Primero upgrades outlook

PRIMERO Group has upgraded its full-year revenue forecast after winning new work.
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The Primero team at Independence Group's Nova mine

Staff reporter

The company had previously forecast 2019 financial year revenue of about A$140 million, which has now been increased to $150 million.

It represents an 80% jump from FY18.

Primero said recent monthly revenue had been more than $17 million a month, with business activity active across all the company's key sectors comprising build-own-operate, operations and maintenance, early contractor involvement (ECI), and engineer-procure-construct.

Recent wins include $100 million of work from Core Lithium and ECI contracts from Agrimin and Hazer Group.

Primero managing director Cameron Henry said the company was continuing to build a reputation for delivery.

"Current revenue run rates demonstrate our ability to concurrently manage growth and deliver on multiple projects, across various Australian and global jurisdictions," he said.

"Our existing client relationships, and the repeat nature of large amounts of our business, provide a strong platform from which to drive and achieve our strategic goals.

"The award of early engagement contracts with both Agrimin and Hazer Group, and the addition of a new blue chip client such as Energy Developments Limited, delivers further validation of the strength of our business model and calibre of our team.

"These awards evidence the capability of our group to work in new commodities, and in developing technologies, that require very high levels of competence and expertise to deliver.

"This reputation for excellence places Primero in a strong position from which to grow further over coming years."

Primero also reported the overall pipeline of potential contract opportunities had increased.

It cited an increase in tendering activity in Western Australian iron ore, which was generating consideration non-process infrastructure opportunities, as well as an increase in activity in the minerals and energy sectors.

"The market remains both active and competitive, with a large volume of new contract opportunities up for award over coming months," Primero said.

Primero shares jumped 9.9% to 44.5c, not far off the 52-week high of 48c.