North American Construction Group (TSX: NOA) Announces $100 Million Contract Award for MacKellar Group in New South Wales

3 min read | December 12, 2024 06:57 PM AEDT | By Team Kalkine Media

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North American Construction Group (TSX: NOA) Announces $100 Million Contract Award for MacKellar Group in New South Wales — Image source: Shutterstock

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Highlights

MacKellar awarded a major early works and development contract by a copper producer in New South Wales, Australia.

The project is expected to generate approximately $100 million in revenue, starting in Q1 2025 and completing by Q2 2026.

The contract reflects NACG's continued focus on geographic and customer diversification.

North American Construction Group Ltd. (“NACG”) (TSX: NOA.TO/NYSE: NOA) today announced that its subsidiary, MacKellar Group, has been awarded an early works and development contract by a major copper producer in the Australian state of New South Wales. The project involves a range of critical production-related activities, with a primary focus on establishing site infrastructure in a new mining area, initial overburden removal, and the closure of a previously used reclamation facility.

This contract, valued at approximately $100 million, marks a significant milestone for MacKellar and represents an expansion into New South Wales, a region that is new for the company. The project will begin in the first quarter of 2025, with completion slated for the second quarter of 2026. The awarded scopes will be carried out at a long-life copper mine that operates continuously, seven days a week, twenty-four hours a day, requiring both heavy and light equipment. The majority of the equipment will be sourced from NACG’s existing owned and leased fleet, including several units transported from Canada.

Strategic Expansion and Diversification
The award of this project reflects NACG’s ongoing strategic objective of geographic and customer diversification. With this new customer based in New South Wales, MacKellar is poised to build a strong presence in a new region, expanding its portfolio in the mining and infrastructure sectors.

Leadership Comment
Barry Palmer, Chief Operating Officer of NACG and Regional President of MacKellar Group, commented:
“We are excited about our entry into the New South Wales region and look forward to delivering exceptional service to our new customer. With the award in place, our focus now shifts to the critical task of mobilizing safely and efficiently on-site. This project is vital to our customer’s efforts to ramp up mine production and to establishing MacKellar as a leading contractor in this region.”

Joe Lambert, President and CEO of North American Construction Group, added:
“Our Australian operations continue to strengthen, and this award aligns with our strategic focus on customer, commodity, and geographic diversification. We are pleased to welcome this new customer to MacKellar and look forward to building a long-term, successful partnership based on world-class safety and operational excellence.”

Financial and Operational Outlook
While this contract improves overall visibility for NACG’s 2025 revenue, it does not change the company’s previously announced estimates for next year. The project was already factored into the outlook provided on December 5, 2024, and does not alter NACG’s estimated revenue ranges for 2025.

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