Wrap Text
DRA Global Reports H1 FY23 Results
DRA Global Limited
(Incorporated in Australia under the Corporations Act 2001 (Cth))
ACN 622 581 935
ASX / JSE Share Code: DRA
ISIN: AU0000155814
("DRA" or "the Company")
JSE Sponsor: Pallidus Exchange Services Proprietary Limited
DRA GLOBAL REPORTS H1 FY23 RESULTS
Key points:
• Underlying EBIT of A$23.5 million significantly improved compared to Underlying EBIT
loss of A$16.4 million in the prior corresponding period (pcp, H1 FY22)
• Revenue of A$424.4 million, down 11% from pcp
• Adjusted basic earnings per share(i) of A$0.26 per share compared to adjusted basic loss
per share of A$0.72 per share for pcp
• Net cash(ii) of A$88.5 million, up from A$59.1 million at 31 December 2022
• Net asset value per share(iii) of A$4.90, compared to A$4.66 at 31 December 2022
• Solid portfolio of work in hand(iv) of A$876 million and A$426 million of new and extended
contracts won in H1 FY23
• Core business units in EMEA region and AMER business unit continue to perform well,
while a refocused APAC business unit has returned to profitability and is concentrating on
growth
DRA Global Limited (ASX / JSE: DRA) (DRA, or the Group) reports its financial results for the first half of
the 2023 financial year(v) (H1 FY23).
DRA’s H1 FY23 Underlying EBIT was A$23.5 million compared to an Underlying EBIT loss of
A$16.4 million for pcp. H1 FY23 Underlying NPAT was A$16.1 million compared to an Underlying NPAT
loss of A$13.7 million for pcp. Statutory EBIT was A$26.8 million and statutory NPAT was A$19.4 million
for H1 FY23.
DRA Chief Executive Officer and Managing Director James Smith said:
“I am pleased with the solid result that the entire DRA team has delivered for the half-year. We have
achieved further stability in underlying operating performance across our business units, driving sustained
momentum in Group profitability.
“The hard work we have done has enabled a substantial improvement in liquidity and gearing, in line with
our short-term capital allocation priorities.”
Financial Summary
Description Unit H1 FY23 H1 FY22 Change (%)
Revenue A$'M 424.4 477.1 -11%
EBIT A$'M 26.8 (17.3) 255%
NPAT A$'M 19.4 (16.9) 215%
Underlying EBIT A$'M 23.5 (16.4) 243%
Underlying NPAT A$'M 16.1 (13.7) 218%
Return On Equity % 7.3 (6.7) 209%
Earnings per share (EPS)
Basic EPS CPS 32.44 (36.42) 189%
Diluted EPS CPS 30.25 (36.42) 183%
Headline EPS (HEPS)(vi)
Basic HEPS CPS 32.32 0.35 NM(vii)
Diluted HEPS CPS 30.14 0.35 NM(7)
Description Unit At 30 June 23 At 30 Dec 22 Change (%)
Cash and cash equivalents A$'M 150.6 142.2 6%
Net cash A$'M 88.5 59.1 50%
Net Assets A$'M 266.7 253.4 5%
Shares on issue(viii) M 54.4 54.4 0%
Net Asset Value per share A$ 4.90 4.66 5%
Operational Highlights
Reporting on our safety results for the period, TRIFR(ix) of 0.32 was an improvement from 0.66 in H1 FY22,
while the LTIFR(x) also saw a slight improvement to 0.16 compared to 0.20 for H1 FY22. The Group
worked 8.8 million person-hours across 17 active project sites and 32 maintenance and operation sites
for the six-month period to 30 June 2023.
The Group’s safety performance for the period was subsequently overshadowed by a fatality of an
employee of one of our contractor partners at the Moyeath project in Saudi Arabia that occurred on 15
July 2023, where SENET is currently overseeing the construction (EPCM) of the Copper Zinc
Concentrator. We are deeply saddened by this loss of life and remain committed to and focused on active
leadership participation and ongoing implementation of awareness programs, setting clear expectations
and behaviours to help reduce the risk to our people and the communities we work in.
The Group has built up a solid portfolio of work in hand(iv) to the value of A$876 million, which includes
A$426 million of new and extended contracts won in H1 FY23.
Highlights in the EMEA segment included:
• The Kamoa Phase 3 Plant Debottlenecking Project for Ivanhoe Mines was successfully
completed, resulting in a 22% increase in throughput.
• Completion of the new shaft headgear and associated winder components at the Zondereinde
Western Extension Ph1.
• The dismantling, refurbishment and re-establishment of the 20-year-old Marikana Platinum Plant
was successfully commissioned at the Mimosa mine to increase processing capacity.
Significant new EMEA projects awarded or renewed during this period:
• Ivanhoe Mines’ Kamoa Kakula Phase 3, Platreef Phase 1 and Kipushi UG Infrastructure projects.
• African Rainbow Minerals’ Bokoni feasibility study, Early Ounces and Two Rivers Concentrator
projects.
• Anglo American Platinum Mogalakwena 3rd Concentrator pre-engineering and feasibility studies.
Highlights in the APAC segment included:
• On track for completion for Pilbara Minerals’ Pilgangora P680 project and commenced early detail
design works on the P1000 project.
• Completed Stage 1 of the Mt Weld Project for Lynas Rare Earths, with Stage 2 on track and
expected to be completed in early 2024.
Significant new APAC projects awarded or renewed during this period:
• Bankable feasibility study (BFS) for Richmond Vanadium Technology, a Perth-based ASX
company developing a project for one of the world’s largest vanadium deposits in Queensland.
• FEED studies, in collaboration with SENET, for Allied Gold’s Kurmuk project in Ethiopia.
Highlights in the AMER segment included:
• Feasibility study for Compañía Minera del Pacífico to procure and install a new dewatering
package.
• Long-term engagement with Livent on the Nemanska Lithium project from early-stage studies
through to the recent award of the engineering and procurement contract.
Significant new AMER projects awarded or renewed during this period:
• EPCM services on the Waterton Global Mineral Park project.
• Awarded the PFS Study for the Kinross’ Great Bear Project, its flagship development in Northern
Ontario.
• Advisory contract with Trafigura to perform due diligence on the financing of mining assets.
Highlights in the Minopex segment included:
• Our Minopex team operating the South African Ore Beneficiation Plant celebrated five years of
zero harm and continues to demonstrate exceptional production performance.
• Achieved new production records at the Gamsberg Zinc Mine in the Northern Cape, South Africa.
Significant new Minopex projects awarded or renewed during this period:
• Successful extension of the Ad Duwayhi O&M contract for Ma’aden in Saudi Arabia.
• Successful extension of Sibanye Stillwater’s Kroondal project. New O&M contract for the
Mansourah Massarah power plant in Saudi Arabia.
Financial results
The solid H1 FY23 results were underpinned by a high-quality revenue base diversified across regions,
commodities, clients and service offerings. Group revenue for H1 FY23 was A$424 million, a reduction of
11% from pcp. The H1 FY22 result included several large fixed-price construction contracts in APAC
(through the G&S Engineering business), which were loss-making. The Group successfully disposed of
the G&S Engineering business in September 2022.
Statutory EBIT increased to A$26.8 million from a loss of A$17.3 million in pcp. Statutory NPAT was
A$19.4 million compared to a loss of A$16.9 million in pcp. The pcp results were impacted by the
aforementioned loss-making fixed-price construction contracts.
In discussing the operating results of the Group, and consistent with previous reporting, the focus is on
underlying profit measures such as Underlying EBITDA, Underlying EBIT and Underlying NPAT. In
arriving at Underlying EBITDA, EBIT and NPAT, adjustments are made to the statutory results to better
reflect the underlying performance of DRA.
Adjustments to exclude from Statutory EBIT and Statutory NPAT in calculating Underlying EBIT and
Underlying NPAT were:
• Fair value gains on Upside Participation Rights (UPRs) of A$3.3 million(xi) (nil tax effect).
Underlying EBIT also significantly improved in the current period and increased to A$23.5 million from a
loss of A$16.4 million in pcp.
The EMEA and Minopex segments continue to deliver strong results, with Underlying EBIT from the
EMEA segment increasing from A$20.1 million pcp to A$22.7 million, and the Minopex segment
increasing from A$7.1 million pcp to A$9.0 million.
With the disposal of the G&S Engineering business in September 2022, the APAC segment has returned
to its core activities and is starting to see stability in earnings, with Underlying EBIT of A$4.4 million.
AMER segment’s growth continued as revenue increased from A$33.1 million pcp to A$41.4 million in this
period, with Underlying EBIT of A$3.7 million in the period.
The cash position increased by A$8.4 million through the period, and net cash improved by A$29.4 million
to A$88.5 million. Gearing was reduced from 21.2% to 14.2% with debt reducing through repayment of
the Global Banking Facility during the period, to further strengthen the balance sheet. The improvement in
liquidity is a result of the focus on quality of earnings, working capital management and short-term capital
allocation priorities.
Corporate Update
DRA has appointed Chief Executive Officer James Smith to the Board as Managing Director(xii), alongside
two additional non-executive directors, Sandra Bell, who will chair the Company’s Audit & Risk
Committee, and Charles Pettit(xiii). These appointments complement the strategic, financial and operational
experience of our existing Board members.
Andrew Bickley was appointed as Company Secretary during the period(xiv).
Outlook
The Group’s pipeline includes an estimated A$4.0 billion of opportunities with A$2.8 billion related to
Projects and A$1.2 billion related to Operations. The Group’s P1 Pipeline(xv) is A$705 million as at
30 June 2023.
At a Group level, the outlook for financial performance in the current half remains positive and broadly
similar to H1 FY23. DRA will continue to focus on its core strengths of engineering, project delivery and
operations management, while looking to maintain its diversified revenue streams across geographies,
service offerings, clients and commodities.
There remains the potential for profitability to be impacted by shortages of skilled labour, further interest
rate increases by central banks as the effect flows through financing of future major projects and the
pipeline for the Group, and inflationary pressures on the Group’s cost base.
Through the second half of FY23, the Group’s capital allocation framework continues to prioritise
strengthening the balance sheet, retaining and investing in our people and sustaining base working
capital.
JSE Disclosures
Short form announcement
This short-form announcement is the responsibility of the Board of Directors of DRA and is a summarised
version of the Group’s full announcement and financial report. As such, it does not contain the full or
complete details of the Group’s results for the six-month period ended 30 June 2023.
Any investment decision should be made after taking into consideration the full announcement
(comprising the financial report for the six-month period ended 30 June 2023), which can be found on the
JSE website at:
https://senspdf.jse.co.za/documents/2023/jse/isse/drae/HY23finrep.pdf
The full announcement (comprising the financial report for the six-month period ended 30 June 2023),
together with an investor presentation, is also available for inspection, at no charge, by appointment and
subject to observing COVID-19 restrictions, at the registered office of the Company’s JSE sponsor:
• Pallidus Exchange Services Proprietary Limited, Die Groenhuis, 36 Garsfontein Road, Waterkloof,
Pretoria
during normal business hours. Alternatively, copies of these documents can also be accessed, or
requested via direct message, under the investor section on the Company website at
http://www.draglobal.com/investors/, or accessed at
https://www2.asx.com.au/markets/company/dra.
The Company has a primary listing on the Official List of the ASX and has a secondary listing on the Main
Board of the Johannesburg Stock Exchange.
- ENDS -
This announcement was approved for release by the Board of Directors of DRA Global Limited.
For further information, please contact:
Media enquiries: Investor queries: Shareholder administration:
Michael Vaughan Andrew Prior P: +61 8 6163 5900
Fivemark Partners Fivemark Partners shareholders@draglobal.com
M: +61 422 602 720 andrew.prior@fivemark.com.au
michael.vaughan@fivemark.com.au
About DRA Global Limited
DRA Global Limited (ASX: DRA | JSE: DRA) (DRA or the Company) is an international multi-disciplinary engineering, project delivery
and operations management group, focused on the mining, minerals and metals industry.
The Group has an extensive track record spanning almost four decades across a wide range of commodities. We have delivered
more than 8,000 projects, studies and managed services solutions, and currently operate more than a dozen sites through our
operations and maintenance division.
Our teams have deep expertise in the mining, minerals and metals processing industries, as well as related non-process infrastructure
such as water and energy sustainability solutions. We deliver comprehensive advisory, engineering and project delivery services
throughout the capital project lifecycle, from concept through to operational readiness and commissioning as well as ongoing
operations, maintenance and engineering services. We do this with a focus on sustainability and assisting clients to achieve their ESG
goals.
DRA covers all major mining centres with offices across Africa and the Middle East, North and South America, and the Asia-Pacific.
i Earnings adjusted for revaluation of Upside Participation Rights on issue. Adjusted basic loss/earnings per share
is a non-IFRS measure. Unadjusted basic earnings per share of 32.44 cps compared to unadjusted basic loss per
share of 36.42 cps for the corresponding prior period.
ii Net cash is cash net of interest-bearing borrowings, other financial liabilities and lease liabilities.
iii Excluding Share Scheme Settlement Shares, treated as treasury shares.
iv Includes secured contracts or signed purchase orders.
v DRA’s financial year end is 31 December.
vi Headline EPS is a non-IFRS measure. The calculation is disclosed in note 8 to the half-year financial statements.
vii Percentage change is not meaningful.
viii Excludes 25M UPRs on issue. UPR strike price is A$3.10 (ie. not in the money at the current share price).
ix Total recordable injury frequency rate based on 200,000 person hours.
x Lost time injury frequency rate based on 200,000 person hours.
xi Fair value gains on Upside Participation Rights (UPRs) – the fair value gain on UPRs is primarily driven by the
movement of DRA’s share price which impacts the value of the UPRs issued in FY2021 and is not representative
of DRA’s underlying financial performance.
xii Refer ASX announcement dated 28 July 2023, available at https://www.draglobal.com/investors/
xiii Refer ASX announcement dated 1 July 2023 and 28 July 2023, available at https://www.draglobal.com/investors/
xiv Refer ASX announcement dated 3 March 2023, available at https://www.draglobal.com/investors/
xv Pipeline opportunities are categorised as “near-term, high likelihood – in tender, tender submitted or being
negotiated”.
Physical Level 8, 256 Adelaide Terrace / Perth WA 6000 / Australia // Postal PO Box 3130 / East Perth WA 6892 / Australia
Telephone +61 (0)8 6163 5900 / info@draglobal.com // ACN 622 581 935 // ASX: DRA / JSE:DRA
draglobal.com
Date: 31-08-2023 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
