Another Contract Of $4M Won By SIMPEC At Rio Tinto’s West Angelas Mine

  • Dec 04, 2018 AEDT
  • Team Kalkine
Another Contract Of $4M Won By SIMPEC At Rio Tinto’s West Angelas Mine

On 4 December 2018, SIMPEC Pty Ltd (“SIMPEC”) which is the engineering contractor business of WestStar Industrial Limited (ASX: WSI) has been awarded a $4 million contract from ATCO Structures and Logistics (“ATCO”). As per the contract, SIMPEC is supposed to supply as well as install the electric and communication system in the construction of camp which consists of 600 rooms at the Rio Tinto West Angelas mine site. It is expected from the company that this camp should be delivered within the coming 3 to 4 months.

The purpose of the camp construction is to provide support in the major development of the project at West Angelas Mine which is building Deposit C and Deposit D. After the development of this project, SIMPEC is also supposed to deconstruct the electrical and communication system of the camp.

SIMPEC considers this construction of site at West Angelas Mine as an important milestone for itself. The packages which SIMPEC offers led to winning this contract. The other important reason is SIMPEC’s earlier camp work for Iluka Resources which is a Cataby Iron and Sand project which also helped in winning the contract for ATCO.

The Managing director of the company expresses his gratitude towards the team at SIMPEC for their efforts towards the Cataby project. He also highlights that this will further open a gateway for new opportunities to the camp construction work.

The company is a consistent negative performer. Since its inception till last three months, the performance of the company is negative. Since inception, the performance of the company is -97.72%. The ten years performance of the company is -97.72%. For the past five years, the performance of the company is -76.36%. Since last year, the performance of the company is -55.17%. The company has given a positive performance in the last one month which is 8.33%.

For the financial year, the company made a net loss of $3,067,725. The total asset of the company is $5,499,701 and the total liabilities of the company is $5,956,089 which indicates that the company is not in a position to clear its long-term obligations. The total current asset of the company is $4,010,983 and the total current liabilities is $5,956,089 which indicates that the company is not in a position to clear its short-term obligations as well as meet the working capital. There is an increase in the accumulated loss of the company which led to the deficiency in the total shareholder’s equity which is $456,388. From the balance sheet, it is very clear that the financial position of the company is not good.

From the operating activities of the company, the net cash outflow was $135,544. Here, the main source of cash outflow was due to the payment made to suppliers and employees as well as the interest paid.

From the investing activities of the company, the net cash outflow was $121,864. Here, the major source of cash outflow was due to the payment made in the form of a bank guarantee. The company also purchased plant, property, and equipment.

From the financing activities of the company, the net cash inflow was $410,019. By the end of the year, the net cash available with the company was $1,711,826. As on 04 December 2018 (4:00 PM AEST), the market price of the share is A$0.014 with the market capitalization of A$6.44 million.


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