Primero wins more Rio work

PRIMERO Group has won a A$20 million contract extension from Rio Tinto.
Primero wins more Rio work Primero wins more Rio work Primero wins more Rio work Primero wins more Rio work Primero wins more Rio work

Staff reporter

The company was awarded a material contract extension to the existing Koodaideri non-process infrastructure contract awarded in late 2019, for the construction of the Koodaideri airport terminal and infrastructure.

The contract is valued at approximately $20 million and involves the multi-discipline construction delivery of the works to be completed in parallel with the existing contract scheduled for completion in 2021. The total contract value now stands at about $150 million.

Primero's workforce on the project will peak at approximately 180 personnel and site construction work is well underway.

The company said it continued to operate at a run-rate consistent with its FY20 contracted order book guidance of roughly $195 million.

The new work with Rio boosts Primero's order book for the 2021 financial year to about $220 million.

Primero said there was potential to grow its FY21 and FY22 order book significantly over the coming months.

"It is pleasing to be awarded further core NPI work from such a great project partner and tier one client as Rio Tinto," Primero managing director and CEO Cameron Henry said.

"We continue to deliver to plan across all major project works and are increasingly optimistic about the operating and growth outlook for the next year and beyond."

The company is awaiting a judgement from the Supreme Court of South Australia over the Barker Inlet power station contract.

Primero was previously awarded $16.9 million in an adjudication decision against Wartsila Australia under the South Australian Security of Payment Act, but Wartsila sought judicial review of the decision.

Shares in Primero closed 3.1% higher yesterday at 26c, valuing the contractor at nearly $45 million.