Consulting, contracting and engineering firm VDM Group has announced $66.5 million in new contracts, including a deal with BHP Billiton Nickel West worth more than $40 million.
VDM said today its subsidiary, Cape Crushing and Earthmoving Contractors had won a five year, $40 million ore handing, crushing and sampling contract at Nickel West’s Kambalda nickel concentrator.
Cape has existing ore haulage and services contracts at Nickel West.
VDM chief executive Andrew Broad also said that since May 1, VDM and its subsidiaries had been awarded $23.5 million in major new construction contracts.
He said the contracts were a sign that customers remained confident in the company, despite it flagging a full-year loss of more than $35 million last month.
Shareholders will be asked to approve a proposed $52 million capital raising to bolster the company’s balance sheet next month.
Mr Broad said the company’s restructuring initiatives were in full-swing, with VDM’s operations now alighted to include two distinct east and west divisions.
Decmil Australian general manager Tom Fallon has been apoointed executive general manager of the west division, and VDM consulting manager Bob Gregg willo head up the east division.
“The restructure of VDM into two distinct divisions allows the company to align our internal business units to our opportunities, and provides a platform for extracting efficiencies from the business,” Mr Broad said.
At 10:55AM (WST) VDM’s stock was steady at 16 cents.
