The Maca Ltd (ASX: MLD) share price is edging higher this morning after the company announced a contract win. At the time of writing, the mining and civil construction company's shares are trading at $1.06, up 1.92%.
Let's take a closer look and see what Maca updated the ASX with.
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What's pushing the Maca share price higher?
Investors are pushing the Maca share price higher after digesting the company's latest update.
In its announcement, Maca advised that it has secured a 'Hire and Maintenance' contract for CITIC Pacific Mining Management (CPM). This will see Maca provide a number of services at CPM's Cape Preston Sino Iron magnetite project. Situated 100km south-west of Karratha in the Pilbara region, the project is the largest magnetite mining and processing operation in Australia.
Depending on the number of works completed, the contract is expected to generate $200 million in revenue for Maca. Services are scheduled to commence in April 2021 and will run over a 36-month term.
Maca highlighted that its work-in-hand position stands at $3.4 billion as of February this year.
What did the CEO say?
Maca CEO Mike Sutton welcomed the deal, saying:
Maca is very pleased to continue working with CITIC Pacific Mining at the Sino Iron magnetite project, and we value the long-standing relationships we have with our clients at this pioneering megaproject.
The current CPM contract was novated from Downer to Maca, following the acquisition of the Mining West business, and it's pleasing to have now secured this three-year extension.
About the Maca share price
The Maca share price has surged by around 80% in the past 12 months. Year to date, however, Maca shares are down around 12%.
Based on the current share price, Maca has a market capitalisation of around $355.3 million, with 341.7 million shares outstanding.
