Forge Group shares have recovered ground following a horror month of trading, with the contractor announcing it has been given the green light to proceed with $830 million of engineering works at the Roy Hill iron ore project.
The company's shares were trading at $1.43 at 10:30am today, having fallen as low as 47 cents last month in the wake of a $127 million profit writedown for the 2014 financial year.
Its shares last week spiked more than 54 per cent in a single day's trade and closed as high as $1.74.
Forge has been asked by the ASX to explain substantial spikes in the company's share price on two separate occasions in as many weeks but says it has not withheld any market-sensitive information.
Forge revealed on Friday that investment giant BlackRock had bought a 5.3 per cent stake in the mining services group.
It meanwhile announced last Monday it had received formal notification to proceed with phase 3 works for a $1.47 billion engineering construction contract at Roy Hill, a joint venture with Spanish contractor Duro Felguera.
The contract, announced in September, provides for around $830 million of work attributable to Forge.
Forge managing director David Simpson said the go-ahead was a pleasing development which would underpin the company's order book for the remainder of the financial year and into 2015.
The company's shares were also bolstered last month when it announced it had secured $40 million worth of new asset management works in the North American coal sector.
Its share price is still well below its closing price of $4.18 before it entered a month-long trading halt at the beginning of November.
Spooked investors wiped more than 83 per cent from the contractor's market value in a single day when the contractor resumed trading and announced a $127 million one-off profit writedown on two power station projects.
The company now expects to report an earnings before interest, depreciation and amortisation loss of between $85 million and $90 million in FY14.
