The CEO of Australian contract mining heavyweight NRW has reconfirmed the company’s strong full-year FY24 profit and revenue projections in the face of deterioration in some commodity markets after it reported a 10.2% improvement year-on-year in half-year EBITDA and 6.7% higher revenue.
Jules Pemberton said NRW’s current forecasting indicated H2 revenue in excess $1.5 billion would be delivered. The contractor had also secured revenue of $4 billion for FY25 and beyond, “which underpins our confidence in the group’s future performance”.
FY23 H1 EBITDA came in at $157 million; revenue was at $1.43 billion. Operating profit was $92.1 million, up 9.1% yoy, and net profit after tax rose 8.6% yoy to $58 million.
NRW reconfirmed its full-year outlook for operating profit of A$175-185 million on plus-$2.9 billion of revenue.
The contractor’s overall pipeline of potential mining, civil and engineering work is put at $15.6 billion, with $2.6 billion of submitted tenders.
Its dominant contract mining business had “a full order book for FY24 and almost all of FY25’s revenue under contract” enabling it to shift focus to opportunities that would “contribute in FY26 and beyond”.
NRW said: “The outlook in our core markets of iron ore, metallurgical coal and gold remains positive with strong levels of tender activity across these commodities.
“It is expected that during the second half of FY24, revenues from lithium mining activities will reduce slightly as clients respond to the current weakness in market pricing. However, the impact is expected to be limited based on their current advice.
“During FY24, 3.4% [circa-$100 million] of the group’s expected revenue is projected to be earned from lithium mining activities at Greenbushes and Mt Cattlin [in Western Australia]. Of this, approximately $50 million has been delivered during the first half. Accordingly, the potential impact of any volume reductions is expected to be immaterial.”
