Newest fleet-owning ASX entity spans two decades of mining services growth, but Murray Leahy's MLG Oz started out as a small family business.
Starting off at the turn of the millennium as a small contractor for BHP, MLG Oz is now a mining services giant in Western Australia that turns over more than $200 million a year and is the newest player on the Australian Securities Exchange (ASX).
The Kalgoorlie-based mining services company provides integrated services across gold, iron ore, and other base metal clients throughout WA and the Northern Territory, including crusher feed, road maintenance, rehabilitation work, vehicle maintenance, machine and labour hire, bulk haulage and end-to-end logistics solutions.
The company listed has a market capitalisation of $145.7 million, with $70.7 million invested through its intial public offering (IPO).
MLG forecasts revenue of $241.6 million and pro-forma earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $41 million for the 2021 financial year.
The listing brings into sharp relief the company’s sustained expansion since its foundation in 2001, when founder and managing director Murray Leahy started it as a small contractor providing silica mining and haulage services for BHP.
It now operates across nearly 30 sites.
“We are excited about becoming a listed company and the opportunities it creates to further grow the business,” Leahy, who remains majority shareholder, tells the ASX.
“We welcome all of our new shareholders and thank them for the level of interest and support.
“This is an exciting time for the company and its shareholders.
“Our employees and clients have helped us grow this business successfully for over 20 years.
“As the only shareholder until this point, I am pleased to have new shareholders join me in expanding the business and am excited about the opportunities in front of us.”
Covid-19 is complicating the transport task for MLG and other WA entities
Industry demand for MLG’s services remains very high, correlating with high levels of planned mining production expansion, a company statement notes.
Company-owned quarries are located near existing mining operations, which is said to facilitate the efficient supply of bulk construction materials comprising sand, aggregate and lime to clients.
Its first ‘build, own and operate’ crushing operation at Christmas Creek continues to meet production targets and the company has further opportunities for expansion in this type of facility with new clients.
“The additional capital raised through the IPO will initially be used to reduce the company’s debt and support the working capital needs associated with our ongoing growth,” Leahy adds.
“This will provide us with the capability to continue to obtain new equipment and expand our operations to support our clients and develop new client relationships.
“We are a long-term relationship business which prides itself on delivery for our clients and having the capacity to support them will help position us well for the future.”