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Ausdrill share price lifts 4.6% on new contracts

Ausdrill Limited (ASX: ASL) announced this morning that it has secured $171 million in mining services contracts. The Ausdrill share price is up 4.6% to $1.36.

Two of the contracts come from Barminco, a subsidiary of Ausdrill that was acquired in late October 2018. The acquisition made Ausdrill the second-largest mining services company in Australia.

A summary of the new contracts has been provided below.

  • Barminco, a subsidiary of Ausdrill, has won a three-year $113m contract with Regis Resources Limited (ASX: RRL) for underground mining services at the Rosemont Gold Project.
  • Barminco has also secured a 14-month contract with nickel miner Western Areas Ltd (ASX: WSA) for decline rehabilitation and development works. The work will be conducted at the Odysseus mine in Western Australia.
  • Ausdrill has secured a 12-month contract with Consolidated Minerals for explorational drilling services, commencing February 2019. The work will take place at the Woodie Woodie manganese mine in Western Australia.
  • Ausdrill has won a 12-month contract from Bellevue Gold Ltd (ASX: BGL) for explorational drilling services at the Bellevue gold project in WA.

2018 wasn’t great for the Ausdrill share price, which is down 43% over the last year. That said, shares are up 580% since 2016, a turn-around made possible by far better conditions in the mining services industry.

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Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.