Swift Media has signed $1.2 million in contracts to provide communications equipment at Rio Tinto and Atlas Iron’s workforce accommodation villages in the Pilbara.
Swift Media has signed $1.2 million in contracts to provide communications equipment at Rio Tinto and Atlas Iron’s workforce accommodation villages in the Pilbara.
The new contracts are in addition to the $2 million in new work and contract extensions signed with Mineral Resources and Roy Hill earlier this month, as well as for the provision of entertainment equipment at a quarantine camp.
Under the new contracts, Swift will reactivate and expand the village entertainment system at Rio Tinto’s Western Turner Syncline 2 iron ore project by providing a television headend, network and CCTV.
Swift will also build an entertainment system for Atlas Iron’s 136-person camp at Corunna Downs, which includes installing fibre optic cabling and a village-wide network WiFi.
Swift Media chief executive Pippa Leary said the Bentley-based company looked forward to working on both projects.
“Our focused strategy to leverage our market lending share and deep expertise in mining and resources is delivering successful results and driving growth,” she said.
Works at both sites are expected to start in the fourth quarter of FY20 and be completed in the second quarter of FY21.
Swift says there is also scope to provide an ongoing content service on a fee per room basis.
Further, the company has received a $400,000 commitment from Cyan Investment Management to underwrite an entitlement offer announced at the start of the month.
The investment brings the total committed amount under the offer to $2.05 million out of a possible $2.88 million.
Funds raised from the rights issue as well as from a $2 million placement will support the restructuring of the business, which Swift announced to the market in late March.
As part of the restructure, Swift has implemented a number of cost-savings measures in response to the COVID-19 pandemic, including reducing non-essential operating and administrative costs by $1 million.
The company also expects to generate around $8 million in total annualised savings from redundancies and a 40 per cent reduction in remuneration for board, management and staff.
Swift shares were down 10.7 per cent at 11:55pm AEST today to trade at 2.5 cents.
