Here’s why the Boom Logistics (ASX:BOL) share price is up 7% today

The Boom Logistics Limited (ASX: BOL) share price is roaring 7% higher today following a new contract award. Here’s what the company announced.
The post Here’s why the Boom Logistics (ASX:BOL) share price is up 7% today appeared first on The Motley Fool Australia. –

Surging ASX share price represented by the word BOOM written on bright yellow background

The Boom Logistics Limited (ASX: BOL) share price is soaring higher today. This comes after the company announced it has been awarded a new contract.

During late-afternoon trade, the lifting solutions and crane provider’s shares are selling for 15 cents a pop, up 7.1%.

What’s in the deal?

According to the release, Boom advised it has won a new contract at the BHP Group Ltd (ASX: BHP) Olympic Dam. The award will support a major smelter shutdown project that is scheduled to commence in August 2021.

The project will complement Boom’s current maintenance work that has been ongoing since 2012 at the BHP Olympic Dam.

Under the agreement, Boom will supply additional cranes and speciality rigging and engineering services for the shutdown. Equipment is expected to be mobilised from June, with the project running from August to November this year.

The company is forecasting the project to generate revenue of around $15 million which will fall in the FY22 calendar.

Boom CEO and managing director, Tony Spassopoulos commented:

Boom Logistics continues to win new mining maintenance work. We are very proud of our longstanding relationship providing services to BHP Olympic Dam, and pleased to support another major smelter shutdown program.

During the SCM21 shutdown, Boom Logistics will have 40 cranes and approximately 150 crew on site at Olympic Dam. We have an experienced team on site with the priority on safety first and project delivery. Shutdowns are an essential part of mining maintenance, contributing to safe and effective production and productivity improvement.

Boom highlighted that it has firm shutdown bookings planned in Queensland and Western Australia. Furthermore, the GE Bango wind farm construction and the Snowy 2.0 infrastructure project is projected to run into Q1 FY22.

Boom share price summary

Over the past 12 months, the Boom share price has gained above 60%, however, year-to-date performance has sagged 16%. The company’s shares reached a 52-week high of 19 cents in December 2020, before treading lower.

Based on the current share price, Boom commands a market capitalisation of roughly $64 million, with 427.7 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Boom Logistics (ASX:BOL) share price is up 7% today appeared first on The Motley Fool Australia.

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