The NRW Holdings Limited (ASX: NWH) share price is climbing this morning following a new contract award.
At the time of writing, the diversified service provider's shares are swapping hands for $2.00, up 2.30%
Image source: Getty Images
What did NRW announce?
Investors are pushing NRW shares higher after digesting the company's update.
According to this morning's release, NRW advised its wholly-owned subsidiary, Primero Group Limited, has won a new contract for Strandline Resources Ltd (ASX: STA).
Founded in 1999, Strandline Resources is an exploration and development company focused on mineral sands and other base metals. The group operates in Western Australia and across the eastern part of Tanzania.
The award is for the engineering, procurement and construction (EPC) of the Coburn Mineral Sands Project, located in the Gascoyne region of Western Australia.
Under the agreement, Primero will build a Wet Concrete Plant (WCP) and the Mineral Separation Plant (MSP). It will use the facilities to treat heavy mineral concentrate, followed by a dry separation process. Once complete, Strandline Resources will have final products such as chloride ilmenite, rutile, zircon and zircon concentrate.
NRW expects the project to be completed sometime in Q4 2022, with construction works peaking that year. The company estimates around 180 site personnel will be employed to deliver the contract on time.
Management commentary
Primero CEO Cameron Henry welcomed the new deal, saying:
We are pleased to convert another early contractor involvement (ECI) engagement and preferred contractor status to full contract award and associated delivery.
The Strandline project is another step forward for the Minerals division within Primero and our new owners NRW Holdings, that underpins our growing pipeline of works through 2022/23.
NRW CEO Jules Pemberton went on to add:
The award of this EPC contract with Strandline demonstrates the diversity and quality of the Primero Minerals business, which is strengthening its reputation as a preferred contractor of choice in minerals processing.
Our Minerals, Energy and Technology (METS) division is growing strongly with the addition of Primero into the group and is looking forward to further success in a strong market for services.
NRW share price summary
Over the last 12 months, the NRW share price has gained close to 20%. However, year-to-date performance is down 30%. The company's shares reached a 52-week high of $3.19 at the start of this year before treading lower.
NRW has a market capitalisation of around $915 million, with 456 million shares on issue.
