Extract from a research report from MERRIMAN CURHAN FORD
On July 30, Industrea announced that its subsidiary Huddy’s Mining Services won a A$30M per annum contract to provide a fully integrated range of services for Cockatoo Coal’s Baralaba Coal Mine in Queensland. The contract runs for 18 months with an 18 month extension. Cockatoo Coal currently plans to more than double production at Baralaba in the next 2-3 years. Huddy’s contracts are based on a combination of set hourly rates and the amount of earth moved. If the Baralaba expansion proceeds as expected, Huddy’s revenues from this contract could eventually increase to over A$50M annually.
IDL Price at posting:
$1.52 Sentiment: Buy Disclosure: Held