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Preliminary Final Report & On-Market Buy-Back

Document date:  Wed 03 Nov 1999
Published:  Wed 03 Nov 1999 15:22:05
Document No:  154638
Document part:  N
Market Flag:  Y

HOMEX - Adelaide                                                      


The operating performance of the Company has remained steady, with
margins on sales continuing to be above industry averages as the
following table indicates:

                                 % of Sales        % of Sales
                              Current Period     Previous period

Earnings before interest,          17.7%             17.4%
depreciation and tax
Earnings before interest and        8.2%              8.2%
Net operating profit before tax     5.1%              5.4%
and abnormals


* Contract Mining

Macmahon's surface mining operations performed in accordance with
expectations and all contracts continue to trade profitably.

The underground mining division has returned to strong, profitable

New contracts secured during the period and in the opening weeks of
1998, and contract extensions commenced during the first half,

* Pre-strip at Cadia for Newcrest Mining Ltd            ($22.0m)
* Extended surface mining contract at Northparkes for
  North Ltd                                             ($18.0m)
* Extension of the Union Reefs mining contract for
  Acacia Resources Ltd                                  ($68.0m)
* Pre-strip at Highway Reward for RGC Ltd/Grange
  Resources NL                                          ($17.0m)
* Underground labour supply contract at Leinster for
  WMC Ltd                                               ($55.0m)

* Civil Engineering

Strong order book growth was recorded during the period in Macmahon's
civil engineering operations.

New contracts totalling $140.8 million secured during the period and
in the opening weeks of 1998, and contract extensions commenced
during the first half, include:

* Site infrastructure works at the Bulong Nickel project for Resolute
* Joint venture construction with Transfield Construction at the
Learmonth Air Force base for the Department of Defence
* A fourth iron-ore rail contract in the Pilbara for Hamersley Iron 
Pty Ltd 
* Construction of five kilometres of rail embankment and other
facilities near Jimblebar for BHP Iron Ore Pty Ltd
* Construction of the Adelaide - Crafers Highway project (including 
tunnels) for Transport SA in joint venture with Concrete Constructions
* Construction of infrastructure facilities at Olympic Dam for WMC 
The $25.0 million Southern Expressway project in Adelaide's southern
suburbs was successfully completed on schedule in mid-December, 1997.


Macmahon has approximately 11% of total assets assigned to South East
Asia for a total investment of $28.0 million.


In Malaysia, activity during the half year centred on existing

* A quarrying contract (Phase 7) for the Heng Huat Quarry - Macmahon
Joint Venture being for the mining and crushing of approximately 30.2
million tonnes of granite aggregate, road base, and mechanical sand
products at a quarry at Kepong, a suburb of Kuala Lumpur. This
contract is on normal contract terms and conditions and is trading
profitably. Total project value is $Al15.0 million and the contract
is almost 25% progressed.

* A management contract at the Kepong quarry site for the management
of the Phase 5 quarry for Heng Huat Quarry Sdn Bhd. This contract is
trading profitably.

* A drilling, blasting and management contract also with the
abovementioned joint venture company at the Bau limestone quarry, 38
kilometres southwest of Kuching in Sarawak. This contract is on
normal contract terms and conditions. However, production volumes to
date have been disappointing, resulting in a small loss.

In addition, the Company is entitled in its capacity as a 50% joint
venture partner, to receive half of the profits from the operations
of the joint venture company which are:

* The sales of the aforementioned quarry products from Kepong (Phase
7) and a small concrete batching operation at that same location.
Notwithstanding the dramatic change in the economic fundamentals of
the country, the low cost housing and road projects which are the
major consumers of quarry products in the region continue to provide
acceptable sales volumes. It is anticipated that this demand will
continue. However, approximately 30% of the quarry products are used
in market segments which are experiencing some downturn and may
continue to do so for the foreseeable future.

The sales of quarry products at Bau. To date, market penetration of
quarry products in Sarawak has been disappointing and given current
economic conditions in the region, the Company is not anticipating
significant returns from this investment for the balance of the year
and into 1998/99.