Bullish Sign? - Bounced off 200 EMA, page-2668

Soon NWH should be able to win business similar in complexity (but different specifically) to MND's win announced today in respect to BHP's South Flank project. The contract, which is valued at $108 million, includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s outflow infrastructure. Work will commence immediately, and is expected to be completed by May 2021.

MND's win shows that all the South Flank contracts have not been granted, as I thought was the case. The above-mentioned contract may be a subcontract to the Bulk Earthworks and Concrete contract that NWH won.

Main Package: Bulk Earthworks and Concrete – South Flank
Sub-Contract Package Title: HDPE Piping and Fittings Installation
Reference: C078-EOI-PUR-004/005
Package Description: Above and underground HDPE pipe and fittings installation for water reticulation and storage to Primary Crushing (PC), Overland conveyors (OLC), Mobile Equipment Maintenance (MEM) Workshop locations. Approximate quantities as follows:
.. PN16 Raw water lines ranging from DN32 to DN800 – 22,000m.
.. PN20 Raw water line DN800 – 5,900m.
.. PN12.5 Potable water line ranging from DN20 to DN160 – 3,600m.
.. PN12.5 Slurry line ranging from DN90 to DN355 – 300m.
Target Award Date: January 2019

NWH is referenced in the Subcontract Package documentation (“subcontract” should not be hyphenated according to the Australian Style Guide). Note the Target Award Date of January 2019.

One of MND's specialities is stuffing around with water – a capability honed in MND's work for mining companies, and later packaged as a specialist service that MND has successfully delivered to non-mining customers in the Eastern States and NZ. This is a good example of organic growth and diversification of customers, business sectors and geographic footprint.

The main thing that I wanted to emphasise is that there is heaps of work in the two sectors wherein NWH operates, so there is no need for us to dredge up all possibilities to allay fears of a dearth of opportunities. NWH should use the situation to best advantage, which means not chasing some of the work because the fit in terms of capability and timing is not good, or customers whose finances and ethics may be questionable.