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In the last financial year Sedgman鈥檚 net profit fell 70% to $A7.1 million, but the coal handling and preparation plant specialist has two big projects on the cards.
Last week, Sedgman won a $75 million design and supply contract for the upgrade of Xstrata鈥檚 ATCOM CHPP in South Africa.
Sedgman also expects to finalise the supply of a CHPP to Riversdale Mining for its Benga project in Mozambique.
At the company鈥檚 annual general meeting today, Sedgman chief executive Mark Read said work on the Benga CHPP had already started under the purchase order.
鈥淲e are confident that contracts for the design and supply of the 800 tonne per hour CHPP will be signed shortly,鈥� he said.
Read acknowledged both projects were behind the original schedule but he was confident most of the delays could be regained.
鈥淭his means that full-year earnings will be significantly weighted to the second half of the financial year,鈥� he said.
鈥淎ccordingly, we are holding our profit guidance although it now represents the upper end of expectations.鈥�
Read was upbeat on demand for solid coal.
鈥淪edgman has never been in a better position as global business conditions improve to take full advantage of a $4.8 billion pipeline of project work being targeted over the next three years,鈥� he said.
Last month, Goldman Sachs JBWere factored in revenue of at least $80 million for Sedgman in the current financial year, excluding construction-related earnings.
First-stage Benga development has the mine targeting 5.3 million run-of-mine tonnes per year for 1.7Mt of hard coking coal and 300,000t export thermal coal.
The ATCOM upgrade will increase the CHPP鈥檚 capacity from 1000 tonnes per hour to 1700tph, lifting total annual production of saleable thermal coal to 3.1 million tonnes.
The ATCOM East project will create 900 new jobs during construction, with 263 permanent jobs at full production.
First-stage Benga development has the mine targeting 5.3 million ROM tonnes per year for 1.7Mt of hard coking coal and 300,000t export thermal coal.
Sedgman shares are unchanged at $1.62.
