Monadelphous (ASX:MND) share price higher on BHP and Rio Tinto contract wins

The Monadelphous Group Limited (ASX:MND) share price is pushing higher on Monday after announcing contract wins with BHP and Rio Tinto…
The post Monadelphous (ASX:MND) share price higher on BHP and Rio Tinto contract wins appeared first on Motley Fool Australia. –

handshake agreement

In morning trade the Monadelphous Group Limited (ASX: MND) share price is pushing higher.

At the time of writing, the engineering company’s shares are up over 1% to $11.90.

This latest gain means the Monadelphous share price is now up 17% since this time last month.

Why is the Monadelphous share price pushing higher today?

Investors have been buying Monadelphous shares this morning after it released an announcement which revealed several new contract wins.

These contracts are with Australia’s two largest miners, BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

According to the release, the new construction and maintenance contracts with Rio Tinto and BHP have a combined value of approximately $60 million.

What are the contracts?

Monadelphous has been awarded three three-year master services contracts with Rio Tinto.

These are for the delivery of sustaining capital projects across various mine sites and port operations throughout the Pilbara region in Western Australia.

Management advised that the work includes structural, mechanical and piping, electrical, instrumentation and controls, and non-process infrastructure projects.

In addition to this, Monadelphous has secured another three-year contract with Rio Tinto, with a two-year extension option. This is to provide mechanical, electrical and access maintenance services for fixed plant shutdowns at its Gove operations in the Northern Territory.

Rio Tinto’s Gove operation is a leading producer of bauxite and has been supplying the global aluminium industry with the product for more than 40 years.

As for the BHP contract, management revealed that it has secured a 12-month extension to its existing mechanical and electrical maintenance, shutdown, and project services contract across BHP’s Western Australian nickel operations.

Is the Monadelphous share price in the buy zone?

One broker that still sees upside for the Monadelphous share price is Citi. It currently has a buy rating and $12.63 price target on its shares.

This price target implies potential upside of 6% excluding dividends.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Monadelphous (ASX:MND) share price higher on BHP and Rio Tinto contract wins appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!