MLG Oz Strengthens Balance Sheet but Faces Processing Capacity Constraints
MLG Oz Limited has delivered a robust half-year performance with revenue climbing 6% and EBITDA soaring 24.5%, underpinned by strong gold sector demand and operational efficiencies.
- Pro forma revenue up 6.0% to $284.6 million
- EBITDA rises 24.5% to $36.5 million with margin improvement
- Net profit after tax nearly doubles to $7.8 million
- Gearing ratio reduced to 0.84x, strengthening balance sheet
- Capital expenditure focused on fleet growth and processing capacity
Strong Half-Year Growth in a Challenging Environment
MLG Oz Limited has reported a solid set of financial results for the half-year ended 31 December 2025, showcasing resilience and growth in a competitive mining services market. The company’s pro forma revenue increased by 6.0% to $284.6 million, driven primarily by sustained demand from the gold sector, which accounted for 94% of revenue. This growth reflects the ongoing strength of gold prices at historic highs, which continues to fuel volume demand for MLG’s haulage and processing services.
EBITDA surged 24.5% to $36.5 million, lifting margins to 12.8% from 10.9% a year earlier. This margin expansion signals improved operational efficiencies and cost management, despite some weather-related disruptions early in the period. Net profit after tax nearly doubled to $7.8 million, highlighting the company’s ability to convert revenue growth into bottom-line gains.
Balance Sheet and Capital Investment
MLG’s balance sheet strengthened with net assets rising 5.6% to $153.4 million. The company prudently reduced its gearing ratio to 0.84 times, reflecting a cautious approach to debt amid expansion. Capital expenditure totalled $25.7 million, with a significant portion allocated to fleet growth and operational capacity enhancements. This investment underpins MLG’s strategy to maintain service quality and meet increasing client demand, particularly in bulk haulage and crushing services.
Safety remains a core focus, with MLG reporting material improvements in safety performance and embedding industry-leading risk management systems. The company excludes a $750,000 fine related to a 2022 safety incident from its pro forma results, underscoring its commitment to transparency and continuous improvement.
Strategic Outlook and Market Position
Looking ahead, MLG is well positioned to sustain its performance in the second half of the financial year, expecting results broadly in line with the first half. The company is actively exploring opportunities to move up the value chain by establishing its own processing capabilities, addressing the constrained availability of excess gold processing capacity in the market. This strategic move could enhance MLG’s economics and provide tier 2 producers with improved access to processing facilities.
MLG’s footprint across 34 sites and its diverse fleet valued at over $216 million underpin its capacity to service major clients such as Fortescue, Gold Fields, BHP, and Rio Tinto. The company’s founder-led leadership and experienced executive team continue to drive growth and operational excellence in a sector marked by volatility and evolving client needs.
Bottom Line?
MLG’s strong half-year momentum and strategic focus on processing capacity expansion set the stage for sustained growth amid gold market dynamics.
Questions in the middle?
- How will MLG’s planned processing capabilities impact its competitive positioning?
- What risks could arise from fluctuating gold prices and weather disruptions?
- Will MLG pursue new contracts beyond its core gold sector clientele?
