Morning News Bites – August 26

In Today’s Morning News Bites for August 26.  Kalgoorlie-Boulder wakes to a 3.1 magnitude earthquake at around 3:15am local time this morning. Seven Group Holdings report Westrac’s FY20 revenue up 15 per cent. PM raises concerns about Victoria’s state of emergency extension with Daniel Andrews.

Conglomerate Seven Group Holdings has reported a 12 per cent rise in full year revenue to $4.56 billion. This was facilitated by the Groups Caterpillar equipment business and its work associated with the mining industry. However (on a statutory basis) its net profit after tax fell 42 per cent to $115.8 million, primarily due investments associated with Seven West Media (a major shareholder) and a $117 million impairment of a US oil and gas operation. WesTrac’s FY20 revenue was up 15 per cent, with strength across both product sales and product support. This was encouraged by WesTrac’s strong product sales results supported by the delivery of equipment to major mining projects. In addition, WesTrac’s product support revenue improved 10 per cent driven by a record 6.6 million parts lines shipped in WA and NSW. Chief Executive Ryan Stokes commented, saying “In particular our Industrial Services portfolio has delivered solid growth with WesTrac executing a standout performance, reflecting the strong demand from customers who remain active in mining production and construction.”

Macmahon Holdings Limited delivered record financial results for FY20, in-line with the increased guidance provided at the half year result. Revenue grew by 25% over the prior year to $1,380.4 million, this was primarily driven by driven by increased activity across the company’s projects in Australia and Indonesia from predominantly Gold and Copper/Gold operations, the eleven-month contribution of the acquired specialist underground contractor GBF Group and successful ramp up at the Tropicana Boston Shaker contract. This growth in revenue underpinned record earnings for Macmahon in FY20. To date, there has been minimal net impact on business performance from COVID-19.

An exploration update of the Saxby Gold Project has been provided by Strategy Energy Resources. The drill rig has commenced mobilisation in northwest Queensland with drilling scheduled to commence in early September. A cultural heritage survey has cleared the area and a drill contract has been executed with DDH1 Drilling. Recent structural, alteration and geophysical work have upgraded the prospectivity of the surrounding district and Strategic Energy Resources has now pegged the entire belt. A comprehensive regional geophysical review with a view to commencing district-scale geophysical data collection in the near future.

Paterson Resources report that planning is underway for the validation diamond drilling recommended in the report on an estimate of Gold Mineral Resources at Hackneys Creek and Lucky Draw located at the Burraga Copper Gold Project in the Eastern Lachlan Fold Belt in NSW. The diamond drilling is designed to validate the existing drill assay data used in the inferred resource estimation at Hackneys Creek by twinning approximately 6 holes. A further 10 diamond drill holes recommended to validate the existing drill assay data at the remnant Lucky Draw inferred resource are also planned. Validation of this drill data along with the collection of additional geological and structural information will enable the upgrading of the current resource from inferred to a higher category. Highlights from past drilling carried out by RGC Exploration at Hackneys Creek that were included in the inferred resource estimation are: 21.3m @ 9.19 g/t Au from 89m, including 4m @ 40.38 g/t Au, 33.6m @ 2.27 g/t Au from 71.4m, including 5m @ 5.83 g/t Au, 25.0m @ 3.57 g/t Au from 20m, including 4m @ 7.48 g/t Au.

5,000m drill program commences at Pilbara Gold Project by Kairos Minerals. Reverse Circulation drilling has commenced as its 2020 exploration program continues to gather momentum. The program, comprising 5,000m of RC drilling in total, has commenced at the large Fuego gold target (located on the Croydon Project), with the initial reconnaissance program expected to be completed there over the next 2-3 weeks while drill pad preparations are completed at the Mt York Project. The rig will then relocate to Mt York to complete the balance of the program. Kairos’ Executive Chairman, Terry Topping, said, “Our 2020 exploration campaign across the Pilbara Gold Project has now stepped up a gear with drilling underway, which is a really exciting development for our team and for our shareholders. Due to logistical considerations including timing of heritage clearances and drill pad preparation, we have commenced the program at the exciting Fuego target first rather than Mt York, as previously advised.”