SGX:NI3) from United Engineers Limited (SGX:U04), UES Holdings Pte Limited and other shareholders for approximately SGD 340 million
(AUD 306 million). UE E&C Limited, provides integrated mechanical and electrical engineering services, including high and low-voltage electrical power
distribution, air-conditioning, and mechanical ventilation, as well as fire protection, alarm, and sanitary systems. It operates in Singapore, Brunei,
Malaysia, Vietnam, China, and the Philippines. Southern Capital will pay SGD 1.25 per share in cash as consideration in the offer subject to certain
conditions with an intention to delist UE E&C. The net proceeds from the proposed disposal will be used to repay external borrowings and as general
working capital for United Engineers. The transaction value of SGD 340 million represents an EBITDA multiple of 5.1x.
GVK Hancock (www.gvkhancockcoal.com), announced that the company has been granted clearance by Australia's environmental authority for its
Alpha coal project in the Galilee Basin in Central Queensland after over six years of environmental assessment and planning. GVK Hancock is a joint
venture between India’s energy and infrastructure conglomerate, GVK (www.gvk.com) and one of Australia’s leading resource companies, Hancock
Prospecting (www.hancockprospecting.com.au). The approval represents one of the most extensive and rigorous examinations of GVK's proposed
Alpha mine, including close to 300 collaborative studies that involved over 500 specialist consultants. With the clearance in place, the company will
focus on commencing construction for the $10 billion mine, rail and port project. The venture aims to produce 32 million tonnes a year of low ash, low
sulphur coal from the mine in the Galilee Basin.
The Board of Rio Tinto (ASX:RIO) confirmed that it had been approached by Glencore (LSE:GLEN) in July 2014, regarding a potential merger. After
consultation with its financial and legal advisers, the Board concluded unanimously that a combination was not in the best interests of Rio Tinto's
shareholders. The Board's rejection was communicated to Glencore in early August and it confirmed that there had been no further contact between the
two companies.
It is believed that professional services provider to the resources, energy, and industrial sectors, WorleyParsons Limited (ASX:WOR), is looking to
further strengthen its global advisory business, Advisian (www.advisian.com), through acquisitions. This follows its announced acquisition of US based
management consulting firm, MTG Limited (www.mtgl.com) in September 2014.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
GNG Announced the entry by Mutiny Gold Ltd into a memorandum of
understanding for the award of the Deflector Gold, Copper &
Silver project EPC contract
OTC Announced that the CBA has approved an increase to current
financing facilities from $8.2M to $16.3M
MAH Advised that the standstill agreement currently in place with
Erdenes Tavan Tolgoi and two of MAH’s Mongolian operating
subsidiaries, described in the Company’s ASX announcement on
18 Sept 2014, has been extended for a further two weeks
WDS Announced it expects NPAT for the 12 months to 30 June 2015
to be in the range of $1-3M (FY14: $13M), with Revenue
forecast to be in the range of $330-350M (FY14: $369M). Also
advised that the Board is looking to secure a new CEO, with
current CEO, Terry Chapman agreeing to remain until a suitable
candidate is found. At time of writing, stock price is trading 67%
lower than previous close
MND Announced it has been awarded an extension to the facilities
management services contract associated with the Gorgon
Project operated by Chevron Australia Pty Ltd. The contract
extension, valued at c. $200M, is to continue the operation and
maintenance of construction facilities and utilities on Barrow
Island, WA
WTP Announced Mr Carlo Schreurs has been appointed as a Non-
Executive Director and that current CEO, Mr Martin Monro, has
also been appointed to the Board as Managing Director. Mr
Kevin Mooney, will retire as a Director at the upcoming AGM
Source: Capital IQ, LCC research

2. 10 October 2014 WWW.LCC.ASIA
Company Name
AJ Lucas Group Limited
Austin Engineering Limited
Boart Longyear Limited
Brierty Limited
BSA Limited
Cardno Limited
Calibre Group Limited
Coffey International Limited
Decmil Group Limited
DeltaSBD Limited
E&A Limited
Global Construction Services Limited
Hughes Drilling Pty Limited
Imdex Limited
Leighton Holdings Limited
Logicamms Limited
Matrix Composites & Engineering
Nomad Building Solutions Limited
Southern Cross Electrical Engineering
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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WEEKLY
Australian Engineering & Mining Services
Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 187 0.68 0.70 0.70 0.65 ▲ 3.7% NM NM
ASL 265 0.90 0.85 0.94 0.83 ▼ -5.6% 3.9x 9.7x
AAX 81 0.50 0.49 0.52 0.47 ▼ -3.0% NM NM
ANG 88 1.17 1.05 1.18 1.03 ▼ -9.9% 11.5x 42.8x
BLY 73 0.17 0.16 0.17 0.15 ▼ -5.9% 16.1x NM
BKN 658 4.04 3.85 4.07 3.76 ▼ -4.7% 6.9x 12.2x
BYL 56 0.48 0.44 0.49 0.43 ▼ -7.4% 2.2x 3.8x
BOL 76 0.16 0.16 0.17 0.16 — 0.0% 4.1x 12.2x
BSA 33 0.16 0.15 0.16 0.14 ▼ -6.5% 4.6x 17.5x
CDD 943 5.89 5.78 5.99 5.61 ▼ -1.9% 8.4x 10.4x
CGH 144 0.40 0.41 0.42 0.39 ▲ 2.5% 2.9x 5.7x
COF 79 0.30 0.31 0.32 0.30 ▲ 3.3% 5.9x 9.1x
DCG 283 1.76 1.68 1.80 1.66 ▼ -4.3% 2.9x 3.1x
DSB 5 0.13 0.10 0.13 0.10 ▼ -23.1% 75.1x NM
DOW 1,768 4.28 4.06 4.35 4.06 ▼ -5.1% 3.1x 5.4x
EAL 62 0.50 0.49 0.51 0.49 ▼ -2.0% 6.2x 7.6x
EGN 34 0.12 0.11 0.13 0.11 ▼ -4.3% 8.8x NM
EHL 112 0.20 0.20 0.21 0.20 ▼ -2.5% 6.1x NM
EVZ 5 0.03 0.03 0.03 0.03 — 0.0% NM NM
FWD 106 1.77 1.75 1.80 1.73 ▼ -0.8% 6.0x 15.6x
GCS 77 0.45 0.45 0.45 0.45 — 0.0% 5.0x 8.8x
GNG 128 0.92 0.85 0.97 0.85 ▼ -7.1% 6.8x 7.7x
HDX 27 0.15 0.13 0.15 0.12 ▼ -13.3% 3.6x 7.1x
IMD 147 0.70 0.68 0.71 0.62 ▼ -2.9% NM NM
LEI 6,381 19.68 18.85 20.22 18.85 ▼ -4.2% 4.4x 7.5x
LCM 61 0.90 0.87 0.90 0.87 ▼ -3.3% 13.1x 21.8x
LYL 77 2.00 1.95 2.01 1.95 ▼ -2.5% 4.7x 5.8x
MLD 298 1.39 1.28 1.49 1.28 ▼ -7.9% 2.0x 3.3x
MAH 125 0.11 0.10 0.11 0.10 ▼ -6.5% 1.1x 2.8x
MYE 44 0.60 0.58 0.62 0.52 ▼ -3.3% 3.7x 9.2x
MIN 1,536 8.58 8.20 8.59 8.16 ▼ -4.4% 2.9x 5.2x
MCE 76 0.86 0.80 0.88 0.80 ▼ -7.0% 3.5x 8.8x
MND 1,137 12.85 12.23 12.85 11.89 ▼ -4.8% 4.4x 5.0x
MRM 700 2.03 1.90 2.03 1.89 ▼ -6.4% 7.2x 10.4x
NOD 14 0.05 0.05 0.05 0.05 ▼ -2.0% 6.5x NM
NWH 213 0.86 0.77 0.86 0.74 ▼ -10.5% 2.1x 3.5x
OTC 50 0.20 0.21 0.21 0.20 ▲ 5.0% 4.1x 5.8x
PRG 317 2.72 2.67 2.85 2.66 ▼ -1.8% 6.0x 7.3x
RCR 407 3.20 2.94 3.21 2.88 ▼ -8.1% 5.7x 7.9x
RQL 47 0.14 0.15 0.16 0.14 ▲ 7.1% 11.4x NM
SND 68 0.90 0.86 0.90 0.82 ▼ -4.4% 5.1x 5.5x
SDM Sedgman Limited 119 0.61 0.53 0.60 0.53 ▼ -13.9% 4.1x NM
SSM Service Stream Limited 70 0.18 0.18 0.19 0.18 — 0.0% 6.4x 10.4x
SWL 138 1.63 1.57 1.64 1.56 ▼ -3.4% 5.6x 6.3x
SXE 81 0.51 0.50 0.53 0.50 ▼ -2.0% 2.5x 4.2x
STS 36 0.54 0.57 0.58 0.54 ▲ 5.6% 1.9x 8.0x
SWK 43 0.27 0.27 0.28 0.27 — 0.0% 3.7x 18.3x
TPP 10 0.06 0.06 0.06 0.06 ▲ 3.6% 16.1x 20.3x
TTN 23 0.50 0.45 0.54 0.44 ▼ -11.0% 1.3x 1.7x
TSE 720 1.50 1.41 1.50 1.37 ▼ -6.0% 5.6x 8.7x
UGL 983 6.36 6.01 6.36 6.01 ▼ -5.5% 22.0x 51.8x
VMG 34 0.01 0.01 0.01 0.01 — 0.0% NM NM
WDS 117 0.80 0.81 0.81 0.78 ▲ 1.3% 3.0x 5.5x
WOR 3,639 15.20 14.70 15.50 14.63 ▼ -3.3% 8.0x 9.3x
WTP 171 0.92 0.91 0.92 0.84 ▼ -1.6% 0.8x 1.8x
Source: Capital IQ, LCC research
Ausdrill Limited
Ausenco Limited
Bradken Limited
Boom Logistics Limited
Downer EDI Limited
Engenco Limited
Emeco Holdings Limited
EVZ Limited
Fleetwood Corporation Limited
GR Engineering Services Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
Mineral Resources Limited
Monadelphous Group Limited
Mermaid Marine Australia Limited
NRW Holdings Limited
OTOC Limited
Programmed Maintenance Services
RCR Tomlinson Limited
Resource Equipment Limited
Saunders International Limited
Seymour Whyte Limited
Structural Systems Limited
Swick Mining Services Limited
Tempo Australia Limited
Titan Energy Services Limited
Transfield Services Limited
UGL Limited
VDM Group Limited
WDS Limited
WorleyParsons Limited
Watpac Limited