Macmahon Sells Dawson South Equipment

Macmahon Holdings Limited (ASX: MAH) has finalized an equipment sale agreement, offloading a significant segment of its mobile equipment fleet from the Dawson South project, Queensland. This transaction is set to generate around AU$44 million in net cash inflows. The equipment was sold at or above its book value.

Currently, Macmahon is the mining contractor at Dawson South, with their contract expiring on June 30, 2024, but negotiations for renewal are underway. The company expects to maintain its workforce of approximately 210 employees and continue its focus on enhancing returns and cash flow without additional capital expenditure. Macmahon projects FY24 revenues between AU$1.8 and AU$1.9 billion with an EBIT(A) of AU$130 to AU$140 million.

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