Murray & Roberts bags more mining contracts

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Murray & Roberts bags more mining contracts

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Published Date: 2018-04-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Murray & Roberts bags more mining contracts

The group's Underground Mining division has seen a 50% rise in its order book over the past month

Murray & Roberts has been awarded a further R3.7 in new Underground Mining projects, bringing to R7.5 billion the value of new contracts its won over the past month.

The engineering and construction group says the new projects are for work in sub-Saharan Africa, North America and Australasia and include projects for diamond, gold, copper, salt and platinum mines, to be delivered over the next two to three years. Last month, the group announced the award of R3.8 billion in projects. It says most of the project work was included in near orders as reported in its interim results for the six months to end December. It says the growth in the order book supports market research guidance of the recovery in capital spending by mining firms globally and the view of the longevity of a mining capex cycle. M&R said it continued to be well positioned to potentially secure more mining projects in the near term.

The group's Underground Mining platform order book stood at R15.3 billion at the end of December and the new projects will increase that by about 50%. It said last month that the division had the resources to undertake the new work and the capacity to take on additional projects. The group reported a 10% rise in interim revenue to R11.8 billion, while headline earnings per share more than doubled to 55c. Its R22.1 billion order book for continuing operations was dominated by Underground Mining, which was also the largest contributor to group earnings.

Last week, the group rejected a proposed R15 per share takeover by German shareholder ATON, saying it was opportunistic and materially undervalued the company based on its prospect. ATON is owned by the Helmig family and owns a diversified portfolio of investments in technology, mining, automotive engineering and medical technology. It also owns 100% of Canada-based Redpath group, a global underground mining service provider and contractor.

Its shares closed 2.1% higher at R14.09 yesterday.



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