16/03/2010 - 09:15

Forge wins $40m contract, updates profit

16/03/2010 - 09:15

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Shares in Forge Group surged higher today after the company upgraded its earnings forecast and secured a second contract at the Sino iron ore project, valued at more than $40 million.

Shares in Forge Group surged higher today after the company upgraded its earnings forecast and secured a second contract at the Sino iron ore project, valued at more than $40 million.

Forge subsidiary, Cimeco, has received a letter of intent from MCC Mining for a contract for onsite civil, concrete placement and structural steel installation for the Sino project's stockpile area.

The contract is valued at more than $40 million and follows a $20 million contract awarded by MCC last month for the civil and concrete package for the concentrate terminal.

Both contracts will start this month.

Meantime, Forge said it expects net profit after tax for the 2010 financial year to reach between $28 million and $30 million, up on the $15.6 million reported for 2008-09.

Revenue for 2009-10 is forecast to reach between $240 million and $245 million, compared to $168.6 million booked for the previous year.

Shares in Forge jumped 42 cents to a high of $2.70 before easing to $2.60 at 11:53 AEDT.

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