12/05/2020 - 12:23

Valmec boosts order book by $29m

12/05/2020 - 12:23

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Shares in Valmec have risen by more than 13 per cent today after the Kewdale-based contractor announced new work with Water Corporation and Newmont Mining Services, totalling $23 million.

Steve Dropulich says Valmec is pleased to continue its relationship with Water Corp and Newmont. Photo: Attila Csaszar

Shares in Valmec have risen by more than 13 per cent today after the Kewdale-based contractor announced new work with Water Corporation and Newmont Corporation, totalling $23 million.

The contracts are in addition to $5.9 million of compression equipment and overhaul maintenance services recently awarded to Valmec by onshore gas customers in Queensland and Victoria.

The company has now been tasked with providing infrastructure services for Water Corp's Perth Metro Main Renewals Program as well as for an expansion project at Newmont's Tanami gold mine in the Northern Territory.

It is the second expansion project at the Tanami site, which is set to increase its mine life beyond 2040.

The expansion includes construction of a 1,460m shaft, additional capacity at the processing plant as well as supporting infrastructure to enable profitable recovery of ore at depth to 2,140 metres below surface.

Valmec managing director Steve Dropulich says the company is pleased to continue its relationship with both Water Corp and Newmont.

“Together with Valmec’s current suite of services in onshore gas infrastructure, our latest awarded projects and service contracts are testament to the resilience of our market offerings, even within these challenging COVID-19 economic conditions,” he said.

Valmec’s order book now stands at around $65 million.

The company says it expects to be awarded a number of larger upstream energy and infrastructure projects before June 30.

Its shares were up 13.3 per cent at 1:45pm AEST to trade at 17 cents.

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