Lycopodium Limited Half-Year Results FY2024
PERTH, 21 February 2024 Lycopodium Limited (“Lycopodium” or the “Company”) has generated revenue of $177.8 million and net profit after tax (NPAT) of $30.0 million for the six-months ended 31 December 2023 (1H FY2024).
The Company Directors have approved a fully franked interim dividend of 37 cents per share, payable on 4 April 2024.
With a strong pipeline of studies and projects in delivery, the Company remains on track to achieve the previously advised full year guidance of approximately $345 million in revenue and NPAT in the range of $46 to $50 million.
Lycopodium’s Managing Director, Peter De Leo, said: “Our results for FY2023 represented record highs for the Company, so it is extremely pleasing that we have been able to maintain this level of return going into FY2024.
The outlook for this current financial year is very positive, as we continue to deliver a portfolio of quality studies and projects for our clients around the world.
” Several projects are transitioning into the commissioning phase during Q3 and Q4 FY2024.
This includes the Kathleen Valley Lithium Project (Liontown Resources) in Western Australia, the SabodalaMassawa BIOX Expansion Project (Endeavour Mining) in Senegal, the Lafigué Project (Endeavour Mining) in Côte d’Ivoire, the Goulamina Lithium Project (Leo Lithium) in Mali and the Langer Heinrich Mine Restart Project (Paladin Energy) in Namibia.
“The past 12 months have been very busy progressing these major projects through construction into commissioning.
Currently, we directly employ more than 1,200 people and, when taking into account contractors, we are managing over 3,700 personnel working on projects across the globe,” said Mr De Leo.
Other significant projects well into construction include the Ahafo North Project (Newmont) in Ghana, the Chemical Grade Processing Plant #3 Project (Talison Lithium) in Western Australia, the Batu Hijau Expansion Project (AMMAN) in Indonesia, the Mutamba Mineral Sands Pilot Plant (Rio Tinto) in Mozambique and the Kiaka Gold Project (West African Resources) in Burkina Faso.
Work is continuing to ramp up on project briefs awarded earlier in the financial year, including the Feasibility Study and Basic Engineering for the Reko Diq Copper-Gold Project (Barrick) in Pakistan and the Engineering and Procurement scope for the Boto Gold Project (Managem Group) in Senegal.
Other projects awarded during the period include the provision of Engineering, Procurement and Construction Management services for the Baomahun Gold Project (FG Gold) in Sierra Leone and the Yanqul Copper-Gold Project (Mazoon Mining) in Oman, and the Feasibility Study and Basic Engineering for the Lumwana Copper Project (Barrick) in Zambia.
In Industrial Processes, the Company completed the detailed design in December for CSL Seqirus’ world-class influenza vaccine manufacturing facility being built in Melbourne.
Construction is progressing, with the facility becoming operational in 2026.
Other major projects that are ongoing include delivery of the detailed design scope for the construction of a new manufacturing facility at the Nutrien Ag Solutions site in western Melbourne and undertaking the detailed design for Pilbara Minerals’ Midstream Project, encompassing the development of a midstream demonstration plant to produce value-added lithium at the Pilgangoora Operation in Western Australia.
The Company’s Rail Infrastructure business continues to provide design, engineering, technical advisory and Rail Infrastructure Management (RIM) services for greenfield and brownfield rail projects across Australia.
The ARTC’s Southern Highlands Overtaking Opportunities Detailed Design package, to improve the efficiency of freight and passenger services between Sydney and Melbourne, has been a significant scope of work over the past 18 months, with early construction works having commenced.
In July 2023 Lycopodium was awarded a three-year contract to conduct rail infrastructure inspections at all 57 Pacific National sites Australia wide. As part of the contract, Lycopodium will also undertake engineering and system enhancements targeting asset management and reliability improvements.
Reflecting the significant number of projects currently in delivery, controlled manhours have steadily grown over the past 12 months, being 14.1 million for the rolling 12 months to January 2024, compared to 8.2 million for FY2023.
Pleasingly, with the increased onsite activity the Company has maintained its excellent safety record, reporting a Lost Time Injury Frequency Rate (LTIFR) of 0.1 and a Total Recordable Injury Frequency Rate (TRIFR) of 1.2 for the rolling 12 month period to end of January 2024.
Other key highlights during the first half of FY2024 include the release of Lycopodium’s inaugural Sustainability Report in November 2023 and the opening of an office in Lima, Peru, in December 2023.
“The opening of our new office in Lima represents a significant milestone in the strategic growth of our business in the Americas.
The project and study workload for our Lima operations will be generated from our rapidly growing Toronto office.
In time, as the Lima team establishes itself, the office will provide a springboard to pursue additional work in the Latin American region, that being a marketplace which currently contributes a significant percentage of the world’s gold and copper supplies, amongst other commodities,” said Mr De Leo.
For further information Peter De Leo Managing Director, Lycopodium Limited Telephone: +61 8 6210 5222
i hold LYL ( 'free-carried' )
there was a time when i thought i had made a bad investment here , am glad to have been proven wrong