NRW Holdings Limited’s Securities Placed in Trading Halt

NWH

NRW Holdings Limited (ASX: NWH) provides diversified services to the mining, energy, civil infrastructure and urban development sectors.

NRW Holdings reports its operations in three segments, which includes:

  • The Civil business- includes NRW civil activities and the Golding civil and urban businesses.
  • Action Drill and Blast (ADB)
  • Mining Business- consolidates the mining businesses of NRW Holdings and Golding together with NRW’s mining support business AES Equipment Solutions.

Trading Halt

Today (on 3rd June 2019), the company’s securities were placed in a trading halt at the request of NWH, pending it releasing an announcement to provide an update to the market regarding NRW’s mining contract with Gascoyne Resources Limited (ASX: GCY).

Recently, on 10th May 2019, NRW Holdings announced that it became a substantial holder in Gascoyne Resources by holding 86,238,410 ordinary shares of GCY with a voting power of 8.58%.

On 1st April 2019, NRW Holdings acknowledged the announcement made by Gascoyne Resources in relation to an equity raising of up to ~$24.4 million (before costs), comprising a ~$3.8 million placement and an underwritten ~$20.6 million entitlements issue.

Half Year Results

For the half-year ended 31 December 2018, NRW Holdings reported revenues, including revenue generated by associates of $521.1 million as compared to $345.3 million in the previous corresponding period, mainly driven by increased activity levels in Mining, due to a number of contract awards and the inclusion of Golding results for the full half-year period compared to four months in the previous financial year.

Further, the company reported an EBITDA of $74.3 million, an increase of 85% over pcp. During the half year period, the company’s net earnings increased to $28.2 million due to higher revenues and strong operating performance, particularly in the Mining segment.

During the period, the company’s net assets increased to $294.2 million, net debt improved to $12.8 million and gearing ratio declined to 4.3%. During the half year period, the company incurred a capital expenditure of $29.5 million, which includes the expenditure of new Liebherr 996 excavator deployed at the Curragh mine site.

From its Civil business, the company reported revenues of $163.8 million, and from its mining business, the company reported revenues of $310.1 million. Moreover, from its Drill and Blast, the company reported revenue of $63.9 million.

H1 FY2019 Results (Source: Company Reports)

For the half-year period, the Board declared a dividend of 2 cents per share, fully franked. The dividend was paid on 8th May 2019.

Stock Performance

Now, let’s have a glance at the company’s share performance and the returns it has posted in the last few months. The stock of the company last traded at a price of $2.740, with a market capitalisation of ~$1.03 billion as on 31st May 2019. The stock has provided a YTD return of 71.25% and also posted returns of 39.44%, 18.10% and -5.84% over the past six months, three and one-month period, respectively. Its 52-week high price stands at $3.085, with an average volume of ~2,299,221.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report