# MLD - MACA Limited



## System (1 November 2010)

MACA Limited (MLD) is a leading supplier of mining and civil services to clients in the mining and construction sector in Western Australia.

http://www.maca.net.au


----------



## McCoy Pauley (17 November 2010)

The owners of MACA Ltd only floated a portion of the issued share capital in the company and kept a majority of the shares for themselves.  Heavily oversubscribed IPO - rather than scale back entitlements, people (especially retail investors) got zip out of the IPO.

43% premium on the first day after being listed.  I've hopped in and still holding.  Got battered today with the general market sell-down, especially given MACA's exposure to the mining industry.


----------



## Tightwad (17 November 2010)

I might have bought at $1... been keeping an eye on it, on the first day was about $1.45, thought that was too high to jump in,   Only early days yet however.  I'll only be in for a small amount, seems a bit speccy to me.


----------



## McCoy Pauley (18 November 2010)

From memory (been a while since I read the prospectus), MACA have some contracts coming up for renewal in 2011 and 2012.  They are fairly fundamental to the business, so it would be bad moon rising if they failed to renew those deals.

The founders established the company in 2002, so it has a fair track record.  Certainly isn't anywhere near as established as the likes of Worley Parsons or Monadelphous, but I think it has plenty of potential.


----------



## ubtheboss (21 November 2010)

One look at their ARs for the last 4 years tells me they are a great company.  Seem to tick all the boxes in terms of ROE, low D/E, increasing revenues, net profits, etc.  

They were way undervalued at the $1 float price.  My intrinsic valuation for MLD right now is north of $2 so it has lots of room to grow.  Every company like this relies on new contracts and/or contract renewals.  That's just business.  Nothing in their track record thus far tells me they will have problems continuing to grow in the future.

Anything past 2013 though is guesswork.

I jumped in for a chunk on day two.  Buyers petered out towards the end of last week and there was a sell on volume on Friday.  From a TA point of view that might mean a retracement.  For how long I don't know but I DO know MLD is undervalued by at least 40% just looking at their ARs.  They have enough work on the books too to keep the value rising.  Their rep in the biz is very high.

I'll hang on to this one for at least a couple of years.  That's what value investing is all about.


----------



## ROE (21 November 2010)

ubtheboss said:


> One look at their ARs for the last 4 years tells me they are a great company.  Seem to tick all the boxes in terms of ROE, low D/E, increasing revenues, net profits, etc.
> 
> They were way undervalued at the $1 float price.  My intrinsic valuation for MLD right now is north of $2 so it has lots of room to grow.  Every company like this relies on new contracts and/or contract renewals.  That's just business.  Nothing in their track record thus far tells me they will have problems continuing to grow in the future.
> 
> ...




For a $1 to $1.20 this stock worth a punt, above that I dont think 
the risk is worth it...

You cannot calculate intrinsic value on this stocks without a lot of luck and guess works as all their contracts are up in the next 2 years...

any of those contract goes kaboom their goes your calculation..

Reading their prospectus, their risk is not small but significant 

that why the founder sell them for a $1 ... I wouldn't buy above $1 - $1.20
don't care what other people say you cannot rule out those significant risk

One of their big contract is Crossland which is 50% own by MMX, MMX has a bit issues lately ....

When I bought FGE at a buck, it has much more fundamentals than this one...

Good luck though my 2 cents


----------



## McCoy Pauley (18 January 2011)

Looks like $1.80-$1.85 is turning into a bit of a resistance level for MLD.  The share price has been hovering around this level for a couple of weeks and has traded in a narrow band between $1.73-$1.80 for all of 2011 so far.

The company announced earlier in the year that one of its clients had exercised "force majeure" on its contract with MLD but that earnings wouldn't be affected.  Nothing further has been released to the market about any update on the contract.

Still holding as it's still below what I calculate its intrinsic value to be at present, but I'm looking forward to seeing its first half-year report soon.


----------



## McCoy Pauley (28 January 2011)

Nice little announcement this morning saying that the NPAT is expected to comfortably exceed prospectus forecasts, based on the company's performance in the first half of the financial year.

Share price has reacted accordingly.


----------



## ubtheboss (28 January 2011)

Absolutely McCoy!  I felt it was going to be good but it even exceeded my expectations.

Sorry to say 'I told you so' Robusta but.... :

There will always be risk but MLD management are managing it just fine.


----------



## ROE (28 January 2011)

ubtheboss said:


> Absolutely McCoy!  I felt it was going to be good but it even exceeded my expectations.
> 
> Sorry to say 'I told you so' Robusta but.... :
> 
> There will always be risk but MLD management are managing it just fine.




well done for those bought in after the float  even at 50% premium you doing nicely...

future is too uncertain for me


----------



## McCoy Pauley (7 February 2011)

Announcement of a new contract this morning from MACA Ltd - six-year contract worth $285 million in revenue to the company through the life of the contract to provide mining services to Southern Iron Pty Ltd, a wholly owned subsidiary of WPG Resources Ltd, for the Peculiar Knob project 90km south of Coober Pedy in SA.  It's MACA's first contract win outside South Australia.  Work commences in April 2011.

The share price has gone ballistic in response.  Up 30c or 12% this morning.  As a happy holder, I'm grinning from ear to ear, counting my paper profits.

DYOR, of course.


----------



## ubtheboss (9 February 2011)

Couldn't agree more McCoy.  I'm happier than a pig in slop.  Had a little retrace yesterday which is healthy.  Don't want things going up in a straight line and spooking value investors


----------



## McCoy Pauley (9 February 2011)

The first half earnings announcement will be an interesting read, I think, if the announcement in late January is anything to go by.  Personally, I wouldn't have been selling my holdings (and I didn't) yesterday and I think the first half earnings announcement might be yet another catalyst for an upward re-rating of MLD.


----------



## Intrinsic Value (9 February 2011)

McCoy Pauley said:


> The first half earnings announcement will be an interesting read, I think, if the announcement in late January is anything to go by.  Personally, I wouldn't have been selling my holdings (and I didn't) yesterday and I think the first half earnings announcement might be yet another catalyst for an upward re-rating of MLD.




Good work guys.

I really wanted a piece of this company when it was about to float but unfortunately I didn't have any spare cash.

It was always a bargain from the very start but I have to say it has even exceeded most people's expectations.


----------



## McCoy Pauley (11 February 2011)

There's a couple of brokers out there with coverage initiated on MLD - Hartley's and Foster Stockbroking.  I contacted Hartley's yesterday for a copy of their report on MLD, which was prepared in November 2010, so it's a little out of date.  They forecast MLD earning roughly 30% return on equity for the next two years, with NPAT of $23.1 million in FY11 and $27.4 million in FY12.

I believe Hartleys was the stockbroker that worked on the float, so there should be some grains of salt taken with the report, but it certainly looked healthy.

For those shareholders that want a copy of the report, send an email to Trent Barnett of Hartleys.  His contact details are on the MLD website.

The Foster Stockbroking report can be located through a Google search.


----------



## ubtheboss (13 February 2011)

I will continue to hold though I may take a little profit off the top as I approach 100% 

Putting a sticky note reminder on my wall- 'have cash ready to buy more MLD in case owner sells some shares when they come out of escrow in Oct and the sp dips'. They may want to take some profit off the top too. Nothing wrong with celebrating success by buying yourself a big fat yacht haha


----------



## McCoy Pauley (21 February 2011)

First half earnings announced this morning by MACA Ltd.  Announced pro-forma NPAT of $15.7 million (up 121% on the same period in 2010).  A $0.03/share dividend announced, in line with the IPO prospectus.  Order book of $427 million as at December 2010, now stands at $682 million with the contract announced earlier in the month with WPG Resources.

43% of revenue derived from iron ore mining clients, 34% from gold mining clients and 23% from base metals clients.  Current contracted work in hand position is $682 million with a further $196 million in potential extensions on existing contracts.

The MD, Chris Tuckwell, said that MLD is "well positioned to exceed [MLD's] prospectus full year profit forecast of $23.1 million."


----------



## McCoy Pauley (22 February 2011)

Announcement this morning from MACA, announcing that Crossland Resources has exercised force majeure on a contract with MACA due to bad weather.  Minimum suspension period of 14 days.


----------



## kingkev (23 February 2011)

Looks like a bit of profit taking hold....................might be time to buy in
looks like a good stock to hold on to


----------



## tinhat (24 February 2011)

kingkev said:


> Looks like a bit of profit taking hold....................might be time to buy in
> looks like a good stock to hold on to




I think I missed the boat on this one. I can't see any value in jumping in now.


----------



## McCoy Pauley (4 March 2011)

S & P announces that MLD will be added to the All Ordinaries (along with a bunch of other companies) at the next re-balance.  This seems to be the impetus for a 4.5% gain this morning (together with a rising market), notwithstanding the company has gone ex-dividend today.


----------



## McCoy Pauley (20 April 2011)

Hmm, interesting market reaction to an announcement made this morning that Regis Resources Ltd has given a letter of intent to MLD that MLD will be contracted to provide mining services to RRL for the proposed Garden Well Gold Project.

The share price rose strongly in the morning but by the close, the shares had fallen 6c/share.

I guess the announcement, on closer reading, is a bit all "pie in the sky" stuff and having a letter of intent is different to actually having dry ink on a contract.

Still holding, so DYOR.


----------



## Country Lad (20 April 2011)

McCoy Pauley said:


> The share price rose strongly in the morning but by the close, the shares had fallen 6c/share.
> 
> I guess the announcement, on closer reading, is a bit all "pie in the sky" stuff and having a letter of intent is different to actually having dry ink on a contract.




Yes you are spot on, I reckon the red cordial brigade saw the headline and reckoned there was an opportunity and the more rational actually read the letter, particularly the part that said.. 



> .....subject to a number of factors including satisfactory completion of the Garden Well Gold Project definitive feasibility study (DFS) by Regis, statutory approvals, Regis Board approval of the development, and final negotiation of mutually acceptable contract terms.




.. and by midday decided the letter was not saying much more than "you are lowest and we will talk to you later" so it was a good time to sell.

Cheers
CL


----------



## tinhat (17 February 2014)

What's the trading halt all about? Does anyone know what the weather has been at Duketon, WA? What is this "weather event" that has effected their construction project at the Regis mine?


----------



## skc (17 February 2014)

tinhat said:


> What's the trading halt all about? Does anyone know what the weather has been at Duketon, WA? What is this "weather event" that has effected their construction project at the Regis mine?




Not sure exactly what weather event it was, but RRL is also suspended on the same notion.


----------



## skyQuake (17 February 2014)

skc said:


> Not sure exactly what weather event it was, but RRL is also suspended on the same notion.




Doesn't look good for either party.

RED anyone?

According to Bloomberg it was heavy rainfall:


By David Stringer
     Feb. 13 (Bloomberg) -- Tropical low has brought about 35mm
of rainfall in past 48 hours to the Northern Goldfields region
of Western Australia state, forecaster Karl Brunckhorst says
today by phone from Perth.
• A “fairly well defined tropical low” is bringing an unusual amount of rainfall to the mining region in a once-a-year type event: Brunckhorst
• Laverton area has received about 33mm rainfall in past 48 hours, Brunckhorst says
• NOTE: Regis Resources earlier halted trading in its shares ahead of announcement on weather impact at Duketon operations near Laverton: {NSN N0WTH06TTDSP <GO>}
Link to Company News:{MLD AU <Equity> CN <GO>}
Link to Company News:{RRL AU <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the reporter on this story:
David Stringer in Melbourne at +61-3-9228-8737 or
dstringer3@bloomberg.net

To contact the editor responsible for this story:
Soraya Permatasari at +61-3-92288720 or
soraya@bloomberg.net


----------



## skc (17 February 2014)

skyQuake said:


> Doesn't look good for either party.
> 
> RED anyone?
> 
> ...




35mm over 48 hours sounds like bugger all?!

Too bad for RRL missing out on a pretty strong POG rally.


----------



## tinhat (21 February 2014)

Good half year results report out this morning. Revenue up 47%, EPS up 25%, interim dividend up 44% to 6.5cps.

Regis Resources mine construction weather event (flooding) will mean results for the second half won't be as impressive as first half which will put a dint in the final results for the year with the guidance being that FY14 profit will be above Y13. That's a pity. But this company seems to be well on track.

Wish I had bought down at 1.70-1.80 :


----------



## tinhat (1 March 2014)

This is the sort of thing that drives shareholders mad:

"MACA Capital Management Initiative"


30c per share special dividend fully franked (on top of 6.5c interim)
Private share placement to insto clients of Hartleys at 5% discount to raise $59m
New shares will receive the special dividend representing a massive immediate windfall return of 19% gross on the issue price of $2.25 per share

The special dividend will cost $60.8m so the capital raising doesn't quite cover the cost but will dilute my equity in future cash flows by 15%. I'm being compensated with a special dividend that only yields 12.3% and the sweetener is the franking credits which grosses that yield up to 17.6%. That is not an an adequate compensation for reducing my equity by 15%. I'm being ripped off so that a few private clients of Hartleys can make a windfall profit  from my equity in this company.


----------



## ROE (1 March 2014)

The sort of thing that made me got out of FGE when they did the same thing and place
a discount placement for Clouch, technically give them large holding in the business without a premium and lock out retail shareholder ..this was when FGE was going strong, don't care I got rid of it at a healthy profit but forgo a bit more but that the decision I made when I question management integrity 

You can be sure if management has this line of thinking it is not all share holder interest they look after.
only the cosy relationship.

My uncle Phil Fisher

Does the management have unquestionable integrity? "The management of a company is always far closer to its assets than is the stockholder," Fisher states. And managers can benefit themselves at the expense of shareholders in an "infinite" number of ways, including salaries and perks high above the norm. The only protection shareholders have against management abuses of position is to invest in companies whose managers have unquestioned integrity.

This is from AFR
Mining services contractor MACA Limited has made the bizarre move of declaring a 30 ¢ a share special dividend, while raising equity to prop up the company’s balance sheet.

Bizarre I agree...


----------



## robusta (1 March 2014)

Yep not good for the shareholders and yet another Roger Montgomery tip that worked out ok in the short term but failed to stand the test of time.
But naturally he would have bailed long ago.


----------



## tinhat (1 March 2014)

robusta said:


> Yep not good for the shareholders and yet another Roger Montgomery tip that worked out ok in the short term but failed to stand the test of time.
> But naturally he would have bailed long ago.




They were a Lincoln Indicators star stock until they released the last half year report. They have been dropped because return on assets has dropped below 20% which is one of their criteria. The outlook is positive, especially relative to peers. It's just disappointing that the management have decided not to look after the shareholders.


----------



## ROE (2 March 2014)

tinhat said:


> They were a Lincoln Indicators star stock until they released the last half year report. They have been dropped because return on assets has dropped below 20% which is one of their criteria. The outlook is positive, especially relative to peers. It's just disappointing that the management have decided not to look after the shareholders.




Management look after themselves on this one, come to think of it, it is a sneaky way for them to cash out while blow smoke and mirror about unlocking franking credit 

large holding, hmm cant sell out that panic the market, let pay ourselves 30c special dividend and at the same time get someone else to chip in for the cash.

cheap way to sell 15% holding, brilliant strategy...you know what I would do if I hold this stock when integrity is in question...

Maybe corporate law should be amended, company cant raise equity at the same time pay a special dividend


----------



## joeno (13 July 2015)

What is wrong with this stock? it's been going down every single day for a few weeks now.


----------



## luutzu (13 July 2015)

joeno said:


> What is wrong with this stock? it's been going down every single day for a few weeks now.




The couple of contracts they have with the minor mines were closed; got some breathing back when IO prices were up a bit and they agreed to help fund the mines I think. That and a couple small infrastructure job they got ended.

But it could be the ponzi scheme they're running is catching up to them. Where dividends were paid but they went and raised money... pretty smart way to show those who didn't read the notes that the yield is awesome and business will recover.


----------



## joeno (13 July 2015)

luutzu said:


> The couple of contracts they have with the minor mines were closed; got some breathing back when IO prices were up a bit and they agreed to help fund the mines I think. That and a couple small infrastructure job they got ended.
> 
> But it could be the ponzi scheme they're running is catching up to them. Where dividends were paid but they went and raised money... pretty smart way to show those who didn't read the notes that the yield is awesome and business will recover.




Thanks for the explanation. I'm looking at the FY15 half yearly and in the income statement it states the EPS as 15.7, which is a decrease due to the placement of new shares as you have mentioned. Am i missing something here? That's still a mighty fine return. What is the "real" earnings that you are saying it really is?

 I bought a little into this stock and am alarmed this one's going down the pipes.


----------



## luutzu (13 July 2015)

joeno said:


> Thanks for the explanation. I'm looking at the FY15 half yearly and in the income statement it states the EPS as 15.7, which is a decrease due to the placement of new shares as you have mentioned. Am i missing something here? That's still a mighty fine return. What is the "real" earnings that you are saying it really is?
> 
> I bought a little into this stock and am alarmed this one's going down the pipes.




I don't know what it will earn. 

The ratio and yield all looks great when I look at the presentation and reports. BUT...

One, i didn't expect or even thought about it at the time, IO prices are in decline, its civil projects are ending about now and it really only has something like 4 clients so that's too risky even if we assume, as I did, that the project won't be cancel. A couple did since and from memory it "partner" with Atlas Iron to reopen the mine - to create jobs and keep revenue being booked or something.

So in terms of earnings they are to receive in the bank... I don't know.


---

What you might be missing, and here I am about to gloat on your possible pain, could be management playing games to keep the stock up - they're doing it with dividend yield.

In general, companies do try to to keep paying dividends so shareholders are happy and the CEO won't get replaced due to the share price crashing and change in sentiment. So in difficult circumstances, they generally try to keep dividends - somewhat understandable. BUT...

What good management do is they try to balance corporate need for cash and shareholder/fund managers need to say "yield is great" is they introduce dividend reinvestment plan, and if it gets too tough they reduce dividend slight and give higher discount to choosing the DRP. This would keep the cash in the company and they just add a few zeros to the sharenumbers.

With Macca, not only are they a small player in a tough environment... with projects ending and the boom is busting... Good and honest management would do the above and preserve cash... They didn't do that but actually reverse it.

They increase dividends, then pay two special dividends... and then go on the sell shares to "sophisticated investors" to raise money to help pay for those dividends they just paid out.

You see that, best to run away.


Just looking over the 2014 report... It actually report profit of $55m but the cash collected from operation was only $46m. Read the Chairman's intro and they actually help fund some client... anyway... Companies tend to report less profit and have higher operating cash because by whatever mean the ATO tax the profit and cash is just for show or something.

The only time you want to report higher profit than your cash is to impress shareholders and your boss, and make the ATO happy. 

That and it raises $61m in new issue, and pay dividends of $82m. 

Dividends should only be paid from profit you don't know what to do with. So it must always be less than the earnings, and shouldn't be paid when you have to raise new money.

When you raise new money to pay existing shareholders, it's call a ponzi. 


disclaimer... I am no expert, it's just my opinion. I haven't been following MLD and who knows they might get a new contract and I am just completely wrong.


----------



## joeno (13 July 2015)

luutzu said:


> They increase dividends, then pay two special dividends... and then go on the sell shares to "sophisticated investors" to raise money to help pay for those dividends they just paid out.
> 
> You see that, best to run away.




The fact that they did this should have been reflected in the decrease in share price pretty quickly. So the current trend downwards is based on... shareholders who are late on the news? The stock price is slowly but consistently decaying day after day.



luutzu said:


> The only time you want to report higher profit than your cash is to impress shareholders and your boss, and make the ATO happy.
> 
> That and it raises $61m in new issue, and pay dividends of $82m.
> 
> When you raise new money to pay existing shareholders, it's call a ponzi.




Suppose the problem is proving that they did it intentionally. And if they did, still doesn't explain how their profit is still so high up - unless they profited due to a ponzi as well. There are mining and construction stocks these days with horrendous FY14 performance but are making a steady recovery. Guess you can't take anything at face value.


----------



## luutzu (14 July 2015)

joeno said:


> The fact that they did this should have been reflected in the decrease in share price pretty quickly. So the current trend downwards is based on... shareholders who are late on the news? The stock price is slowly but consistently decaying day after day.
> 
> 
> 
> Suppose the problem is proving that they did it intentionally. And if they did, still doesn't explain how their profit is still so high up - unless they profited due to a ponzi as well. There are mining and construction stocks these days with horrendous FY14 performance but are making a steady recovery. Guess you can't take anything at face value.





Maybe it did slowed down the drop when announced last August, who knows.
Maybe investors were informed and sell out of it but as ROE said above, mgt just do it and cash out anyway. And with the dividends in the pocket, new investors buy at cheaper prices, and "sophisticated" ones buy in at a bargain or something.

ABC Learning centre did a similar thing... I didn't read much into it and bought, so yea. You increase dividend payout, you attract smart money, and dumb money like myself read the headlines and top line items and thought, wow, it's complicated but good yield and smart money are with them... Or maybe that's just me.



I think the recent decline is due to Iron Ore and commodity price slump... with IO being low, the high-cost miners will lose money... and even if MLD partner up and take equity or defer payment, there's only so much that could help for so long. So maybe the market see the potential for mine closure and contract ending, lost of revenue etc... and reflect this in the price declines.

It recently have a project cancel with some SinoSteel right? If Atlas is canned too it'll be stuffed.

It already have its cash flow more than halved last year before these closures... At that level it still couldn't pay its dividends. With current condition, may very well cancel dividends and raise capital to stay afloat. 

I'm just guessing that's why the market react as they do. Could be an over-reaction but I really don't know beyond what've said.

Hope it works out well, but if it doesn't... tuition fee.


----------



## ROE (14 July 2015)

joeno said:


> What is wrong with this stock? it's been going down every single day for a few weeks now.




watch what the guys in charge do and that would be your cue to move back in 2014, like I mentioned above if
I have any holding I would have offload it all and would stay out.

action speaks more than words, watch what they do not what they say... you can twist and turn with word but you cant with action  words is like profit and action is like cash flow, cash flow usually don't lies.

decline also due to iron ore price etc... but the above general rule works well for any business.


----------



## ROE (14 July 2015)

joeno said:


> Suppose the problem is proving that they did it intentionally. And if they did, still doesn't explain how their profit is still so high up - unless they profited due to a ponzi as well. There are mining and construction stocks these days with horrendous FY14 performance but are making a steady recovery. Guess you can't take anything at face value.




Profit means little in the stock market (you can cook profit), learn to read the cash flow statement and most of your answers maybe lying there.

I dont have any holding in this business just general comments so I don't know their books but cash flow statement and free cash flow is a good figure to go by.

You can learn a bit from SGH saga where profit is growing at a healthy clip but have negative cash flow and once stuffed up and down comes the crash.


----------



## joeno (14 July 2015)

ROE said:


> Profit means little in the stock market (you can cook profit), learn to read the cash flow statement and most of your answers maybe lying there.
> 
> I dont have any holding in this business just general comments so I don't know their books but cash flow statement and free cash flow is a good figure to go by.




Cash flow from Op activities (half year 2015) +64m which is stellar
CF from investing (loans and purchases) -38m
CF from financing (mainly due to dividends paid) -36m

Essentially if they didn't pay any dividends their cashflow would be amazing. Can't blame them for that can you?

I get it. Essentially they prevented any real growth due to paying out more dividends than what they get in their hands that year. Still, you would expect the price would halt or grow slowly as they're still making a lot of $.


----------



## luutzu (14 July 2015)

joeno said:


> Cash flow from Op activities (half year 2015) +64m which is stellar
> CF from investing (loans and purchases) -38m
> CF from financing (mainly due to dividends paid) -36m
> 
> ...




Gone up 6% today. 

At some point you got to ignore the market and come to an estimate of what value you're happy with and why.

With all businesses, it's always the future earning that matter, not the historical. Since we can't predict the future, all we have are historical data and with a combination of that and understanding of the company's position and industry, may be able to guess where the future will go for the company.

In its presentation, MLD projected its revenue to halved by 2018 right? That's even including the potential revenue from mine expansion on its current projects.

Since that projection, a couple of projects are canned... with the low IO prices Atlas Iron project were canned but with a slight increase a couple months back and MLD agree to take some equity in the project I'm guessing, the project restarts... and with current low now, might be canned again.

So future prospects for MLD is shaky. Very hard to predict.

Who knows, it might win a contract or two in infrastructure and civil works... maybe commodity will pick up and projects resume. If that happen its share will sky rocket. If it does not, share price will hit the floor in next couple of years.


I think I said it before, but if you were to run this business and given the ending of civil works in a few months, the tough condition your clients are going to face... you wouldn't be paying out special dividends, wouldn't increase normal dividends... Not when your cash flow couldn't pay for the dividends at all, and not when you then have to go and raise more money from new investors.

You would, and I'm assuming mgt is smart enough and experienced enough to have some idea of the tough conditions the industry is about to go into... you would introduce DRP, reduce the divvy a bit - to keep both shareholders happy and get to keep some cash.

Then if you need to raise capital, raise it but probably better use of cash would be to acquire smaller peers or related operators so you can diversify your operations, maybe get a contract or two.


The focus by mgt seem to keep shareholders happy with high yield, to stall the stock price decline, raise more cash... and joint with client to help them through the tough time - enabling you to record revenue, hence record profit.. but can the sales be collected?


----------



## peter2 (14 April 2016)

The chart of *MLD* is worth noting for this weeks break-out of a long term resistance level. 

Its worth checking on the div yield (11.39%) it seems a little too good.


----------



## peter2 (23 August 2017)

Well my last post was worth noting as price did BO and go back up to the prior high (+75%). Price has been in a range for the past year and once again looks likely to go higher. It won't as easy this time due to probable resistance at all the old highs between here and 2.00. Traders deal in probabilities and risk reward. 

Note the On Balance Volume (OBV) indicator that is plotted on the volume pane. OBV was making a new high when price BO-HR (Apr16). This is a good confirmation filter. The OBV indicator has been rock solid during this sideways trading range indicating accumulation rather than distribution.


----------



## helpme (13 November 2017)

I have been deeply wounded by MLD this morning. It is one of my larger positions and it crashed >20% this morning. Anyone shares this same painful experience as me? I am going to hide in silence and contemplate over this loss for a while. This is not the first time mining-related stocks gap down huge on me without warning. I need to re-look at mining-related stocks. Anyone can share their experience?

Latest ASX announcement.
http://www.asx.com.au/asxpdf/20171113/pdf/43p56gfym5gs81.pdf
It does not read so bad to justify a >20% crash in the morning opening. Maca even states that it remains very positive on its future pipeline of work. Still, my 20% painful loss ...


----------



## skyQuake (13 November 2017)

helpme said:


> I have been deeply wounded by MLD this morning. It is one of my larger positions and it crashed >20% this morning. Anyone shares this same painful experience as me? I am going to hide in silence and contemplate over this loss for a while. This is not the first time mining-related stocks gap down huge on me without warning. I need to re-look at mining-related stocks. Anyone can share their experience?
> 
> Latest ASX announcement.
> http://www.asx.com.au/asxpdf/20171113/pdf/43p56gfym5gs81.pdf
> It does not read so bad to justify a >20% crash in the morning opening. Maca even states that it remains very positive on its future pipeline of work. Still, my 20% painful loss ...




One trick pony - costs blowout could end it.

Meanwhile everyone else is having fat margins from a construction boom

___________________________________________________________

Best way to be hurt less from these kinds of things is position sizing


----------



## greggles (22 June 2018)

It looks like the bottom might be in for MACA Limited.

Today it terminated its mining services contract with Beadell Resources at Tucano in Brazil and agreed to a mutual deed of release from all claims by either party in relation to the Tucano open pit mining services contract. The two companies have also agreed to a payment plan regarding the payment of all outstanding amounts owed to MACA. The payments are $3M in Q3 2018, $3M in Q2 2019 and then $1.5M monthly from 1 July 2019.

Looks like a bit of confidence in MLD has finally returned.


----------



## Dona Ferentes (14 December 2020)

In a Trading Halt







> Mining contractor Maca is putting the finishing touches on a capital raising to fund its purchase of Downer's Open Cut Mining West division for just under $200 million. ..... sources said the company had Euroz Hartleys Limited in its corner to help it stitch together the deal, which would see it raise $80 million-odd in fresh equity.





> Downer told the market last week that it was in discussions with Maca to offload the business unit. Although it is selling Open Cut Mining West, Downer will still hold onto its Open Cut Mining East, Underground and Otraco mining services units.
> The purchase is a chunky bite for the $311 million Maca, which posted $808 million revenue in fiscal 2020 and $120.4 million EBITDA. Maca's shares have performed strongly through the pandemic, and are trading up 12.6 per cent to $1.16 year-to-date.


----------



## finicky (18 June 2021)

MLD @ 0.79

No way I would be buying the chart yet but sellers aren't asking much going by historical earnings if you leave out fy20. Too unpredictable these mining contracts, MLD just announced will be losing a big one in March 2022 when the current agreement expires. GNG has been going well though.

Not Held

5 Yr Daily


----------



## mullokintyre (22 July 2021)

Report in Todays OZ that maccas is ripe for a takeover.


> Maca is coming under focus as a takeover target, according to industry sources.
> The mining services provider’s stock price is hovering around 84c after trading at more than $1 in 2019, with its market value at about $287m.
> 
> An attraction for a prospective suitor of Maca is that commodity prices are soaring and most in the market see the business as undervalued.
> ...



I bought it a few weeks ago based on its high dividend yield.
Would be the worlds second greatest fluke if it came into play now.
Certainly been some interest on market over past few days,and up 9% today.
Mick


----------



## divs4ever (22 July 2021)

then i wish you luck  ,

 i am very wary on mining service companies now  after being BADLY scorched with BLY , ( and not such a happy time on others  ) i do have some ( like MIN and recently sold out of IGO . )

 but Maca showing a pulse  , and there is plenty of M&A activity 

 it would be interesting to see who lobs in a bid


----------



## mullokintyre (23 August 2021)

Fin year results out.
Makes nice reading.
revenue up 45%
EDIT up 51%
Cash sitting at 122mill versus 180 mill in debt.
Reduced debt by  around 114 mill this year.
2.5 CPS dividend.
order book healthy.
Guidance for next year has revenue of 1.4 bill as against 1.17  for fin year just gone.
Will keep holding at that rate.
Mick


----------



## mullokintyre (27 September 2021)

divs4ever said:


> then i wish you luck  ,
> 
> i am very wary on mining service companies now  after being BADLY scorched with BLY , ( and not such a happy time on others  ) i do have some ( like MIN and recently sold out of IGO . )
> 
> ...



Well, I should have listened to you.
Ever since I bought in its been on a downward slope.
 Has a had a succession of new 52 week lows including today at .67.
At least i got a dividend from it.
Mr Market obviously does not see a bid coming.
Mick


----------



## mullokintyre (31 October 2021)

Rumours about MLD's possible takeover just won't go away.
The latest is from Australian Business review


> Speculation is mounting that the CIMIC-backed mining services provider Thiess is considering a buyout of its listed rival Maca.
> Suggestions surfaced in July that a party was running the ruler over Maca, and at that time its share price was around 84c.
> 
> Its shares last traded at 76c with its market value now at $261m.
> ...




I sold out about three weeks ago, thinking it was a lost cause, with a loss on my investment.
The deal may not go ahead  of course, but speculation may have given me a chance to lose less money.
Such is life.
Mick


----------



## peter2 (31 October 2021)

One benefit of getting out of a losing position is that now you can look at the current potential without too much emotion. If you're thinking about revenge then you've still too much emotional baggage. Forget *MLD* in this case. Find another better opportunity for your money.


----------



## mullokintyre (1 November 2021)

put the money into Ricegrowers.
Mick


----------



## Miner (13 January 2022)

https://wcsecure.weblink.com.au/pdf/MLD/02466189.pdf
		

PE - shocking.
Employee no interesting.


----------



## signalFollower (27 March 2022)

MLD hit my scanners during the week for "Turning Up"

new recent Highs looks alright


----------



## mullokintyre (26 July 2022)

Thiess lobbed a bid for Macas at a 28% premium to last closing price.
I had sold at a loss sometime ago, but that's life.
Mick


----------



## signalFollower (26 July 2022)

mullokintyre said:


> Thiess lobbed a bid for Macas at a 28% premium to last closing price.
> I had sold at a loss sometime ago, but that's life.
> Mick



and I had been looking to re-enter under / around 70c but didn't - bugger !


----------



## mullokintyre (28 July 2022)

signalFollower said:


> and I had been looking to re-enter under / around 70c but didn't - bugger !



I gave you the signal, but you didn't follow it!
Mick


----------



## System (27 October 2022)

On October 26th, 2022, MACA Limited (MLD) was removed from the ASX's Official List in accordance with Listing Rule 17.14, following compulsory acquisition of its remaining securities by Thiess Group Investments Pty Limited.


----------

