CIMIC Group Announced A$172 Million Contract

CIMIC Group Announced A$172 Million Contract

CIMIC Group Limited (ASX: CIM) is an Australia based construction and mining contractor. It is engaged in construction, mining, engineering, mineral processing, operation and maintenance services. CIMIC Group informed the exchange on 7 March’19 that Thiess, its global mining services provider, has won a A$172 million contract extension from Banyan Resources.

The contract is effective until 2023.  As part of the contract, Thiess is expected to remove overburden and increase the coal production, also continue to provide mining services such as drill and blast, and loading of coal into the barge facility.

Commenting on the news, CIMIC Group Chief Executive Officer Michael Wright stated that the team is continuing to deliver operational solutions and value for its clients. The team had been able to meet the client production and expansion needs.

Mr. Douglas Thompson, the CMIC Group Mining and Minerals Executive and Thiess Managing Director stated that the team has delivered exceptional technical solutions for a decade.

Thiess, the company’s global mining services provider, was granted a contract, in 2008, to operate and develop Melak greenfield coal mine.

It is to be noted that in February, the company reported regarding its Group’s CPB contractor winning $90 million gas contract, the same could be read here.

On 14 February 2019, the company announced to the exchange about the $1.26 billion Regional Rail Project contract won by the group companies Pacific Partnership, CPB, and UGL, as a part of Momentum Trains consortium. The company highlighted that CIMIC Group would lead the groups’ development of the project. Pacific partnership would be supporting with the leadership and financing for the period of the contract. CPB would design, construct, and provide maintenance. UGL would maintain the fleet of 117 rail cars. The project is expected to generate revenue of around $0.725 billion. This revenue is generated over its construction and 15-year maintenance period.

Speaking on the deal, CIMIC group executive Officer Michael Wright highlighted that this project would deliver high-quality rail assets for rural and regional NSW as well as local jobs.

On 1 March 2019, CIMIC reported updates regarding the legacy investigation. The company reported that it has entered into an investigation agreement with the US Department of Justice which will complement the current cooperation with the Australian Federal Police.

Stock Information:

The stock has been in an uptrend in the recent past. The stock has moved up by 22.82%, and 5.38%, in the past three months and one month respectively.

The shares of CIM are currently trading 0.86% down at A$50.92 on ASX, up by 1.192%, (As on 07 March 2019)

CIMIC Group Limited’s (ASX: CIM) market capitalization stands at circa $16.51 billion. The Stock has noted the 52-week high price of A$51.670 and 52-week low price of A$39.575. As per the latest ASX declaration the, company’s EPS stood at 2.407 AUD and dividend yield of 3.1%


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