WEEKLY

20 December 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

M&A Rumour and Activity The Australian market was up after US Federal Reserve Chairman Ben Bernanke announced the central bank would reduce its $US85 billion-a-month bond-buying program by $US10 billion from January. The Australian dollar dropped to US88.5 cents on the tapering decision. Mining products supplier Bradken (ASX:BKN) made a takeover offer for heavy equipment manufacturer Austin Engineering (ASX:ANG). Bradkens proposal is to acquire all of the ordinary shares in Austin that it does not currently own at a fixed exchange ratio of 0.75 Bradken shares for one Austin share. Bradken currently owns 21.5% of the outstanding shares in Austin. Bradkens offer values Austin at close to $300 million, a 30% premium to Austins current market capitalisation. Austins initial view is that there is potentially benefit in combining the companies but believes the Proposal undervalues Austin. Austin is expecting a full-year earnings FY2014 result in the range of $40 to $50 million EBITDA with 80% of the full year result being achieved in the second half.

News Headlines and Key Sector Developments

Ticker News/Event
AAX Secured an optimise phase contract with Karara Mining Limited to provide engineering and project support services for Kararas iron ore operation in Western Australia Received a Notice of Award for a contract valued at approximately $80M for electrical work on the Yandi Sustaining Project

Ticker News/Event
RCR Novo Rail Alliance partners, including RCRs subsidiary ODonnell Griffin, have signed a contract with Transport for NSW, extending delivery of essential signalling, electrical, civil and track projects for a further five years from 1 January 2014 Awarded a new five year contract by Chevron for the provision of maintenance services for the operational phase of Chevrons Western Australian assets. The multi-million dollar contract also includes extension options beyond the initial five-year term Awarded $350M contract to design and construct ten new schools in Queensland. WTP was also awarded a $72M contract to build a new Sydney office tower

DOW

UGL

FGE

Awarded $40M worth of works for ongoing asset management programs in the North American coal sector, including a mix of operations, maintenance, and small capital works Wesfarmers Resources has awarded Thiess a four-year contract worth $570M to extend Thiess involvement in the Curragh North Coal Mine, near Blackwater in Central Queenslands Bowen Basin

WTP

LEI

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
20 December 2013

WWW.LCC.ASIA

Australian Engineering & Mining Services

Ticker Company Name

Market Cap Open Price Last Sale Price Week High Week Low (AUD Million) (AUD) (AUD) (AUD) (AUD)

Weekly Volume % Change Trend

EV/ EBITD

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

262 258 80 229 164 914 40 57 26 939 117 60 363 13 2,008 75 50 111 8 160 50 82 79 62 98 5,190 97 165 431 150 57 2,029 68 1,662 83 16 343 21 377 443 35 67 126 55 92 124 31 63 6 425 1,102 16 126 3,899 164

0.95 0.87 0.67 3.08 0.31 5.36 0.36 0.13 0.12 6.59 0.37 0.22 1.91 0.28 4.56 0.69 0.16 0.19 0.04 2.34 0.52 0.48 0.57 0.29 0.49 15.57 1.33 4.08 2.40 0.11 0.70 10.52 0.74 15.21 0.05 0.05 1.24 0.10 3.35 3.25 0.13 0.85 0.55 0.21 1.20 0.85 0.47 0.29 0.04 0.87 6.40 0.01 0.85 15.43 0.84

0.96 0.84 0.65 3.55 0.36 5.43 0.37 0.12 0.12 6.66 0.37 0.25 2.21 0.28 4.62 0.65 0.16 0.20 0.04 2.72 0.63 0.48 0.52 0.30 0.47 15.41 1.45 4.04 2.46 0.13 0.76 11.32 0.72 18.06 0.05 0.06 1.23 0.10 3.28 3.42 0.14 0.85 0.59 0.19 1.18 0.72 0.50 0.30 0.04 0.82 6.96 0.01 0.84 16.36 0.87

1.00 0.90 0.70 3.60 0.38 5.72 0.37 0.13 0.12 6.78 0.39 0.25 2.25 0.28 4.69 0.70 0.16 0.21 0.04 2.76 0.70 0.48 0.58 0.30 0.50 15.86 1.50 4.28 2.47 0.13 0.76 11.34 0.76 18.07 0.05 0.06 1.24 0.11 3.35 3.43 0.14 0.85 0.59 0.22 1.20 0.86 0.50 0.30 0.04 0.91 7.06 0.01 0.87 16.59 0.91

0.94 0.80 0.64 3.05 0.31 5.10 0.36 0.12 0.12 6.24 0.36 0.21 1.91 0.28 4.47 0.60 0.16 0.18 0.04 2.32 0.51 0.48 0.52 0.26 0.46 15.10 1.30 4.04 2.37 0.11 0.70 10.39 0.68 15.15 0.04 0.05 1.16 0.10 3.13 3.11 0.12 0.75 0.55 0.19 1.16 0.72 0.47 0.28 0.04 0.81 6.30 0.01 0.84 15.43 0.83

1.1% -3.8% -3.0% 15.3% 14.5% 1.3% 2.8% -4.0% 0.0% 1.1% 0.0% 16.3% 15.4% 0.0% 1.3% -5.1% 3.2% 6.8% -5.0% 16.0% 20.2% 1.1% -8.8% 3.4% -4.1% -1.0% 9.4% -1.0% 2.5% 13.6% 8.6% 7.6% -2.7% 18.7% 0.0% 3.7% -0.4% 4.2% -2.1% 5.2% 7.7% 0.6% 7.3% -9.5% -2.1% -15.9% 5.3% 1.7% 11.4% -5.7% 8.7% -10.0% -0.6% 6.0% 4.2%

NM 2.6x 2.2x 5.7x 3.7x 7.5x 2.1x 3.2x 3.7x 8.1x 2.7x 7.5x 4.7x 2.0x 3.7x 6.8x NM 3.0x 6.3x 4.9x NM 3.5x 5.8x 4.6x 2.9x 3.2x 6.0x 4.3x 3.4x 1.2x 2.5x 6.3x 6.4x 6.1x 78.7x 1.2x 2.6x 2.3x 6.7x 6.2x 2.9x 6.9x 1.5x NM 3.2x 2.9x 2.8x 2.1x NM 5.0x 15.2x NM 4.8x 7.8x 2.2x

NM 4.6x 2.8x 6.9x 10.9x 11.1x 3.6x 7.0x 10.8x 9.8x 5.4x 13.9x 5.2x 2.7x 6.6x 8.0x NM 8.8x 8.7x 8.2x NM 5.6x 6.3x 6.7x 3.8x 6.8x 6.3x 4.6x 5.2x 2.5x 3.5x 9.5x 84.3x 7.0x NM 1.6x 3.5x 3.3x 8.1x 8.4x 5.9x 7.4x 3.3x NM 3.6x 3.5x 9.2x 4.0x NM 9.9x 28.4x NM 10.5x 8.9x 10.3x

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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