Why the NRW (ASX:NWH) share price is edging higher today

NRW’s shares received a boost today following an upcoming contract…
The post Why the NRW (ASX:NWH) share price is edging higher today appeared first on The Motley Fool Australia. –

The NRW Holdings Limited (ASX: NWH) share price is edging higher during early morning trade. This comes after the company announced it has been awarded a letter of intent (LOI) from Karara Mining Limited.

At the time of writing, the diversified service provider’s shares are swapping hands for $1.545, up 2.66%.

What’s pushing the NRW share price higher?

Investors appear pleased with the company’s latest update, sending the NRW share price higher in mid-morning trade.

According to its release, NRW advised it has been selected for mining services works at the Karara Iron Ore mine.

The works to be performed include load & haul, drill & blast and Run of Mine (ROM) re-handling with the drill & blast component. Works will be undertaken by NRW’s wholly-owned subsidiary, Action Drill & Blast.

Once the agreement has been formally executed, NRW will begin procurement of key mining equipment. In addition, site mobilisation and establishment will begin during the months leading up to the scheduled works commencing March 2022.

NRW is anticipating to spend around $170 million on the equipment over the life of the project. This includes the purchase of three 600 tonne Face Shovel Excavators and a fleet of 220 tonne trucks.

The entire contract will run for a period of 5 years, and is expected to generate roughly $702 million in revenue for NRW.

More on Karara Iron Ore mine

Located in the Gascoyne region, Karara is the largest mining operation and one of only two operating magnetite mines in Western Australia. The large open-pit mine produces high-grade concentrate product for export to Chinese state-owned offtake partner, Ansteel, for steelmaking.

Karara has grown the project to a multi-billion tonne mineral resource. The mine has an expected mine life of more than 30 years.

Management commentary

NRW CEO, Jules Pemberton welcomed the upcoming deal, saying:

I am delighted that NRW has been selected by Karara as its preferred contractor for mining services.

… With a strong local presence in the area through our Geraldton based DIAB Engineering business and our Mining contract with Gascoyne Resources at the Dalgaranga mine site, we look forward continuing to support the existing and highly experienced workforce on site through this transition, as well as creating employment opportunities for the Gascoyne region community.

Karara CEO, Changjiang Zhu went on to add:

NRW is an established West Australian-based mining and civil contractor with extensive open cut mining experience gained through a number of successful mining operations in the state. Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising a broad range of mining, construction and engineering services. We look forward to negotiation of an agreement with NRW and commencement of mining services early next year.

The NRW share price has fallen by more than 46% in 2021, and is down 19% since this time last year.

The post Why the NRW (ASX:NWH) share price is edging higher today appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Brokers name 3 ASX shares to buy now

ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound

These were the worst performing ASX 200 shares last week

Best ASX value buys for the commodities supercycle

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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!