Sedgman on a contracts roll

MAY 2010

TWO Brisbane companies have joined forces in Botswana, with Discovery Metals Limited (DML) enlisting the services of Sedgman Limited (SDM) for engineering, procurement and construction (EPC) of its Boseto copper project.

The $102 million contract adds to $150 million worth of EPC contracts for Sedgman in the last two months, while managing director Mark Read is upbeat about the market atmosphere.

“We have a positive feeling at the moment, give or take the odd resource super profits tax, with more studies going on in general – we’re at record levels in terms of our test studies,” he says.

“Our Johannesburg office has grown considerably and we have two headline strategies, to continue to be a world leading brand in coal, while growing from a low base with our metals division – this is a good example of that.

“We have been particularly encouraged by the number of studies the metal division is currently working on, supporting our view that the metalliferous sector is starting to mirror the signs of the strong recovery now evident within the coal sector.”

Early last month Sedgman signed $50 million worth of contracts with Riverside Mining Limited’s (RIV) Benga coal handling and preparation plant in Mozambique, following a $13 million contract signed in December, while in April it signed a $50 million deal with Narrabri Coal Operations Limited (NCO).

Read says the latest contracts will give the company a positive outlook for 2011.

“We expect to continue to grow our order book by capitalising on the increasing number of project opportunities both in Australia and abroad,” he says.

“Having achieved market leadership in Australia, we are now winning significant international projects in our targeted regions.”

He says Sedgman is focused on a $5.5 billion global pipeline of targeted projects, with studies and projects in the Americas, China, Europe, southern Asia and Africa.

WHTM Corporate Finance recently upgraded Sedgman’s 12-month target price from $1.80 to $2.10.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Former IPO hopeful Limepay acquired by Spenda at a fraction of the $43.5m invested

Former IPO hopeful Limepay acquired by Spenda at a fraction of the $43.5m invested

White-label buy-now pay-later (BNPL) company Limepay may have ...

Melbourne construction safety software group HammerTech receives $105m investment for growth

Melbourne construction safety software group HammerTech receives $105m investment for growth

HammerTech, a Melbourne-headquartered safety intelligence software ...

Here’s how to make sure Indigenous businesses keep thriving across a wide range of industries

Here’s how to make sure Indigenous businesses keep thriving across a wide range of industries

When discussing the creativity and ingenuity of Indigenous people, ...

Brisbane-based IT consultancy Exent acquired by Atturra for up to $8m

Brisbane-based IT consultancy Exent acquired by Atturra for up to $8m

Founder-led IT consultancy Exent is set to join the growing portfol...