Tempo Australia (ASX:TPP) has been awarded a contract for Structural, Mechanical and Piping Miscellaneous Works and Commissioning Support at Rio Tinto’s (ASX:RIO) Cape Lambert Port Expansion in the Pilbara region of Western Australia.
The contract value is $13.4 million, with works commencing immediately.
It is a milestone contract for Tempo, to have secured its first major contract directly with Rio Tinto and cements confidence in the Company’s ability to continue to grow organically.
Upfront expenditure for the contract will be funded through Tempo’s existing finance facility and cash reserves.
Tempo has been a stand-out performer in the mining services sector and is trading around 52 week highs.
It is capitalised at a modest $15 million and retains $3 million in cash after a recent $1 million placement to Chapmans Limited (ASX:CHP) at $0.0525.
Notably, Tempo's Chairman and major shareholder is Charlie Bontempo.
Charlie co-founded UGL Limited (ASX:UGL) an engineering services company that has grown to a value of over $1 billion.
He was also the long term Managing Director of Monadelphous (ASX:MND), a mining services company, which boasts a market cap of almost $1.7 billion.
