Metarock sells Pybar mining arm in $65m deal

Metarock Group is selling its Pybar hard-rock mining services business to Thiess for $65 million in a deal expected to return the troubled underground mining contractor to a net cash position. Under the terms of the agreement, all Pybar employees will transfer with the business, including the senior management team led by chief executive officer James Glover. The sale is expected to deliver about $36.3 million net proceeds to Metarock, after deducting Pybar’s outstanding debt and estimated transaction costs. It builds on the company's turnaround plan following the recapitalisation undertaken in May last year, underpinned by a $25 million equity placement to M Resources Group. After shedding Pybar, the Metarock Group will comprise: Mastermyne, which provides a range of contract mining services to the coal mining industry; Wilson Mining, which provides ground consolidation products and services to the hard rock and coal mining sectors; and MyneSight, which provides accredited training, mine induction services and compliance management solutions to mine operators. “The agreed transaction represents a great outcome for Metarock shareholders," Metarock Group executive chair Jon Romcke (pictured right) said. "The purchase consideration represents compelling value for the Pybar business, which will continue to grow as part of Thiess’ global mining services platform. "The transaction significantly strengthens Metarock’s balance sheet and is expected to return the company to a net cash position, allowing it to focus on the Mastermyne, Wilson Mining and MyneSight businesses. "The transaction removes the remaining constraints over the company’s ability to pursue the significant growth opportunities in the pipeline and represents a further key milestone in the successful turnaround of the Metarock Group.” Related: Mastermyne finishes up at Cook Colliery The Mastermyne business segment generated approximately $147.0 million of revenue and $18.1 million of EBITDA in the first half of this financial year. This represented about 63 per cent of total Metarock Group revenue and 61 per cent of total Metarock Group EBITDA. Thiess Group executive chair and chief executive officer Michael Wright said the Pybar acquisition was part of the company's strategy to diversify commodities and the services offered. "We are committed to developing a global mining portfolio, with a strong focus on the metals and minerals critical to the global energy transition," he said. “The Pybar acquisition is key to this. Pybar’s specialist skills will expand the Thiess Group’s service offering to our clients, and open up a pipeline of opportunities in underground metals and minerals across Australia and globally. “Pybar’s 30 years of expertise and proven experience in underground mining is well known and respected, and we appreciate the commitment of their dedicated workforce. "We will retain the Pybar brand and will work with the leadership team to support their current clients, and grow Pybar’s strong brand within and beyond their current markets.”

Metarock sells Pybar mining arm in $65m deal

Industry Queensland

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