22/08/2019 - 11:29

NRW revenue passes $1bn

22/08/2019 - 11:29

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Civil and mining contractor NRW Holdings has reported a significant boost in revenue and employees across its major projects in Western Australia.

NRW revenue passes $1bn
Jules Pemberton says the company will continue to support Gascoyne’s Dalgaranga project.

Civil and mining contractor NRW Holdings has reported a significant boost in revenue and employees across its major projects in Western Australia.

The company announced today a 49 per cent increase in revenue to $1.1 billion with underlying net profit of $40.4 million, up 19 per cent from last year, while maintaining a cash balance of $65 million.

NRW also declared a final fully-franked dividend of 2 cents per share.

The results were affected by an impairment of $33.5 million in pre-administration balances relating to Gascoyne Resources’ voluntary administration in June, announced less than three months after the gold miner raised $24.5 million from investors.

However, NRW chief executive Jules Pemberton said the company would continue to support Gascoyne’s Dalgaranga project.

“NRW continues to work on the project where gold output has improved significantly since the administration process commenced,” he said.

In July, Gascoyne announced its Dalgaranga operations, located near Mt Magnet, had reached a record monthly output of 6,561ounces in June, despite it previously failing to meet production targets.

The NRW chief executive said improved performance in drill and blast, along with new civil work and mining contract extensions, had contributed to the company’s success over the financial year.

“Our highly successful acquisition of the RCR Mining Technologies business has added to our diversified capability offering, and the services and people are now well integrated with the NRW business,” Mr Pemberton said.

The company acquired RCR Mining Technologies and RCR Heat Treatment in early 2019.

Additionally, it secured new civil contracts with three major iron ore producers in the past year at South Flank, Eliwana and Koodaideri.

NRW also reported strong growth in employees from around 2,000 at June 2018 to more than 3,145, with the amount expected to increase in the next financial year.

It also reported a retention rate of 85 per cent, along with indigenous participation between 5 and 8 per cent, across its major projects in WA.

The company said business was responding well to increasing manning requirements, through the re-engagement of previous employees, growing diversity of its services and strong company profile.

“Today, NRW is a well-established and highly regarded contractor employing more than 3,000 people across the mining, energy, civil infrastructure and urban development sectors,” Mr Pemberton said.

“We wish to thank everyone who has contributed to our success over our first 25 years.”

NRW said it remained confident of strong activity levels across the resources and infrastructure sectors in the coming years, forecasting revenue of around $1.5 billion in 2020.

Shares in NRW were up 6.6 per cent to trade at $2.34 each at 1.05pm AEST.

 

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