NRW Holdings Limited rockets on the streak of contract extensions

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Civil and mining contractor NRW Holdings Limited (ASX: NWH) today announced the contract extension with NSW government agency Roads and Maritime Services, BHP Billiton for its South Flank Mine and with Talison Lithium for services at the Greenbushes Mine.

Update on Golding Contractor

In an announcement dated 12 October 2018, NRW Holdings Limited told that its subsidiary Golding Contractors has secured a $41 million civil contract extension from Roads and Maritime Services for the upgradation of Pacific Highway from Woolgoolga to Ballina in northern New South Wales. This takes contract values from existing approx. $80 million to approx. $121 million.

The extension work will include assorted drainage, topsoil placing, bulk earthworks and hydro mulching or seeding. It has been estimated that for the completion of work by November 2019, the Golding Contractors will need 75 more personnel at work.  

While at the same time the group has provided an update on its urban business of Golding Contractors. NRW Holdings informed that urban business within its Brisbane based Golding Civil has achieved $26.7 million worth contracts since the start of fiscal year 2019. The value presents the consideration for work being awarded, including extension of contracts at established sites and new contract awarded by both new and existing clients.

Update on Action Drill & Blast

In a contract update to NWH’s wholly owned Action Drill & Blast, the group told that lithium producer Talison Lithium has awarded a 15-month contract extension to Action Drill & Blast for the provision of its services at the Greenbushes Mine. The value for contract extension has been estimated to $13.5 million.

The Greenbushes Lithium Operations are located south to the town of Greenbushes in Western Australia. Action Drill and Blast services first entered into a contract with Talison Lithium in the year 2011 and now with this extension of contract the group intends to build on the relationship by providing services for blast hole drilling, grade control and other blasting services, as per the terms of contracts.

Along with locking extension deal with Talison Lithium, NRW Holdings also sealed a subcontract with iron ore miner BHP Billiton Limited (ASX: BHP). The report unveiled $11 million subcontract awarded to NRW’s subsidiary Action Drill & Blast for drill and blast services at the BHP’s South Flank Project located in the Pilbara region. The term of contract is fixed to 8 months.

On the news of several contract extensions secured by NRW Holdings, NWH stock surged 6.011% to last trade at $1.940 on 12 October 2018. In the last one year the stock has witnessed an attractive performance change of +57.76%.

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