Mastermyne Group (ASX:MYE) is a leading Australian underground coal contractor. Despite a challenging FY25 due to client disruptions and softer coal prices impacting mine activity, the company maintained a net cash position and grew its order book to record levels. This robust backlog and balance sheet strength underpins our positive outlook for the company. With major projects like Centurion and Appin ramping up in FY26, we expect a strong return to growth. Currently trading at ~2.4x FY27f EV/EBITDA, MYE appears significantly undervalued. RaaS valuation for MYE is $0.41/share based on a 4x EV/EBITDA multiple. MYE represents a counter-cyclical opportunity with a strong balance sheet, with net cash representing $0.12 per share of NTA and providing some downside protection. The coal commodity price cycle is providing a supportive tailwind into FY27 with higher coal prices, seeing increased mining activity as operators focus on increasing production.
