• Challenging market conditions persist, impacting revenue and profitability
• Safety remains highest priority, with improved safety metrics
• Board focused on strengthening operational and strategic resilience
• Confident in long-term industry trends, exploring strategic opportunities

Peter Barker, the Chair of Metarock Group Ltd, addressed the company's shareholders, discussing the challenges the business has faced over the past financial year. Barker noted that while the Board and management team remain confident in the long-term global trends supporting Australia's position as a leading exporter of metallurgical and thermal coal, the industry has faced short and medium-term challenges that have had flow-on impacts to the company. These sector-wide challenges have persisted throughout FY2025, with coal prices remaining depressed, placing competitive pressure on activity levels and margins. Additionally, the ignition events at the Grosvenor and Moranbah North mines had an adverse impact on Mastermyne's manning levels during the financial year. Despite these challenges, Barker highlighted that the company's operating cash flow was in line with the prior year, and net cash at the end of the financial year had increased. The Board remains focused on further strengthening the company's operational and strategic resilience to deal with and thrive in the current challenging and evolving environment. Investments in FY2025 included the rollout of the company's leadership program and an upgrade of the core enterprise resource planning system. Safety remains the highest priority, with Mastermyne's safety metrics improving across the year. Barker also discussed the ongoing prosecutions associated with the tragic fatalities in 2021 and 2022. The Board continues to actively review strategic opportunities, maintaining a highly disciplined approach. During the year, the company completed an unmarketable parcel buy-back program and paid a fully franked interim dividend, but did not pay a final dividend to preserve and grow the company's balance sheet capacity. The Board also focused on renewal, with the appointment of two new non-executive directors, Wayne Bull and Ben Gargett, and the upcoming appointment of Caroline Chan as the new Chair.

Mastermyne remains confident that the demand for metallurgical coal will remain strong for the foreseeable future, with global demand for thermal coal also expected to persist. The company is confident that it will deliver revenue and earnings growth in FY26, albeit weighted to the second half.