NRW Holdings Limited (ASX: NWH) announced on 3rd April that Coronado Curragh Pty Ltd sent a letter of direction to the company’s wholly-owned subsidiary Golding Contractors Pty Ltd to increase Mining Plant at the Curragh Main Mine through the introduction of the 4th fleet to existing mining operations.
The subsidiary of the company, i.e., Golding Contractors Pty Ltd will supply all the major plant and equipment, which will be utilised for the expanded mining operations. As per the company, a new Caterpillar 6060 excavator, along with 4 x hired Komatsu 830E trucks, and an ancillary plant will be in the additional fleet. The company estimated a total expenditure of $12 million, which is scheduled for the financial year 2020.
The existing contract, which as per the company, has an indicative value of $230 million marks an additional value of $50 million from the new contact of fleet addition, over the remaining term to completion till September 2021.
As per the company’s CEO and Managing Director, Jules Pemberton, the award to add the additional fleet reflects the company’s ability to provide solutions to the client’s demand for expanding operations.
Jules Pemberton also mentioned that the additional fleet signifies expansion in the contract with the counterpart that commenced in the year 2014.
Golding’s Executive General Manager, Geoff Caton, mentioned that the fleet would start the mobilisation in April for commencement in the year 2020. Geoff Caton also suggested that to examine a range of options to maximise value from the Curragh Mine resource the company has worked closely with the Coronado’s Management in the past few months.
NRW Holding’s made another public announcement at the Australia Stock Exchange on 3rd April, in which the company mentioned that, its’ another wholly owned subsidiary, RCR Mining Technologies (RCRMT), received an award contract from various clients in Western Australia to supply the process equipment and support activities.
As per the company, RCRMT initiated long lead items order, in support of received orders and awards to date to RCRMT are valued at around $22 million.
Mr. Pemberton mentioned that the orders for new equipment received by the company denote a vote of confidence by key clients in the company’s product quality. Mr. Pemberton also said that as part of the consortium move to establish a growing base of recurring income the increasing demand for product support and Heat Treatment activities is particularly important.
NRW Holdings presented its first-half activities for the financial year 2019 at Euroz conference.
In the recent event, the company acknowledged the participation in Gascoyne Resources (ASX: GCY) capital raising, in which the company mentioned that it would sub-underwrite up to $5.3 million of the entitlements issue, and the company participation will be applied to the trade receivable own by NRW and to return the balance to contractual terms.
The company also mentioned that it supported the Gascoyne through the provision of a $12 million loan facility previously on 24th December 2018.
The share price of the company is trading at A$2.590 (as on 3rd April 2019, 01:11 PM), up by 1.969%r as compared to its previous close.
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