- Engineering services provider Primero Group (PGX) has been awarded new contracts which have brought its FY21 contract order book to around $285 million
- Contracts include work for Fortescue Metals' Eliwana Mine and Rail Project and two three-year contracts for Rio Tinto's operations in the Pilbara region
- The company has also been awarded a contract for Hazer Group's hydrogen-graphene commercial demonstration plant in WA
- Primero also holds preferred EPC contractor status across several projects which total $900 million
- Company shares are up 10.7 per cent and trading for 36.3 cents
Primero Group (PGX) has recently been awarded new contracts.
Significantly, the latest contracts have brought Primero's contract order book for the 2021 financial year to around $285 million.
These revenues are expected to be delivered at an underlying FY21 earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of around six and eight per cent.
Additionally, Primero holds preferred EPC contractor status across multiple projects which total $900 million.
Fortescue Metals Group
Primero has won an engineering, procurement and construction (EPC) contract for the non-process infrastructure at Fortescue Metals Group's Eliwana Mine and Rail Project.
While work at this project began in July this year, the full contract has just been awarded following a successful early contractor involvement process. Works are expected to be completed before the middle of next year.
The company has been awarded two multi-year master service agreements for NPI and structural, mechanical and piping services across Rio Tinto's Pilbara-based operations.
Both contracts have an initial three-year term but there is an option for a two-year extension.
Specifically, Primero will provide design, procurement and construction services under negotiated commercial terms in a 'panel style agreement'.
Additionally, Primero has won an EPC contract for Hazer Group's hydrogen/graphene commercial demonstration plant at the Woodman Point Water Treatment Facility.
This award follows an ECI process that extended for 12 months and was targeted at developing the technology engineering to execute a commercial contract for the project.
Preferred EPC status updates
Last week, the company received notification that it was Strandline Resources' preferred EPC process facility contractor for its Coburn Mineral Sands Project near Shark Bay, WA.
This work is worth approximately $150 million.
In June, Primero was appointed the preferred EPC and operations contractor for Piedmont's planned spodumene concentrator. This is being constructed at the Piedmont Lithium Project in North Carolina, U.S.
Further, Primero expects the project will be accelerated due to Piedmont's recent Tesla lithium sales agreement.
Company shares are up 10.7 per cent and trading for 36.3 cents at 1:16 pm AEST.