Financial Resources Limited said its mining contracting subsidiary, FRL Contracting Pty Ltd (previously known as Alljay Contracting) has been awarded the general earthworks contract by St Ives Gold Mining Company Pty Ltd, a subsidiary of Goldfields.
Financial Resources said the contract positioned the company as the sole and exclusive earthworks contractor for the numerous services required by St Ives under the contract for the period lasting into 2008 and will provide estimated revenue of between $6m and $7m per annum.
This represents an approximate 100% increase on the revenue generated from this client over the 2005 financial year.
FRL managing director Barry Samuels, said the win was part of FRL Contracting's strategy to secure longer term, high worth contracts with quality, blue chip mining organisations.
"Importantly this new contract, in combination with other initiatives, will ensure that we produce sustainable revenue and enhanced profitability in future years. It is particularly satisfying to secure a contract of this magnitude given the competitive nature of the current market," Mr Samuels said.
In other news, Mr. Samuels also announced the appointment of Anthony Lynch to the position of general manager of FRL Contracting.Mr Lynch was previously general manager for works infrastructure (a division of Downer EDI Ltd).
Furthermore, Financial Resource's Sovereign Hydrology Pty Ltd joint venture has commenced the testing phase for its first Western Australian client and all necessary equipment and personnel from its South African partner have now arrived in Perth and are operational.
