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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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