- Mining services company, Macmahon Holdings (MAH) has secured a contract extension worth $700 million at the Byerwen coking coal mine in Queensland
- The company has been providing open cut mining services at Byerwen since the mine was established in 2017
- The contract is for three years, however, there will be an option to further extend it for another two years
- If this goes ahead, revenue could exceed $1 billion
- Macmahon is also on track for its 2020 financial year guidance of between $1.3 billion and $1.4 billion
- The company could be entering the 2021 financial year with over $1.2 billion in its hands
- On market close, Macmahon Holdings remains steady and is selling shares for 26.5¢ each
Mining services company, Macmahon Holdings (MAH) has secured a contract extension worth $700 million at the Byerwen coking coal mine in Queensland.
The company has been providing open cut mining services at Byerwen since the mine was established in 2017. The mine is owned by Byerwen Coal, a joint venture between QCoal and Japanese steel manufacture, JFE Steel.
The contract is for three years, however, there will be an option to further extend it for another two years. If this option goes ahead, the contract revenue could exceed $1 billion.
The new contract significantly expands production to 10 million tonnes of hard coking coal per annum.
“We are very pleased to have secured this expansion and extension at Byerwen, which is one of our cornerstone projects in Australia,” Macmahon CEO Michael Finnegan said.
“Byerwen Coal is an excellent partner and the project has been very successful since its inception. We look forward to continuing to work with our client on the development of this premium asset,” he added.
2020 Financial Year
Macmahon is also on track for its 2020 financial year guidance of between $1.3 billion and $1.4 billion. Entering the 2021 financial year, the company will have over $1.2 billion in its hands.
“I am very happy with the way our projects and our people have performed over the past few months, and with the fact we were able to pay an interim dividend in April as originally planned,” Michael said.
“With this track record, our strong balance sheet, significant tender pipeline and
today’s announcement of the Byerwen award, I am optimistic we will be able to continue to deliver in FY21,” he added.
On market close, Macmahon remains steady and is selling shares for 26.5¢ each.