re: News: Forge Group's Roy Hill contract to ...
"WestBusiness reported on Saturday the strong rally may be partly attributed to takeover speculation."
Forge soars on Roy Hill contract The West Australian
Stuart McKinnon The West Australian
December 30, 2013, 7:26 am Forge up again on Roy Hill contract The West Australian
UPDATE 9am: Shares in Forge Group have soared higher again after the contractor confirmed a $1.47 billion job for Samsung C&T at the Roy Hill iron ore project in the Pilbara.
Samsung has provided the company with formal notification to go ahead with phase three engineering, procurement and construction works for the project's processing facility.
Forge will work on the job in a joint venture with Spanish contractor Duro Felguera.
The value of the contract to Forge will be about $830 million.
Forge first flagged the contract on September 2.
Forge's managing director and chief executive David Simpson said the contract would underpin the company's order book for the remainder of 2014 and into 2015.
"It is also encouraging to note that the Roy Hill project is progressing to schedule and that we have now commenced mobilisation to site," he said.
Forge shares were pummelled last month after the company flagged big losses and writedowns on two power station contracts, posing an acute cashflow crisis.
But shares in the company breached $1 on Friday for the first time since the dramatic announcement that took the company's share price as low as 28.5 cents.
WestBusiness reported on Saturday the strong rally may be partly attributed to takeover speculation.
This morning, Forge shares soared to a high of $1.96 before settling back down to be up 39 cents, or 38.05 per cent, to $1.415 at 9am.
