27/09/2019 - 15:20

MLG steps up listing plans

27/09/2019 - 15:20

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Kalgoorlie-based contractor MLG has recruited a high-profile finance executive as it moves closer to joining fellow mining services companies Mader Group and DDH1 Drilling in a stockmarket listing.

MLG steps up listing plans
Murray Leahy founded MLG in 2001.

Kalgoorlie-based contractor MLG has recruited a high-profile finance executive as it moves closer to joining fellow mining services companies Mader Group and DDH1 Drilling in a stock market listing.

MLG announced today the recruitment of Philip Mirams as its new chief financial officer.

Mr Mirams has previously held senior roles at listed companies Navitas, Automotive Holdings Group and UGL, and also worked at Deutsche Bank.

He will work alongside MLG founder, managing director and sole shareholder Murray Leahy, who started the company as a one-man operation in 2001.

MLG is understood to have recorded revenue of $190 million in FY19 and underlying profit (EBITDA) of $33 million.

Its plans to list on the ASX first came to light early this month when Macquarie Capital led a non-deal roadshow with investors.

It’s understood the company is aiming to list before the end of calendar 2019 with a market value in excess of $250 million.

MLG is being promoted as a company with as diversified revenue stream that insulates its earnings from the cyclical commodity markets.

Its revenue comes from construction materials and quarries, site services and haulage, crushing and screening, bulk haulage and export logistics.

Clients include BHP, Northern Star Resources, KCGM, City of Kalgoorlie-Boulder, Newmont Goldcorp, Fortescue Metals Group and Saracen Mineral Holdings.

Its listing plans add to a flurry of substantial deals in the mining services sector, helped by the pick-up in investment in iron ore, gold, lithium and nickel.

Perth-based Mader Group is due to start trading on the ASX on Tuesday next week, after raising $50 million in its initial public offering.

This values Mader at $200 million.

Private equity-backed DDH1 Drilling is also pursuing a stock market listing.

It is understood to have appointed Macquarie Capital and UBS as lead managers, with professional director Diane Smith-Gander lined up as incoming chair.

DDH1's key financials are similar to MLG. It is understood to have annual revenue of $213 million and underlying earnings of $37 million.

 

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