26/04/2019 - 15:20

Byrnecut revenue nears $1bn

26/04/2019 - 15:20

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Australia's largest underground mining contractor Byrnecut Australia has reported a profit of $20.23 million for the 2018 calendar year, after lifting revenue to $991 million.

Byrnecut revenue nears $1bn
Byrnecut's employee benefits expenses rose 32.3 per cent to $437.74 million.

Australia's largest underground mining contractor Byrnecut Australia has reported a profit of $20.23 million for the 2018 calendar year, after lifting revenue to $991 million.

Its revenue was up 32.6 per cent from 2017 to reach $991.37 million, underground mining comprised $890.52 million of that revenue and shotcreting the remaining $65.25 million.

However, profit was down 28 per cent from $28.42 million in the prior corresponding period, as every category of its expenses rose during the period.

Its employee benefits expenses increased 32.3 per cent to $437.74 million, plant expenses recorded a 41 per cent jump to $157.99 million, and consumables used was up 31.7 per cent to $163.03 million.

In December, Byrnecut executive chairman Steve Coughlan said his company would no longer receive the exemption for courses being undertaken by 1,200 employees due to the state government’s decision to crack down on payroll tax exemptions.

The government announced that exemptions would be limited to all apprenticeships and to traineeships undertaken by new employees earning less than $100,000 per annum.

“The removal of the exemption is on top of an increase in payroll tax for larger employers,” Mr Coughlan said at the time.

“The combination of these measures has a material effect on our business.”

Byrnecut’s net assets for by the end of 2018 rose 11 per cent to $198.67 million, from total assets of $575.37 million.

In December, Byrnecut appointed Gregory Jackson as its offshore managing director, Craig Lindsay-Rae as its mining engineering managing director and David Nancarrow as its Australian commercial director.

Some of its current contracts include Saracen Minerals’ Carosue and Thunderbox projects, and Gold Fields Australia’s Invincible project.

In the final quarter of last year it concluded works at Northern Star’s Jundee gold mine, where it had been contracted since 2001.

In August, Ausdrill announced it would acquire Byrnecut’s primary competitor Barminco for $271.5 million.

Ausdrill announced a net profit after tax of $39.8 million for the six months to the end of December 2018, up 32.7 per cent on the previous corresponding period.

The company attributed the strong result to its acquisition of Barminco.

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