Insights

NRW Holdings (ASX:NWH) share price drops 5% on Gascoyne update

The NRW Holdings share price is down 4.5% today after the company announced an update on the legal claim against Gascoyne Resources.
The post NRW Holdings (ASX:NWH) share price drops 5% on Gascoyne update appeared first on Motley Fool Australia. –

Staggering

The NRW Holdings Limited (ASX: NWH) share price was down 4.98% at the time of writing to $2.00 following a trading halt put in place yesterday. The share price fall came after the company announced the outcome of legal proceedings related to Gascoyne Resources.

What was in the announcement?

Attempts by Habrock to place Gascoyne Resources into liquidation failed in the Federal Court. Gascoyne is currently under voluntary administration and NRW Holdings is involved in the recapitalisation of the company. NRW was a creditor to Gascoyne before it entered administration and had previously made impairments for trading debts owed for work performed. However, through an agreement with Gascoyne and its administrators, NRW has claimed that it can potentially recover 100% of its losses. 

Gascoyne Resources owes NRW $32.7 million.

According to an announcement by NRW on 25 June 2020, NRW will receive an up front payment equivalent to 8.75% of an equity raising conducted by Gascoyne, to a maximum of $7 million. The total amount of the equity raising will be $80-$90 million. However, NRW has also previously stated that it may participate in a debt for equity swap with Gascoyne which will see it receive shares in the company rather than cash. NRW may also take payment in the future as a proportion of Gascoyne’s production, which will be determined by ounces produced and the gold price. 

NRW has continued working with Gascoyne on its Dalgaranga project over the past 12 months.

About the NRW Holdings share price

NRW Holdings is a contractor that provides services to the mining and infrastructure sectors. It has been listed on the ASX since 2007.

In the year to 30 June 2020, NRW Holdings had record revenue of $2.062 million, an increase of 83% on the prior corresponding period. Earnings before interest, tax, depreciation and amortisation (EBITDA) in the year to 30 June 2020 were $250 million, an increase of 74% compared to the 2019 financial year. NRW had cash at 30 June 2020 of $170.2 million, an increase of $105.2 million.

The NRW Holdings share price has increased 101% since its 52-week low of $1.00. However, it is down 34.52% since the beginning of the year. The NRW Holdings share price is down 13.36% since this time last year. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Chris Chitty 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 NRW Holdings (ASX:NWH) share price drops 5% on Gascoyne update 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!