- Decmil (DCG) wins the second phase of the Albany Ring Road Project by Main Roads Western Australia (MRWA), valued at $98 million
- This contract adds to the previously awarded stage one contract value of $55 million, which the company has completed most parts of
- Further, the company has revised its debt arrangements with PURE Asset Management and the Franco Group-controlled Horley to reduce the coupon rate to 10 per cent and extend the loan maturity
- CEO Rod Heale says the modified loan terms reflect the company’s strong long-term outlook and enhances its funding certainty, as Decmil builds its order book with new, high-quality contract awards
- Shares in Decmil are up 18.3 per cent, trading at 11 cents as of 1:36 pm AEST
Decmil (DCG) has won the second phase of the Albany Ring Road Project by Main Roads Western Australia (MRWA), valued at $98 million.
This contract adds to the previously awarded stage one contract value of $55 million, which the company has completed most parts of.
The works package consists of an 11.5-kilometre freight route which will extend south from the Menang Drive and Albany Highway intersection, running parallel to Link Road and connecting to Princess Royal Drive.
The new road will be constructed around the City of Albany, linking to existing roads and improving access to the Mirambeena Strategic Industrial Area.
CEO Rod Heale said the Albany Ring Road Project has been a fantastic success to date.
“In addition to delivering quality work within budget and on schedule, the project has also generated significant training and indigenous participation.
“Indigenous participation in the project to date is 10.5 per cent. Aboriginal Business spend to date totalled 5.7 per cent of total contract spend.”
The total contract is expected to be completed in late 2024.
Further, the company has revised its debt arrangements with PURE Asset Management and the Franco Group-controlled Horley to reduce the coupon rate to 10 per cent and extend the loan maturity.
These lenders provided approximately $20 million of mezzanine debt finance to Decmil.
The terms of the loans have been extended by six months to July 2025.
Mr Heale said the modified loan terms reflect the company’s strong long-term outlook and enhances its funding certainty, as Decmil builds its order book with new, high-quality contract awards.
As part of the new arrangement, Decmil will issue PURE and Horley a total of 20 million attaching warrants at 23 cents per share or at a discount based on a valuation in certain events.
The warrants will have an expiry date of August 30, 2026.
Shares in Decmil were up 18.3 per cent, trading at 11 cents as of 1:36 pm AEST.