$9m BHP win for Minetec

18/05/2018 - 13:14

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Bibra Lake-based Minetec has been awarded a $9.5 million contract to supply BHP’s Olympic Dam mine in South Australia with an underground fleet management system, while the tech firm’s parent company, Codan, has posted a profit upgrade.

BHP’s Olympic Dam mine in South Australia. Photo: BHP

Bibra Lake-based Minetec has been awarded a $9.5 million contract to supply BHP’s Olympic Dam mine in South Australia with an underground fleet management system, while the tech firm’s parent company, Codan, has posted a profit upgrade.

The mining technology company, which was bought by ASX-listed Codan in 2012, said the contract included the provision of proximity detection, tracking and task management services.

Its the second piece of good news in recent weeks for Minetec, which entered into a technology development and marketing agreement with US company Caterpillar earlier this year.

In Codan’s half-year report to December 31, it disclosed that mining technology revenue (derived from Minetec) was $2.3 million, down from $4.1 million the in the previous corresponding period.

Codan also disclosed Minetec had incurred a small operating loss in the first half.

Adelaide-based Codan, which primarily sells metal detectors, also announced continued strong sales and is expecting full-year profit of about $38 million.

“Metal detector sales have exceeded the levels achieved in the first half and are being driven by the superior performance of our products and important new product releases, such as the Equinox coin and treasure detector, rather than surges in isolated markets,” Codan said in a statement to the ASX.

“We now have the ability to sell a complete range of metal detector products into the market, reducing our reliance on any one product, market segment or country.

“Assuming that metal detector sales continue to be strong and Minetec delivers product under the recently announced contract win with BHP, the board expects underlying net profit after tax for the year ending June 30 2018 to be in the region of $38 million.”

Shares in Codan were up 6.9 per cent at $2.93 at 3pm AEDT.

 

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