Engineering & Mining Services Update for Australian market for week ended 4th July 2014

1. 4 July 2014 WWW.LCC.ASIA
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to
be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty,
guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or
recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report
should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 1 / 2
WEEKLYAustralianEngineering&MiningServices
M&A Rumour and Activity
The Australian market was up over the week with the S&P / ASX100 ending at 4595 points. The Australian dollar decreased over the
week closing at US93.5 cents. The RBA has decided to keep the cash rate at 2.5 percent for the month of July; the rate has now
remained unchanged for ten consecutive board meetings. Glenn Stevens indicated that the RBA believes the Australian dollar is
overvalued and is set to fall significantly, “and not by just a few cents”.
PPK Group Limited (ASX:PPK), a designer, manufacturer, and distributor of portable underground mining equipment announced it has
entered into a Binding Heads of Agreement to acquire full ownership of MONEx Technology Pty Ltd’s Electronic Engine Management
System technology, associated IP, manufacturing line and existing inventory for $2.8 million. MONEx Technology develops and supplies
electronic engine management and safety shutdown systems for diesel. The acquisition is aligned with PPK’s strategy of increasing
investments in the mining services sector.
CHAMP Private Equity (www.champequity.com.au) is rumoured to have sold industrial transport and mining services company, LCR
Group (www.lcrgroup.com.au), to rival buyout firm Archer Capital (www.archercapital.com.au) for approximately $200 million, after the
troubled transport and logistics company McAleese Group (www.mcaleese.com.au) failed to use its option to buy the business.
Progress Rail Services Corporation (www.progressrail.com), a supplier of railroad and transit system products and wholly owned
subsidiary of heavy equipment giant Caterpillar, has concluded an agreement to buy the Track Business of Pacific Rail Engineering Pty
Ltd (www.pacificrail.com.au). Pacific Rail Engineering’s Track Business manufactures and designs track products for use in rail
networks.
Lend Lease Group (ASX:LLC) is believed to be among the interested parties for Leighton Holdings’ John Holland operation. It is
rumoured that Lend Lease may make an offer for the $1 billion-plus business ahead of the July 31st deadline, with other interested
parties being America’s KBR Inc (NYSE:KBR), France’s Bouygues SA (ENXTPA:EN) and South Korea’s Samsung C&T Corporation
(KOSE:A000830).
Germany plans to halt shale-gas drilling for the next seven years over concerns that exploration techniques could pollute groundwater.
A halt will increase Germany’s reliance on its major natural gas supplier, Russia. An increased reliance will come amid rising political
tensions between the two nations over Ukraine.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
DCG Announced Mr Giles Everist has resigned as Chairman but will
remain as a Non-Executive Director. Current Non-Executive
Director, Mr Bill Healy, has taken over the position of Chairman
SXE Advised that it has been awarded a contract for Electrical and
Instrumentation works at BHP Billiton Iron Ore’s Yarnima
Power Station, valued at approximately $25M
EGN Advised that Mrs Anna Bagley has resigned as Joint Company
Secretary, with Mr Kevin Pallas continuing as Company Secretary
and CFO
TPP Announced it has entered a trading halt, pending the release
of details of a material contract
MAH Announced the award of a 2 year contract extension at Newmont
Mining’s Waihi Gold Mine, valued at $38M
WOR Announced that Alderon Iron Ore Corp has temporarily
suspended WOR’s EPCM contract for the Kami Iron Ore
Project, pending completion of project financing
Source: Capital IQ, LCC research

2. 4 July 2014 WWW.LCC.ASIA
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to
be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty,
guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or
recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report
should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 2 / 2
WEEKLYAustralianEngineering&MiningServices
Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 241 0.88 0.90 0.94 0.88 ▲ 2.9% NM NM
ASL 290 0.84 0.93 0.94 0.83 ▲ 10.7% 3.4x 7.1x
AAX 90 0.48 0.54 0.55 0.48 ▲ 12.5% NM NM
ANG 137 1.62 1.63 1.66 1.56 ▲ 0.6% 7.3x 10.9x
BLY 94 0.19 0.21 0.23 0.19 ▲ 7.9% 5.6x NM
BKN 732 3.83 4.28 4.31 3.75 ▲ 11.7% 7.5x 12.3x
BYL 44 0.40 0.40 0.40 0.40 ▲ 1.3% 1.9x 3.6x
BOL 59 0.13 0.13 0.14 0.12 — 0.0% 3.4x 8.3x
BSA 23 0.11 0.10 0.11 0.10 ▼ -4.8% 4.6x 16.1x
CDD 1,080 6.40 6.73 6.74 6.26 ▲ 5.2% 9.3x 11.4x
CGH 133 0.38 0.40 0.41 0.37 ▲ 6.7% 3.2x 7.3x
COF 64 0.24 0.25 0.26 0.23 ▲ 6.4% 10.1x 25.1x
DCG 309 1.80 1.83 1.84 1.75 ▲ 1.9% 3.4x 3.9x
DSB 6 0.11 0.12 0.34 0.34 ▲ 9.1% 3.0x 8.5x
DOW 2,033 4.50 4.67 4.70 4.50 ▲ 3.8% 3.7x 6.5x
EAL 72 0.55 0.57 0.58 0.55 ▲ 2.7% 6.3x 7.6x
EGN 37 0.12 0.12 0.15 0.15 — 0.0% NM NM
EHL 125 0.22 0.22 0.22 0.20 — 0.0% 5.0x 178.1x
EVZ 3 0.01 0.01 0.01 0.01 ▲ 8.3% 21.7x NM
FWD 144 2.24 2.37 2.47 2.12 ▲ 5.8% 5.6x 10.9x
GCS 81 0.45 0.48 0.48 0.44 ▲ 5.6% 3.7x 6.0x
GNG 111 0.67 0.74 0.74 0.67 ▲ 10.4% 4.8x 5.1x
HDX 42 0.20 0.20 0.20 0.19 ▲ 2.6% 4.9x 7.5x
IMD 132 0.66 0.62 0.66 0.60 ▼ -5.6% 7.4x 16.6x
LEI 7,115 19.78 21.02 21.14 19.51 ▲ 6.3% 3.9x 7.4x
LCM 62 0.80 0.89 0.89 0.77 ▲ 11.3% 5.4x 6.3x
LYL 84 2.10 2.15 2.15 1.92 ▲ 2.4% 2.1x 2.3x
MLD 398 1.90 1.97 1.99 1.84 ▲ 3.4% 2.5x 3.8x
MAH 132 0.11 0.11 0.11 0.10 — 0.0% 1.3x 3.1x
MYE 34 0.48 0.46 0.48 0.46 ▼ -5.2% 2.5x 5.0x
MIN 1,866 9.63 10.00 10.10 9.39 ▲ 3.8% 3.6x 5.5x
MCE 116 1.18 1.23 1.23 1.17 ▲ 4.7% 8.5x 36.5x
MND 1,567 15.85 16.91 16.99 15.71 ▲ 6.7% 5.8x 6.6x
MRM 748 2.08 2.04 2.10 2.04 ▼ -1.9% 7.2x 11.3x
NOD 13 0.05 0.05 0.05 0.05 ▲ 4.4% 1.3x 1.6x
NWH 275 0.94 0.99 1.00 0.92 ▲ 4.8% 2.4x 3.8x
OTC 21 0.10 0.11 0.11 0.10 ▲ 10.0% 1.6x 2.2x
PRG 324 2.78 2.74 2.83 2.61 ▼ -1.4% 6.1x 7.4x
RCR 400 2.82 2.92 2.95 2.75 ▲ 3.5% 7.4x 9.5x
RQL 40 0.12 0.13 0.13 0.12 ▲ 8.3% 5.8x NM
SND 68 0.87 0.86 0.96 0.86 ▼ -1.1% 6.2x 6.8x
SDM Sedgman Limited 120 0.51 0.53 0.55 0.50 ▲ 3.9% 13.2x NM
SSM Service Stream Limited 79 0.19 0.21 0.21 0.19 ▲ 7.9% NM NM
SWL 167 1.95 1.91 1.95 1.89 ▼ -1.8% 7.5x 8.3x
SXE 86 0.49 0.53 0.53 0.48 ▲ 9.3% 1.7x 2.2x
STS 38 0.58 0.60 0.61 0.58 ▲ 3.4% 1.9x 5.6x
SWK 43 0.26 0.26 0.27 0.26 — 0.0% 2.4x 6.3x
TPP 16 0.09 0.09 NM NM — 0.0% NM NM
TTN 114 1.97 2.25 2.29 1.97 ▲ 14.5% 5.3x 6.6x
TSE 633 1.10 1.24 1.25 1.09 ▲ 12.8% 6.9x 13.8x
UGL 1,198 6.83 7.30 7.33 6.81 ▲ 6.9% 14.0x 22.6x
VMG 28 0.01 0.01 0.01 0.01 ▼ -10.0% NM NM
WDS 138 0.93 0.95 1.00 0.93 ▲ 2.2% 2.7x 5.0x
WOR 4,672 17.10 18.93 18.97 17.05 ▲ 10.7% 10.7x 12.0x
WTP 149 0.80 0.80 0.84 0.79 — 0.0% 1.4x 6.6x
Source: Capital IQ, LCC research
UGL Limited
Ausdrill Limited
Watpac Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
WorleyParsons Limited
VDM Group Limited
WDS Limited
Bradken Limited
Boom Logistics Limited
EVZ Limited
Fleetwood Corporation Limited
Downer EDI Limited
Ausenco Limited
Engenco Limited
Emeco Holdings Limited
Global Construction Services Limited
Coffey International Limited
Cardno Limited
BSA Limited
Brierty Limited
Decmil Group Limited
Austin Engineering Limited
Company Name
AJ Lucas Group Limited
Boart Longyear Limited
Calibre Group Limited
DeltaSBD Limited
Transfield Services Limited
Swick Mining Services Limited
Mermaid Marine Australia Limited
Monadelphous Group Limited
Mineral Resources Limited
OTOC Limited
RCR Tomlinson Limited
NRWHoldings Limited
Programmed Maintenance Services
Seymour Whyte Limited
Tempo Australia Limited
Titan Energy Services Limited
GR Engineering Services Limited
E&A Limited
Structural Systems Limited
Resource Equipment Limited
Saunders International Limited
Southern Cross Electrical Engineering
Matrix Composites & Engineering
Hughes Drilling Pty Limited
Logicamms Limited
Imdex Limited
Leighton Holdings Limited
Nomad Building Solutions Limited