News: MLD Maca Posts HY Net Profit After Tax Attributable $8.1 Mln, page-3

 Reasonable is probably the right word. In line with expectations but a different mix to what I expected.

Mining - Not great and I probably didn't expect quite as large a drop in margin as to what they realised. The big thing from an investors perspective is what is their ongoing margin in Mining likely to be. Its been declining now for each of the last 2 years. EBITDA% in 2016 was 24.0%, 2017 was 24.2%, 2018 dropped to 19.4% (both halves with similar % drops) and now 1st half of 2019 being only 9.2%. What is the correct run rate? Ie. can they get back to the 19% range as in 2018 or even the 24% range as in 2016 and 2017. My forecast is a return to 15% range in H2 2019.

Civil - A bit average, looks to be one of those business units that needs revenue to drive EBITDA growth. Low margin stuff though in general but they have got revenue now to a level that its profitable, but can they do more than a couple of %? I'd hope so in the long run. Not expecting a big improvement in H2 in margins.

InterQuip - This is a good news story and other than a throwaway line they didn't mention much about it. Strong revenue (more than double H1 2018) and pretty good margins (EBITDA margin is 14.7%). Above my expectations.

Still in line with what I'd be expecting for the full year so I'm comfortable to hold. I'm expecting a similar FY result to what we had in FY18.