Hi everyone, welcome to the Macmahon results presentation for financial year 2026, and thank you for joining us today during the busy ASX reporting period. We always appreciate your time and interest in Macmahon, and the opportunity to run through the results presentation.

After the presentation, Ursula and I will be happy to take your questions. Starting with the financial highlights on slide 2, Macmahon has had another strong year, with the business delivering record revenue and underlying earnings growth.

We continued to improve the return on average capital employed towards the 25% target only recently set. The increase to 22% was due to our clear focus on improving productivity and discipline across the business, and strategic new awards, building scale in the target areas, which has increased the delivery of free cash flow.

As managing capital intensity in the business has been an ongoing focus for us, and the improved returns have allowed us to again increase our dividend payout to shareholders. Global geopolitical instability and its impact on commodity prices, trade, and the cost of doing business continue to present challenges, particularly with regards to energy costs.

Macmahon has been navigating these well, underpinned by our diverse order book and client base. We have been closely monitoring and managing costs and risks, and will continue to do so as we execute on our strategy to deliver value for our clients and our shareholders.

Some highlights I'd like to call out include: new records for revenue and EBITDA, and further strengthening of our balance sheet as we again reduce net debt. Revenue and EBITDA were $2.6 billion and $190.1 million respectively, and we saw improvement in our EBITDA margin to 7.3% from 7.1% in the prior year.

Cash flow generation remains a highlight of the results, with underlying operating cash flow of $387 million remaining strong and free cash flow of $103.1 million. Free cash flow is down on the previous year, primarily due to Macmahon paying the final FY 2025 tax in FY 2026, together with the FY 2026 provisional tax payments.

Net debt of $111.1 million reduced 32% on FY 2025. Importantly, gearing has dropped to 13%, which is in line with our expectations for the year.

Both debt and gearing are now below pre-Decmil acquisition levels, which reflects our rigorous and disciplined approach to capital management. Total dividends for the year increased by 47% to 2.2 cents per share, fully franked, representing a payout ratio of 41% of underlying earnings per share.

FY 2026 ROACE was 22%, which exceeded our previous long-term target of 20%, and up from the 21.2% at the half. We believe we can continue to increase ROACE through our strategy and are tracking well towards our current long-term ROACE target of above 25%.

The order book is currently $5.9 billion, up from $5.1 billion at the half and strongly supported by a robust tender pipeline of $25 billion, of which $13.8 billion is expected to be awarded within the coming 12 months. The order book includes major contract awards announced post-30 June, including: the $355 million three-year Mount Marion contract with Mineral Resources, the $406 million five-year Snowy River project in New Zealand with [Federation?]

Mining, and a $50 million Mamre Road project with Transport for NSW in Sydney. Work in hand already locked in for FY 2027 is $2.2 billion, but this does not include the $240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe Gold Project.

It also excludes short-term civil and underground churn work and future contract cost escalation recoveries, as per our usual reporting practice. Slide 3 shows our historical performance relative to our guidance, but also the long-term track record and consistency in delivering growth.

I'm very pleased we have extended our track record of meeting or exceeding our guidance and market guidance to 10 consecutive years. Our CAGR over this period has been 25% in revenue and 21% in EBITDA.

I can again assure you that we are very motivated to maintain this track record of consistent success into the future. I appreciate many of you are familiar with our business, I'll only briefly touch on slide 4 to recap how our business is structured.

We have three operating business groups, being surface and underground mining businesses and our civil infrastructure business. Each of these operating teams brings its own specialised skills and expertise to the group and allows Macmahon to deliver a wide range of services to our clients in Australia, Indonesia, and across our region.

Our corporate team is focused on strategic growth, leveraging Homeground to secure strategic partnerships and pursuing M&A growth opportunities to establish a whole-of-mine service offering. FY 2026 highlights in our mining business are shown on slide 5.

Surface and underground mining combined generated almost $2 billion in revenue for the group. Underlying EBITDA was up 6% on FY 2025 to $157 million, and the EBITDA margin increased to our long-held target of 8%, again an improvement on our FY 2025 results.

Our surface mining team secured over $1.1 billion of new work, including a $792 million extension at Byerwen, $190 million five-year letter of intent for open cut mining at Wonawinta, and a $150 million contract for the restart of open cut mining at Mount Carlton. Our surface tender pipeline of $10 billion, of which $5.6 billion is expected to be awarded in the next 12 months, is a very selected pipeline including key strategic partnerships.

Our underground business had another successful year winning new work, including an initial $55 million 12-month award at Majestic, which was then followed by a 12-month extension, a $36 million contract at [Kuching Lea?] in Indonesia, and commencing early works at Mount Carlton where we received a letter of intent in March.

Since June 30, our underground team has won a $355 million contract at Mount Marion and a $406 million contract at the Snowy River project in New Zealand. The underground business is growing in line with our expectations and now contributes 24% of group revenue.

We continue to target revenue growth from our underground business to achieve a $750 million run rate by the end of FY 2028. This expectation is underpinned by an underground pipeline of $6.2 billion, of which $3.1 billion is expected to be awarded in the next 12 months.

Included in this pipeline is the Ravensthorpe Gold Project, which Medallion Metals recently announced us as preferred contractor on. Some highlights from our civil business over the year are outlined on slide 6.

The Decmil civil infrastructure business continues to grow and its contribution to the group has increased to 26% of group revenue. Decmil continued to perform well and has cemented its place in the group alongside our mining operating companies, generating opportunities to promote our unique combination of services.

Decmil secured inclusion into the highly strategic Rio Tinto Pilbara bulk earthworks panel, which we anticipate will be a source of future work for the team in Western Australia. Order book growth remained a key focus for Decmil.

The business again won over $500 million in new work during the year. The work won includes civil works across roads, accommodation villages, infrastructure, and wind farms, and a significant number of resource projects, which creates strategically important opportunities to partner and build operational synergies with our mining businesses.

Since 30 June, we announced a $50 million early works contract win with Transport for NSW on stage 2 of the Mamre Road project in Western Sydney. We are targeting robust growth from Decmil with an $8.8 billion tender pipeline, of which $5.1 billion is currently expected to be awarded in the next 12 months.

This short-term pipeline includes a key number of larger projects in both the east and west. Slide 7 shows our key surface mining projects.

Like in underground, we have sought to diversify our portfolio across clients and commodity, typically with long mine lives. We also monitor their position on the cost curve and factor this into our risk assessments.

Another point to highlight is the increasing prevalence of clients where we do both the surface and underground mining, such as AngloGold Ashanti, Wolfram, and [PT Boyo?] in Indonesia.

This highlights the competitive advantage of having an integrated service offering. Slide 8 shows our underground mining projects, including projects and extensions awarded since 30 June 2026.

Our underground team has been awarded several major new contracts that advance our aspiration to become a tier 1 regional underground mining operator. Slide 9 shows our growing list of key civil projects, I don't intend to go through each project separately, but some of the key points to call out include: the inclusion of Decmil as one of the three civil infrastructure contractors on the Rio Tinto Pilbara bulk earthworks panel, which creates a strong pipeline of future work; a growing list of civil infrastructure projects that are moving from the $20 to $50 million range to the $100 to $200 million range; and the diversity of infrastructure projects across government, resources, and renewables.

Diversification has been a key part of our strategy, both in terms of risk management, but also a part of our efforts to reduce capital intensity in the business. Slide 10 summarises our revenue diversification across service offering, commodity, region, and client.

At a group level, this slide clearly shows the changing contributions of our operating companies and the diversity of our revenue sources. Our surface mining business now contributes half of our group revenue, whereas last year it was nearly 60%.

This rebalance has been achieved through the growth in our underground and civil infrastructure businesses and their increasing contributions to the overall growth of the company. You may have noticed that gold is the predominant commodity of our key mining projects.

This has been a longer-term feature of our order book and the markets we operate in, and we continue to have a relatively large exposure to gold at 52% of revenue. We anticipate a growing contribution from lithium over the coming years, driven by increased global demand.

Our Indonesian business includes surface and underground mining and civil infrastructure services. Our expectation is that this will continue to grow its contribution to group revenue, with a long-term target of between 15 to 20% of group revenue.

We have been diversifying our business mix to achieve optimal capital intensity to increase ROACE, but also retain some of the barriers to entry we see in some areas. This is visible in the very deliberate growth in underground and civil infrastructure in recent years.

These businesses now account for 50% of group revenue. They have strong pipeline opportunities, and we expect these businesses to continue growing strongly and increase overall share of revenue.

Moving on to slide 11 on people and safety. This is a fundamental business priority, and we continue to invest in this area, both in the development of our people and in continued safety improvements.

Our safety performance improved in FY 2026, with total recordable injury frequency rate decreasing to 1.98 from 2.99 in FY 2025. This was a pleasing result when you consider we have a workforce of more than 10,000 people across our business.

However, we remain focused on driving that number as low as possible. During FY 2026, 18 graduates, six interns, 79 apprentices, 176 trainees, and 201 emerging leaders participated in structured learning and training programs at Macmahon.

Training and development continue to be a priority for our business. 105 identified emerging leaders completed the Macmahon Winning Way leadership program in FY 2026, which is intended to accelerate development of new leaders within our business.

This is in addition to the rollout of the new training programs, including the critical risk management and psychosocial safety leadership training. We remain committed to maintaining a safe, respectful, and inclusive workplace, and monitor our employee representation.

In FY 2026, female representation in the Australian-based workforce was 20.6% across all occupations, and First Nations people represent 4.5% of the Australian workforce. Slide 12 outlines some of the initiatives in the business designed to develop and promote Macmahon's culture and values, ensuring they remain at the core of our people development programs.

Positive workplace culture is a key element of working at Macmahon and making us an employer of choice. Culture and fit are important elements in our recruitment process.

They are defined during onboarding and reinforced and embedded throughout the employment life cycle. Some of these programs I've previously mentioned and you are familiar with, including Respect at Macmahon, The Macmahon Winning Way, Emerging Leaders programs.

Our Together Works employee value proposition was launched and rolled out across our businesses this year. Our EVP brings together our values and our people to ensure the experience of being a Macmahon employee is rewarding for both the employee and the company, and is reinforced through our training programs and our communications across the Macmahon group.

Slide 13 outlines some of our sustainability-related activities and metrics for FY 2026. We continue to take important steps during the year to enhance our environmental and sustainability reporting.

This included complying with new mandatory reporting obligations and maintaining strong governance. Macmahon's 2026 sustainability report is contained within our annual report and will be available on our website.

It is compliant with our AASB S2 disclosure obligations and represents a substantial advancement in our governance and reporting on sustainability matters. I am conscious of time, I won't go through the rest of the details on this slide now.

I'll now hand over to Ursula to talk through the financials.

Thanks, Mick. Good morning everyone, and thank you for joining us today.

I want to start on slide 15 to recap our consistent group financial performance over the past decade. Mick touched on this when he discussed our guidance track record, but I want to expand on this just a little.

The slide shows steady and predictable annual improvements in revenue, underlying EBIT, underlying EBITDA, and the return on average capital employed, all of which are now at record levels since FY 2017. Margins have shown growth across time, but also relatively low variability.

EBIT margins have progressively increased in recent years from 5.9% in FY 2022 to 7.3% in FY 2026. I am pleased to say that our efforts around cost management, efficiency, and delivery of integrated lower-capital services have been important drivers of margin growth.

You can also see the tangible results of our strategic focus on reducing the capital intensity and driving improved returns, with strong and sustained improvements in the return on average capital employed over the last five years. Slide 16 shows a summary of our profit and loss statement.

I won't go through all the numbers on the slide, but I will provide some additional context to a few of the high-level numbers. The 8% growth in revenue and 11% growth in underlying EBIT were mainly attributed to the contract executions plus new work during the year from underground and civil.

Earnings were driven by continuing margin improvements, disciplined capital management, and cost optimisation across the group. Growth in underlying EBITDA of 2% was lower than the 11% achieved in EBIT, primarily due to securing the new work in civil and underground businesses, which have a lower capital intensity.

Our operating costs increased in line with revenue, albeit we started a number of new projects in this last quarter, including civil projects, which have a higher return on capital, however slightly lower margins than we see from our mining services. Our EBIT margin was 7.3% for the year, driven by lower depreciation with the completion of two historical surface projects, the commencement of lower capital work in underground and civil, together with the operational improvements across the business in the second half.

Effective borrowing cost of 6.72% at June 2026 compares to 6% for June 2025, reflecting the impact of the RBA interest rate increases that we've experienced in FY 2026. Our effective tax rate for the year was 30.6%, and the group retains approximately $104 million in franking credits as at 30 June 2026.

Finally, as Mick mentioned earlier, the total full-year dividend has increased by 47% to 2.2 cents per share, fully franked, with a payout ratio of 41%, in line with our FY 2026 policy range of 30% to 45% of earnings per share. Slide 17 steps out the major cash flow movements between the closing net debt last year and this year.

The chart shows year-on-year net debt decreasing through strong cash flow generation. Net debt of $111.1 million brings our debt levels lower than the levels pre the acquisition of Decmil.

This is a significant achievement and in line with the target of net debt levels previously set, while substantially increasing returns to shareholders at the same time. Strong underlying operating cash flow before interest and tax of $387.4 million was the main driver to enable us to reduce the debt while increasing the shareholder returns.

With strong working capital management, the cash conversion for the year was 98.4%, generating free cash flow of $103.1 million. Tax-related cash payments were higher than the statutory rate for the group, as transitioned at the end of FY 2025 to a monthly taxpayer and paid the final FY 2025 tax instalment in December 2025, together with the provisional tax payments for FY 2026.

CapEx of $200.5 million included growth CapEx of approximately $20 million. This was lower than expected with the new work wins moving towards the last quarter of FY 2026, resulting in new work CapEx being moved into FY 2027.

Our CapEx target for FY 2027 is sustaining capital circa $200 million and growth capital of approximately $66 million. I'll finish with a snapshot of our year-end balance sheet on slide 18.

I've already mentioned the reduction in our net debt, but you can see on the slide a breakdown of our borrowings as at 30 June 2026, and I won't go through this in detail, other than to reiterate that the business is in a very strong position with regards to available liquidity. Cash and available committed banking facility is $566 million at the end of June 2026.

Finally, Mick highlighted earlier that our FY 2026 return on average capital employed of 22% exceeds our previous long-term 20% target, and we are tracking well towards the new target of above 25%. Thank you for your attention, and I will now hand back over to Mick before we open for questions.

Thanks, Ursula. If we move to slide 20, the positive numbers we have delivered today demonstrate the success of our strategy to diversify our business and manage capital intensity.

We will continue to focus on this going forward, together with expanding our end-to-end services across the value chain. The charts on the slide show the progress we've made in increasing the revenue contribution from our underground and civil infrastructure businesses.

We anticipate achieving our goal of underground and civil infrastructure businesses at a run rate of $750 million and a billion dollars respectively by the end of FY 2028. I should also mention that these figures consolidate both our Australian and Indonesian operations.

We anticipate our Indonesian operations in surface, underground, and civil infrastructure will eventually increase from 10% of our current group revenues to contributing up to 15 to 20% of group revenues. We see meaningful upside and growth opportunities in the Indonesian market in the years ahead, and we are driving hard to consolidate our position as a leader in that fast-growing market.

The resulting business mix we have today has been a key driver of improving our ROACE to the 22% we see. You can see on the slide the opportunity to further grow underground and civil businesses, which make up more than half of our $25 billion tender pipeline.

Steadily increasing the Indonesian contribution will only further increase the ROACE key metrics. I would like to briefly comment on the order book outlined on slide 21.

I mentioned in my opening remarks that it was good to see our order book stand at $5.9 billion compared to the $5.4 billion at the end of FY 2025. For FY 2026, we saw a good level of contract awards across the business, with over $1.1 billion won in the surface, close to $350 million in underground, and more than $500 million in civil infrastructure.

Since the end of FY 2026, we've already announced significant new wins with a combined $811 million, which includes Mount Marion, Snowy River, and Mamre Road, generating significant momentum into FY 2027. The order book includes $2.2 billion of work in hand for FY 2027.

It does not include the $240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe Project and also excludes short-term civil and underground churn work and future contract cost escalation recoveries, as per our usual reporting practice. The tender pipeline remains robust at $25 billion.

It is a bit higher than this time last year, with opportunities for growth across all strategic areas of our business. There are $13.8 billion of outstanding tenders submitted that we expect to be awarded in the next 12 months.

Macmahon's capital allocation policy is summarised on slide 22. It is important to recap this and outline our structured approach as a business continuing to deliver strong returns.

Our policy continues to reflect the importance of balancing dividend payments to our shareholders, staying within our debt guardrails, and retaining financial flexibility to enable the continued execution of our growth strategy. The charts on the slide show our track record, and you can see that we've managed our debt within our guardrails while growing earnings per share and dividend returns to shareholders.

We're well-positioned to continue this policy and continue delivering these results. We feel we have met the market's expectations by achieving a 41% dividend payout ratio for FY 2026, well within the target range of 30 to 45% of underlying EPS.

As a result, we've now changed a payout ratio target to 35 to 45%. This has been a result of our focus on strategic growth and achieving strong business performance, disciplined cost and capital management, and delivering on our clients' expectations.

I'll conclude with some comments on the outlook on slide 23. Consistency was a key theme in my introduction, and this will also be the case in my conclusion.

Our priorities for FY 2027 are consistent with those in FY 2026 and the decade before: operate safely, continue operational improvements, drive growth in underground and civil infrastructure, and work towards our increased ROACE target while generating strong free cash flow and increased returns to shareholders. We will also continue to invest in our people and in technology to build our capabilities and deliver for our customers.

The outlook for FY 2027 remains positive. While no doubt FY 2027 will present its own challenges, mining activity remains robust in Australia and Indonesia, and we've increased diversity in our commodity and customer exposure and our service offering.

We are expanding the size and scale of our service offering and our addressable markets by seeking to capture more upside within the mining value chain. This will help build more embedded relationships with our clients, increase revenue-generating opportunities while further diversifying the business.

Our expanded service offering will differentiate Macmahon from our competitors as Australasia's only true life-of-mine, end-to-end service provider. While we have a strong order book of $5.9 billion, with $2.2 billion of work in hand already secured for FY 2027, and a robust tender pipeline that provides us with numerous growth opportunities, we are well-placed to continue growing revenue and earnings supported by a healthy balance sheet.

Releasing our guidance today for FY 2027, we forecast continued growth in both revenue and earnings. Revenue is in the range of $2.85 billion to $3.05 billion and underlying EBIT between $205 and $225 million.

I am confident we are focused on executing our strategy and we remain well-positioned to continue our trajectory of consistent growth. With that, I'd like to now hand back to the operator to open for questions.

Good presentation, guys, and thanks for taking questions. I had two on mine.

How should we be thinking about net interest and tax rates going forward?

Hi Sam, I'll let Ursula take that one if you like.

Sure. Hi, Sam.

You'll see when you look at our net debt, the debt is fixed. Our interest going forward will stay flat on what it is for 2026, will go forward into 2027.

Then our tax, last year we made our final tax payment into FY 2025, so as a wholly taxpayer in Australia now, you'll see our tax staying on that 30% both for of the P&L as well as for the cash flow.

The second question I had was: can you talk about the levers we should thinking about for FY 2027 margin around mix and work profile?

Look, Sam, we expect to continue growing in civil and underground, we're assuming that the two net each other off. Obviously, underground is a higher margin business out of the three sectors that we've got, and civil is the lower margin business, but a lot less CapEx, higher ROACE.

Given that, and if you look at the midpoints of the guidance that we've given, we expect all-in it will probably be something similar to what we've seen this year. We're clearly always aspiring to continue improving and would love to throughout the year be able to move that up, but at this point we're holding the 7.3 if you look at the two midpoints, which is similar to what we achieved in 2026.

Sounds good. That's all from me.

Good morning, team. Thanks for the prezo.

Just a couple from me. Just exploring that range that you put out there for 2027, maybe we can just unpack a little bit some of the factors that might impact whether you're a lower end or in the middle or higher, and is it just simply the timing of works that you might have to win?

For sure. That $2.2 billion that we said is secured for this year, just to clarify, Gavin, I'm pretty sure but it doesn't include the 100 to $150 million a year of churn that we get in underground and civil, so that is in addition to what that 2.2 is.

We tried to call out that that recent Medallion Metals announcement, where we've been notified as being preferred, that's not included in that secured work for 2027 nor the order book. Added to that, we've got a pipeline that we see some near-term opportunities coming in.

If that occurs, we feel there's an opportunity to build on that guidance range. If you look at the midpoint, I think it suggests a growth in EBIT at 13.8%.

We're desperately hoping for it to be higher. Of course, I think it's pretty well known that in our strategy we're talking about expanding our service offering.

If an opportunity presented to do that similar to Decmil, but in an area that would enhance our service offering, we'd look at that, which would have an impact as well. If I was just to go back to the pipeline very quickly, a number of the near-term opportunities we're one of two, or it's an extension of existing work, some of which isn't in the pipeline, or it's where we think there's a relationship or value that we can bring by having more services.

I guess as an overarching comment, of the $13.8 billion we expect to be awarded this year, there's probably, without getting ahead of ourselves, a slightly higher level of confidence with a number of those projects. That hopefully answers your question, Gav.

Absolutely, mate. Appreciate it.

Thanks. Morning, guys.

Just extending on Gav's question then a little bit, so that $13.8 billion of tenders you think will be awarded this year, can you give us a sense of maybe what portion of that is extensions versus new contracts?

Maybe I think I know where you're heading there, Cam, and tell me if this gives you a better idea. We normally say we think there's one in three, one in four chance of winning the bids in that pipeline.

I would suggest this year it's probably one in two to one in three, and that includes considerations of those projects where it's an extension or we're already preferred and we haven't been able to announce under NDAs, or we're one of two, or there's a relationship there, or we think there's a competitive advantage. Just I know I didn't directly answer it, but does that give you a feel, Cam?

It does, because it's a similar sort of concept. Then just the other question, just while I've got you on, I guess, your public call, could you maybe step through how you're thinking about your M&A priorities at the moment?

For sure. Look, it's no secret, and we even spoke about it in the presentation, that if we can extend our end-to-end services in the jurisdictions we're in, we think it has a significant impact on the addressable market, and there's some clients that would see value in having one contractor execute more works on one site, and the synergies that would come with that.

We've already seen that occur in places like Ciprium, we're seeing it at Mount Carlton, we're hoping to see it with some of the clients that are near to hopefully being awarded or some contracts that are hopefully near being awarded, and we think we'll be able to talk more about that moving forward. If that's the thing, you would expect us to push hopefully into some engineering areas, and then there's some potential others on each end of what we already do, which everyone can probably work out.

That's where we're looking, Cam. We wouldn't be looking to something that cost a lot and would all want to be debt-funded.

If you use the Decmil philosophy, I guess, in terms of scale, what it would bring, a platform that we would then grow through our networks, and vice versa, we'd hopefully grow off theirs, that's the areas that we're looking.

Great. Thanks, guys.

Thanks. Hi, Mick and Ursula.

Just one from me, pretty similar to Sam's in terms of margins. Firstly, just around that mining segment.

As that underground segment of that business kind of becomes a bigger portion, do you expect margins to improve there? Then also, in terms of as Indonesia becomes a stronger amount of revenue, do you have any impact on margins from that as well?

Absolutely, Pia. We've made no secret that if you look at the activities, underground should be the higher margin component of all three.

As that increases in scale, that will absolutely bring with it an enhanced margin in that mining business. I guess the lower capital required for underground relative to surface is attractive as well in terms of the capital intensity, but also the ROACE, which, as is a priority for us and is pushing to 22% and ultimately 25.

In terms of Indonesia, that business, the reason we've called out we want to grow from the 10% now, the 8% last year, to the 15 to 20 is it typically brings with it higher margins, it typically brings lower risk Ts and Cs, and it almost always brings a lot lower CapEx. If I could bridge to another point that I've had a few calls on this morning about the CapEx, you'll notice that last year the CapEx was lower.

That was because a number of the jobs won during the year were in Indonesia or civil, which didn't require the capital. However, the work that's just been awarded this year that we did expect last year, but it always moves, it slid right, that's why the CapEx has shifted from FY 2026 into FY 2027 to enable that work to commence and it's those awards that we've put out recently.

If you look at 2026 and 2027, we've broadly said to the market that you should expect 240, 245 a year, but what we've done is we expended just over 200 last year, we're expecting the 266 this year, net-net it's still a little bit less than what we guided to. We just wanted to make it clear that the rigor, focus, and discipline around our gearing and free cash flow goals that we've made clear for 10 years now, they are unchanged.

The free cash flow generation of the business that a number of us have worked through bridges for in the coming years, they are all absolutely intact, and that's where we intend to bring the business. Hopefully that's a bit visible in where we've brought the net debt.

I know I did shift from the question, Pia, and I just wanted to attend to a few calls I've already had this morning so people don't think that we think the shackles are off. By no means do we think that's the case.

We were very lucky at the end of last year and earlier this year to see underground see some scale increase, and last year Indonesia see a number of awards in areas where it was higher margin and higher CapEx. Your question is why we want to get underground to 750 run rate by the end of 2028.

We think we'll get there a bit sooner given last year was spent near close to 650, and Indonesia to 15 to 20% of the larger business brings with it a much enhanced ROACE. Without going on, we've said in the past if we can get broadly a third, a third, a third in Australia, that will achieve the 25% ROACE.

Going from 25 to 30 would require the Indonesian business at that 15 to 20%, which is why it's a goal. Obviously it's not one then the other; they're all happening in parallel.

Thanks, Mick.

Sorry, Pia, I know I went off on a few tangents there, but I did want to attend to some calls we had this morning. Maybe we could have explained the spread of the CapEx a little bit better, but that increasing is not a sign of what's to come.

It's just if you accumulate the two years, it's still in line with what we'd tried to put out to the market last year.

No, that's great. Thanks.

Good day, Mick and Ursula. Thanks a lot for your presentation.

Again, a really good result, congratulations to yourself and all the team there at Macmahon. Diverging into the CapEx, you've answered one question, thank you for that.

It

explains the increase for next year. You've also earlier explained that, yeah, you've secured the $2.2 million, but you're forecasting still $2.85 to 3.

You've touched on that as well. Two other questions then: just the Homeground that you announced the other day and the strategic partnership, are we able to just elaborate a bit more on that?

Absolutely, Tony. I appreciate the recognition of the team.

We think we've got an amazing group there. Yes, Homeground, we saw that as an ability to leverage that asset that we've got that we acquired with Decmil.

We think it brings with it an ability to lock in the value on the balance sheet. We think it brings an ability to have someone that's active in the area and could have a constraint around accommodation motivated to fill the camp in the coming years as they expand on that port, which will be some significant works and significant heads.

Then for us to be able to get ourselves on the panel and in somewhat of a priority position for some of that work, we think that also will create a leveraged synergistic benefit to the business. Obviously, nothing has changed in terms of how we look at that asset.

We see that as being non-core, but we see this as an opportunity to increase occupancy with a motivated partner, get some extra work, and then at some point in the future, it's still not in the strategy, it's non-core and we'll divest of it, hopefully at that point it's full and it can attract a higher rate.

No, thanks for that. I thought that the important thing there was the occupancy.

If you can get that up, well the value of course increases. Just a second question: just with the acquisition of Vault by I think it's Regis, do you see anything there?

Because I guess Regis is also a client, would you see any changes there or the contract will still continue, et

cetera, et cetera? Look, that Regis offer has now been superseded by a superior offer from Genesis, Tony.

Look, we're planning for those contracts to end as announced. If anyone wants us to look at something else, we would, but the reason the order book and the pipeline are where they sit is because we're planning for us not to have them.

If anything changes, as always, we'll look at it and we'll do whatever makes sense. At the moment, we're planning for those to finish on the dates that have been announced.

Okay. Thanks for the update.

You're right. I wasn't looking at that closely other than the fact I realized that King of the Hills and Darlot-Centenary are Vault, I did wonder, I was sad to see if that finishes, but anyway, we'll keep our fingers crossed that there'll be a lot more work coming up.

All right, thank you for that. Oh, and just the other question, just with the diesel supply and the price increase in that, how do you see that working out?

Obviously, we all'd like the war to be over as soon as possible, but doesn't look like that's going to happen.

Look, so far the diversity in the portfolio has enabled us to navigate through that. It's not easy.

We don't want to win at the expense of our clients, and we want to support them, but so far we've been able to work with our clients and navigate through that, Tony. The diversity of the portfolio helps, but yeah, it's not without its challenges, for sure.

Okay. Thank you for that.

Congratulations again, and thank you to the whole team there.

Thanks, Tony.

Thanks, Paulie. Thanks to everyone that joined the call.

Over the next few days, we'll be seeing a number of you, but if there's anyone that would like to meet that's not on the list, please give myself, Ursula, or Tony a call and we'll make sure we make the time to catch up. As always, we appreciate the support, and yeah, we look forward to explaining our intention and the results more clearly over the coming week.