Today, on 21st May 2019, NRW Holdings Limited (ASX: NWH) announced that its wholly-owned subsidiary, RCR Mining Technologies has been awarded another significant OEM equipment package for the Rio Tinto (ASX: RIO) Iron Ore Koodaideri project. This new order is for the supply of 11 Slide Gates, two Belt Feeders, and three large Apron Feeders to a combined value at around $18 million.
RCR Mining’s Executive General Manager, Ian Gibbs, stated that RCR Mining has a rich history of providing major equipment to the mining giant Rio Tinto (ASX: RIO) as well as many the Western Australian mining companies. It has retained its market leadership in the design and manufacture of Apron and Belt Feeders by securing orders for all the current major iron ore projects since transitioning to NRW ownership.
NRW Holdings’ Managing Director & CEO, Jules Pemberton, stated that this contract validates the company’s acquisition approach to provide its valued clients with a broader range of service offering. The management acknowledged the hard work of Ian Gibbs and the team for securing this contract, which will further support activity at both the Bunbury and Welshpool sites.
In a previous update, NRW Holdings’ announced its Koodaideri Rail Formation South Earthworks contract by Rio Tinto, with a project value of more than $137 million and duration of around 70 weeks with site works to begin in August 2019.
In its half-yearly report for FY19 (ended on December 31, 2018), NRW Holdings’ reported an increase in revenue by 50.9% to $521.1 million as compared to the previous corresponding period. Its earnings before interest, tax, depreciation and amortization (EBITDA) increased to $74.3 million in H1 FY19 from $40.3 million in H1 FY18. The company’s EBIT increased from $22.5 million in H1 FY18 to $50 million in H1 FY19. Its net earnings increased from $15.3 million in H1 FY18 to $28.2 million in H1 FY19. The cash and cash equivalents increased to $82.7 million as compared to $58.8 million reported in June 2018. The net debt of the company improved to $12.8 million as compared to $34.4 million reported in June 2018. The Board of Directors declared a fully franked dividend of 2 cps with a payment date of 8th May 2019.
During the half-year period, the company acquired RCR Mining Technologies for $10 million. It also secured three major civil contracts such as Eliwana, Koodaideri, and South Flank.
At market close on May 21, 2019, NRW Holdings’ stock traded at $2.930, up by 1.384%, with the market capitalisation of ~$1.09 billion. Its current price to earnings (PE) multiple stands at 19.40x and earnings per share (EPS) has been noted at $0.149. Its annual dividend yield was reported close to 1.38%. Today, it touched day’s high at $2.930 and day’s low at $2.810, with a daily volume of 3,165,346. Its 52 weeks high and low price stands at $3.020 and $1.237, with an average volume of 2,214,137 (yearly). It posted absolute returns of around 114.87%, 48.21%, and 26.75% for the past one year, six months and three months, respectively.
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