Wrap Text
DRA Global Reports 1H24 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 Group)
JSE Sponsor: Pallidus Exchange Services Proprietary Limited
ASX / JSE ANNOUNCEMENT
30 August 2024
DRA GLOBAL REPORTS 1H24 RESULTS
DRA Global Limited (ASX / JSE: DRA) (DRA, or the Group) reports its financial results for the first half of
the 2024 financial year (i) (the period, or 1H24).
KEY OUTCOMES:
• Generated A$444.9 million in revenue during 1H24, consistent with the prior
corresponding period (pcp, 1H23).
• Underlying EBIT of A$30.3 million, representing a 29% improvement over the A$23.5
million reported in the pcp.
• Statutory NPAT of A$6.0 million, down from A19.4 million in the pcp, due to a one-off
increase in general and administrative expenses.
• Repaid all bank debt (A$20.8 million)(ii).
• Distributed A$6.2 million dividend to shareholders(iii) with respect to the financial year
ended 31 December 2023.
• Maintained a strong net cash(iv) position of A$117.4 million at the end of the period,
following dividend distribution and debt repayments (compared to A$127.7 million at 31
December 2023).
• Basic earnings per share(v) of A$0.10, compared to A$0.32 per share for the pcp.
• Net asset value per share of A$4.82, compared to A$4.85(vi) at 31 December 2023.
• Positive earnings achieved across all business segments, driven by continued focus on
quality of earnings across geographies and commodities.
• Secured A$221 million in new contracts and extensions during 1H24, bringing the total
work in hand(vii) to A$678 million.
DRA Chief Executive Officer and Managing Director James Smith commented:
"I am proud to report another consistent half of operational and financial performance at DRA. Statutory
outcomes for 1H24 reflect the continued stability of our business, with our profitability and cash generation
leaving us with a healthy net cash position at the end of the half. This follows the payment of the dividend
with respect to FY23 and the repayment of all bank debt, effectively reducing our financial leverage to zero.
Our pipeline remains robust, with A$221 million in new contracts and extensions secured, diversified across
380 new projects. This provides us with more than A$678 million work in hand.
Our business remains well-positioned to continue delivering on our global strategic priorities, focusing on
our core strengths of engineering, project delivery, and operations management."
Financial Summary
Description Unit 1H24 1H23 Change
Revenue A$'M 444.9 424.4 5%
EBIT A$'M 9.5 26.8 -65%
NPAT A$'M 6.0 19.4 -69%
Underlying EBIT A$'M 30.3 23.5 29%
Underlying NPAT A$'M 20.6 16.1 28%
Earnings per share (EPS)
Basic EPS CPS 9.66 32.44 -70%
Diluted EPS CPS 9.13 30.25 -70%
Headline EPS (HEPS)(viii)
Basic HEPS CPS 9.44 32.32 NM(ix)
Diluted HEPS CPS 8.92 30.14 NM
Description Unit At 30 June 24 At 31 Dec 23 Change
Cash and cash equivalents A$'M 150.5 178.8 -16%
Net cash A$'M 117.4 127.7 -8%
Net Assets A$'M 267.2 266.2 0%
Shares on issue M 55.4 54.8 1%
Net Asset Value per share A$ 4.82 4.85 0%
Operational Highlights
DRA remains committed to the health and wellbeing of its people and fostering a culture of continuous
safety improvement. Outcomes of the Group's safety performance indicators for the period include:
• TRIFR(x) of 0.34, a deterioration from 0.32 in the pcp, and
• LTIFR(xi) of 0.04, an improvement from 0.15 in the pcp.
During the period, a total of 11.2 million person-hours were completed across 18 active project sites and
30 maintenance and operation sites, with 46 of 48 total sites being LTI-free. Importantly, no major injuries
were reported during 1H24.
Across the Group, 380 new contracts and extensions valued at A$221 million were secured, bringing the
total portfolio of work in hand to A$678 million. The newly secured work is well distributed across
commodities, geographies and contract size, positively contributing to the Company's forward-looking
pipeline.
Highlights in the EMEA(xii) segment included:
DRA Projects delivered significant milestones, including the ahead-of-schedule commissioning of the
5Mtpa Kamoa Phase 3 Process Plant for Ivanhoe Mines and the completion of the construction for Two
Rivers Merensky Plant for African Rainbow Minerals. Key achievements also include the Der Brochen
Project's box-cut completion for Anglo Platinum and the successful commissioning of the Dwarsrivier
Degritting Project, which resolved a major bottleneck for Assore.
Significant new EMEA projects awarded or renewed during this period:
• DRD's Far West Recoveries Phase 2 expansion EPCM contract.
• Ivanhoe Mines' Kamoa Kakula Phase 3 project optimisation work.
• Anglo American PLC Twickenham PGM project feasibility study.
• Allied Gold Corporation's Kurmuk early works.
• Newmont Corporation's Subika overhead line installation EPCM contract.
Highlights in the APAC(xiii) segment included:
During the period, APAC completed the engineering phase for Whitehaven Coal at Vickery and expanded
its presence across their portfolio. APAC continues to grow in New South Wales, securing its first
underground engineering project at North Parkes with Evolution Mining and preparing to open a
Newcastle office in 2H24. Other highlights include successful community engagement in Queensland
through the Carmichael Operations contract, major engineering contributions to Pilbara Minerals' P1000
project, Lynas' Mt Weld Upgrade, and securing early works for the Mt Holland Concentrator.
Significant new APAC projects awarded or renewed during this period:
• Allied Gold Corporation's Kurmuk early works.
• Covalent Lithium's Expansion Project, concentrator Stage 2.
• Allied Gold Corporation's Sadiola Gold Project – staged expansion.
Highlights in the AMER(xiv) segment included:
The AMER segment made substantial progress, with North America advancing the Frontier Lithium PAK
Lake feasibility study and moving the 55,000 TPD Mineral Park copper project into construction. The
segment also completed the PFS for Kinross' Great Bear Project in Ontario and is establishing a
presence in Phoenix, Arizona, to tap into the Southwest copper and gold markets.
In South America, key activities include ongoing pre-feasibility work for a major copper mine's tailings co-
disposal project in Peru, expanding Master Service Agreements across Peru and Chile, and completing
engineering and commissioning support for a copper flotation plant in Peru.
Significant new AMER projects awarded or renewed during this period:
• Dundee Precious Metals Inc Coka Rakita PFS.
• MMG Limited Las Bambas overland conveyor and concentrate thickeners relocation.
• ArcelorMittal S.A. Las Truchas detail engineering.
• Torngat Metals Strange Lake PFS.
• Freeport-McMoran Inc Cerro Verde materials handling relocation detail engineering.
Highlights in the Minopex segment included:
Minopex achieved significant milestones, with the Elandsfontein plant recording peak production in April
2024 as part of its ramp-up, while launching programs to address ore variability and improve profitability.
The Sedibeng plant maintained a five-year injury-free record and consistently exceeded production
targets despite operational challenges. Safety improvements led to the Gamsberg Plant achieving a year
without LTIs, while efficiency upgrades target 21kt of zinc per month. The Ad Duwayhi plant also
sustained its impressive safety record and enhanced performance with a new SAG Mill Liner design that
exceeded 1 million tonnes processed.
Significant new Minopex projects awarded or renewed during this period:
• Giyani Metals Corporation Giyani O&M lab services.
• AngloGold Ashanti Americas North Bullfrog operational readiness.
• Barrick Gold Corporation Pueblo Viejo SWAT team assistance.
• Ivanhoe Mines Ltd Kipushi SWAT assistance.
• Aurum Metals Aurum construction phase.
Financial results
1H24 results further demonstrate DRA's return to operational and financial stability. The Group generated
A$445 million in revenue during the period, in line with the prior period, and well-diversified across regions,
commodities, clients and service offerings.
Statutory EBIT decreased to A$9.5 million from A$26.8 million in the prior period, with statutory NPAT of
A$6.0 million compared to A$19.4 million in the prior period. These outcomes were impacted by an increase
in non-core general and administrative expenses during the period.
In outlining the Group's operating results, and consistent with previous reporting, underlying profit measures
such as Underlying EBITDA, Underlying EBIT and Underlying NPAT are considered. Adjustments are made
to the statutory results to eliminate exceptional and non-recurring income or expenses to better reflect the
underlying performance of DRA.
The Group's Underlying EBIT result for 1H24 of A$30.3 million represents a 29% improvement on the
A$23.5 million reported in the prior period. Underlying NPAT grew to A20.6 million, up 28% from the A$16.1
million reported in 1H23.
The Group ended the period with a net cash position of A$117.4 million, down 8% from A$127.7 million at
31 December 2023. This reduction was due to the A$6.2 million distributed to shareholders for the FY23
dividend and a reduction in debt. All outstanding balances of the Group's existing banking facilities were
repaid, reducing gearing levels to 0.5%, with A$1.2 million of other interest-bearing securities remaining.
Corporate Update
During the period, DRA appointed existing Director Mr Val Coetzee as Director Process and Technology.
Mr Coetzee assumed oversight of process technical excellence, focusing on front-end project solutions for
EMEA and AMER. Mr Coetzee continues as an Executive Director of the Company(xv).
On 4 April 2024, DRA announced that Mr Michael Sucher had decided to step down from his role as Chief
Financial Officer (CFO) of the Group to pursue other opportunities. In his place, existing General Manager
of Management Reporting and Business Partnering, Mr Wiehann Joubert, was appointed Acting CFO.
Further, during the period, Mr Tony Bevan was appointed as Company Secretary(xvi).
Outlook
The Group's pipeline includes an estimated A$4.2 billion of opportunities with A$3.3 billion related to
Projects and A$0.9 billion related to Operations. The Company's P1 Pipeline(xvii) stands at A$0.6 billion as
at 30 June 2024.
At a Group level, the outlook for DRA's financial performance through 2H24 remains positive and broadly
in line with 1H24. Key potential impacts to profitability include shortages of skilled labour, material changes
to the forward pipeline of work, and inflationary pressures effecting the cost base of the business.
DRA's refreshed Board and Executive Committee remain focused on maximising the business' core
strengths of engineering, project delivery and operations management, while maintaining a diversified
revenue stream across geographies, service offerings, clients and commodities.
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 2024.
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 2024), which can be found on the JSE website
at: https://senspdf.jse.co.za/documents/2024/jse/isse/drae/1H24.pdf
The full announcement (comprising the financial report for the six-month period ended 30 June 2024),
together with an investor presentation, is available under the investor section on the Company website at
http://www.draglobal.com/investors/, or at https://www2.asx.com.au/markets/company/dra.
The Company maintains 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
i DRA's financial year end is 31 December.
ii The Group's gearing ratio (interest-bearing borrowings, excluding lease liabilities, to equity) was 0.5% at 30 June 2024 (31
December 2023: 7.4%). The decrease is a result of the full repayment of drawn banking facilities during the Half. There is
A$1.2 million of other outstanding interest-bearing security remaining at 30 June 2024.
iii Refer ASX announcement dated 28 March 2024, available at https://www.draglobal.com/investors/
iv Net cash is cash net of interest-bearing borrowings, other financial liabilities and lease liabilities.
v Adjusted basic loss/earnings per share is a non-IFRS measure. Unadjusted basic earnings per share of 9.66 cps compared
to unadjusted basic earnings per share of 32.44 cps for the corresponding prior period.
vi Excluding Share Scheme Settlement Shares, treated as treasury shares.
vii Includes secured contracts or signed purchase orders.
viii Headline EPS is a non-IFRS measure. The calculation is disclosed in note 8 to the half-year financial statements.
ix Percentage change is not meaningful.
x Total recordable injury frequency rate based on 200,000 person hours.
xi Lost time injury frequency rate based on 200,000 person hours.
xii Europe, Middle East and Africa
xiii Asia Pacific
xiv North and South America
xv Refer ASX announcement dated 7 March 2024, available at https://www.draglobal.com/investors/
xvi Refer ASX announcement dated 5 April 2024, available at https://www.draglobal.com/investors/
xvii Pipeline opportunities are categorised as "near-term, high likelihood – in tender, tender submitted or being negotiated".
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 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.
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 Page 8
Date: 30-08-2024 10:00:00
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 
