$2 price target

Management are currently doing the rounds briefing institutions. A VERY positive story is being told.

Contacts are saying that NRW could exceed historic peak revenues of $1.4b (excl Goldings) within the next 2-3 years. A huge amount of work in the Pilbara is being bid on- FMG, Rio, and BHP, and others.

On the East Coast, there are clear opportunities to partner with Salini by using Goldings as the delivery platform.

Industry conditions are starting to turn sharply with capacity constraints now reaching 2007 boom levels. The lead time on Cat equipment is 12 months and wages are at 2007 peak levels. Expect to see framework agreements being signed by NRW's clients to lock in multi-year revenues.

Re. tax, NRW is not expected to pay tax for the next 3.5 yrs.

While the sp has performed well post the Goldings acquisition, people need to start factoring in the possibility of a sp of $2 within the next 12 months. If peak revenues are exceeded, a proper valuation could be closer to $3.50-$4.00. This scenario needs to be considered.