NWH - NRW HOLDINGS LIMITED

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In a trading halt until Friday - " as it expects to make an announcement to the ASX regarding a contract award." - not sure if it's this one hinted in an earlier ann

 

NRWÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s West Australian civil business is well placed to participate in the upcoming major iron ore replacement and sustaining tonnes projects, the first of which is expected to commence during the first half of the 2019 financial year.

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NRW awarded South Flank Precinct Bulk Earthworks & Concrete contract.

 

NRW Holdings Limited (ASX:NWH) is pleased to announce the award by BHP Iron Ore of the contract for Bulk

Earthworks and Concrete works at the South Flank Precinct project.

 

Works to be undertaken by NRW include Bulk Earthworks and concrete for the Overland Conveyors and Primary

Crushers together with ancillary works relating to Non Process Infrastructure.

 

Bulk Earthworks also include Access Tracks, clearing, pads and diversion drains. Concrete works and

associated detailed earthworks include placement of approximately 14,000 mÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚³ of concrete.

 

The contract is valued at approximately $176 million and is expected to run for 15 months commencing onsite in

September 2018. At peak over 350 workers will be required on site. Plant and equipment required will comprise

internally sourced fleet together with a range of hired equipment

 

NRW CEO and Managing Director Jules Pemberton said, ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The award of this contract is particularly pleasing

given the long standing association of NRW and BHP on resource projects and recognises NRWÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s experience

and capability in delivering projects in the Pilbara. The contract will also provide opportunities for employment

and procurement for the areas Traditional Owners and local businessesÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ.

 

Ric Buratto, Executive General Manager of the Civil & Mining business commenting on the award added, ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“This is

a great win for the business, the core project team is in place and key equipment is being made ready for early

deployment to the projectÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

 

The South Flank Precinct is located approximately 120kms north west of the town of Newman in the Pilbara

region.

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Notable short sales alert yesterday. NWH received a please explain relating to delays on the Forrestfield Airport Link project in which NWH is a jv parter

Wed 19th Dec, 2018 2,660,243 375,891,525 0.70% 5,693,549 46.72%

https://www.shortman.com.au/stock?q=NWH

]Forrestfield-Airport Link Construction Contract Update[/b]

NRW wishes to provide clarity on recent media reports regarding the Forrestfield-Airport Link project

being constructed by the Salini Impregilo-NRW Joint Venture (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Joint VentureÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ), of which NRW is a 20%

partner.

 

From an NRW perspective, the construction contract progress is approximately four months behind the

original schedule due predominately to Tunnel Boring Machine (TBM) stoppages, which were directed

by the client, the Public Transport Authority (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“PTAÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ). These delays are the subject of claims under the

contract, which are being negotiated by the PTA and the Joint Venture.

 

As also reported, the remediation options to the Dundas Road cross passage tunnel segments are

being assessed in consultation with the PTA. Depending upon the final remediation option selected, the

schedule could be further delayed by up to four months. NRW notes the comments attributed to the

Transport Minister, the Hon Rita Saffioti MLA, that she believed this in an insurable incident.

NRW, as a partner in the Joint Venture, also reiterates that safety of the workforce and the quality of the

work carried out are of paramount importance.

 

NRW is proud to be part of the Joint Venture constructing this world class project for the Western

Australian Government and all of WA. As noted by the Minister, the two TBMs are now halfway through

their journey having completed tunneling under both Perth Airport runways.

 

NRW does not anticipate any change to the guidance provided to the ASX on 20th November 2018.

A Link to the MinisterÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Media Statement can be found here:

 

https://www.mediastatements.wa.gov.au/Pages...ve-forward.aspx

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New contract

NRW Holdings Limited - Contract Award âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ Koodaideri Mine Plant Bulk Earthworks

Australian civil and mining contractor NRW Holdings Limited (ASX: NWH) is pleased to announce the

award by Rio Tinto of approximately $65 million of bulk earthworks for the new Koodaideri mine in the

Pilbara, Western Australia.

 

The Koodaideri Project will deliver a new production hub for Rio Tintoâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s iron ore business and is located

35km northwest of the Yandicoogina mine in the East Pilbara.

 

The works will include bulk earthworks and drainage. The Contract is expected to run for 11 months

commencing on site in April 2019. At its peak there will be over 175 workers required for the project.

 

Total short positions as at 17 January 2019 = 1.67%

https://www.shortman.com.au/stock?q=nwh

 

SP currently $1.7525

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NRW Response to Media Speculation

 

NRW Holdings Limited (ASX:NWH) (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“NRWâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ or âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) refers to recent media speculation regarding NRWâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s

potential interest in acquiring BGC Contracting.

 

In response to these reports, and consistent with statements made in the Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Full Year reports, NRW

continues to pursue opportunities to further diversify its revenues and enhance shareholder returns. This has

included discussions with various parties regarding potential acquisitions, including BGC Contracting.

 

NRW confirms it has been selected as the preferred bidder in the sale of BGC Contracting (www.bgc.cc), subject

to final documentation and a number of conditions considered customary in this type of transaction.

 

NRW believes there is significant merit in the acquisition of BGC Contracting and would only enter into a transaction

applying a similar discipline to previous transactions (Golding Group and RCR Mining Technologies) on terms that

deliver appropriate value for NRW shareholders, including a requirement that any transaction be EPS accretive.

 

In relation to the funding of the potential acquisition, NRW notes that is has multiple funding options available to it

and furthermore any transaction would include the assumption of outstanding equipment finance obligations of

approximately $190M, which is well supported by a considerable fleet of major mobile equipment.

 

There can be no assurance that any transaction will result from any discussions with BGC Contracting and NRW

will continue to inform the market on any further developments in accordance with its continuous disclosure

obligations

[blacksheep]

Nice to see placements done at a premium

 

$120M ACQUISITION PLACEMENT PRICED AT A PREMIUM

NRW Holdings Limited (ASX:NWH) (NRW or the Company) is pleased to announce that it has received

commitments to place 42.1M million new fully paid ordinary shares in NRW (Placement Shares) at an issue

price of $2.85 per Placement Share, to raise $120M before costs (Placement).

 

The net proceeds from the Placement are intended to be put towards the acquisition of BGC Contracting Pty Ltd

(Acquisition).

 

The issue price represents a:

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ 1.4% premium to NRW's adjusted closing price of $2.81 on 27 November 20191

, being the last trading

day prior to NRW entering a trading halt in connection with the Placement; and

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ 5.2% premium to NRW's adjusted 10-day volume weighted average price of $2.71, up to and including

the last trading day prior to the trading halt2

.

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Broker upgrade target price - FWIW. SP currently $3.08. Gap @ $2.83

 

NRW Holding: Trading higher on UBS price target increase

William McInnes

 

NRW Holdings is trading 3.7 per cent higher at $3.09 today after its price target was raised by 20 per cent by UBS.

 

The broker maintained its 'buy' rating on the stock, but lifted its price target from $3.20 to $3.85.

 

The broker praised the company's acquisition of BGC Contracting which it said would allow strong free cash flow generation and had a solid strategic rationale.

 

"An acquisition of this scale is not without risk and we do require further granularity on BGC's existing contracts and tender book before considering a more material growth profile," said analyst Josh Kannourakis.

 

"We estimate NWH to be trading on an FY20E pro forma PE of ~12x, ex-synergies with FY20-22E EPS CAGR of 13 per cent and risks skewed to the upside."

 

The broker said its increased valuation reflected the earnings and cash flow impact of the acquisition.

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Broker upgrade target price - FWIW.

 

Important to know that UBS was of course the sole underwriter and lead manager of NWH's placement last week. As seems to be normal practice, these analysts come out with favourable ratings/targets, while probably selling themselves

 

 

[nipper]

[nipper]

up 10% today on better than expected