SEDGMAN BLAST OFF WITH MORE CONTRACTS
Written on the 14 May 2010
SEDGMAN Limited (SDM) has signed another $50 million worth of contracts, with managing director Mark Read (pictured) confident about earnings outlook for FY 2010.
The contract will include design and balance of supply work for Riversdale Mining Limited’s (RIV) Benga coal handling and preparation plant (CHPP) in Mozambique, following a $13 million contract signed in December.
Last week Sedgman 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.”
WHTM Corporate Finance recently upgraded Sedgman’s 12-month target price from $1.80 to $2.10.
SDM shares dropped 0.3 per cent today to $1.67, most likely due to sentiment surrounding the Henry Tax Review and European market jitters.