The NRW Holdings Limited (ASX: NWH) share price flew higher today after the company released two major announcements to the ASX market.
In early afternoon trade, the diversified service provider's shares reached an intraday high of $3.02. The NRW share price has since retreated, closing at $2.86, up 3.25% at the end of trade.
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Upgrade road works
In today's release, NRW advised that its H2H joint venture has been selected as a preferred proponent for the Mitchell Freeway Southbound Upgrade. NRW is a 50% partner in the joint venture.
Located in Perth, the Mitchell Freeway Southbound Upgrade will provide motorists a safer and more efficient road system. The project will be used to support population growth and promote development across the northern suburbs.
Under the agreement, the joint venture will provide services such as lane widening, installation of ramp signals, safety barriers, lighting, drainage, and other upgrades.
NRW revealed that its H2H joint venture has entered into negotiations with Main Roads Western Australia. It's expected discussions will be completed within the coming weeks.
The project is valued at $140 million, with the H2H joint venture comprising of $90 million. The infrastructure works program is anticipated to be completed within a 2-year time frame.
NRW CEO and managing director Jules Pemberton welcomed the contract award, saying:
I am delighted that the H2H Joint Venture has been named as the preferred proponent for the Mitchell Freeway Southbound Upgrade – Hodges Drive to Hepburn Avenue project.
Being named as preferred proponent further underlines the importance of the BGC Contracting acquisition completed in late 2019 which positioned the business to address the fast-growing infrastructure sector particularly in Western Australia.
Mining contract
In the second release today, NRW advised it has been awarded a mining contract from Nathan River Resources.
The agreement will see NRW deliver stage 1 operations at the Rope Bar Iron Ore Project. This will include services such as drill and blast, load and haul, clearing and grubbing, soil removal and rehandling of ore stockpiles.
The deal is worth around $123 million depending on the number of works completed. The duration of the contract will run for a total of 33 months.
The Roper Bar Iron Ore Project, located in the gulf region of the Northern Territory, exported its first iron ore shipment in November. The site is expected to produce around 1.5 million tonnes of ore within the first year of operation. Eventually, this will increase to 3 million tonnes by the third year.
Mr Pemberton had this to say about the deal:
NRW is pleased to be involved in the recommencement of the Nathan River Minesite and looks forward to its successful execution.
About the NRW share price
The NRW share price has been on an upwards trajectory for the past 10 months after crashing to a multi-year low of $1.00 in March last year.
Based on the current share price, NRW has a market capitalisation of roughly $1.2 billion.
