MACMAHON HOLDINGS LIMITED — Capital/Financing Update 2021

Aug 23, 2021

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24 August 2021

Business Update

• Tropicana and Telfer extensions to add approximately $600m to Macmahon’s order book

• Letter of award received for access road construction at the Hu’u project in Indonesia

• Finalised new $145m syndicated asset finance facility

Macmahon Holdings Limited (ASX:MAH) (‘ Macmahon’ or ‘the Company’ ) is pleased to provide the following update on the continued growth of its order book.

Tropicana Project Extension

The Tropicana mine is a joint venture between AngloGold Ashanti Australia Ltd (70% and operator) and Regis Resources Ltd (30%), and is one of Australia’s largest gold producing mines. Macmahon has been providing mining services since open cut mining started in July 2012 under a life of mine alliance contract.

The additional work for Macmahon follows the completion of a detailed final cutback study of the Havana pit and subsequent confirmation of the optimal method to mine the deeper ore in the Havana ore body. Macmahon has now been provided with the scheduling detail for the cutback, which will add 155 million tonnes to the material to be mined from 2024.

The final cutback of Havana will extend the open pit mine life by 4 years, from 2023 to 2027, and is expected to generate additional revenue of approximately $470 million.

Telfer Project Extension

Macmahon also wishes to confirm an extension of its life of mine contract with Newcrest for the Telfer mine.

On 12 August 2021, Newcrest announced that it will proceed with the West Dome Stage 5 cutback at Telfer. This new scope of work is expected to generate revenue of circa $138 million, and will extend Macmahon’s work on site to September 2024. This new work has been negotiated on updated rates which are forecast to achieve the Company’s internal financial hurdles.

Hu’u Project

In Indonesia, Macmahon has received a letter of award to construct an 11km access road at the Hu’u copper gold exploration project on Sumbawa island. This work is valued at approximately $18 million, and is a further step in the Company’s strategy to increase its revenue from mining support services.

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24 August 2021

Subject to finalisation of contract documentation, the project is forecast to commence in September 2021 and employ approximately 150 people. The Hu’u project is 80% controlled by Vale SA.

Syndicated Asset Finance Facility

Finally, Macmahon wishes to advise that it has finalised a new $145 million Syndicated Asset Finance Facility at attractive interest rates. The facility is supported by several major Australian banks and will provide additional flexibility to fund the Company’s capex investment program and deliver on its order book.

Commentary

Macmahon CEO and Managing Director Michael Finnegan said:

“We are pleased to have secured this additional work which adds approximately $600 million to our order book. A key highlight is the extension of our long term alliance contract at Tropicana, which has been a cornerstone of our surface mining business in Western Australia for many years and has recently expanded into underground mining.

Today’s announcement is another demonstration of our broad capabilities and the potential in our business for continued growth.”

* ENDS ***

This announcement was authorised for release by the CEO and Managing Director.

For further information, please contact:

Chris Chong Manager – Corporate Development and Investor Relations cchong@macmahon.com.au +61 8 9232 1877 / +61 408 774 365

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24 August 2021

About Macmahon

Macmahon is an ASX listed company offering the complete package of mining services to miners throughout Australia and Southeast Asia.

Macmahon’s extensive experience in both surface and underground mining has established the Company as the contractor of choice for resources projects across a range of locations and commodity sectors.

Macmahon is focused on developing strong relationships with its clients whereby both parties work in an open, flexible and transparent way to ensure mutually beneficial outcomes whilst also minimising risks for both parties.

Visit www.macmahon.com.au for more information.

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