WEEKLY

27 September 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Market review The Australian market hit a five year high as it followed the lead of US stocks which continue to make gains despite a looming deadline to raise the US debt ceiling. According to the IMF, US government gross debt is 106% of GDP. By comparison, Australia's debt to GDP is 27%. Despite this, it is unlikely the US has any option but to raise its debt ceiling. The Australian dollar traded down during the week to close around the US93 cent level. Interestingly the run into Christmas may produce some IPO activity. Brokers are definitely a little less gloomy than they have been for a few years, and a solid performance on a few of the blockbuster deals may open the way for various Engineering & Mining Services sector private companies waiting in the wings to test the markets in the new year.

4500

S&P/ASX 100 Index

0.960 0.940

AUD vs USD

4300

0.920 0.900

4100 28 Aug 13

12 Sep 13

27 Sep 13

0.880 28 Aug 13

12 Sep 13

27 Sep 13

Source: Capital IQ

News Headlines and Key Sector Developments

Ticker News/Event
BLY Has revised its previously announced agreement to amend the terms of its existing revolving credit facility. The revised amendments, when effective, will, among other things, reduce the size of the revolving credit facility from US$450M to US$140M Released its FY13 results with revenues from continuing operations of $200.3M (FY12: $212.2M) and NPAT of $15.3M (FY12: $22.8M), a decline of 32.8% over the corresponding period FMG, the principal of the Christmas Creek Site, has exercised powers to step-in and manage Crushing Services Internationals (a MIN subsidiary) two ore processing facilities for an undisclosed period. MIN does not anticipate a material impact on cash flow or profitability and is confident of a quick resolution

Ticker News/Event
PRG Has been awarded, through its marine services division, a $100M contract to provide vessel management, marine and construction manning, catering and logistical services to Heerema Contractors for its work on the Ichthys LNG Project Has been awarded a $8.9M contract to design, construct and commission an upgrade to the coal processing plant at Centennial Coals Springvale mine Requested a trading halt in relation to its securities pending an announcement by the company in relation to a financing proposal

GCS

SDM

MIN

VDM

WTP

Has been awarded a $148M design and construct contract by Healthscope to build the new Gold Coast Private Hospital in Southport
Source: Capital IQ, Thomson Reuters, LCC research

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

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WEEKLY
27 September 2013

WWW.LCC.ASIA
Market Cap Open Price Close Price Week High Week Low (AUD Million) (AUD) (AUD) (AUD) (AUD) Weekly Volume % Change Trend EV/ EBITDA EV/ EBIT

Australian Engineering & Mining Services

Ticker Company Name

AJL ASL AAX ANG BLY BKN BYL BOL BSA CDD CGH CLO COF DCG DSB DOW EAL EGN EHL EVZ FWD FGE GCS GNG HDX IMD LEI LCM LYL MLD MAH MYE MIN MCE MND NMS NWH OTC PRG RCR RQL SND SDM SSM SWL SXE STS SWK TPP TSE UGL VMG WDS WOR WTP

AJ Lucas Group Limited Ausdrill Limited Ausenco Limited Austin Engineering Limited Boart Longyear Limited Bradken Limited Brierty Limited Boom Logistics Limited BSA Limited Cardno Limited Calibre Group Limited Clough Limited Coffey International Limited Decmil Group Limited DeltaSBD Limited Downer EDI Limited E&A Limited Engenco Limited Emeco Holdings Limited EVZ Limited Fleetwood Corporation Limited Forge Group Limited Global Construction Services Limited GR Engineering Services Limited Hughes Drilling Pty Limited Imdex Limited Leighton Holdings Limited Logicamms Limited Lycopodium Limited MACA Limited MacMahon Holdings Limited Mastermyne Limited Mineral Resources Limited Matrix Composites & Engineering Monadelphous Group Limited Neptune Marine Services Limited NRW Holdings Limited OTOC Limited Programmed Maintenance Services RCR Tomlinson Limited Resource Equipment Limited Saunders International Limited Sedgman Limited Service Stream Limited Seymour Whyte Limited Southern Cross Electrical Engineering Structural Systems Limited Swick Mining Services Limited Tempo Australia Limited Transfield Services Limited UGL Limited VDM Group Limited WDS Limited WorleyParsons Limited Watpac Limited

365 517 201 249 205 973 40 89 33 897 149 1,135 56 388 25 2,008 75 47 143 12 223 452 92 90 58 190 6,657 123 178 428 163 75 2,050 68 1,788 96 413 20 323 503 44 69 172 48 110 197 27 82 8 579 1,374 10 113 6,024 140

1.35 1.66 1.65 3.41 0.48 5.90 0.37 0.17 0.15 6.27 0.50 1.46 0.20 2.24 0.56 4.70 0.64 0.15 0.24 0.06 3.57 5.18 0.53 0.58 0.31 0.85 18.60 1.70 5.10 2.48 0.14 1.10 12.20 0.71 19.00 0.05 1.50 0.11 2.70 3.58 0.18 0.90 0.73 0.18 1.58 1.18 0.43 0.34 0.05 1.10 8.29 0.01 0.73 23.01 0.70

1.37 1.66 1.63 3.40 0.45 5.75 0.37 0.19 0.15 6.25 0.49 1.46 0.22 2.30 0.53 4.62 0.66 0.15 0.25 0.06 3.68 5.24 0.54 0.60 0.32 0.91 19.74 1.76 4.57 2.48 0.13 0.99 11.02 0.72 19.37 0.05 1.48 0.10 2.73 3.72 0.18 0.89 0.77 0.17 1.42 1.22 0.43 0.38 0.05 1.13 8.42 0.01 0.78 24.41 0.76

1.39 1.70 1.68 3.45 0.50 5.90 0.37 0.19 0.15 6.30 0.51 1.47 0.22 2.38 0.58 4.74 0.67 0.15 0.25 0.06 3.70 5.26 0.55 0.60 0.32 0.93 19.85 1.77 5.30 2.55 0.14 1.10 12.25 0.76 19.84 0.05 1.54 0.12 2.75 3.72 0.18 0.90 0.78 0.18 1.58 1.25 0.44 0.39 0.05 1.15 8.43 0.01 0.80 24.41 0.79

1.32 1.61 1.60 3.30 0.44 5.60 0.35 0.17 0.14 6.01 0.48 1.46 0.19 2.16 0.53 4.51 0.63 0.15 0.23 0.06 3.51 4.87 0.53 0.55 0.30 0.82 18.40 1.70 4.57 2.35 0.13 0.99 10.62 0.68 18.71 0.05 1.45 0.10 2.58 3.48 0.17 0.88 0.73 0.17 1.37 1.16 0.43 0.34 0.05 1.06 7.80 0.01 0.73 22.82 0.69

1.1% 0.0% -0.9% -0.3% -6.2% -2.5% 0.0% 11.8% 0.0% -0.3% -3.0% 0.0% 10.0% 2.7% -4.5% -1.7% 3.1% 0.0% 4.3% 3.4% 3.1% 1.2% 1.9% 4.3% 3.2% 7.1% 6.1% 3.5% -10.4% 0.0% -7.1% -9.6% -9.7% 0.7% 1.9% 4.0% -1.0% -9.1% 1.1% 3.9% 0.0% -1.7% 5.5% -5.6% -10.4% 3.4% 0.0% 13.4% 0.0% 2.7% 1.6% 0.0% 6.8% 6.1% 9.4%

NM 3.5x 4.9x 6.0x 3.9x 7.9x 2.1x 3.8x 3.6x 7.8x 3.1x 6.9x 7.3x 5.0x 2.7x 3.7x 6.8x NM 3.2x 7.8x 6.5x 3.5x 3.7x 6.8x 4.4x 5.0x 3.9x 7.8x 4.7x 3.4x 1.3x 3.1x 6.3x 6.4x 6.7x 102.4x 3.0x 2.3x 6.2x 7.2x 3.3x 7.2x 2.7x NM 4.6x 5.2x 2.5x 2.8x NM 5.8x 17.7x NM 4.3x 11.4x 1.8x

NM 6.3x 6.4x 7.3x 11.5x 11.6x 3.6x 8.3x 8.5x 9.4x 6.5x 7.2x 13.5x 5.6x 3.7x 6.6x 7.9x NM 9.3x 10.8x 10.8x 4.4x 6.0x 7.5x 6.4x 6.6x 8.3x 8.3x 5.1x 5.2x 2.7x 4.5x 9.6x 83.7x 7.6x NM 4.1x 3.2x 7.6x 9.8x 6.7x 7.7x 6.2x NM 5.0x 6.5x 8.3x 5.3x NM 11.4x 33.0x NM 9.5x 12.9x 8.5x

So urce: Capital IQ, LCC research

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

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