Cracking announcement by EGL of a A$17.8 million contract for its Total Air Pollution Control unit with Hastings Metal for a flue gas emissions treatment system at its Yangibana rare earths project.
the news was well received by a moribund market, which pushed EGL’s SP to 22c before it setttled at 20c, still up 3.5c or 18% on ASX for the tightly held stock.
Great finish to a financial year that saw EGL mount a powerful recovery rally to 38c from 7c following rejuvenation of the board and management, expanding the business and winning more contracts.
the Hastings contract is the sort of shot in the arm that junior engineering companies need regularly to attract and hold market attention.
its importance to EGL can be seen by setting it in context.
company revenue in the fiscal first half rose 11.5% from pcp to A$26.8 million with TAPC unit contributing just $3.5 million, though this was up 59% on pcp. In July 2021 the company said the TAPC unit was awarded a $5.3 million contract for another flue gas emissions system contract for rare earths.
so it’s a huge financial year for the TAPC unit, some of which will surely flow through company metrics.
in the fiscal first half, the Tomlinson Energy unit posted a 26% rise pcp in revenue to $13.0 million, while the Baltic unit had revenue of $10.0 million.
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EGL Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
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