WEEKLY

17 January 2014

WWW.LCC.ASIA

Australian Engineering & Mining Services

M&A Rumour and Activity The Australian market was up over the week with the S&P / ASX100 ending at 4407 points. The Australian dollar continues to drop, ending the week at US88 cents. The new year started with the announcement that AMEC (LSE:AMEC), the second-biggest UK oil and gas engineering firm, has agreed to buy US-listed Foster Wheeler (www.fwc.com) for A$3.6B. Both companies are major competitors to WorleyParsons (ASX:WOR), with AMEC recently mooted as a potential merger partner. Two local deals were also announced: Fortescue Metals Group Limited (ASX:FMG) acquired two Christmas Creek Ore Processing Facilities from Crushing Services International, a subsidiary of Mineral Resources Ltd (ASX:MIN) for circa $300M. The transaction is effectively an early buy-out of a ten year lease arrangement and allows Fortescue to further reduce its iron ore production costs. PPK Group Limited (ASX:PPK) signed an agreement to acquire the COALTRAM mining equipment business from Diversified Mining Services Limited (www.dmsgroup.com.au) for $13M. Finally, rumours have also been circulating that a European contracting group is believed to have been interested in acquiring assets of Forge (ASX:FGE).

News Headlines and Key Sector Developments

Ticker News/Event
ANG Has been awarded a further, and to-date its largest Chilean maintenance contract, by Codelcos El Tesoro mine. The contract is for the on-site supply of 30-40 people for the maintenance of mobile equipment and the major repair of all mobile equipment offsite (trays and buckets) Appointed Mr Nicholas Yates as the companys new Chief Executive Officer and Managing Director. It is expected that Mr Yates will commence with BSA in early March 2014 Andrew Buckley, Chief Executive Officer and Managing Director, will retire from Cardno on 1 March 2014. Mr Buckley will be succeeded by Mr Michael Renshaw, currently Executive General Manager, International Secured a $135M three-year contract with Western Desert Resources at its Roper Bar Project, a remote greenfield iron ore mine in the Northern Territory. The contract commences on 13 January 2014 with Thiess leading the mining operations

Ticker News/Event
MIN Fortescue Metals Group Limited has assumed full ownership and operational responsibility for the two Christmas Creek Ore Processing Facilities by purchasing the plants from MIN. The sale price for the plants was circa $300M Signed an infrastructure construction contract with the Fortescue River Gas Pipeline Joint Venture. The contract, valued at approximately $100M, is for the construction of a gas pipeline in Western Australia Received approval from the Commonwealth Bank of Australia for new finance facilities up to an amount of $8.2M. The facilities provide OTC with an enhanced financial capacity to undertake new and larger projects and to fund potential growth opportunities Received a letter of award from Rio Tinto to perform electrical and instrumentation works at the Cape Lambert Port B Project. SXE has been awarded a phase 1 package for car dumpers and screenhouse at a value of approximately $40M. Work is scheduled to commence in January 2014

BSA

MND

CDD

OTC

LEI

SXE

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
17 January 2014

WWW.LCC.ASIA

Australian Engineering & Mining Services

Ticker Company Name

Market Cap Open Price Close Price Week High Week Low (AUD Million) (AUD) (AUD) (AUD) (AUD)

Weekly Volume % Change Trend

EV/ EBITDA

EV/ EBIT

AJL ASL AAX ANG BLY BKN BYL BOL BSA CDD CGH COF DCG DSB DOW EAL EGN EHL EVZ FWD FGE GCS GNG HDX IMD LEI LCM LYL MLD MAH MYE MIN MCE MND NMS NOD 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 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 Nomad Building Solutions 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

307 279 113 297 205 902 44 81 26 938 134 59 326 15 2,126 78 47 140 8 182 91 84 80 55 119 5,345 99 166 413 163 53 2,045 105 1,573 80 17 346 20 385 426 35 71 153 58 99 120 33 63 6 446 1,097 22 122 4,265 183

1.05 0.97 0.71 3.65 0.44 5.53 0.39 0.17 0.12 6.35 0.45 0.25 2.21 0.30 4.89 0.64 0.16 0.27 0.04 2.97 1.25 0.47 0.53 0.31 0.66 16.38 1.39 4.10 2.53 0.14 0.69 11.42 0.89 17.30 0.05 0.06 1.28 0.10 3.24 3.34 0.14 0.88 0.68 0.20 1.24 0.77 0.51 0.29 0.04 0.87 6.96 0.01 0.84 16.38 1.01

1.15 0.90 0.67 3.60 0.45 5.33 0.40 0.17 0.12 6.49 0.43 0.23 1.93 0.31 4.89 0.64 0.15 0.24 0.04 3.00 1.06 0.49 0.53 0.27 0.57 15.85 1.43 4.25 2.34 0.13 0.70 10.99 1.11 17.04 0.04 0.06 1.24 0.11 3.26 3.12 0.14 0.90 0.69 0.21 1.27 0.74 0.52 0.29 0.04 0.87 6.69 0.01 0.84 17.28 1.00

1.15 0.99 0.72 3.79 0.46 5.55 0.41 0.18 0.12 6.52 0.45 0.26 2.22 0.35 4.95 0.65 0.17 0.27 0.04 3.13 1.21 0.49 0.53 0.29 0.66 16.38 1.47 4.35 2.56 0.14 0.77 11.48 1.12 17.35 0.05 0.06 1.32 0.11 3.30 3.39 0.16 0.90 0.69 0.21 1.27 0.77 0.54 0.30 0.04 0.88 7.05 0.01 0.86 17.74 1.01

1.05 0.86 0.65 3.50 0.42 5.26 0.39 0.15 0.12 6.17 0.43 0.23 1.92 0.30 4.67 0.62 0.15 0.24 0.04 2.94 0.86 0.47 0.52 0.25 0.55 15.54 1.37 4.04 2.20 0.13 0.69 10.32 0.89 16.38 0.04 0.06 1.23 0.11 3.15 2.90 0.14 0.87 0.67 0.20 1.23 0.73 0.52 0.29 0.04 0.84 6.52 0.01 0.78 16.38 0.97

9.5% -7.3% -5.6% -1.4% 2.3% -3.6% 2.6% 0.0% -4.2% 2.2% -5.6% -8.0% -12.7% 3.3% 0.0% -0.8% -6.3% -11.1% -4.8% 1.0% -15.6% 4.3% 0.0% -14.5% -14.4% -3.2% 2.5% 3.7% -7.5% -3.7% 1.4% -3.8% 24.7% -1.5% -8.5% -6.3% -2.7% 5.0% 0.6% -6.6% 0.0% 2.3% 0.7% 2.5% 2.4% -3.3% 2.0% 0.0% 8.6% 0.6% -3.9% 33.3% 0.0% 5.5% -1.0%

NM NM 2.6x 4.8x 2.9x 3.8x 7.0x 8.5x 3.9x 11.5x 7.5x 11.0x 2.2x 3.8x 3.7x 7.9x 3.7x 10.8x 8.1x 9.7x 3.0x 6.0x 7.5x 13.7x 4.2x 4.7x 2.1x 2.9x 3.8x 6.9x 7.0x 8.2x NM NM 3.2x 9.3x 6.5x 9.0x 5.5x 9.1x 0.2x 0.3x 3.6x 5.7x 5.9x 6.4x 4.3x 6.2x 3.4x 4.5x 3.2x 6.3x 6.1x 6.5x 4.3x 4.6x 3.3x 5.0x 1.3x 2.7x 2.3x 3.3x 6.3x 9.6x 9.7x 128.0x 5.8x 6.6x 74.4x NM 1.3x 1.7x 2.6x 3.5x 2.3x 3.2x 6.8x 8.3x 5.9x 8.0x 2.9x 5.9x 7.4x 8.0x 2.3x 5.0x NM NM 3.8x 4.2x 2.7x 3.3x 2.9x 9.5x 2.1x 4.1x NM NM 5.1x 10.1x 15.2x 28.4x NM NM 4.6x 10.2x 8.4x 9.6x 2.5x 11.8x
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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