World leading infrastructure, mining, services, and public-private partnerships group, CIMIC Group Limited’s (ASX: CIM) mission is to generate sustainable returns for its shareholders by delivering innovative and competitive solutions to its clients. Two company- Thiess and Sedgman, conducts the mining and mineral processing operations of the group.
On 9 January 2019, CIMIC Group made an announcement stating that it’s mineral processing company, Sedgman, has been awarded a $155 million engineering, procurement, and construction (EPC) contract at the Byerwen Coal Mine in Central Queensland, following which the share price of CIMIC group uplifted by 0.703%. This EPC contract at the Byerwen Coal Mine is continuing CIMIC Group’s long-standing relationship with QCoal Group which started in 2007. QCoal Group is a leading independent coal exploration, and mining company in Australia which has been availing EPC services through Sedgman and this latest EPC contract shows QCoal’s confidence in Sedgman’s ability to deliver positive and consistent outcomes. The EPC Contract will expand the first phase of the project, and it will also duplicate the existing coal handling and processing plant. As per the announcement, the early work for the project has already started, and the project is expected to be completed in early 2020.
Sedgman’s Managing Director Mr. Grant Fraser told that the Management of Sedgman is pleased to continue its strong, long-term relationship with QCoal. Further, Sedgman is looking forward to assisting in the expansion of the Byerwen mine in a timeframe that optimizes QCoal’s benefit.
In December 2018, CIMIC Group’s operation and maintenance services company, UGL, secured a $180 million maintenance and shutdown support services contract with BHP Billiton Mitsubishi Alliance (BMA) coal mines which signifies UGL’s position as a market leader in the delivery of maintenance and shutdown services. In December 2018, CIMIC Group’s global mining services provider, Thiess, secured a contract extension with BHP Billiton Mitsubishi Alliance’s (BMA) Caval Ridge coal mine to continue providing mining services for specific components of work including the services required for Caval Ridge Southern Circuit.
In six months to June 2018 (H1 2018), CIMIC Group earned a revenue of $8,345.3 million (including Joint venture revenues) which was 8.9 percent higher than the previous corresponding period. The NPAT to the group increased by 12% to $363 million in H1 2018 as compared to H1 2017. At the end of H1 2018, the group had a net cash position of $1.3 billion. The cash flow from operating activities was $724 million in H1 2018 which was 17% higher than the previous corresponding period. The company is expecting FY 2018 NPAT to be in between $720 million to $780 million.
Meanwhile, in the last six months, the share price of CIMIC Group increased by 2.13 percent as on 8 January 2019. CIM’s shares traded at $44.38 with a market capitalization of circa $14.29 billion as on 9 January 2019. (AEST 1:57 PM).