The SRG Global Ltd (ASX: SRG) share price is on the move in mid-afternoon trade. Its shares reached a 52-week high during the first few minutes of the market open. However, some profit-taking has led its shares to slightly pull back to 49 cents, up 6.5%.
The milestone achievement comes after the company announced a new contract with iron ore powerhouse Fortescue Metals Group Ltd (ASX: FMG).
Let's take a closer look at the deal.
What did SRG Global announce?
According to its release, SRG Global advised it has been awarded a 5-year term contract to provide multi-disciplinary services to Fortescue.
Under the Master Agreement for Maintenance and Shutdown Services Agreement, SRG Global will service Fortescue's mine, rail, and port assets throughout Western Australia. This will initially include providing rope access and electrical maintenance requirements across the Pilbara region.
SRG Global noted that the locations include Christmas Creek, Cloudbreak, Firetail, Kings Valley, and Eliwana mine sites. In addition, rail and port infrastructure assets will also be serviced.
The 5-year contract will generate around $150 million in revenue for SRG Global, depending on the number of works completed.
The services agreement is expected to take effect immediately.
Words from the Managing Director
SRG Global Managing Director, David Macgeorge, welcomed the new deal, saying:
We are delighted to be selected as a key partner to FMG and to provide critical maintenance and shutdown services across their Pilbara operations for the next five years. This is another significant step forward in our strategy to build a portfolio of annuity earnings, with quality clients, to deliver long-term sustainable growth.
SRG Global share price performance
Over the last 12 months, the SRG Global share price has gained more than 30% for patient investors.
During the market rout caused by COVID-19, the company's share fell to an all-time low of 17 cents. However, its share gradually picked up over time to reach a 52-week high of 50.5 cents today.
