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Summary
- Saunders’ extensive knowledge & expertise ensures reliable, innovative, cost-effective solutions and trouble-free project delivery, to its diverse client base, that has expanded to include a combination of industries like mining companies and water utilities.
- With demand for minerals growing, mining activities have rebounded after COVID-19 relaxations, and casting an eye on pockets of opportunities seem rewarding.
- SND has a track record of completing major projects for mining clients and has secured another one with Rio Tinto in early 2020.
Experts opine that mining is one of the most cyclical, capital intensive and attractive industries. Tapping opportunities in this industry is a reputable, multi-disciplinary company, Saunders International Limited (ASX:SND), which holds a strong track record in design, construction and maintenance of mining related projects- including material handling, storage, and mineral processing.
Mining Industry Trend
Operating under a different metric of globalisation, at very ends of the earth, mining industry has pioneered the way in terms of true globalisation. Industry experts opine that demand for minerals will continue to grow in the coming years.
According to the World Economic Forum, transition to a low-carbon economy, venturing into frontier mining areas, novel financing and production models, obtaining social contracts for mining, data transparency amid stakeholders, effective response to rising geopolitical risk and economic protectionism and modern workforce are trends that would determine the types of mining companies that would prevail in the future.
More recently, S&P Global Market Intelligence report from May 2020 stated that recent disruptions to mining operations due to COVID-19 now appear to be less severe than some had initially feared, with global drilling activity rebounding and metal prices improving in April.
Saunders’ Mining Expertise
For more than 60 years, the Company has been at the forefront of meeting needs of industry for storage of fuels, chemicals, and water. Catering to the oil & gas sector, mining & mineral processing, aviation, defence and water / wastewater sectors, Saunders focuses on design, construction and maintenance of bulk storage and associated facilities for these sectors.
Specifically, for the mining sector, its expertise covers-
- leach tanks for the gold sector
- bulk material bins for coal and other minerals, thickeners, clarifiers, and other process tanks
- fuel storage facilities for remote mining locations
- a range of civil works for the mining industry
Saunders’ Projects in Mining Industry
SND has completed tasks for several clients in the mining and mineral processing sector. Let us cast an eye over a few-
Recent Win- Major Rio Tinto Contract
In late-January 2020, SND announced to have secured the Stage 1 Precipitation Tank Repair contract for Rio Tinto’s Yarwun alumina refinery near Gladstone, Queensland. The contract valued at over $ 30 million would be delivered over two separable portions with the first separable portion valued at more than $ 13 million and the second remaining subject to Rio Tinto’s annual funding approval. The project will contribute to FY20-H2 through to FY22 revenue.
SND’s scope of works under this contract would be inclusive of design, supply, fabrication, and installation works to repair up to 16 precipitator tanks. At the time of the announcement, mobilisation to site had commenced with works to continue over two years, subject to Rio Tinto receiving related approvals for the second separable portion.
Pleased on securing the major maintenance contract, Chief Executive Officer Mark Benson affirmed that the Company’s focus would remain on the delivery of safe, quality and cost-effective solutions. He added-
A lean and agile organisation delivering high quality engineered solutions across the complete asset lifecycle and driven by a commitment to safety, innovation, excellence and growth, Saunders seems positioned for growth.
Currently, the Company continues to monitor operational impacts of COVID-19 and is focused on preservation of cash through reduced discretionary operating and capital expenditure. Meanwhile, the Board remains firm to resume fully franked dividend payments in FY21.
SND was trading at $ 0.415 on 15 June 2020 (AEST 12:47 PM).
ALSO READ- Objectives & Outlook of Industrial Solutions Expert, Saunders International
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