Thank you, Darcy. Good morning and welcome to the FY 2026 first half results call for Mastermyne Group Limited.

I'm Jeff Whiteman, the Managing Director and Chief Executive. I'm joined by our CFO, Matt Ruhl, and Stephen Rodgers, our Company Secretary.

Thank you for taking the time to join us. I note that we have a number of people joining by phone, we will refer to the slide numbers in the investor pack released on the ASX this morning as we go.

On page 1, as we have a number of new attendees pre-registered for the call today, we've decided to set out some useful information about the company here. You'll see in the shareholders analysis that M Mining, a member of the M Resources Group, remains our largest shareholder with 54%, which has been the case for almost 3 years now following a placement back in May '23.

The board has an independent chair and non-executive directors including one of the Mastermyne co-founders, Mr. Andrew Watts, and two highly experienced M Resources representatives, Mr.

Ben Gargate and Mr. Wayne Bull.

Turning to page 2, you'll see our strong headline financials for the half. Pleasingly, we've delivered growth in earnings, net cash, and the order book.

Whilst our revenue was lower than the prior comparable period as a consequence of external events, we delivered underlying EBITDA of $8.3 million, 5% up on the PCP, $4.1 million of underlying NPAT, more than double the PCP, and an increase of $4 million in net cash, giving us a balance at 31 December of $33.1 million. Also of note was the 79% increase in the order book up to $441 million, providing a robust base for us going forward.

On page 3, we achieved a number of highlights in the half. As reported previously, FY 2025 was adversely impacted by reduced in activity as a consequence of separate ignition events at Grosvenor and Moranbah North mines, with the second half of FY 2025 really bearing the brunt.

Having successfully navigated these challenges through disciplined cost management and targeted diversification of our project portfolio, the first half just ended showed a return to revenue growth and improved margins. Notably, underlying EBITDA of $8.3 million was 41% up on the FY 2025 second half, and net cash rose 14% in that period to $33.1 million.

Beyond the large order book of $441 million is a carefully constructed pipeline of opportunities, over a billion dollars, which, together with the improved margins, provides a level of confidence that the growth achieved is sustainable going forward. Over recent months, we've made our business leaner, focused in on our core capabilities, discontinuing a number of legacy activities.

The final step on this journey was achieved earlier this month with the sale of the Mining Book business, a good outcome for all three parties. You may notice that largely due to the lack of synergies, that business was loss-making and has been treated as discontinued operations in our financial statements.

Our long-term supplier of critical products utilized in our strata consolidation business was acquired last year by Jennmar, a large US-based company. A strong relationship with Jennmar has quickly developed, which assisted in reaching agreement for an extension of our exclusive distribution rights in Australia out until 2047.

Turning now to the operational review on page 4. For those less familiar with Mastermyne, essentially we are the experts in underground coal mining, and we have a broad range of integrated capabilities across the value chain, which are now categorized into five key areas, with the growth of our products and consumables business unit now meriting its own mention.

I won't go through each of these capabilities. Suffice to say that the overriding focus is on developing and delivering value-add solutions for our clients.

In terms of operations in the half, the business continued to manage the challenges created by external events, whilst also successfully mobilizing our new Appin project with over 200 roles filled, leading to a 17% increase in revenue compared to the second half of FY 2025. Our order book growth was driven by the Appin contract, which was signed mid last year, and bolstered by a 6-month extension of our Anglo contracts through to April 2026, together with new contracts with both Yancoal and Glencore.

Post the period end, we've received a letter of intent from Anglo in relation to a further extension of 12 months through to April 2027, which should take us through to past the completion of Anglo's current sale process. For clarity, this expected 12-month extension is in our pipeline figure, not the order book at this stage.

The first half finished with a high level of demand for strata consolidation services, which our team showed great commitment in meeting, particularly over the festive period, and this activity level has continued into the current period. Turning now to page 5, you'll see our project portfolio set out there, and particularly the long-term relationships that we've developed with each of the major mine owners and covering all three of the major underground coal regions.

They are Central Queensland, Hunter Valley/Northern New South Wales, and the Illawarra region. We've got contracts with many of the largest mine owners in the sector, including Anglo, Whitehaven, Glencore, and Peabody, together with more recent entrant in GM3, which is associated with our major shareholder, M Resources, and which acquired the Appin and Dendrobium mines in 2025.

Should just clarify the contract expiry dates shown on this slide relate to the current term, with several of those contracts actually having extension options remaining beyond that date. Looking now at page 6, Safety, People and Sustainability.

We've been implementing a project over the past 2.5 years now focused on elevating safety performance. It's a multi-faceted project, but underpinned by developing our project leadership skills, nurturing a positive safety behavioral culture, and effectively managing the critical controls in our business.

Our actions have shown a significant improvement in our safety metrics, and during the half, we celebrated 12 months recordable injury-free across our Queensland projects. Whilst the total recordable injury frequency rate, or TRIFR for short, has tempered slightly since then, the lower all incident frequency rate has been maintained, and the severity of recordable injuries continues to be low.

Most importantly, we've maintained zero life-changing events in the period, and remain highly committed to this goal going forward. As an update on the prosecutions instigated by the regulator in relation to two serious incidents back in 2021-2022, one of those relates to a tragic incident at Crinum mine, and is listed for a jury trial next month in March.

We are a people business, and a goal of mine since I started with the company was to implement a purpose-designed project leadership training course, and I'm very pleased that our team has achieved this goal, with the first cohort completing the 9-month course during the half. A joint effort between our people team and our HSEQ team has also resulted in good progress on our approach to psychosocial risk management.

Our all-employee survey, which we conduct annually, has shown increased engagement levels, and importantly, an ongoing commitment to our "Keep Safe" value. Finally, we are preparing for the new sustainability reporting requirements, which will apply to us from FY 2027 onwards.

I'll now hand over to Matt to take us through the financial slides.

Thanks, Jeff, and welcome everyone. Turning first to slide 7.

As Jeff mentioned earlier, the second half of FY 2025 represented the low point for the business following the operational disruptions experienced through FY 2025. What we're seeing in the first half of FY 2026 is a clear rebound from the trough, both in activity levels and earnings.

Revenue increased 17% compared to the half H2 in FY 2025, reflecting the progressive return of work volumes and the mobilization of new contracts. More importantly, that revenue recovery has translated into a material uplift in earnings, with underlying EBITDA up 41% and underlying net profit before tax more than doubling relative to the previous half.

This is not just a revenue-driven recovery. Margins have improved as well, demonstrating that the business has come out of the low point with a stronger performance focus.

The charts on this slide clearly show the inflection point being H2 of FY 2025 at the bottom, and H1 '26 marks the return to growth and profitability momentum. Moving to slide 8, it shows how the recovery is flowing through the income statement.

Compared to the second half of FY 2025, revenue increased from $93.3 million to $108.9 million, while underlying EBITDA rose from $5.9 million to $8.3 million, lifting EBITDA margins to 7.6%. That margin expansion is important as it reflects the benefit of higher activity levels and disciplined cost management following the previous half low point.

Profit before tax more than doubled versus H2 FY 2025, and underlying net profit after tax increased by 95%, confirming that the earnings recovery is broad-based and not reliant on one-off items. Overall, the profit and loss demonstrates that the business has successfully navigated through the external disruptions and is now delivering stronger, more sustainable earnings, with momentum carrying into the second half of FY 2026.

Turning to the cash flow on slide 9, the recovery we're seeing in earnings is also translating into improved cash generation. Net operating cash flow was $5.5 million in the first half of FY 2026, an improvement on the previous half after absorbing a $1.6 million increase in working capital to support the higher activity levels.

This is a key point: the business is growing again and cash flow is strengthening despite that growth. Capital expenditure has remained disciplined and in line with prior periods, and as a result, cash increased to $34.1 million at period end.

This highlights that we are not just emerging from the low point of H2 FY 2025 in an accounting sense, but also in a cash and liquidity sense, reinforcing the quality and sustainability of the earnings recovery. Whilst it was pleasing to provide a cash return to shareholders in FY 2025 in the form of a franked dividend, the board has taken a strategic decision to declare a nil final dividend for the first half, with the intention of further building our capital position to align with our organic and inorganic growth strategies.

The board will continue to assess the position going forward. Finally, slide 10 shows the balance sheet strength that underpins this recovery.

At the end of the first half of FY 2026, the group was in a net cash position of $33.1 million, with minimal debt and up to $40 million of undrawn facilities. Net tangible assets increased to $64.8 million, equivalent to 21 cents per share, including 11 cents per share in cash.

This balance sheet strength provides both resilience and flexibility as the business continues to scale activity levels and pursue growth opportunities. Importantly, coming out of the H2 FY 2025 low point, the business is now positioned with strong liquidity, low leverage, and improved earnings, which together create a solid platform for continued growth through the second half of FY 2026 and beyond.

In summary, across these financial outcomes, the low point in H2 of FY 2025 can be clearly seen in the strength of the rebound in the first half of FY 2026: operationally, financially, and from a balance sheet perspective, setting the foundation for the outlook and guidance we'll cover next. Thanks, Jeff.

Thanks, Matt. Moving on to slide 11 and talking about our strategic direction.

Impressively, Mastermyne turns 30 years old this year, having started back in 1996. This provides a strong foundation with a proven track record, which, combined with our market position, financial stability, and high levels of liquidity, positions us to deliver on our priorities of organic growth and strategic acquisitions.

Through our networks and those of our major shareholder, we get to see a range of opportunities, from those that may add an adjacent capability to Mastermyne, through to larger, potentially more transformative transactions. However, it's important to highlight that the board is focused on a disciplined approach to capital deployment at any time for organic projects or potential acquisitions.

Our organic business plan is focused on leveraging client relationships and strategic partnerships such as Jennmar, in addition to developing innovative, value-adding solutions for our clients, whilst also striving for efficiency gains internally to enhance our competitive positioning. Looking at our order book and pipeline on page 12, we have a strong foundation for continued growth in the current half and beyond, underpinned by a $441 million order book complemented by a $1 billion pipeline.

Notably, as a result of our diversification strategy, both the order book and the pipeline are spread across New South Wales and Queensland, reducing our reliance on any individual project. The order book has grown with the addition of Appin and Yancoal, plus the extension of Anglo through to April '26.

The anticipated 12-month extension with Anglo will add further to this number. Underlying the pipeline are some favorable market dynamics, with a number of longwall operations either starting up or recommencing production, creating additional activity, and in particular potential demand for strata consolidation services.

In conclusion, turning to page 13, the outlook for the balance of FY 2026 and heading into FY 2027 is positive. We have our $441 million order book, we have a $1 billion pipeline supported by an increased coal price environment, we're exploring various organic growth and strategic acquisition opportunities, and we have a supportive long-term major shareholder with a strong network.

Whilst like any business there are risks, and in our case potential future coal price fluctuations and some uncertainty arising from the sale of Anglo's steelmaking coal business, we are confident that with our position to manage these risks, and we are pleased to initiate guidance for FY 2026 with $220 million to $230 million in expected revenue and underlying EBITDA expected in the range $17 to $18 million. Thank you again for taking an interest in Mastermyne, and I'll hand back to the moderator, Darcy, to take any questions on the phone line before we address questions submitted on the web platform.

Thank you, Darcy. My name is Stephen Rodgers.

I'll just be moderating some of the questions here today. Jeff, there's a number of questions that have come through so far, and I'll start running through those.

Firstly, we've got a question here from a shareholder enquiring about what would it take to increase the EBITDA margins from the current 8% margins to a 10% margin, which was, I think, the prior target?

Thanks, Stephen. I'll take that one.

The uplift in the half reflects higher utilization, a more stable operating environment. We are targeting to further improve EBITDA margins through our growth strategies, which are focused on higher margin products and activities, as well as economies of scale as we continue to grow.

Thank you, Matt. There's another question here, and this probably one more for Jeff.

If the Anglo 12-month extension was signed now, what effect would that have on the order book?

Look, the level of activity at Anglo going forward has certainly got some growth potential. The restriction on production at Moranbah North mine was lifted a couple of weeks ago, and Anglo has got plans to have that mine returning to full production over future months.

At this point, I would say we would anticipate with a current level of activity that it would be round about $60 million. Yes, we would just be around the $500 million total order book, but with some growth potential above that as well, depending on the activity levels.

Thanks, Jeff. We've got another question here.

Are there any further opportunities to win new work because of the M Group relationship that Minesite has?

At Mastermyne.

Mastermyne, sorry.

Yes.

Pardon

me. Look certainly the M Resources Group is very well networked through the industry, as we are with obviously got our own 30 years.

We have very good relationships across the industry. M Resources have very good relationships quite often at different levels and in some different organizations to us.

It is certainly helpful having a supportive long-term shareholder like M Resources out there, and they do certainly open the door for us in cases.

Okay. Thanks again, Jeff.

There's a couple of questions here on this subject, we might sort of just try to bundle them into one. There's some queries about whether or not we can identify any key criteria for what a potential acquisitions might look like as a strategic fit for Mastermyne, and what the financial metrics that might involve?

Thanks, Stephen, and thank you for the people who've asked those questions. It's always difficult talking about acquisitions for a couple of reasons.

One is each acquisition opportunity is quite different, and the second one is being bound by confidentiality on these sort of issues. I can say we are considering opportunities probably really at two levels: the first one being businesses that have adjacent capabilities and tangible synergies with our current Mastermyne business.

The other pathway relates to possibly larger businesses that accord with our strengths, but are more transformative and offer diversification away from the existing business. In both cases, we are applying a highly disciplined approach to capital deployment and considering key metrics such as margins, return on capital employed, and certainly prudent gearing levels.

Thanks, Jeff. This is a question for you, Matt.

There's a comment on the questioner arising on the interest earned on cash, and question about type of ST deposit accounts?

Yep. Thank you, Stephen.

We have about currently with our $34 million cash balance, about 70% of that balance is sitting in short-term deposits. Positively, this half saw us move into earning interest income as opposed to previous halves as an expense.

The offset of where we're seeing the term deposit income coming through is just on the last little bit around our debt that we have on some equipment and also leased equipment that we do have from an accounting perspective.

Thanks, Matt. Another one for you, Jeff: are you able to comment on the competitive intensity in the underground coal mining contracting industry at the moment?

Thanks, Stephen. Yes, certainly can comment on that.

Like any industry, there is competition out there. When I run through our capabilities and the five different categories that we have, we face different competitors probably in each one of those five areas, and certainly some areas are more competitive than others.

We're very focused in terms of our growth strategies around really trying to look at the higher margin type areas and just improve that mix over time. You might notice under the products, we're really focused on safety innovations and technology solutions, for example, where the margins there are better than what we're seeing in certainly straight labor hire market, which is quite competitive these days and probably not helped by the "same job, same pay" legislation that the federal government has imposed on the industry.

Okay. Thanks, Jeff.

Another one probably for you, Jeff: were there any mobilization impacts on the 1H 1 half 2026 results because of the new Appin contract?

I'm not sure I fully understand the question, if it's asking if there was any negative impacts. Certainly there was no real cost in there.

We managed that mobilization through our existing support teams. I think the main impact is a positive one in we ramped up pretty quickly, got fully mobilized, and we've been earning revenue on that pretty much for the whole first half.

Okay.

Another one, Jeff. This is about, unfortunately, the legal case that we've got coming up.

Can you comment on any risk mitigation actions that we've taken or have taken as a consequence of the same?

Thanks, Stephen. Obviously, these cases are before the courts, and the Crinum one in particular is, as I say, going to trial in a couple of weeks' time.

We're not in a position to make real comment on these cases right at the moment. Suffice to say, obviously with that we're going to trial on the Crinum incident shows that we are defending our position there.

There's been extensive amount of work gone into these cases over the past 3 or 4 years now. We also had insurance in place at the time of these incidents, which is providing some level of mitigation for us on the costs.

Certainly the legal costs to date have been partially mitigated by that insurance cover. All right.

Thanks, Jeff. I think this might be the final one.

The pipeline which we've identified is mostly brownfields expansions rather than new mine development. Is it also including expiring contracts across the sector?

Yeah. I suppose we're looking at a whole range of things.

There are not many new coal mines being approved at the moment. Very much the focus is on working with our clients on existing coal mines and yeah, understanding where the growth opportunities might be.

Again, I sort of keep talking about value-adding solutions, but if we can help reduce the unit cost of production, then it actually does then make some areas of the mines maybe more profitable and therefore worth progressing than might have been the case otherwise.

Jeff. I think this is the final one.

Would you need to increase costs significantly as the business grows? How much annual revenue can the current cost base sustain?

People that have been shareholders for a while might recall that we owned a business called Pybar, which we sold to Mastermyne—sold to Thiess in May 2024. Whilst we have taken some cost out of the business since then, essentially Pybar was a similar size to Mastermyne, and back then we turned over about $500 million.

There's obviously a reasonably fixed cost of running a listed company, and so yes, I think we can certainly increase our revenue and utilizing the existing support base. There'll be some semi-variable areas where we'd have to put a few people back in, but essentially the costs of running the listed vehicle won't change.

We can yeah, I think get that leverage, and that's when Matt was talking about increasing our EBITDA margins, then yeah, that's certainly the target there.

Great. Great.

That's it. Thanks, Jeff.

Thanks, Matt.

Thanks very much, Stephen. I'll hand back to Darcy to wrap this up.

Thank you. That does conclude our conference for today.

Thank you for participating. You may now disconnect.