1

Gresham Mining & Infrastructure Services Quarterly

Chris Branston

cbranston@gresham.com.au

We are pleased to present Edition 20 of the Gresham Mining & Infrastructure Services Quarterly(GMISQ), a snapshot of the performance, news and trends across the resources (including oil &gas) and infrastructure services sectors.

The Gresham Mining and Infrastructure Services Index (GMISI) generally performed strongly in thefinal quarter of FY17, closing up 9% for the quarter and outperforming a flat broader market. TheJune quarter saw a continued divergence in the performance of the GMISI’s constituents, withindex gains driven primarily by the outperformance of the larger companies, as summarisedbelow:

• Of the largest 15 companies in the GMISI by market capitalisation (accounting for ~91% of totalGMISI constituent market capitalisation as at 30 June 2017), 13 companies recorded positiveshare price performance in the June quarter, with a median increase of ~9%;

• Of the smallest 15 companies in the GMISI by market capitalisation, 12 companies recordednegative share price performance in the June quarter, with a median decrease of ~18%.

The sector has continued its strong run into the new financial year, with the index increasing afurther 10% through the end of August. The full year reporting season has drawn to a close andwas characterised by generally solid results, with the anticipated recovery that drove strong shareprice performance over the last year starting to be seen in earnings.

In our Quarterly Focus we review the performance of the sector in FY17 across differentcommodity and end market exposures. The analysis highlights a significant appreciation of valuedespite commodity prices currently sitting at broadly similar levels to those seen a year ago. Thisreflects a general re-rating of the sector, driven by increased exploration expenditure, sustainingcapex and operations spending, and continued opportunities in major infrastructure projects.

Editorial Team

Gresham Advisory Partners Ltd is a leading Australian mergers and acquisitions/corporate advisorybusiness and one of Australia’s largest and highest ranking independent corporate advisors.

Edition 20

September 2017

The Gresham Mining and Infrastructure Services Index is a market capitalisation weighted index comprising 50 mining and infrastructure services companies selected by Gresham at the date of this report.

Brad Hancock

bhancock@gresham.com.au

Tom Waddell

twaddell@gresham.com.au

(1)

2

37% 33% 29% 25% 21%

(28%) (30%)(41%)

(52%)

(70%)

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ance

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Share Price Movements

Notes: (1) Performance measured over the period 1-April-17 to 30-Jun-17 (inclusive). Source: FactSet, IRESS.

2

Leaders LaggersRanks

Mar Dec 30 Jun 17 31 Mar 17

1 1 CIMIC Group Ltd. (ASX:CIM) 12,594 11,650 8%

2 2 Orica Ltd. (ASX:ORI) 7,779 6,621 18%

3 3 Downer EDI Ltd. (ASX:DOW) 3,812 3,443 11%

4 4 ALS Ltd. (ASX:ALQ) 3,756 3,096 21%

5 5 WorleyParsons Ltd. (ASX:WOR) 2,772 2,719 2%

6 6 Mineral Resources Ltd. (ASX:MIN) 2,033 2,011 1%

7 8 Monadelphous Group Ltd. (ASX:MND) 1,314 1,157 13%

8 7 Spotless Group Holdings Ltd. (ASX:SPO) 1,263 1,192 6%

9 9 Cardno Ltd. (ASX:CDD) 585 614 -5%

10 12 Ausdrill Ltd. (ASX:ASL) 573 443 29%

11 14 Service Stream Ltd. (ASX:SSM) 482 420 15%

12 10 Programmed Maintenance Services Ltd. (ASX:PRG) 480 482 -1%

13 13 RCR Tomlinson Ltd. (ASX:RCR) 477 442 8%

14 11 Tox Free Solutions Ltd. (ASX:TOX) 466 452 3%

15 15 MACA Ltd. (ASX:MLD) 387 357 8%

16 18 Imdex Ltd. (ASX:IMD) 277 239 16%

17 16 Pacific Energy Ltd. (ASX:PEA) 271 260 4%

18 21 Emeco Holdings Ltd. (ASX:EHL) 256 169 25%

19 17 GR Engineering Services Ltd. (ASX:GNG) 225 241 -7%

20 19 NRW Holdings Ltd. (ASX:NWH) 208 216 -4%

21 20 Macmahon Holdings Ltd. (ASX:MAH) 198 186 6%

22 22 Decmil Group Ltd. (ASX:DCG) 160 162 -2%

23 25 Fleetwood Corp. Ltd. (ASX:FWD) 144 131 10%

24 23 BSA Ltd. (ASX:BSA) 144 148 -3%

25 29 AJ Lucas Group Ltd. (ASX:AJL) 129 117 -23%

26 32 Austin Engineering Ltd. (ASX:ANG) 127 96 33%

27 28 Global Construction Services Ltd. (ASX:GCS) 126 117 3%

28 27 Lycopodium Ltd. (ASX:LYL) 125 123 2%

29 30 Seymour Whyte Ltd. (ASX:SWL) 120 114 5%

30 33 Alliance Aviation Services Ltd. (ASX:AQZ) 118 86 37%

31 26 RPMGlobal Holdings Ltd. (ASX:RUL) 116 126 -8%

32 24 Watpac Ltd. (ASX:WTP) 105 145 -28%

33 35 Southern Cross Electrical Engineering Ltd. (ASX:SXE) 92 83 12%

34 31 SRG Ltd. (ASX:SRG) 83 99 -16%

35 34 Veem Ltd. (ASX:VEE) 83 83 -

36 36 MMA Offshore Ltd. (ASX:MRM) 58 82 -30%

37 38 Swick Mining Services Ltd. (ASX:SWK) 54 59 -16%

38 39 Neptune Marine Services Ltd. (ASX:NMS) 49 58 -15%

39 41 Veris Ltd. (ASX:VRS) 49 50 -3%

40 43 Mitchell Services Ltd. (ASX:MSV) 49 47 3%

41 40 Boom Logistics Ltd. (ASX:BOL) 44 55 -19%

42 45 Saunders International Ltd. (ASX:SND) 43 43 -7%

43 44 Tempo Australia Ltd. (ASX:TPP) 42 47 -10%

44 42 Matrix Composites & Engineering Ltd. (ASX:MCE) 38 50 -24%

45 47 Mastermyne Group Ltd. (ASX:MYE) 28 27 3%

46 37 Boart Longyear Ltd. (ASX:BLY) 24 78 -70%

47 48 XRF Scientific Ltd. (ASX:XRF) 23 21 9%

48 46 LogiCamms Ltd. (ASX:LCM) 14 29 -52%

49 50 Laserbond Ltd. (ASX:LBL) 11 12 -4%

50 49 Brierty Ltd. (ASX:BYL) 8 13 -41%

Market Cap (A$m) Share

price

r %

Company

(2%)(2%)

9% 8% 7% 5%

2% 0% 0%

(2%)(5%)(6%)(6%)(6%)

(8%)

All

Ord

inar

ies

S&P

/ASX

20

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-

10

20

30

40

50

60

70

Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17

Gresham Mining & Infrastructure Services Index (GMISI)

S&P/ASX 200

S&P/ASX 200 Resources

GMISI (excl. top 5)

GMISI CONSTITUENTS1 LEADERS & LAGGERS (SHARE PRICE)1

PERFORMANCE RELATIVE TO S&P 200 INDICES1

PERFORMANCE OVER TIME

3

0%

1%

2%

3%

4%

5%

6%

7%

8%

GN

G

MLD

VR

S

BSA

MIN

SWK

PR

G

NW

H

DC

G

DO

W

AQ

Z

PEA

SSM

TOX

MN

D

CIM

GC

S

SPO

SWL

RC

R

OR

I

ASL

SXE

VEE

ALQ

FWD

IMD

Median: 3.7%

-

5x

10x

15x

20x

25x

ALQ

AN

G

MN

D

VR

S

TPP

DO

W

OR

I

CIM

WO

R

TOX

WTP

IMD

VEE

PEA

SSM

SPO

ASL

DC

G

SWK

NW

H

FWD

MLD

SWL

GN

G

RC

R

MIN

BSA

PR

G

SXE

GC

S

AQ

Z

MA

H

Median: 13.5x

Notes: (1) Only companies with consensus earnings forecasts are included in charts; (2) Share prices are as at 30 June 2017; (3) Earnings multiples are not calendarised; (4) Companies exhibiting negative multiples have been excluded from the above analysis. Source: FactSet.

Valuation Multiples

The roll-forward of PE ratios from FY17 to FY18 has seen headline multiples fall in the June quarter, reflecting expectedearnings growth. However, sector valuations have remained strong, with the median GMISI constituent FY18 forecastP/E multiple of 13.5x sitting materially above the longer term one year forward median of 9.5x.

5

1-yr fwd median as at:Jun 16: 10.9x (FY17)Sep 16: 12.0x (FY17) Dec 16: 14.5x (FY17)Mar 17: 17.0x (FY17)

1-yr fwd median as at:Jun 16: 4.1% (FY17)Sep 16: 4.0% (FY17) Dec 16: 3.5% (FY17)Mar 17: 3.1% (FY17)

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

2x

4x

6x

8x

10x

12x

14x

16x

18x

Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17

GMISI

All Ordinaries

GMISI Median: 9.5x

1 YEAR FORWARD PRICE EARNINGS RATIO OVER TIME

DIVIDEND YIELD (FY18F)

PRICE EARNINGS RATIO (FY18F)

4

0%

100%

200%

300%

400%

500%

600%

LCM

ALQ

PR

G

TOX

SSM

OR

I

CIM BSA

RC

R

VEE

GN

G

RU

L

DO

W

MN

D

IMD

MSV

SND

SWL

PEA LY

L

CD

D

VR

S

MIN AJL

LBL

XR

F

TPP

MLD SX

E

SRG

AN

G

NW

H

NM

S

FWD

MA

H

DC

G

GC

S

BYL

ASL

AQ

Z

MYE

SWK

WTP

MC

E

BO

L

MR

M

Median: 194%

-

2x

4x

6x

8x

10x

12x

ALQ

MN

D

WO

R

OR

I

VEE

CIM

SSM

MR

M

IMD

SPO

AN

G

RC

R

DO

W

PEA

TOX

DC

G

PR

G

GN

G

FWD

EHL

SWL

BSA

VR

S

ASL

MIN

NW

H

TPP

SXE

MC

E

AQ

Z

GC

S

MLD

SWK

MA

H

Median: 6.6x

-

5x

10x

15x

20x

EHL

ALQ VR

S

AN

G

MN

D

DO

W

TOX

OR

I

SPO

CIM

WO

R

VEE

PEA

IMD

RC

R

ASL

PR

G

SSM

SWK

DC

G

NW

H

FWD

MIN

GN

G

MLD

AQ

Z

SWL

TPP

SXE

GC

S

MA

H

Median: 9.7x

Notes: (1) Only companies with consensus earnings forecasts are included in charts; (2) Share prices are as at 30 June 2017 (3) Earnings multiples are not calendarised;(4) Enterprise Value is based on market capitalisation plus minority interests and last reported net debt adjusted for capital raisings and acquisitions. (5) Companies exhibiting negative multiples have been excluded from the above analysis. Source: FactSet.

Valuation Multiples (cont.)

Median FY18 EBIT and EBITDA multiples of 9.7x and 6.6x respectively are also materially higher than the correspondingFY17 valuation metrics as at 30 June 2016.

6

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

1-yr fwd median as at:Jun 16: 7.8x (FY17)Sep 16: 8.6x (FY17) Dec 16: 9.6x (FY17)Mar 17: 12.4x (FY17)

1-yr fwd median as at: Jun 16: 4.4x (FY17)Sep 16: 5.3x (FY17) Dec 16: 6.2x (FY17)Mar 17: 7.6x (FY17)

Companies trading at a discount to NTA

EV/EBIT (FY18F)

EV/EBITDA (FY18F)

PRICE/NTA

5

Forecast Profitability & Gearing

4

Notes: (1) Only companies with consensus earnings forecasts are included in charts.Source: FactSet.

Large Cap (>$1bn) Mid Cap (between $200m and $1bn) Small Cap (<$200m)

-10%

0%

10%

20%

MA

H

DC

G

MR

M

EHL

SSM

GN

G

AN

G

RC

R

ASL

AQ

Z

CIM

SWL

NW

H

IMD

MLD

ALQ

MIN

WO

R

BSA

TOX

OR

I

SPO

MN

D

DO

W

PR

G

WTP

VR

S

PEA

Median: 9%

-20%

-10%

0%

10%

20%

30%

MA

H

SWL

AN

G

MR

M

EHL

RC

R

ALQ BSA ASL

VR

S

WO

R

SSM

IMD

GN

G

PEA

NW

H

TOX

AQ

Z

OR

I

DO

W

CIM

SPO

MLD

MIN

MN

D

MC

E

WTP

PR

G

Median: 9%

0%

10%

20%

30%

PEA EH

L

MIN

AQ

Z

MC

E

ALQ VEE

IMD

OR

I

MLD ASL

TOX

MR

M

SWK

NW

H

MA

H

GC

S

VR

S

SPO

AN

G

SSM

WO

R

CIM

DO

W

TPP

MN

D

FWD

RC

R

DC

G

SXE

GN

G

BSA

PR

G

SWL

WTP

Median: 12%

-100%

-50%

0%

50%

100%

WTP BLY

MR

M

BYL

EHL

BO

L

AJL

SPO

AQ

Z

PR

G

MYE

WO

R

TOX

ASL

AN

G

MSV

SWK

OR

I

NW

H

RC

R

ALQ PEA

FWD

VEE

IMD

CD

D

DO

W

LCM

VR

S

LBL

CIM XR

F

MIN

DC

G

SSM

GC

S

MLD

RU

L

MN

D

GN

G

BSA

SWL

NM

S

MA

H

SRG

MC

E

SXE

SND

TPP

LYL

Median: 1%

NET DEBT / ENTERPRISE VALUE

EBITDA MARGINS (FY18F)

FORECAST EBITDA GROWTH (FY17-19F CAGR)

FORECAST REVENUE GROWTH (FY17-19F CAGR)

Sector valuations are underpinned by expectations of improving growth, with analysts forecasting median revenue andearnings growth in the high single digits.

6

Contract Awards

7

Notes: (1) Work is being performed by a JV in which CIMIC wholly owned subsidiary CPB Contractors holds a 45% interest. (2) Work being performed by a JV in which Ausdrillholds a 50% interestSource: Company announcements.

Date

AnnouncedCompany Client Project/Facility Location Services Value (A$m)

Commodity

/ Sector

30 Jun 17 GR Engineering AngloGold Ashanti Sunrise Dam WAProcessing plant upgrade

EPC31 Gold

28 Jun 17 Fleetwood Gateway Lifestyle Various Various Supply of modular homes n/a Infra.

22 Jun 17 SCEE

Multiplex Westmead Hospital NSW

E&I and communicationsengineering, design and

installation

70 Infra

FDC Construction IAG fitout NSW 10 Infra.

Geocon The Republic ACT 6 Infra

Chase Building Group Capitol Project ACT 2 Infra

DecmilSilvergrass East

ProjectWA 5 Iron Ore

22 Jun 17 CIMIC1 NSW Government Sydney Metro Project NSWConstruction of twin tunnels

under Sydney Harbour2,810 Infra.

21 Jun 17 Monadelphous WoodsideVarious gas

production facilitiesWA

Maintenance and brownfield offshore services

600 Oil & Gas

21 Jun 17 Alliance Aviation CITIC PACIFIC Sino Iron WA FIFO charter services n/a Iron Ore

13 Jun 17 Mitchell Services GlencoreOakey Creek Coal

MineQLD

Large diameter drilling services

n/a Coal

12 Jun 17 Watpac NSW GovernmentForensic Pathology and Coroners Court

NSW Construction services 63 Infra.

8 Jun 17 MACA Ramelius ResourcesMount Magnet Gold

ProjectWA Open pit mining services 100 Gold

8 Jun 17 Alliance Aviation BHP Various WA FIFO charter services n/a Iron Ore

5 Jun 17 Alliance Aviation CITIC PACIFICCape Preston Aerodrome

WAGround handling and management services

n/a Iron Ore

1 Jun 17 CIMICCastle Peak

Power Company Black Point Power

StationHong Kong Construction services 148 Infra.

1 Jun 17 CIMIC Energy Australia Yallourn Mine VIC Mining services 195 Coal

1 Jun 17 Decmil FMG Anderson Point WATug infrastructure and

support services21 Iron Ore

31 May 17 RPM GlobalBarapakuria Coal Mining Company

Dighipara Coal Field Bangladesh Feasibility studies US$2.5 Coal

25 May 17 Worley Refining NZMarsden Point

RefineryNZ EPCM n/a Oil & Gas

24 May 17 SCEE Civmec & Decmil Amrun Project QLDElectrical and

instrumentation works30 Bauxite

19 May 17 Watpac Jewish Care Victoria Senior Living Precinct VIC Construction services 73 Infra.

15 May 17 Mitchell Services GlencoreVarious coal operations

QLD Exploration drilling n/a Coal

15 May 17 SCEE Various Various NSW/ACTD&C of electrical and

communications services50 Infra.

11 May 17 SRG BGC ContractingSouth Middleback

and Iron Knob minesSA Drill and blast services 100 Iron Ore

10 May 17 SCEEAustralian Defence

ForceRAAF Base Tinal NT

Design, supply, installation, testing and commissioning

30 Infra.

10 May 17 WorleyOntario Power

Generation

Pickering & Darlington Power

StationsCanada Nuclear support services n/a Utilities

MAJOR CONTRACT AWARDS

The June quarter saw a reasonable level of contract activity, with major awards across both the resources andinfrastructure sectors. CIMIC won a number of large infrastructure contracts, highlighted by a A$2.8b tunnelling contractas part of the Sydney Metro Project1, while SCEE announced a combined ~A$240m of new awards, mostly outsidetraditional resources markets. On the resources front, Monadelphous secured a five-year, A$600m maintenance contractwith Woodside, while also announcing a further A$295 million in contracts across eight separate projects.

7

Contract Awards (cont.)

7

Date

AnnouncedCompany Client Project/Facility Location Services Value (A$m)

Commodity

/ Sector

10 May 17 CIMICMain Roads

Western AustraliaVarious WA Road infrastructure 276 Infra.

10 May 17 CIMIC VariousCollinsville & White

Rock solar farmsNSW/QLD Solar farm EPC 117 Utilities

9 May 17 Pacific Energy Altura Mining Pilgangoora Lithium

ProjectWA

Power station build, own & operate

n/a Utilities

9 May 17 Monadelphous INPEX Ichthys LNG Project WAOffshore maintenance

servicesn/a Oil & Gas

8 May 17 SCEE Bechtel Wheatstone WAElectrical and

instrumentation services30 Oil & Gas

8 May 17 SCEE Bouygues Various solar farms NSWDesign and construction of

PV electrical packages10 Utilities

4 May 17 CIMIC Heron Resources Woodlawn Project NSW Processing plant EPC 107 Zinc/Copper

3 May 17 CIMICLithium Power International

Maricunga Project ChileEngineering consulting for

feasibility studyn/a Lithium

1 May 17 MACA Northern Minerals Browns Range Project WAMining and earthworks

services 10 Rare Earths

1 May 17 CIMICGovernment of Hong

KongEast Kowloon Cultural

CentreHong Kong Construction services 436 Infra.

1 May 17 Watpac QLD GovernmentNorth Queensland

GovernmentQLD Construction services 250 Infra.

1 May 17 RCR Tomlinson Canadian SolarLongreach & Oakey

solar farmsCanada

Operations and maintenance services

50 Utilities

26 Apr 17 Ausdrill1 NewmontSubika Underground

MineGhana

Underground mining services

US$280 Gold

20 Apr 17 Mitchell Services BHP Olympic Dam SA Underground drilling n/a Copper

19 Apr 17 GR Engineering Dacian Gold Mt Morgans Project WA Processing plant EPC 107 Gold

13 Apr 17 CIMIC Mach EnergyMount Pleasant Coal

MineNSW Mining services 500 Coal

12 Apr 17 CIMICCorrective Services

NSWJunee Correctional

CentreNSW Infrastructure upgrades 134 Infra.

11 Apr 17 Lycopodium Cardinal Resources Namdini Gold Project Ghana Processing PFS n/a Gold

4 Apr 17 CIMICAirport Authority

Hong KongHong Kong Airport Hong Kong Construction services 278 Infra.

3 Apr 17 MACA Gold Road Resources Gruyere Project WA Bulk earthworks 49 Gold

3 Apr 17 Macmahon QCoal Byerwen Coal Mine QLDEarthworks and mining

servicesn/a Coal

MAJOR CONTRACT AWARDS

Notes: (1) Work being performed by a JV in which Ausdrill holds a 50% interest.Source: Company announcements.

8

Corporate Activity

8

Date Announced

Status Target BusinessTarget

HQSeller Acquirer

Value (A$m)

ForumInterest

(%)Cons.

28 Jun 17 Announced LANDdata SurveysSurveying

consultancyACT David Sloan Veris 5 Private 100% Cash

26 Jun 17 Announced Seymour WhyteConstruction

servicesQLD n/a VINCI 83 Public 100% Cash

21 Jun 17 Announced Sequel Drill & BlastCivil drilling and

blastingQLD n/a

Sichuan Yahua Industrial Group

13 Private 80% Cash

8 Jun 17 CompletedAustralian Contract

Mining Underground

mining contractorWA n/a

Westgold Resources

30 Private 100%Cash & Scrip

25 May 17 Announced OreXplore Mineral analysis WA n/aSwick Mining

Services2.9 Private 29.5%2 Cash

23 May 17 CompletedProgrammed (Marine

Business)Offshore support

servicesWA Programmed

Atlas Professionals

29 Public 50% Cash

8 May 173 Completed Macmahon Holdings Contract mining WAMacmahon

HoldingsAnman Mineral Nusa Tenggara

US$1464 Public 44%Asset swap

2 May 17 Completed Terrex Seismic Seismic and

surveying servicesWA Steve Tobin Allegro Funds n/a Private n/a Cash

1 May 17 CompletedRange Resources Drilling Services

Oilfield services TrinidadLandocean

GroupRange Resources US$6 Private 100% Cash

10 Apr 17 Completed Summit FormworkConstruction

support servicesVIC n/a GCS 18 Private 100%

Cash & Scrip

Date Announced

Status Company TypeAmount Raised

(A$m)

(Discount) / Premium to Last

Price (%)Purpose

25 May 17 Completed Swick Mining Services Placement 4.9 (3.9%)Acquisition fundingand working capital

18 May 17Completed

AJ LucasEntitlement Offer 48.2 (12.7%) Pay down debt and

support future growthCompleted Placement 5.0 (12.7%)

Notes: (1) Premium measured relative to 3-month VWAP as disclosed in Programmed’s transaction announcement dated 14 July 2017. (2) Swick held a pre-bid equity interest of 70.5%; transaction takes Swick to 100% ownership. (3) Non-binding Heads of Agreement signed on 1 March 2017; binding documentation signed on 8 May 2017. (4) Represents independent valuation of mobile equipment transferred to Macmahon in exchange for issuance of shares. Source: Company announcements.

Date Announced Company Type Size Purpose

28 Feb 17 Cardno On-market Up to 10%Acquire shares where the Board deems the

share price to be below intrinsic value

MERGERS & ACQUISITIONS

CAPITAL RAISINGS

ACTIVE SHARE BUYBACKS

It was a relatively quiet quarter for corporate activity, highlighted by Seymour Whyte announcing a scheme with Frenchconstruction services company VINCI following a receipt of a non-binding proposal from the group in March. There was asignificant transaction announced following the end of the quarter, with Programmed entering into a scheme withJapanese peer Persol, with the suitor offering an all-cash 69% premium1 (equivalent to 10.3x FY17 EBITDA).

9Notes: (1) Excludes alternate appointments; (2) Internal appointment. Source: Company announcements.

Executive Movements

Date Announced Company Name Role Date Effective

22 Jun 17 Brierty Ray Bushnell2 Managing Director 22 Jun 17

13 Jun 17 TempoIan Widdicombe Non-Executive Director

13 Jun 17Guido Bressani Non-Executive Director

9 Jun 17 CIMIC Lyn Nikolopoulos2 Company Secretary 9 Jun 17

2 Jun 17 Boom Logistics Jean-Pierre Buijtels Non-Executive Director 2 Jun 17

30 May 17 Fleetwood Andrew Wackett CFO 12 Jun 17

26 May 17 Mineral Resources Simon Rushton2 Company Secretary 26 May 17

4 Apr 17 Emeco

Peter Frank Director

1 Apr 17Keith Skinner Director

Darren Yeates Director

Penny Young2 Company Secretary

9

Date Announced Company Name Role Date Effective

29 Jun 17 GCS Sam Mangione Non-Executive Director 30 Jun 17

22 Jun 17 Brierty Kenneth Hellsten Non-Executive Director 22 Jun 17

30 May 17 Fleetwood Greg Tate Non-Executive Director 30 Jun 17

28 Apr 17 Matrix Composites Duncan Clegg Director 28 Apr 17

4 Apr 17 EmecoErica Smyth Non-Executive Director

1 Apr 17John Cahill Non-Executive Director

EXECUTIVE & DIRECTOR APPOINTMENTS1

EXECUTIVE & DIRECTOR RESIGNATIONS / RETIREMENTS

10

Quarterly Focus: FY17 Market Performance

10

Notes: (1) Aggregate GMISI constituent market capitalisation across FY17 is based on a fixed number of shares outstanding for each current constituent (as at 30 June 2016) and therefore excludes the direct impacts on market capitalisation of equity raisings and other corporate actions (i.e. scrip transactions) during FY17. (2) US$ commodity price outlook based on the median analyst price estimate for calendar year 2020 from Bloomberg as at 21 August 2017, with percentage change measured relative to the respective actual commodity price as at 30 June 2017. Linear price relationship over the period June 2017 through December 2020 is assumed for illustrative purposes only.Source: FactSet, Bloomberg

FY17 MOVEMENT IN MARKET CAPITALISATION OF GMISI CONSTITUENTS RELATIVE TO KEY COMMODITY PRICES1

10

15

20

25

30

35

Jun

-16

Jul-

16

Aug

-16

Sep

-16

Oct

-16

No

v-1

6

De

c-16

Jan

-17

Feb

-17

Mar

-17

Apr

-17

May

-17

Jun

-17

De

c-20

GMISI Market Cap (A$b) (excl. CIM) Gold (rebased) Iron Ore Fines (rebased) Brent Crude (rebased)

FY17 COMMODITY PRICE MOVEMENTS VS SHARE PRICE OF SECTOR EXPOSED GMISI CONSTITUENTS

(6%)

88%

52% 49%

31%

15%

31%

(5%)

88%

56%

13%

(49%)

79%

68%

9% 6%

ASL MAH PEA GNG MLD NWH MIN MND WOR NMS MRM RCR DOW SSM CIM PRG

1 Gold 2 Iron Ore 3 Oil & Gas 4 Infrastructure

US$

Go

ld P

rice

US$

Iro

n O

re P

rice

US$

Bre

nt

Cru

de

Pri

ce

155% 101%

+35%

+8%(10%)

Commodity price outlook2

The GMISI performed very strongly in FY17, increasing by 37% and materially outperforming the broader equity market(All Ordinaries Index finished FY17 up c.8.5%). This has also occurred at a time when the prices of many commodities areat broadly similar levels to those 12 months ago.

The re-rating of the GMISI reflects a number of factors, including:- the relatively depressed levels seen in early 2016;- a general view that the resources services market has bottomed and will return to growth, evidenced by increasing

spending on exploration spending as well as growing sustaining capex and some planned new projects;- continued growth in infrastructure spending, particularly on the eastern seaboard.

207%

11

Gresham’s Credentials

LANDMARK MERGERS & ACQUISITIONS

TAKEOVER RESPONSE

MINING AND INFRASTRUCTURE SERVICES

Advised Fosters on its $12.3bn

takeover by SABMiller

Advisor to SCEE in relation to the

acquisition of Heyday5

Advised CHAMP Ventures and

Frontenac on the sale of H-E Parts

International

Advisor to Coffey International in

relation to acquisition by

Tetra Tech

Advised Clough in relation to its

takeover by Murray & Roberts

Adviser on US$350m

corporate debt financing, credit ratings and US

144A issue

AWARDS & ACCOLADES

2011 M&A Deal of the Year

SABMiller’s acquisition of

Foster’s Group

2009 Most Innovative Deal

Babcock & Brown

Infrastructure’s recapitalisation

Secondary Market Equity Raising of

the Year

Wesfarmers’ $2.6bn equity

raising

2007 Best M&A Deal

Wesfarmers’ acquisition of

Coles

Best M&A Deal in Australia

Wesfarmers’ acquisition of

Coles

Advised Boral on the formation of a US$1.6bn joint

venture with USG Corporation

2013

Joint lead adviser to Japan Post on the acquisition of

Toll Holdings

2015

2011

2017 2016 2015 20132017

2013

Advised David Jones in relation to acquisition by

Woolworths

2014

Advised Bank of Queensland on

the acquisition of $2.5bn loan

portfolio from Investec

2014

Advised Wesfarmers on the sale of its

underwriting and insurance broking

businesses

2014

Excellence in Corporate

Advisory - 2012

Boutique / Independent

Lead Independent

financial adviser to the Board of BHP Billiton on

the demerger of South32

2015

Advisor to UGL in relation to its takeover by

CIMIC

2017

Advised Asciano on its takeover by a

consortium led by Canada Pension Plan Investment

Board

2016

Advised the Lonsdale

Consortium on the acquisition of

a 50-year lease of Port of

Melbourne

2016

Advised DUET Group in relation

to its $13bn takeover by a

consortium comprising CKP,

CKI and PAH

Advised Little World

Beverages on its acquisition

by Lion

2017

Advised Lend Lease on its

acquisition of ValemusAustralia

2011

12

Contact Details

Gresham Advisory Partners LimitedABN 88 093 611 413

Level 17, 167 Macquarie Street

Sydney NSW 2000

Telephone: +61 2 9221 5133

Facsimile: +61 2 9221 6814

Level 39, 120 Collins Street

Melbourne VIC 2000

Telephone: +61 3 9664 0300

Facsimile: +61 3 9650 7722

Level 3, 28 The Esplanade

Perth WA 6000

Telephone: +61 8 9486 7077

Facsimile: +61 8 9486 7024

www.gresham.com.au

Michael LishmanManaging Director, PerthE: mlishman@gresham.com.auT: +61 8 9213 0289

Terms and Conditions

Information contained in this publicationThe opinions, advice, recommendations and other information contained in this publication, whether express or implied, are published or made by Gresham Advisory Partners Limited (ABN 88 093 611 413),Australian financial services license (247113), and by its officers and employees (collectively “Gresham Advisory Partners”) in good faith in relation to the facts known to it at the time of preparation. GreshamAdvisory Partners has prepared this publication without consideration of the investment objectives, financial situation or particular needs of any individual investor, and you should not rely on the publication forthe purpose of making a financial decision.

To whom this information is providedThis publication is only made available to persons who are wholesale clients within the meaning of section 761G of the Corporations Act 2001. This publication is supplied on the condition that it is not passed on toany person who is a retail client within the meaning of section 761G of the Corporations Act 2001.

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CopyrightCopyright in this publication is owned by Gresham Advisory Partners. You may use the information in this publication for your own personal use, but you must not (without Gresham Advisory Partners’ consent)alter, reproduce or distribute any part of this publication, transmit it to any other person or incorporate the information into any other document.

General mattersThese Terms and Conditions are governed by the law in force in the State of Victoria, and the parties irrevocably submit to the non-exclusive jurisdiction of the courts of Victoria and courts of appeal from them fordetermining any disputes concerning the Terms and Conditions. If the whole or any part of a provision of these Terms and Conditions are void, unenforceable or illegal in a jurisdiction it is severed for thatjurisdiction. The remainder of the Terms and Conditions have full force and effect and the validity or enforceability of that provision in any other jurisdiction is not affected. This clause has no effect if the severancealters the basic nature of the Terms and Conditions or is contrary to public policy. If Gresham Advisory Partners do not act in relation to a breach by you of these Terms and Conditions, this does not waiveGresham Advisory Partners’ right to act with respect to subsequent or similar breaches.

Chris BranstonExecutive Director, PerthE: cbranston@gresham.com.auT: +61 8 9213 0290

Matt KeenanManaging Director, MelbourneE: mkeenan@gresham.com.auT: +61 3 9664 0353

Charlie GrahamManaging Director, SydneyE: cgraham@gresham.com.auT: +61 2 9224 0247

Michail LagogiannisExecutive Director, MelbourneE: mlagogiannis@gresham.com.auT: +61 3 9664 0375

Neville SpryManaging Director, SydneyE: nspry@gresham.com.auT: +61 2 9224 0237