SRG wins $150m in new work

Diversified contractor SRG has won a new contract plus an extension to an existing contract to provide its services to several of Evolution Mining’s gold mines, worth a combined $150 million.

SRG has secured an agreement to extend its drill and blast operations at Evolution’s Edna May mine east of Perth, its Mt Rawdon mine north of Brisbane and its Cowal mine west of Sydney, and has also won a new contract to provide the same services at Evolution’s Mt Carlton mine south of Townsville.

“The works under this three year plus two year agreement are expected to generate revenues of about $150 million across the five year period, which increases SRG’s work in hand by about $110 million,” SRG said in a statement.

“The new agreement will utilise assets from SRG’s existing drill rig fleet and will require minimal additional capital purchases.”

SRG will begin work at Mt Carlton next month.

Managing director David Macgeorge said the contract win and extension was a significant achievement for SRG and its mining team, further reinforcing the company’s relationship with Evolution.

SRG shifted its head office to Perth last year, after undergoing a name change from Structural Systems.

SRG shares were 2.8 per cent higher to 72 cents each, while Evolution shares lost 2.8 per cent to $1.37 at 10:30am.