Murray & Roberts Holdings Limited (MUR) Earnings Call Transcript & Summary

Good morning, and good day, good afternoon to all of our stakeholders on the call. Welcome to the Murray & Roberts Investor Day. Thank you for your time in joining us today. Most of our viewers, I think, is on the webcast. We'd like to encourage questioning throughout the presentation. You'll see that you have a questions tab on the webcast that you can ask your questions through. I encourage you throughout the morning to please ask your questions during the presentation, so we can have a constructive Q&A session towards the end. First up, we're going to have our group CEO, Henry Laas, to talk us through the opening. Thereafter, we'll have Peter Bennett, Platform CEO of the Energy, Resources & Infrastructure business. After that, Mike da Costa, the Platform CEO for the Mining platform; and finally, Steve Harrison for the Power, Industrial & Water platform. Henry will close off the morning for us. And once again, please ask your questions throughout. What's interesting today is that we do have Peter via Zoom presenting in Australia, and we also have Mike presenting from Canada. With that, I'd like to ask Henry to please open for us. Thank you very much, Henry.

Thank you, Ed, and good morning, ladies and gentlemen. Welcome to Murray & Roberts Investor Day. It was very cool and collected when he opened the meeting this morning. But I can assure you he's been running around this morning, testing the technology and making sure that everything will work well. So I hope the technology will not give us any problems this morning and that we will be able to have a very successful Investor Day. As you all know, Murray & Roberts year-end is on the 30th of June. So we are about a week away from our year-end. And we would like to do this Investor Day today so that we can have an opportunity to engage before we move into the close period. Murray & Roberts is a very capable organization or should I'd rather say it is an excellent engineering and contracting group. We provide our services to the market through 3 business platforms, and each of them are targeting very specific market sectors and the platforms are named after these market sectors, which they are targeting. I would like to take just a minute to talk about the purpose of Murray & Roberts as a group. Why do we exist as an organization? It is to enable fixed capital investment. In other words to build the projects that we are building, and we do that to support the advancement of sustainable human development. When we talk about sustainable human development, I also just want to say a word about ESG, and it will feature also in some of the other presentations that will follow after my presentation this morning. Murray & Roberts, as a service provider, we don't own operating assets, which are polluting the environment. Our carbon footprint is indeed very, very small, but we take ESG very serious in the group. And the reason we do so is because we believe that the move -- when you talk about the environmental side that the move towards greener energy will be presenting opportunities to all 3 of our business platforms, all 3 of them. So ESG and Murray & Roberts is important from an opportunity point of view, more so as from a risk point of view, as I said, our carbon footprint is really insignificant. In 2015, we designed a strategy for the group that we named the New Strategic Future plan. And that strategy essentially stands on 5 pillars. And we have, on this slide, rated our performance relative to what we set out to achieve in these 5 pillars. And you will notice that the first 2 pillars have been rated as green and the last 3 pillars been rated as [ amber ]. So we believe that we've achieved what we set out to achieve when we said we want to be a multinational specialist engineering and construction group. And we also believe we have achieved what we have set out to achieve when we said that we would like to provide services across the project life cycle. And I will explain a little bit more about that in a short while. The last 3 pillars, Engineered Excellence, is a philosophy within the group. Engineered Excellence is a philosophy within Murray & Roberts. So what we are saying is we would like to achieve excellence in whatever we do in the safety discipline, in the human resources discipline, the way we manage our finances, the way we deliver our projects, we want to achieve excellence. And Engineered Excellence means that this excellence is not something that happens by chance, we need to, first of all, appreciate what excellence looks like in a specific context. And then we need to plan for that outcome. And that process of planning for that outcome -- that is what Engineered Excellence means. So we need to do a bit more work on that because we're setting ourselves a very, very high standard of excellence. And I cannot say that we are achieving excellence in everything that we do at this point. Growth through acquisition and organic growth, we are still in the phase of growing the business. And you will see it shortly when we talk about our order book. And then to enhance shareholder value, and it is very frustrating for me that we have not yet reached the point that our shareholders get value for the patients that they've demonstrated in being with Murray & Roberts for many, many years as we were implementing our strategy that we call our new strategic future plan. As I said, Murray & Roberts is a multinational engineering and contracting group. And I mentioned earlier on that we've achieved what we wanted to achieve. And by that, I mean that our footprint that we have, our global footprint is now well established, and we don't envisage to expand on footprint in the near-term. What you see on this slide is the world map and the corporate office in Johannesburg, where you see the black dot. And then the mining is represented by the yellow dots, and you will see a number of offices in North America, in Africa, in the APAC region, in Australia and also in Mongolia. The ERI platform represented by the green dots, and you'll see quite a few of them in North America, quite a few of them in Australasia and one in Scotland as well in the EMEA region. And Power, Industrial & Water, which is not a multinational platform, whereas the other 2 all multinational businesses. The PIW platform is headquartered here in Johannesburg, but we also have an office in Cape Town. So our global footprint, we believe is now at a point that we believe we are operating, and we've got a presence, a permanent presence in the main markets, which we are targeting through our 3 business platforms. And there is no plan in the short-term to expand on this footprint. Comprehensive service offering across the project life cycle. You'll see for each of the 3 platforms, when you look at the middle column, our capability, it starts off from detailed engineering, all the way through to commissioning of projects and also maintenance once projects are in operation. The only platform where we do undertake operations as well is in the mining platform. And as you may know, we are operating mines on behalf of our clients. So we actually do the mining on behalf of clients. So we also undertake mining operations in the mining platform. And very soon in the PIW platform, we will have a small water treatment facility which Steve will talk to that we will operate for, I think, for a period of about 10 years. So we will also have an element of operations in the PIW platform. The 3 CEOs that head up these platforms, the ERI platforms, Peter Bennett; mining, Mike da Costa; Power, Industrial & Water, Steve Harrison. I can assure you that each of these executives are well respected in their respective industries. And they are doing an excellent job in managing those parts of the group that they are responsible for. So this is the second pillar of the strategy, where I said we wanted to provide this comprehensive service offering. And I think we have achieved that as well. We're providing a complete project service to our client organizations. Just a few words about revenue and order book before I hand over to the other speakers. On this slide, what you're trying to show is how the revenue has shifted more towards international revenue than revenue from Southern Africa. The yellow bars represent revenue from Southern Africa and the gray bar represents revenue from the international operations. And you can see us from about 2017, the revenue from Southern Africa started to decline and declined sharply, and the revenue from our international businesses started to grow and also to grow strongly. What you see on the far right-hand side is only revenue for the first 6 months of the current financial year, in other words, up to December 2021. And at that stage, we had revenue of ZAR 13.3 billion total revenue for the group. And at the half year results, we indicated that we would expect revenue to exceed ZAR 30 billion by the end of June, and we think that is more or less where our results will be. So our group strategy has -- and also the lack of opportunity that we've experienced in Southern Africa for many, many years now have really resulted in our international footprint to grow strongly and to have -- for us to have a diminishing contribution from Southern Africa. And ladies and gentlemen, over the next 3 years, when you look at our business plan, we expect that less than 10% of your revenue will be from Southern Africa. So Murray & Roberts really is a multinational engineering and contracting group and no longer a South African civil engineering and building contractor. A few words about our order book. I mentioned earlier that we had a services organization. In other words, we don't own a lot of assets as a group. And for engineering and contracting company, your business potential and business opportunity is really underpinned by our order book. If you have an order book, you've got a business. If you don't have an order book, you don't have a business. And what you see on the slide in yellow, the yellow bars represent the ERI platform order book; the gray bars, the mining platform order book; and the blue bars, the PIW platform order book. And as you can see, again, from about 2017, 2018, you'll see the steep increase in the yellow bar, and that is the ERI platform. And that is a result of the strategic change that was implemented at that time under the leadership of Peter Bennett, when up to then, that business predominantly was providing services into the LNG market in Australia. And when that market started to taper off and with the collapse of the oil price in 2014, the business had to refocus itself on to new market sectors. And as I said, under Peter's leadership, that strategic shift was implemented very, very successfully, and that is demonstrated by the very strong growth in order book, those yellow bars, as you can see from 2017, 2018, starting to increase. The mining platform has always been a substantial business within the group. And we do expect as the whole world is transitioning towards greener energy, that there are significant opportunity for our mining business in sort of the medium-term. The PIW platform, the blue bars, I mentioned earlier on, very, very limited opportunity in South Africa. And up to about 2017, the blue bars really represents the work that we were doing at Medupi and Kusile. And when those projects -- our scope of those projects are sort of delivered, the order book tapered off and basically disappeared. But I'm really encouraged by what's happening in the renewable energy sector in South Africa. And although the projects are much later than what we expected them, we expected some breakthroughs in the current financial year in the renewable energy projects in South Africa. But the financial close have drifted out and have drifted out and have drifted out, but we are confident that we will secure a significant portion of especially the electrical balance of plant work on the renewable energy projects in South Africa between July and December of this calendar year. When you look at the far right-hand side, the order book there in FY 2022, that was the order book at the half year stage, at the half year stage. Compared to an FY 2021, that was the order book at the full year stage. So order book at the half year stage, this financial year, around about ZAR 61 billion. And you'll see in asterix next to FY 2022 in that table. And what we have communicated to the market several weeks back is that the ERI platform was successful in being awarded the Perdaman contract in Australia, and our platforms share of that award value is ZAR 22 billion. So we do expect that where we had an order book at the end of last year of about ZAR 60 billion, and at the end of last year -- and at the half year stage this financial year, we do expect the order book to grow to about ZAR 80 billion by the end of this month, by the end of June. Back to you, Ed. Thank you.

Henry, thank you very much for that opening. We're now going to start with our platform presentations. The first up is Peter Bennett, Platform CEO of the Energy, Resources & Infrastructure platform. Peter is presenting via Zoom out of Australia. Thanks, Peter. Over to you. And about quarter 2, then we'll look at what questions we have for you, and I'll facilitate those with you. Thank you, Peter.

Well, thank you, everybody, and I really appreciate the opportunity to present our platform to you here today, you're an important part of our business, and it's great to be able to share the story of the ERI platform with you and how we fit within the Murray & Roberts Group. Ed, on the second slide there, we've got the agenda that I'll cover today. So an overview of the business, who we are and where we've come from. We'll talk about the strategy and how it's evolved and how recent world events have been incorporated within that strategy. We'll review some of our current projects, just for information in terms of where we're currently at. We touched on what are the -- to the business going forward. And then, of course, we've got some presentation takeaways to go with you. Slide 3 is the headline slide for the business overview and just has a photograph there of part of our Snowy Hydro project. As we move on to Slide 4, and we talk about the background to Clough. So -- as I think many of you know, back in the end of 2019, we really started to see the benefits coming through and be more visible in the business from all of the hard work and effort that we made to really diversify the platform away from a focus on LNG-related work in Australasia. As we all know, there was a period of massive investment here at that time, and Clough was well-positioned and took a key role in many of those developments and was a very successful period for the company. But when those investments were completed, the oil and gas price, in particular, collapsed, we needed to diversify the business into a broader range of sectors that we're continuing with project investments. And so we've been on that track now for the past 6 years, and we really started to see the results of that coming through in 2019. And as Henry pointed out earlier, we feel confident that, that strategy has been successful. We've got the strongest order book that Clough as a business has ever seen. And we've got a strong pipeline. And as Henry mentioned, some very near-term prospects that we think will continue to grow that order book beyond where it is today. In 2020, when the pandemic hit, and certainly, a lot of the perspectives around the globe have changed and certainly, priorities have changed. But really, the thing that has been very comforting here is that the resilience of our strategic plan has remained intact. Frankly, we haven't had [indiscernible] indeed in many areas, some of the changes that we have been seeing in the market were accelerated through that process, and that really just underpins what we're doing with our business and the strategy that we're fulfilling. So as I pointed out on the first bullet there, we're unlikely to see things go back to the way they were pre-pandemic time. But what it has done is it accelerated some changes in things around energy transition and waste reduction and some of the other technological advances that we're seeing come to market today, we're really part of what we were building our strategy around initially. So what we're enjoying at the moment is probably a bit of a head start in that space. We are seeing a much stronger emphasis today to on the ESG side of the business. So -- we spend as much time talking to financial institutions about our ESG philosophy and policies as we do about our financial components these days. They really are a key factor in determining where investments are going to be made. So all of our clients, the lending institutions, even current and potential new employees have a much larger interest in ESG-related issues. And if you can articulate a clear strategy around where -- in ESG and what your plans are going forward, then you're behind the [indiscernible]. So we really can't afford not repaying to attention to these. And I think we have been and we've made some great progress in that space, and that's been recognized certainly here locally and within our industry. And so it gives us a good platform to continue to build from. So on Slide 5, we talk about where we are today. And alluding to Henry's earlier comments, we're an engineering and construction company, and we provide sustainable, high-performing assets to the Energy, Resources & Infrastructure industry. And that's a very important point. So the high-performing assets across these industries is quite key. Our core capability is unchanged, and that's really project delivery. We have the -- certainly within the Australasian market, a fairly unique ability to do that, that self-perform engineering, self-perform procurement in large parts of the construction, including the commissioning and start-up bases. So those core capabilities will remain unchanged, but -- we are putting a much stronger focus and the look and feel of our business around our ESG obligations and commitments. And by that, relevancy in the market and our ability to be attractive in the markets that are accessing that sort of capital investment now is a key part of what we're doing. So drivers and opportunities for us remain with our clients in supporting their energy transition. Certainly, the net-zero expectations remain. I think the time line has probably shifted out a little bit. And I think that the focus on the transition energy has been brought much more into the realm. And as we talk through some of the projects, you'll get a sense that Clough is relevant and has active work in hand at the moment that are part of the synergy transition process. So in that regard, we're quite pleased with where we're positioned in this market. They're sort of complex energy resources and critical infrastructure projects is really what we specialize in, and we have a current regime of work in hand and projects to be able to demonstrate that expertise. Having the new work is one part of the equation. But as you'll see in our strategy, there are 2 real key drivers: One is the growth mechanism that's being in the right markets with the right skill sets, but equally and particularly important to our shareholders is the ability to deliver those projects profitably. So excellence in project delivery is a key part of our commitment and a key part of the transition of the gene that Clough has been on and will continue on. In APAC, our growth is going to come through delivering these capabilities into these growth markets, and we are well represented already. So power, power storage, transmission, as I mentioned, complex infrastructure and the new and renewable energy platforms are really going to be key areas that are seeing quite a bit of investment here in the APAC region, and we have a great portfolio of work currently in hand. Also key prospects that we have in fairly well developed form with our clients today. So in North America, and North America is a market that strategically, we made the decision to enter that North American market about 5 years ago. And we have had a structured approach to that market. We had not anticipated the global Clough should be of the oil price. And clearly, we missed the fact that [indiscernible] was coming. So that's changed our strategy a little bit there and accelerated our need to diversify in that North American sector. You will see when we talk about the family of companies that make up the Clough group now, the acquisition we made of JJ White in Philadelphia was part of that diversification strategy, and we're quite pleased with that acquisition and the opportunity that, that brings to the business. It has been in recent months been a bit of a resurgence of the traditional oil and gas markets in North America. And certainly, the energy security concerns are rising out of Eastern Europe at the moment, are driving investment in export capability and capacity in North America right now, which is feeding into opportunities for the business there in the normal gestation of those project opportunities that will be a few years before they transition from their current studies and feeds into EPC contracts and visible revenue. But certainly, we're seeing some opportunities and investment return to that market, and giving us good encouragement there for the continued delivery in North America in the long-term. In the U.K., we're working to continue our customer focus there. We've got a strong relationship with a number of key clients in Europe through our Booth Welsh business. We have actually, again, the largest order book that Booth Welsh has ever enjoyed project deliveries are probably a little bit elongated at the moment with the many issues that Europe still manages through. But it's -- as a business, it's been continuing to build order book through a time when we thought we might see a more difficult period around our ability to sustain workload. But pleasingly, that's not been the case. We have a good order book and as I say, the best order book that they've had in Europe now for quite some years. If we move to Slide 6, I won't dwell on this too much, but this is our group of companies. So we're a wholly owned subsidiary of Murray & Roberts. And within the Clough family, so there's Clough here in APAC, and we have Clough in North America and Clough in Canada. Subsidiary companies and brands that we operate and operate under the Clough umbrella is Booth Welsh that I've just talked about from our office just outside of Glasgow in Scotland. So it's a company that joined the Clough Group 8 or 9 years ago. It specializes in process automation and control systems. Really has a fairly diverse end market, predominantly pharmaceuticals, petrochemical, food and beverage, a little bit of nickel and also some nuclear capacity. But one of the things that we have been doing is starting to leverage that skill set and those capabilities into the broader Clough business. And indeed, Booth Welsh are part of the delivery of the Waitsia Gas plant here in Australia now and also the -- next Wave project in North America. So we're looking to continue to grow that intercompany into play there and start to utilize those capabilities in-house. They also have a tremendous engineering resource, particularly in the electrical and instrumentation and automation space. And as we globalize our business and standardize our systems and our methodologies of working we're able to utilize that resource there in Europe rather than having to ramp up and then in different locations in North America and in Australasia. JJ White Group also a 100-plus year old company that joined the Clough family fairly recently, based out of Philadelphia and New York. Part of our strategy there to diversify the North American business in the same way we ended here in Australia. So -- this group gives us access to a larger geographic footprint in North America. Previously, we've been a little bit limited to the region around the Gulf Coast in Houston. So this gives us a larger geographic footprint across there in the East Coast. It also gives us access to different end market. JJ White is started around USD 250 million a year revenue, that sort of size. And has been able to execute everything from small $100,000 benchmark sort of projects up to maintenance contracts for petrochemical and refining facilities. What we asked -- and the other thing that they do is they have a union construction capability. The U.S. is quite segregated between union and nonunion capabilities. So this allows Clough to span both union and nonunion projects, clients and regions in North America under this new structure. So we are seeing already strong interest from clients that have a traditional union-based construction regime to be able to combine the JJ White construction capabilities with the broader Clough engineering, procurement and project management capabilities. So that's been a bit very exciting. CH-IV, we'll talk a little bit more about that in the strategy. But certainly, that group has made a great reputation for itself in terms of supporting project developments in the LNG space. We are now diversifying that broadly across the decarbonization space as well. So exciting times ahead for CH-IV. And the pull-through from CH-IV early project and client engagements into potential EPC opportunities remains a strong focus as well, and we have a couple of feed projects that's in-house now that have come to the business through that route. E2o has been with the business now for about 7 years and initially supplying [indiscernible] services and white collar and blue collar labor resources. We've expanded that mount an asset services type of business. And again, we've had some pleasing awards from e2o and some good project delivery in that project asset services and maintenance space. So we're looking to continue the growth of the e2o business. We also expand its operations across into North America. So quite pleased with the e2o business. If we go to Slide 7, here, Ed, some highlights and low lights of where we stand today. So I think from a highlight perspective, we're very pleased with the diversification. That's been a big success for the business and really has allowed us the consistent growth that we've had. And as we see now, we are diversified into sufficient sectors to where any one particular industry that suffers its typical cyclical moves can be combated by another sector that's on an upside at that particular point in time. So we're very pleased with diversification. The order book, as I mentioned, AUD 3 billion at the moment or a little bit more than that. We do have the Perdaman project that we'll talk to that we have been -- we have signed a contract for and assuming that goes into full notes to proceed early in the first quarter of the coming financial year, then that will grow our order book to in excess of $4 billion. So the capabilities that we've grown as well in the business has been very, very pleasing. So not only are we're present in these areas, but we're getting experience and capability and reputation in these new and emerging energy sectors and power generation sectors. We're building Australia's first high-voltage transmission project for quite some time, very similar to Steve's OptiPower business. And having those capabilities is going to be very, very key because there's a long-term investment program in those markets going forward. So we're quite pleased with that. And then in the ESG space, as I mentioned earlier, we're seeing a lot of attention and expectation from the investment community from our stakeholder community from our employees around that. And when we initially started 2 years ago to set out our sustainability program, we built it based around the development goals that were established by the United Nations, and that's been a great foundation for us to build from. But we're quite pleased with the evolution of that ESG process. In terms of low lights, things that we do need to continue to work on as I mentioned in project execution is a key one. So inconsistent project performance is something that we always to manage. The pleasing thing that I do have to report is that the business does not have any loss-making projects in its portfolio. What we are looking to do is ensure that we have improved visibility and forecasting capability around our project performance, such that we can eliminate some of the variances that sometimes challenge the business, but it's very, very pleasing. I think it's certainly the first time in the business since I've been here that we've been able to say we don't have a loss-making project in the portfolio. Timing has been a huge challenge and certainly a frustration for us and no doubt, for those of you that are that followed the business, the challenge around our projects either not being awarded or not progressing into the EPC phase or the various challenges that [ COVID ] and indeed many other market factors have impacted has meant that it's moved out revenues and earnings within the business. And so managing those changes has been challenging, and it's always frustrating when projects don't progress ahead as we had planned. I don't think anybody is naive enough to think that at this point we're beyond the majority of the impacts that the recent events have been inflicted upon the industry. But certainly, I think we're getting much better at identifying and managing those. And so we're building in levels of that knowledge and lessons learned into our project forecasting going forward. And so that's been good. I would hope that this time next year, we're not talking about COVID-19 effects. But certainly, we are still managing through a number of the challenges that have been brought to the industry by the pandemic. In fact, we just had a conversation with the team today around the main sales gas compressors on one of our projects where the compressors are complete there, they're finished ready to go, but the small circuit board control chip that operates there control panels won't be available for a number of months yet. So there's those sorts of issues that we just need to continue to manage through. And again, pleasing we've got some good engagement with our clients, and we're all of this together. So we're working through those. But it certainly put a lot of pressure on projects and on project schedules. And managing the cash flows has always been a focus of the business, and we continue to manage through that. Talent resourcing, everybody's talked and heard about the great resignation, certainly here in Australia. There's record numbers of job vacancies at the moment. So the pursuit of talent is at an all time high. And that's -- but that's usually -- our business is being robust in that regard. You either got too many employees on [ unmet ]. And the thing for us at the moment, we're working very hard within our business to be an employer of choice, and therefore, be able to retain the good time we do have and attract key talent to us. And then financial resourcing. As we continue to grow working capital and bonding facilities to support the growth is very, very important. Our industry in our sector is not necessarily the darling of some of the financial community at the moment. So the challenge is around securing -- continuing to secure those additional facilities is something we're constantly working with. As I say, we [ Richard ], [indiscernible], myself spend a lot of time with the various parts of the investment community and banks and so on to continue to negotiate those facilities and to continue to make sure that we've got adequate bonding capacity to support the growth of the business going forward. And that's something we'll continue to work through. Next slide Ed, is a photograph of direction of one of the largest tower of the next Wave project is as a bit of a leading to our strategy document. And on Slide 9, is really our strategy on a page, if you will. And we read it from left to right, starting with our purpose and moving through to our objectives. But really, our purpose is kind of the summary of what do we hear for, right? So we hear the harness our people's innovative thinking to engineering and construction solutions that deliver a sustainable future today. And that's the message that we try to instill in all of our colleagues and coworkers and communicate to our clients. Our strategic imperative is twofold. As I mentioned earlier, one is to continue to grow the business and maintain that competitive advantage in the marketplace. But in parallel with that, we have to be delivering projects profitably and sustainably. So they're two very, very key imperatives for the strategy for [ client]. The priorities within those in the growth section. Obviously, the core capability, which is maintaining our oil and gas selective approach into the resources, water and defense markets. And clearly, our project management and engineering categories are quite strong. The growth markets we talk about there are quite obvious. I think the asset services growth is going to be key -- the complex transport infrastructure. There's tremendous investment still here in Australasia around complex transport. And then power generation and transmission, very, very clear, a huge political topic here in Australia at the moment and the investments in that market will continue. In the continued diversification of our revenue stream, we want to look at where we might start to take some of the key specific areas, some equity positions in commercializing some emerging technologies and a couple of technologies that we're working with at the moment where we have that opportunity, which will also then evolve into sort of a royalties income stream as well. And also including the potential for that then to secure our sales force position on EPC solutions going forward. So there's some work going on with a couple of key emerging technologies there that we would hope would give us that kind of longer income stream, both in the form of royalties, return on equity investment and then EPC revenues in the delivery phase. The project delivery space, obviously, I won't go through each of you one of these, but the key areas there, excellence in project delivery, accelerate our innovation and maintain some leadership in ESG space are going to quite critical. Next slide, Ed, focused on the objectives for each of the business units. North America, as I mentioned, our immediate focus is to start to diversify our markets a little bit more, expand CH-IV, as I mentioned, beyond LNG and into the renewables and the decarbonization space. JJ White growing into an integrated part of Clough delivery model in North America to perform EPC projects. So that's a great opportunity for us and seeing some real strong interest in that market already. Here in APAC, we will continue to create healthy finances here in the business and to continue to convert the very strong order book into revenue and then earnings. Targeting key oil and gas opportunities is going to be quite critical. The investment in the oil and gas space in Australia will be somewhat more limited than we're going to see in North America, but there will be some. So we need to be -- we need to be remaining active in that space. But the resource and water projects are quite key. We've got a good reputation there, but we're going to be quite targeted and focused in terms of what sorts of projects we pursue in that space. We had a couple of good ones in the pipeline at the moment. The growth markets in transport infrastructure, as I mentioned, power generation and transmission are very, very key. The $1.7 billion [indiscernible] project, project EnergyConnect that we'll talk about here in a moment, is the first of about 5 of those investments are coming off, same with [ Tallawarra ] and it's hydrogen capable gas [indiscernible] power generation. In the U.K., as I say, we will look at building -- leveraging the capabilities of that group into our EPC business model in other parts of the world, but we've got to continue to grow that core client base, look at continued expansion, but that will always remain a relatively small part of the overall Clough Group earnings compared to the other businesses. As we go through the next phase of slides, we'll touch on the projects very quickly. So the first slide, which is Slide 12, is Project Traveller. So this is our project in Pasadena, Texas. 600 -- actually USD 650 million at the moment. It's a large alkylate project. This is a project where the client is looking for an expansion now and to provide a green feedstock to help marketing of their project. But this project provides an additive into the gasoline stream for refiners. They're oversubscribed. They're looking at their expansion project at the moment, been a good project for the business with any luck I'll be heading over there next week to meet up with this client again. And we're looking at working through that project in the completion date somewhere around October. The next project on there is Project EnergyConnect, and this is the one that I mentioned in Australia's first high-voltage power transmission project in about 20-plus years. The project has started now in the field, has an Eastern and the Western component to it, and we've started on the Western part. The Eastern part, we're anticipating that notice to proceed early in the first quarter of the new financial year. So a great project to be [ handled ] and really an important part of our strategy going forward given the amount of these high-voltage transmission projects that are going to be required to service Australia as we go through our energy transition journey. Similarly, with the next slide, which is the Tallawarra Power Station. This is a fairly traditional gas fire power plant. However, it has been converted or it is being designed to be able to take a 5% hydrogen stream into the feed gas that very, very key in terms of that ability to provide that transition energy space. And again, the project is going very well. We've just received the gas turbine on site. So early days in the 20%, 25% complete range, but a great project. Probably a project I could talk about for hours at a time the Snowy 2.0 project. But again, given the interest here, it's a very large project. It's part of -- it's a federal government-owned project. It's in some of the early phases. A lot of the early preparatory works are now complete. And so we have all 3 tunnel boring machines operating. What you see in this photograph here is at our concrete precast yard, where we precast all the concrete segments to in the tunnels. That project has about 5 years left to run. And we're working through with the client, a number of the variations to keep up with the evolving design elements as we mature this project. But project remains very positive. We've got -- unfortunately, like everything has been impacted with COVID, with resourcing, with supply chain. And so we're anticipating about an 18-month impact to the project schedule, which is -- which the client has communicated to the market. And we anticipate -- we'll continue to work through that research with the client here in the coming months. But good relationship with the client and a strong project. The next project is Clough first project with the Department of Defense in many years. It's up in Papua New Guinea, which is an area that Clough a long history in. And again, it's an upgrade for an operating base for the Australian Defense Forces, about $218 million, relatively early stages, about 1/3 of the way through right now. But the Department of Defense, certainly in the South Pacific region has a fairly large portfolio of activities that they're going to bring to market. And we feel, again, in terms of our diversification of our revenue stream, this is a good market to be invested in. And it allows us in a relatively low risk form to participate in a pretty consistent investment in portfolio. The next project on the slide is our Waitsia Gas Project. So this is about 4 hours north of Perth, 4 hours drive north of Perth, a gas plant for Mitsui -- the Mitsui Energy portfolio in Australia. So this project now is moving on. It's about 60% complete in the field. Again, another one that's been in charts. This is the project that's had the gas compressor deliveries impacted by circuit board manufacturer shortages. But again, we're working very, very well with this client. And the project has been going very successfully. We've had a great safety performance on the site. The client has been working very well with us in terms of mitigating and there's been funding accelerations to overcome some of the supply chain impacts that we felt. And so we're quite pleased with this project and the relation with the client. Mitsui has a number of other developments that they wish to invest in here in Western Australia, and we talk to them constantly about partnering with them on those projects as opposed to going through the formal to. Next slide is one of the complex infrastructure projects here in Western Australia. So this is with Main Roads. Again very large investment portfolio coming up for Main Roads. Very important for us to be able to successfully reenter this market. This is a good project that's actually an alliance type project. So from a risk perspective, a different risk profile than some of our others. And again, early, early phases. So we're just down on the site now doing some slight surveying layout works and continuing the engineering development. Next slide covers the Oyu Tolgoi project. We've been in Mongolia with Oyu Tolgoi now for about 4 years. This project has been going very well. Mike will talk a little bit because it is a joint venture between the mining platform Clough and indeed a local partner, a great project. We're about a day or 2 away from converting this project into a reimbursable project, given all the challenges and changes that have been trusted upon it through the last few years, but a great opportunity world-scale ventilation shafts that are being sunk there for Rio Tinto and a great project. And finally, the final project there is Perdaman urea plant. So this project value is just north of USD 2.7 billion for the 50-50 joint venture with Saipem. We've signed a contract now. We -- the client has his [ Devon ] has his equity. He's going through the final financial close process at the moment. I say we're anticipating a full notice to proceed early in the first quarter. So end of July time frame is our plan starts. So when we do get that full notes to proceed and we bring that project into the order book, which what will push us above the full billion Australian dollar mark. So a very, very exciting time for us to give Clough about 98% of next year's forecast revenue already secured, about 75% of the following year. So in terms of conference in our business plan gap board, that's a very strong position to be in, and we haven't enjoyed that healthy and order book, and that length of visibility for quite some time. So we're very pleased about that. In summing up, I've got 2 slides to sum up here. So the first one there on Slide 21 is the 4 key risks. So we need to be able to continue to keep the support of the financial community in maintaining that bonding capacity to be able to support those new businesses. We need to make sure that -- we have -- we don't have inconsistent execution, and I'm very pleased with the progress the business has made there. We need to continue that diversification in North America. And of course, we need to be able to resource our projects through this growth phase. And again, at this stage, fingers crossed, we're doing very well, but it's something we're very keen to as there's quite a few people are going to be competing for resources. But particularly in the markets where we're a little bit outside of metropolitan Sydney and other areas where the resource constraints are truly horrific, but it's certainly something we need to keep an eye on. And the final slide there is the takeoff place. So all I'd like you to remember about the presentation. So we're maintaining our core [ pace building ] and then having a very selective approach. I think that's part of the -- the luxury is afforded to us by having such a strong order book as we are able to be selective now. We are targeting growth markets as we support the energy transition here in Australia, Asset Services to give us that underpinning revenue stream. And certainly, the investment levels in the complex transport infrastructure space is a key target for us. I'm probably repeating myself here, but diversifying our revenue stream to avoid some of those cyclical market forces is what we need to do, have that stabilized earning curve for the business. Project delivery is always going to be a fundamental part of what we do and certainly delivering our projects safely, sustainably and profitably, which we, as Henry would call them -- just unqualified must-haves in our project execution. Innovation is something that's very, very key to what we do. We differentiate ourselves by being innovative with our clients and coming up with those sorts of solutions. So we continue to look to how can we leverage new technologies and other methodologies to be able to improve our service to our clients, our efficiency internally and certainly decision making we undertake as a business. And then finally, the ESG space. It really just can't be underestimated. We are very proactive in this space, and I think we do have certainly locally fairly well recognized leadership in that space. It's going to become increasingly important, not just to our people in the community. But certainly to our clients and to the investors that fund their development. So really quite a key part of our strategy going forward. With that, Ed, I'll turn it over to questions.

Well, thank you very much for your presentation, Peter. I just have 2 or 3 questions to quickly work through, please. The first one is, is it possible to get a progress update on the largest project delays from supply chain issues impact on project profitability or mitigation actions?

That's a really -- that's a complex question. And I think one of the things that is -- that [ buys ] very nature is very hard to communicate and we're going through that with a number of our clients. So how do you -- it's very hard to put a cause and effect, straight-line impact analysis to, if we look at the Snowy project, for example, lockdowns within Australia and the inability to resource the project from the -- according to the plan that we had pre-pandemic was a significant impact. So resourcing people without the levels of experience that we were looking for around hard rock tunnel boring machines, for example. So that had an impact on the productivity of those assembling the TBM and then the operation of the TBM. So how do you -- it's very hard to draw a straight definition that said COVID has had this amount of impact. But it's a little bit easier in terms of some of the areas where we're seeing large increase or increases in steel prices or some of those things. But -- it's a very complex analysis. If we look at, for example, our Snowy Hydro project, which is our largest project and has probably seen the largest impact. So we're working through the -- and indeed, that contract was entered into prior to the pandemic being identified. So it doesn't have specific language relating to it. However, it does have good change causes good force majeure clauses and indeed good change in all clauses, and a client that's prepared to undertake a payer assessment. So we're working through the COVID impacts in the series of chunks. And the first ones are one of those directly definable cost that we've already incurred that we can document and we're working for the client with that and working through getting those costs incorporated into the project. Then we're looking at what are the future costs that we see coming and indeed agreeing are we going to incur those, is there any litigation or how that we potentially otherwise address that. We'll agree what that quantum is, and then we'll incorporate that in the contract. And then there's the more open use impacts that we just make great agree again, what has been the quantum of the impact there and how have we best assessed that. So it's a complex question. I'm sorry, I don't -- I'm not able to give you a clear answer, but it's certainly something that we're working through every day.

Understood. And thank you for that answer, Peter. Is there a renewal of interest in LNG projects in Australasia, given the Russian impact? Or do you -- what's the traditional gas activities happening in the APAC market? Do you see any of that happening?

In the APAC market, no. So Australia has really -- it had that massive investment boom, and we're unlikely to see it see much more investment. There is the Pluto expansion that Woodside is undertaking, but that is that was done, again, planned pre-pandemic as well. Where we are seeing LNG investment coming back is in North America, and we've seen a number of projects start to move forward again, there in financial investment decisions be undertaken. So we're seeing that market come forward. In Australia, where we see oil and gas is going to be around gas like the Waitsia project. So there's been some large onshore gas bodies discovered by Strike Energy. And for example, we're working with them where we're working on some of their front-end work for the gas plant to be open develop similar to Waitsia. There is a number of other ammonia urea projects being developed here in Australia that again, we're -- we would expect to be well-positioned to participate in. There's some storage terminal opportunities, converting some storage terminals into other facilities on the East Coast. And there is the potential for LNG import facilities on the East Coast. So in terms of oil and gas investment, yes, we won't see large-scale LNG export plants being built in Australia here anytime soon, but a lot of other oil and gas infrastructure, we do think that investment cycle is coming back.

Thank you, Peter. One final question for you, please. Can you comment on the impact of inflation on current projects, perhaps what percentage of the order book is at play when it comes to inflationary risk? And what this means for margins?

I think the current inflation that I think has put everybody's attention is from a timing perspective, I think we're in good shape. So North American project obviously has brought out, and most of those major capital purchases were committed early days and within budget. Snowy, we're working through that again replace the purchase orders for the large capital equipment there well before pandemic. The Perdaman project is a good example of where we had a price that we had developed with the client. But given the ramp in inflation, we undertook an exercise to reprice that project and incorporate those market adjustments that have happened. And that project, as you would have seen from the press report has gone up by some USD 400 million. And that is indeed incorporating those inflationary increases that have come to the market since we had priced it originally. And the Perdaman has been able to bring both his equity partners and [ debt ] partners along with him on that journey, and they are also comfortable that project economics still make good sense with those increased costs. And so those -- that inflation has been captured in that project pricing. And -- so we think we've done a pretty good job in terms of being able to address market inflation. Some of the others -- some of the projects that have had long run has had some market impact. But again, we're working through this government project. We're working through addressing that with the client that does have some language in it around [indiscernible] recoveries. So look, all in all, it's a challenging time. I think the biggest impact from COVID on the supply chain has been probably the biggest challenge for us to manage has been the impact on time on side, that's something we're working to with our clients to because that extension of panel obviously has an increasing cost and so we need to recover that from our clients. And that's probably been the area of the biggest focus at the moment. But in terms of inflation on the commodities, yes, it's clearly there, but it's been managed within the contingencies or the variations with that.

Peter, that's great. Thank you so much for your time in the presentation and answering the question, and have a good afternoon in Australia. Thank you. While we transition over to Mike, just a reminder again to please ask questions throughout the presentation. You'll see there's a black tab or black button towards your left on your webcast screen. Please click on that, and your question will come through to us during the presentation. So we are now going to just get Mike, Mike on the line. Mike da Costa is the Platform CEO for the Mining platform. Mike is in Canada at the moment. It's 4:00 in the morning there. So Mike, we're going to tee up the slides on our side. If you can just indicate to us to move on to the next slide, we'll change those up few, but over to you. Thank you very much, Mike.

Thanks, Ed, and good morning, everybody. Okay. So moving on to Slide 2. So really, I'm just going to take you through a quick overview of the platform, a brief market overview and a quick look at our strategy going forward. And we'll have a look at the order book and some key opportunities that we've got lined up in our pipeline, talk you through some of our major projects that we're busy with right now and then cover off the key risks and wrap up with the presentation takeaways at the end. So moving on to Slide 4, Ed. So the Mining platform has a fairly significant global footprint. And we're really active in all the major mining jurisdictions in the world. And the way we address that market is by way of our 3 regional companies that operate in the 3 major regions of the mining world. So we have Cementation in Americas that really look after the Americas part of the world, very active in North America. And we are doing some work in South America, in Chile and doing some tendering in Peru just at the moment. So that business is headed up by Eric Smith. Eric replaced [ Justin Olsen ] towards the end of last year. He was an internal appointment. So when Justin left the business, we then promoted Eric. Eric was identified as a successor and then move in to take over the role as Managing Director. And that transition has gone very well, quite seamless, actually. Then in the African region, we have Murray & Roberts Cementation, and their market is really Southern Africa. So we headquartered in Johannesburg and then have offices in Kitwe and also an office in Accra in Ghana. Most of our work at the moment is in Southern Africa. And this business headed up by Mike Wells. Mike is approaching retirement. He'll retire early in next year, and we're currently busy with a succession process to -- for lease position well ahead of the time that he retires. So I anticipate a fairly smooth transition in that business, too. Then across to the Australasia region. So our business there operates under the brand of RUC Cementation. They're headquartered in Perth. We also have offices in a workshop in Kilgore and then an office in Hong Kong and Ulaanbaatar in Mongolia. So that business covers the Australasia and Southern Asia area. It's headed up by Greg Miller. So Greg is also a new appointment. Barry Epton was the Managing Director there. He retired at the end of last year. And similarly to Eric, Greg was a successor within the business, and we promoted him into the managing director position, and that transition has also progressed pretty well and fairly seamlessly. So I'm very pleased with that. Ahead, I'm moving on to Slide 6. So just having a look at the commodity price forecast and outlook into the medium-term. And you'll see on the graph that I have up on the slide, when you're looking at gold and then kind of the future-facing metals that are required to degree in the world and drive the green transition nickel, PGMs, copper, manganese lithium. So all of these on the forecast to be fairly strong in the medium-term. And I think that bodes well for mining companies. So the margins that they're seeing at the moment they may be eroded to some extent by inflationary forces that are starting to impact the world. I think the -- the consensus is that these companies should continue making -- generating acceptable margins and margins that will enable them to reinvest and invest in the capacity that's required to drive this transition into a greener world. So what we're seeing at the moment is most of the investment is in sort of brownfields expansions or maybe production restarts of assets, et cetera, were idle not a hell of a lot of greenfield investment yet. But if the world is going to -- or if the mining industry is going to supply the volume of metal that's required to drive this transition to a green economy, there's going to have to be a lot more investment into exploration and greenfields projects certainly over the medium- to longer-term. So -- all of that, I believe, bodes quite well for an increase in mining investment into the medium-term. So what is that I'm moving on to Slide 7. What does it mean for our business? So the graph on the left there in ship is just indicating the sort of growth forecast anticipated in the Australian contracting market. And then you can see, there is a steady growth forecast over the next couple of years. And that market is really, really buoyant at the moment. Most analysts are forecasting similar growth in the Americas, both North America and South America. So I think in Latin America, there are some geopolitical issues at the moment, but as long as that doesn't derail things too badly, most people are expecting to see a big growth in the contract mining market in the Americas region. Then Africa, the African region is a bit volatile and a bit uncertain. So the sort of indications we have is that investment won't grow significantly on the African continent, but it should still be reasonably good at the levels that it is at the moment. And then just looking at the operating environment that we operate in as mining contractors. So the whole subject of ESG is becoming very, very important. And important from the perspective of the commodities that need to be mined and the commodities that we will be finding most opportunities in for our work. So that's one aspect of it. But then, of course, it's how we do the work. And the mining industry really needs to up its game as far as ESG is concerned, and it is happening. We can see all of our clients, particularly the major clients are really demanding now when it comes to issues of ESG from our perspective, the opportunity lies in how we support those clients in achieving their ESG goals. So we are positioning ourselves to be able to do that. Obviously, one of the issue in ESG, social responsibility, I think that's becoming more and more prevalent. So that we behave responsibly and that we consider the needs of the communities and the environment around the areas where we're operating, and hopefully execute our projects in such a way that we leave those communities in a better position than they were than before we arrived. So that is certainly something we're working hard on. I mentioned earlier about geopolitical unrest. So I think there is a -- it's omnipresent in the world at the moment. And that does pose some risk to the growth outlook for our industry. The other thing, which is just starting to become evident is that with all of the all of these demands on business, capital allocation is not a simple process these days. There's a lot of demand on cash that's generated within the business. And that means that this -- there's not always money available to reinvest. And it's really about the mine owners having to determine which priority is more pressing at a particular point in time. So my own view is that where many of the mine operators sit at the moment, they have pretty strong balance sheets, a lot of -- most of them have a lot of cash on their balance sheets. And they're probably really are now at the point where when they're looking at the capital allocation products, reinvesting into the business or investing into new operations must be pretty high on the list of priorities right now. And as far as the business and the operating environment is concerned, that Peter spoke a bit about supply chain pressure, so that is real and particularly with a lot of investments starting to happen into mining operations, putting a lot of pressure on particularly equipment supply. So lead times for equipment are running out quite -- the lead times are starting to extend quite a bit now and even in terms of spare parts and that sort of thing. So that's -- that means that we need to do our supply chain planning a lot better and engage with our suppliers a lot closer and really manage the movement of materials around the world. I think productivity challenges are becoming an issue in our [indiscernible]. So there's a big squeeze skills at the moment, not easy to get the experienced competent skills. And there's also pressures -- more and more pressures increasing right now on the -- from a social perspective, having to employ people from local communities, local -- within the local countries where we operate not so easy to get work done just using expense these days. So all of that starts placing pressure on productivity. Yes and then when you look at skills, so attracting young people into the mining industry is becoming more and more challenging. And really, we need to make the industry a lot more exciting for young people and to get people interested in the industry so that we can get the right people coming into the industry to replace those that are leaving. Yes, there's an issue of technology. So that's something that we're working very hard in Murray & Roberts Mining. We have a 66% ownership in a technology company in -- based in Perth, and then they're doing a lot of work for us in terms of developing proprietary software to improve productivities within our business, improve safety and really improve the way we do business and move our business to a more data-led business. So a lot of work around data acquisition, data analysis and then also quite a bit of work going on in terms of automation and remote control. And I'm moving on to Slide 8 now. Just a quick look at the competitors, the people that we consider our competitors in the global industry. So I think the main ones for us in terms of where the major part of our business is focused in underground mining and construction, really Byrnecut, Perenti and Redpath. So Byrnecut, I think pretty much about Australasia and African focus. They deal a little bit of work in North America, but not very presently at the moment. But a really big player in Australia and certain parts of Africa. I don't think they're growing significantly at the moment, but they are a big player and competition to us. Redpath are pretty international. They've got an extensive global footprint, very similar to us. So I'd say Redpath are very similar to us. They provide all the services. They have the same range of services, the same sort of capabilities. So from a global perspective right now, probably our biggest competitor. And then Perenti. So Perenti own Barminco and AMS, African Mining Services. So they are the biggest contractor in Australia at the moment in the underground market and they're also very active in East and West Africa and starting to move further down into Southern Africa too, and we're also starting to see them having a presence in Canada right now. So they've got a couple of contracts in Canada, and they have a stated objective of expanding globally. So I think also a global competitor to watch from our perspective. Okay. Now moving on to Slide 9. Just quickly some strategic insights. So as a mining platform, as I said throughout this presentation, we've got a significant global footprint. But up till now, we've operated a little -- we've operated very much as 3 autonomous regional businesses. And that served us pretty well and I think that the platform has done well. But we've got to the point now where we've realized if we want to grow significantly more, that sort of very regional model is probably not going to do it for us. So we've just been through a strategy, rethink got the senior team in the organization together and went through a codesign workshop process. And we basically concluded that we need to become more of a global business and establish more of a global presence. And the objective of establishing that global entity is so that we can have an overarching structure that better enables the regional businesses to perform better and to grow. So we believe that we would be better served by having a single global brand, which we're going to be having a look at. We'd be better served by having a single global balance sheet, consolidating the balance sheets of the 3 regional companies. We believe we could do better with talent management and talent acquisition on a global basis rather than just on the regional business. And then also in terms of procurement and relationship with our suppliers, particularly in the current environment, the supply chains are constrained and so on. We believe that we could enable the businesses a lot better than if we were able to do strategic procurement on a global basis. So those are some of the enablers that we're looking at, and we are now in the process of constituting task force teams within our business to look at those various work streams and see how best we can achieve those objectives. Moving on now to Slide 11. So just look at the order book. And as you can see there, our order book did deteriorate up to December 2020. So that is really through the COVID period. And we really hit our low point from an order book perspective during COVID. So we did have a bit of a challenge through that time, where investment really dried up, and there just wasn't much work coming available in the industry. It wasn't that we weren't winning work, there just wasn't much investment happening. Thankfully, that has turned and it's strange. So you can see that our order book has recovered again, and we're basically almost back to where we were pre-COVID. And that's -- so the full growth of the order book is really not reflected on that graph because we agreed to terminate the [indiscernible] contract on amicable terms. And that took quite a chunk out of the order book. So despite that chunk that came out, we still showed quite a strong growth in the order book. And I think that bodes well for the future. We also have quite a strong pipeline of new orders, category 1, 2 and 3 projects that we're tracking and maybe we should go on to the next slide, Slide 12. Yes. I just listed a couple of the more near-term pipeline projects that we have lined up to continue feeding our order book. So the first one there is the De Beers Venetia project. We've been on that project for about to -- close to 10 years now. And it's still be quite a few years to go. So the way that project works is we've been awarded the full scope of work, but we get the work awarded in kind of in packages in work packages. And so we haven't brought the full scope into our order book. We bring the packages into our order book as they're awarded. So we are expecting a work package to come through in the next 6 months or so, and that will be somewhere around ZAR 1.5 billion. We've also just been selected as the preferred contractor on the IvanPlats Shaft 2 sinking. So that's -- we have IvanPlats project in eastern side Mokopane in Limpopo. And that's to sink the main shaft for that project. So that we're estimating around about ZAR 1.3 billion, and that should come into our order book over the next 6 months or so. We are also in discussions with one of our clients in Utah, in the U.S. That's a very big copper operations. So we are currently doing some of the initial development work for them, and we are now in discussions with them to engage in quite a big expansion on that operation. Another one of our clients in Colorado, in the U.S.A., a mine that we've been working on for quite a number of years. They're also looking at quite a significant expansion coming up, and we are the preferred contractor there. So we're busy negotiating with them at the moment. And then in our Materials Handling business with TNT, we have been identified as the preferred contractor for quite a big surface materials handling project for Antofagasta in Chile. So we have been awarded the upfront engineering work, which we're busy with at the moment and expecting a full notice to proceed sometime in the third quarter of the new financial year. Then in Australia, we are basically been identified as the preferred contractor for 2 ventilation shafts for South 32 at the Appin mine. And we have been engaged in early contractor involvement works, so we can do the engineering work on those shafts over the last 6 months, and we're now expecting to get an instruction to proceed, probably also in the third quarter of the new financial year. We just submitted a tender to gold/copper operation in Mongolia for some underground development and construction group. So we're also expecting to be in the second 6 months of the new financial year. And then our project Indonesia for Freeport. So there, again, we have a master services agreement for 5 years on that project. And we also get awards in packages. So that's ZAR 1 billion around award, we're expecting any time now. So it will either be just at the end of June or early in July. As you can see there, some fairly good prospects lined up. Moving on to Slide 14. I'm just going to flip through these quickly just to give you an idea of some of the major projects that we're working on. So these are our Ruc projects. As I mentioned, the Freeport, Grasberg mines. So there, we do a lot of ground support and rehabilitation work on the block caves, construction works, and we have a full mining contracting services contract for the Big Gossan Mine. And just recently, we started some development to a new blockade that they're starting up in the Kucing Liar. We're also busy with a shaft project for Newmont, Tanami Mine in the Northern Territory in Australia. And that basically tells that the raise boring a shaft and which we are just busy completing and now setting up to do the lining and equipping of that shafts. So quite a significant project there. Moving on to the next slide, Slide 15. So Murray & Roberts Cementation. I did speak about the Venetia project. That continues to be a really major project for us and one that underpins our order book and earnings quite significantly in that part of the world. And then we were be busy sinking a ventilation shaft for the Palabora copper mine, up in Limpopo as well. So a fairly significant job there. And then moving on to the next slide, Slide 16. Cementation Americas. So we are busy sinking a shaft in Sudbury for Glencore's Onaping Deep project. And that's as soon as I'm done with this presentation, I'm actually off to visit that project. So at this stage, the shaft is at a depth of about -- in excess of [ 50,000 ] meters underground. And I believe it's actually the deepest shaft in the Sudbury Basin right now. So quite a big job. I think our guys are doing some excellent work there. And then a project that we won during last year is the Jansen potash project in Saskatchewan in Canada for BHP and then that really entails. So that there's 2 shafts that have been sunk and lined, and we are now -- we've now been awarded a very big significant contract to do all the equipment and construction. Going on to Slide 17, Terra Nova Technologies. This is our material handling business. busy with 2 fairly big projects at the moment, 1 for Freeport at the Morenci mine that's actually coming up to completion and then in Chile, busy with a project for BHP on the Spence mine also quite a significant project. If I can move onto Slide 18 and just some key risks. So clearly, in our game safety is really, really important, and we plan a lot of focus on that and had some very robust systems to manage our risks around safety. But if safety incidents that disrupt a major project for an extended period, that would be quite a significant risk to our earnings. I think with the systems we have in place, we wouldn't expect that risk to realize. It is there. Then around project execution and not maintaining schedule and margin on major projects could result in quite a significant impact to our revenue and earnings. This whole issue of scale shortages that I spoke about earlier, there's definitely a squeeze on skills and not being able to man projects with the right level of skill and the squeeze on skills driving up labour costs. So those are all risks to execution. Technology and the rollout of particularly digital technology in underground mining is starting to gain momentum now and move a longer pace. So if we're not able to keep up with that, we -- it have a negative impact on our competitiveness. We are seeing clients imposing more onerous commercial terms on some of our contracts, and that's make it difficult to win work because in many cases, we've been not prepared to accept those onerous terms and on the other occasion, have to or walk away from work. And then the competitors that I spoke about earlier, and there are some new competitors like Perenti who wanted to expand globally, and that is putting -- that is something that we need to keep an eye on. And turn to my final slide, Slide 19, to some takeaways from the presentation. I think I've demonstrated that there's been quite a good recovery in the platform order book. I think the pipeline that I gave you a bit of a flavor of underpins support for the fact that we should see good growth of well, certainly a recovery in earnings into FY '23 and then growth from there moving forward. I think the contracting market is expected to grow over the medium term. The mine owners really do you need to invest now in order to meet the future demands for metals. So that certainly indicates that there should be a good growth in our market going forward. We believe that with the shifting in strategy now, we're positioning the mining platform to capture a much bigger share of the growing market that's developing. And just finally, I've spoken you through some of the major projects that we're busy with, as projects generate significant revenue and earnings for all of our regional businesses. And accuracy of execution is really vital on those projects for us to ensure that we deliver the revenue and earnings that we're planning. Thank you. Ed, back to you for questions.

Great. Thank you, Mike. Just a few questions for you, please. First question is equipment lead times. What was it? And what is it looking like now? And perhaps elaborate on what types of equipment is most under pressure as well?

Okay. So sort of equipment I'm talking about is the equipment required to do the underground development and mining work. So jumbos, roof bolters, LHDs, dump trucks, that sort of equipment. So I mean we're seeing lead times going up to 9 months now. Previously, it was more to sort of 3 to 4 months. So it's becoming a bit of a challenge. And we really need to -- so right now, we're engaging very closely with all of the OEMs and talking about them, talking to them about securing equipment ahead of time, even looking at securing production slots at risk just to try to shorten that leads up. And I think if you went to one of those OEMs today and just wanted to order some equipment without having some sort of a relationship with them the lead time is definitely going to be 9 to 12 months.

Thank you, Mike. Tied, perhaps to that question is, how are you funding your equipment purchases?

As most of our equipment is funded through asset finance facilities that we have with banks, with -- many of the OEMs have financing offerings as well that we use from time to time, right. So back to now the 3 regional businesses have been doing that on each one on their own and basically on their own agreements with asset financiers. We are in the process at the moment of and we're quite advanced in the process in establishing a global asset procurement entity. So basically, it's an asset procurement entity to advance strategic procurement on a global basis. But they're linked to that also a global funding entity. So that entity will provide funding facilities, and we're busy engaging international banks at the moment to set up a global funding facility that will then fund the global procurement. So fairly soon, we will be doing that on a centralized global basis.

Thank you, Mike. One more question, please. The thinking around the global operating model. Is it all about efficiencies, for example, margin uplift? Or is it more critical for client acquisition?

I think both. So I think certainly, client acquisition and not supposed to expand on that, but to improve the quality of our clients. So wanting to do more work for major clients, changing the relationship with those clients, engaging on trying to engage them more on a partnering type relationship. So building those relationships is certainly one part of it. The other part then is to become more efficient. And I spoke about this global overarching structure that we wanted to establish and that the objective of that structure is to be enabling. So it is to provide better enablement to the regional businesses so that they can perform better and generate a better margin.

Great. Mike, thank you very much. That's all the questions we have here. Thank you for your early morning start and all the best on the site visit.