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EDITION: 539
Engineering, Industrial Services & Associated Technologies
SRG Global (SRG-AU) secures A$225M of contracts with existing clients in the Health, Building and Resources sectors across Australia. In the last quarter, SRG have secured ~A$500M in new contracts, many of which are long-term.
Macmahon Holdings (MAH-AU) reappointed as mining contractor at the Daswon South project. Commencing on 1 July 2024 for a period of up to three years, the contract will add ~A$130M annually to Macmahon’s secured order book.
Austin Engineering (ANG-AU) CEO and Managing Director, David Singleton, indicates intention to retire from executive position at the end of FY25, allowing the Board to complete a thorough internal and external search for Singleton’s successor.
Southern Cross Electrical Engineering (SXE-AU) subsidiary SCEE Electrical, awarded Collie Battery Switchyard work, as a contract variation to the Balance of Plant Contract with Synergy. Scheduled for completion in the second quarter of calendar year 2025, the contract variation value is circa A$50M.
EDITION: 538
Engineering, Industrial Services & Associated Technologies
Perenti (PRN-AU) awarded 3-year mining contract extension for Sunrise Dam from AngloGold Ashanti valued at A$450M. Commencing October 1, the contract is for underground development, production and mining support services.
Austal (ASB-AU) secures order from the Australian Government for two additional Guardian-class Patrol Boats, valued at ~A$39M. Scheduled for delivery in 2026, the boats will be constructed in Western Australia.
Downer (DOW-AU) awarded new A$860M contract to deliver maintenance services across the Homes NSW public housing portfolio. The contract commences July 1 and has a maximum term of 10 years.
Austal (ASB-AU) confirms inaugural chairman, John Rothwell, is retiring as chair, however, will remain as a non-executive director on the Austal board. Former US Secretary of Navy, Richard Spencer, has been named as replacement chair, effective July 1.
EDITION: 537
Engineering, Industrial Services & Associated Technologies
Mineral Resources (MIN-AU) to cease iron ore shipments from Yilgran Hub by 31 December 2024, after confirming that continuity is not financially viable. Hub operations will ramp down in a staged approach over the next 6 months, after which mining operations will then transition into care and maintenance.
Acrow Limited (ACF-AU) secures renewal of A$16M contract with Visy for industrial scaffold services, over a contract term of 5 years.
Mader Group (MAD-AU) welcomes strategic investor, a tier one global financial services company, which acquired ~9.75M shares through a buyer-led share crossing with founder Luke Mader. Following the transaction, Mader remains as majority shareholder, retaining 103.7M shares which represents 52% of issued capital.
Austal (ASB-AU) subsidiary Austal USA secures $47.5M US Navy contract modification for Littoral Combat Ships class design support, with work expected to be completed by June 2025.
EDITION: 536
Engineering, Industrial Services & Associated Technologies
Mineral Resources (MIN-AU) subsidiary Polaris to buy BCI Minerals (BCI-AU) Iron Valley assets for A$26M at completion of transaction, and a further payment of A$12.5M contingent on commencement of mining at the Iron Valley North Pit.
Downer (DOW-AU) seeks to sell remaining 30% stake in Linen Services Australia, as Adamantem Capital is rumoured to be selling 70% stake previously purchased from Downer for A$155M in 2020.
NRW Holdings (NHW-AU) subsidiary Golding Contractors acquires mining services contract, associated fleet and transfer of employees that HSE Mining has deployed to Stanmore Resources’ South Walker Creek mine site. With a transaction value of A$85M less assumed employee liabilities of ~A$15.3M, the services contract is expected to generate an annual revenue of ~A$250M.
Worley (WOR-AU) announces strategic alliance with bp to improve capital efficiency across a portfolio of site projects in locations where Worley holds a services contract, saving an estimated US$40M over 2 years.
EDITION: 535
Engineering, Industrial Services & Associated Technologies
SRG Global (SRG-AU) awarded multi-year term contracts totalling A$125M in the energy and resources sectors across Australia. Contracts include a six-year term contract with Rio Tinto, a contract extension with Origin Energy and an initial design and construction contract with BHP Iron Ore.
ALS (ALQ-AU) completes previously announced acquisition of Wessling, effective 31 May, after receiving approval from European authorities.
Service Stream (SSM-AU) secures multi-year agreements with a combined value of ~A$600M. An initial 9-year term with Yarra Valley Water and an initial 4-year Victorian Road Maintenance Contract, with extension options for each, will support critical infrastructure across the utility and transport sectors.
Mineral Resources (MIN-AU) sells 49% stake in Onslow Iron haul road to Morgan Stanley Infrastructure Partners for total expected proceeds of A$1.3B. MinRes will retain majority ownership and exclusive rights to use, operate and maintain the Onslow Haul Road.
Week Ending: June 2024
Dealmaking in Data & Energy Infrastructure Assets
The latest announcement by Apple to incorporate OpenAI’s ChatGPT into the iPhone operating system later this year will result in significant operational impacts to key infrastructure assets - only increasing the challenge of energy transition and telecommunications / energy / data related infrastructure requirements.
The mobile device has become as important today as carrying a physical wallet was 20 years ago. Society’s addiction to this technology has also resulted in tectonic shifts to infrastructure requirements which are set to not only continue – but expand. We believe Apple’s latest announcement has far reaching impact.
Week Ending: 17 May 2024
Global Battery Technologies & Recycling Sector
KULR Technology group (KULR-US) has been awarded an engineering contract with Bombardier Recreational Products for their Fractional Thermal Runaway Calorimetry (FTRC) testing services. Enhancing the company’s commitment to battery safety.
American Battery Technology Company (ABAT-US) achieved industry leading milestone through demonstrating a fixed duration operation of its commercial scale lithium battery recycling facility of a steady state throughput of greater that 115% of its maximum design rate.
Enovix (ENVX-US) laid off approximately 170 employees, representing roughly 1/3 of staff under its plan to reduce its annual cost by $35M. Commenting on its reduction in next-gen batteries.
Australian Government has released its National Battery Strategy of which they have allocated, $523.2M to Battery Breakthrough promoting manufactures, $20.3M in building future battery capabilities and $1.7B for the Future Made in Australia Innovation Fund.
EDITION: 534
Engineering, Industrial Services & Associated Technologies
Austal (ASB-AU) secures $516.5M contract modification from the US Navy to construct the lead ship of their ocean surveillance program. Originally a
$113.9M design contract, the Navy exercised its option to modify the contract on Friday, allowing Austal to buy the materials required to progress the build.
Downer (DOW-AU) awarded A$600M water contract by Unitywater to deliver water, sewerage and recycled water services in south-east Queensland. Commencing in May 2024, the contract has an initial five-year term plus three two-year extension options.
RPMGlobal Holdings (RUL-AU) extends on-market share buyback program, which was due to expire on 13 June 2024, by twelve months, allowing the company to buy-back up to a further 5% of its shares.
Austal (ASB-AU) potential acquirer Hanwha has received clear indication from Australian and US officials that there would be no adverse implications for either country if it acquired Austal.
EDITION: 533
Engineering, Industrial Services & Associated Technologies
Monadelphous Group (MND-AU) awarded new construction and maintenance contracts in the resources sector totalling ~ A$120M. Contract highlights include two contracts with Rio Tinto in the Pilbara and a three-year contract with Newmont’s Lihir mine.
Orica (ORI-AU) CFO, Kim Kerr has decided to leave, effective 3 Jun 2024. James Crough, who was appointed Group Executive and President - North America in October 2021 has been appointed as replacement CFO.
NRW Holdings (NWH-AU) secures contract valued at circa A$240M. Awarded for civil construction work at Rio Tinto’s West Angelas mine, the contract will support the development of deposits to support sustaining mining from 2026.
Perenti (PRN-AU) CFO, Peter Bryant has resigned to accept the CFO position at Perth Airport. Bryant will assist in the search and transition process to a new CFO and will continue to serve as CFO during a 6 month notice period.
EDITION: 532
Engineering, Industrial Services & Associated Technologies
Austal (ASB-AU) subsidiary Austal USA awarded US$8.6M Navy cost-plus-fixed- fee task order for LCS 36, against a previously awarded basic ordering agreement. Work is expected to be completed by 31 December 2025.
Johns Lyng Group (JLG-AU) enters strategic alliance with Handdii Holdings, a pioneer in digital property claims. Established to meet rising demands for managed property repair, the partnership effectively doubles the combined contractor field force, enhancing both parties' service capabilities.
Southern Cross Electrical Engineering (SXE-AU) to acquire Sydney-based MDE Group for an enterprise value of up to A$10.55M. MDE provides communications, data and electrical services for construction and fit out projects and is forecast to deliver FY24 revenue of A$20M.
Incitec Pivot (IPL-AU) subsidiary Dyno Nobel secures five-year contract extension with BHP Mitsubishi Alliance to supply explosive products and services, with an expected supply of ~20% more ammonium nitrate each year.
EDITION: 531
Engineering, Industrial Services & Associated Technologies
GR Engineering Services (GNG-AU) was awarded A$71M Engineering, Procurement and Construction contract by Liontown Resources (LTR-AU), for the delivery and commissioning of the paste plant facility to support underground mining operations at Kathleen Valley.
Emeco Holdings (EHL-AU) announce the retirement of Chairman Peter Richards, effective 31 May 2024. While the Board considers independent candidates for the role, non-executive director Peter Frank will act in interim capacity as Chairman.
Mineral Resources (MIN-AU) CEO Chris Ellison states that suitors exploring the acquisition of Onslow iron haul road stake are in the target price range, with international players currently in the data room.
Worley (WOR-AU) subsidiary Worley Chemetics, has entered into a Strategic Alliance Agreement and a Licence Agreement to jointly develop, market and deploy a cathode plant design.
EDITION: 530
Engineering, Industrial Services & Associated Technologies
Southern Cross Electrical Engineering (SXE-AU) subsidiary SCEE Electrical has been awarded the Balance of Plant Works contract valued at circa A$160m by Synergy for the 500 MW/ 2,000 MWh Collie Battery Energy Storage System.
Macmahon (MAH-AU) secures 3 year extension of its mining services contract with AngloGold Ashanti Australia at the Boston Shaker underground mine. Now expiring on 1 May 2027, the contract adds A$352m to Macmahon’s secured order book.
Mineral Resources (MIN-AU) indicates it does not wish to proceed with the Lake Johnston transaction as agreed, and would instead prefer Poseidon Nickel
(POS-AU) to consider a renegotiation of terms.
Worley (WOR-AU) confirms its largest shareholder Sidara, formerly Dar Group, has undertaken the sale of 19% stake by way of an underwritten block trade. Priced at A$14.35 per share, the sale is expected to be worth at least A$1.4bn.
EDITION: 529
Engineering, Industrial Services & Associated Technologies
NRW Holdings Limited (NWH-AU) selldown shares of approximately 57 million Spartan (SPR-AU) shares worth ~A$33M, were placed to institutional investors and will settle with Spartan’s A$69M Placement and Institutional Entitlement Offer. This represents the full amount of shares that were previously held by NRW Holdings.
Mineral Resources (MIN-AU) reports Q3 production, highlighting its operational achievements particularly in iron ore and lithium shipment. Whilst some production targets have been missed, progress on Onslow Iron’s construction and moves to secure a partner for its haul road will be positive future catalysts.
Orica Limited (ORI-AU) has successfully completed the first phase of its global Dayforce implementation in 13 countries. As a global human capital management (HCM) leader, Dayforce’s platform will be leveraged to consolidate disjointed systems around the world to deliver a complete cloud HCM experience for Orica’s global workforce.
EDITION: 528
Engineering, Industrial Services & Associated Technologies
SRG Global (SRG-AU) have secured multiple contracts valued at A$150M across Australia in transport, resources and energy sectors.
Macmahon Holdings (MAH-AU) will acquire Decmil Group (DCG-AU) at A$0.30 per share cash, with the transaction receiving unanimous support from the Decmil board and major shareholders Thorney Group and Horley.
Southern Cross Electrical Engineering (SXE-AU) subsidiary Heyday has been awarded extensions totalling A$50M at two data centres in NSW and building projects in ACT.
Lycopodium Limited (LYL-AU) has been awarded an early works contract valued at A$30M for the Reko Diq Copper-Gold Project, taking the total value of works awarded to ~A$85M.
Imdex (IMD-AU) issued an update on their patent infringement dispute, announcing it received the benefit of determination by the Federal Court where Globaltech was ordered to pay A$8M to its subsidiary AMC.
EDITION: 527
Engineering, Industrial Services & Associated Technologies
Macmahon Holdings (MAH-AU) announces its execution of an equipment sale agreement, of which they have agreed to sell a substantial proportion of its fleet at Dawson South Project, resulting in A$44M net cashflows.
Boart Longyear Group (BLY-AU) has now been officially removed from the Official List at close of trading on the 11th April, as its take private by American Industrial Partners is complete.
Downer (DOW-AU) has been awarded a road maintenance contract by Victoria’s Department of Transport and Planning, valued at A$320M commencing in July 2024.
Incitec Pivot (IPL-AU) subsidiary, Dyno Noble has invested A$20M in Moranbah plant to lower GHG emissions. The project is to have an expected lifespan of 20years and abate 20,000tpa of carbon emissions.
EDITION: 526
Engineering, Industrial Services & Associated Technologies
GenusPlus (GNP-AU) has been awarded two contracts under Fortescue’s decarbonisation plan in Western Australia. The contracts have a combined value of approximately A$50M, with contract works estimated to be completed by mid 2025.
Perenti (PRN-AU) announces its underground mining business Barminco has been awarded a A$393M three-year contract at Regis Resources’ Duketon Operations in Western Australia.
Austal (ASB-AU) has rejected an A$1.02B takeover offer from Hanwha Ocean, citing it was not satisfied that mandatory approvals would be secured by Australian and US regulators due to the sensitivity of its operations.
Boart Longyear Group (BLY-AU) notes conditions precedent to plan of arrangement have been satisfied or waived, with the closing of the transaction with American Industrial Partners now expected to occur on 10 April Toronto time.
EDITION: 525
Engineering, Industrial Services & Associated Technologies
ALS (ALQ-AU) acquires USA-based York Analytical Laboratories and Europe-based Wessling for a total cost of A$225M. The acquisitions will add to ALS’ Life Sciences portfolio and will support their strategic growth agenda. ALS is also to acquire remaining 51% of Nuvisan, the pre-clinical/ clinical development services and drug discovery business, for nil consideration.
Mineral Resources (MIN-AU) joint venture Reed Advanced Metals (Mineral Resources 30%, Neometals 70%) have ceased discussions with Lifthium Energy in relation to the evaluation of a lithium refinery in Portugal. Reed Advanced Materials will sole fund the final stage of the pilot test work for its patented ELi process.
Orica (ORI-AU) confirms the successful completion of its A$65M share purchase plan (SPP). In conjunction with a A$400M placement to eligible institutional investors, the full proceeds of the SPP will be used to partially fund the acquisition of Cyanco, a US-based manufacturer and distributor of sodium cyanide.
EDITION: 524
Engineering, Industrial Services & Associated Technologies
Downer EDI (DOW-AU) to resume the sale process for its Mineral Technologies unit. A business valuation of A$100-200M is expected, with the process anticipated to be restarted in the upcoming months.
Mineral Resources (MIN-AU) farms into Lord Resources’ Horse Rock Lithium Project. MinRes will spend A$1M in exploration to earn 40% of the project, with the agreement subject to the completion of satisfactory due diligence on the tenement.
Imdex (IMD-AU) CFO Paul Evans to retire towards the end of CY24. Plans are currently underway to identify a successor, with Evans to support the successful candidate to ensure a smooth transition.
Metarock Group (MYE-AU) has entered a binding agreement to sell PYBAR business for A$65M. Net proceeds from the sale are estimated to be A$36.3M after the deduction of PYBAR’s outstanding debt and the estimated transaction costs.
EDITION: 523
Engineering, Industrial Services & Associated Technologies
SRG Global (SRG-AU) has secured the Marine Maintenance Contract with BlueScope Steel, valued at A$ 35m. The contract, commencing immediately, is to upgrade the wharf at Port Kembla, NSW, and is expected to be complete in 2026.
Imdex (IMD-AU) subsidiary AMC is to receive A$ 8m from Globaltech, as ordered by the Federal Court, in relation to a breach of its core orientation patent. Imdex has also commenced action for a similar alleged infringement with the Federal Court in Canada scheduled for September 2024.
Downer (DOW-AU) has filed a lawsuit against KPMG over alleged audit failures related to accounting irregularities in a contract with AusNet. Subsequently, KPMG Australia has stated it has no alternative but to resign as the company’s auditor
Mineral Resources (MIN-AU) has taken over part of the haul road construction work at Onslow after the builder, Q.H & M Birt walked off the job due to unresolved tensions.
EDITION: 522
Engineering, Industrial Services & Associated Technologies
Acrow Limited (ACF-AU) has acquired Queensland based Benchmark Scaffolding for a total consideration of $9 million. Acrow also won a $5 million formwork package on the Melbourne North East Link project.
Boart Longyear (BLY-AU) has received court approval for the proposed plan of arrangement to sell all common shares to American Industrial Partners.
Monadelphous (MND-AU) has secured new construction and maintenance contract sand extensions in the resources and energy sectors totaling over
$140 million.
Perenti (PRN-AU) advised that an incident occurred at the Mana mine in Burkina Faso which resulted in an employee fatality.
Resource Development Group (RUL-AU) Reported positive half year results with revenue up 135% to $51 million and Profit up 5% $6 million.
EDITION: 521
Engineering, Industrial Services & Associated Technologies
Orica (ORI-AU) has agreed to buy US sodium cyanide producer Cyanco for US$640 million. The acquisition will be funded via an underwritten institutional placement worth A$400 million, alongside Orica’s existing cash and undrawn committed debt facilities.
MAAS Group Holdings (MGH-AU) is to sell its self-storage portfolio to National Storage REIT (NSR-AU). The existing portfolio consists of 9 assets (8 NSW, 1 ACT) with 4 completed properties and 5 partially completed properties. The sale will put MGH on track to hit their recycling target of $70m in FY2024.
Mineral Resources (MIN-AU) sells 14.5% stake in Azure Minerals in block trade at A$3.42 per share.
Perenti Limited (PRN-AU) states share buyback to recommence, subject to share price performance.
EDITION: 520
Engineering, Industrial Services & Associated Technologies
Orica (ORI-AU) has completed their stage 1 surplus land sale at Deer Park, Victoria, inclusive of 66 hectares (approximately half of Orica’s surplus Deer Park land holdings), to Uni Super for A$260M.
Mineral Resources (MIN-AU) are considering the sale of a 49% stake in their pit-to-port haul road, which links the Onslow Iron project at Ken’s Bore mine to the Port of Ashburton on the west Pilbara coastline.
Incitec Pivot (IPL-AU) has kept the interest of Senex Energy for their fertiliser unit, however there are concerns that Australis’s Foreign Investment Review Board may be sceptical of the sale of Australia’s largest fertiliser business.
ALS (ALQ-AU) has appointed Nigel Garrad as deputy chair at their 2024 AGM, effective immediately, after he was appointed to the ASL board in June 2023.
EDITION: 519
Engineering, Industrial Services & Associated Technologies
Genus Plus (GNP-AU) has been awarded a contract by ACCIONA Energia for the Alodga 275kV Solar Farm substation, approximately worth $40million
Worley (WOR-AU) shareholder class action judgement in the Federal Court of Australia, in December 2023, has been appealed
Austal Limited (ASB-AU) has appointed Kathryn Toohey AM CSC as a Non-Executive Director.
Acrow Limited (ACF-AU) noted within its Industrial Service Business Update, that following the first 2 months of trading, MI Scaffold has been awarded a circa $5million contract for the Kidston Hydro Power Station development.
Emeco (EHL-AU) announced it has completed the sale of key underground contract mining contracts and assets to Macmahon Holdings, while also entering a 5-year agreement to become Macmahon’s preferred equipment rental provider.
EDITION: 518
Engineering, Industrial Services & Associated Technologies
DUG Technology Ltd (DUG-AU) announced an investment in Genoa machines costing US$18.2m, to support growth of new service business line.
GR Engineering Services (GNG-AU) ,wholly owned subsidiary, Mipac Holdings has entered into an agreement to acquire Paradigm services with a $9million purchase price.
Macmahon Holdings Limited (MAH-AU) has appointed Mr Dharmendra Chandran as an independent Non-Executive Director of the Macmahon board, effective immediately.
Boart Longyear Group (BLY-AU) has increased loan facility by US$20 million, under the company’s existing Exit term Loan with HPS Investment Partners and Blue Torch Capital.
K2fly (K2F) has raised $1.0m at a premium VWAP through a Share Placement to an existing investor, Maptek, strengthening their balance sheet.
EDITION: 517
Engineering, Industrial Services & Engineering Innovation
Incitec Pivot (IPL-AU) announced a ~$500 million return of surplus capital to shareholders by way of an equal capital reduction.
Worley (WOR-AU) has been awarded a new global framework agreement by BP to undertake EPC services on BP’s new energy portfolio.
Austin Engineering (ANG-AU) announced an expected improvement in 1H FY24 financial results. NPAT guidance reflects an 18% upgrade to $12-$14 million.
NRW Holdings (NWH-AU) has been named Preferred Proponent for the $225 million Reid Highway Interchanges project.
Perenti (PRN-AU) has secured $240 million of contract extensions for its underground mining businesses.
Dynamic Group (DDB-AU) has entered into a binding agreement to acquire 100% of Airwell Flow Testing for a total cash consideration of $2 million.