Broker TP, page-11

Thank you for the word of the day Pioupiou ... 'milliard' ... I had not heard of this word - in my youth we used 'billion' or 'American billion'.

The Baralaba North contract (May 2018) was an interesting example of the value-add that NWH can achieve these days. 

"This extension allows finalisation of the mine plan optimisation with the initial contract term to be extended by four months. As a consequence the contract value has now increased and is expected to be approximately $420 million."
 
So how should we view the increase in this contract - an additional four months and $70m?  Note that NWH suggested a $350m contract at the Macquarie Conference in early May 2018.

Firstly, Golding demonstrated it was more than capable of working with a client to optimise a mine plan.

Secondly, assuming an NPAT margin of 4%, NPAT will increase from $14m (4%x$350m) to $16.8m (4% x $420m).  We could say that the NPAT margin has effectively increased to 4.8% of the earlier contract ($16.8m / $350m).

That is, the value-add by Golding on this contract has effectively increased the NPAT margin from (say) 4% to 4.8% - a 20% increase.  Thoughts?