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GR maintains solid contract activity to register record revenue

It’s been a year to remember for mining specialist GR Engineering, which has registered record FY22 revenue of $651.7 million.

It’s been a year to remember for mining specialist GR Engineering, which has registered record FY22 revenue of $651.7 million, EBITDA of $55.8m and a profit before tax of $50.3m, demonstrating increased earnings from a materially higher revenue base.

The company achieved income growth of 66 per cent as a result of strong contracting activity and solid operational performance in the wake of challenging conditions presented by COVID.

GR Engineering managing director Geoff Jones said multiple project completions were successfully and safely achieved during the year and it was satisfying that they had further enhanced the business’ reputation for reliability and dependability.

GR Engineering’s wholly owned subsidiaries, Upstream Production Solutions and Mipac, provided strong contributions to the consolidated group’s results.

“We recognise that our people are our most significant assets. Whilst COVID, disruption of supply chains and tightening of labour markets has provided challenges, the commitment of the team across the group has been excellent,” Jones said.

“The continued strong cashflow from operations enabled the business to pay total FY22 fully franked dividends of 19 cents per share to its shareholders compared to 12 cps in the prior year.”

GR Engineering’s design and construction order book for works currently being undertaken and which will continue into FY23 include:

  • Thunderbird mineral sands project – $179.5m contract with Kimberley Mineral Sands in relation to the engineering, procurement and construction of the mineral processing plant and associated facilities for the project.
  • Bellevue Gold project – $87.8m EPC contract in relation to the 1mtpa gold processing plant and associated infrastructure for the project.
  • Abra Mining base metals project – $79.5m EPC contract for the design and construction of a 1.2mtpa lead sulphide flotation plant and ancillary infrastructure for the project, jointly owned by Galena Mining and Toho Zinc.
  • Mt Ida gold project – $73m EPC contract with Aurenne Mt Ida for design and construction of the processing plant and associated infrastructure for the project.
  • Cosmos nickel concentrator facility upgrade – $48m EPC contract with Australian Nickel Investments, a wholly owned subsidiary of IGO, for the upgrade of the existing concentrator.
  • Newmont Tanami gold mine – $68m subcontractor arrangement with RUC Cementation Mining Contractors for certain underground construction works.
  • Thunderbox expansion project – $101m EPC contract with Northern Star Resources for commissioning of the project.
  • Norseman gold project – $59.5m EPC contract with Pantoro for a new processing plant for its 50 per cent-owned project.
  • Bluestone Mines Tasmania JV – multiple projects with a combined value of $31.7m. GR Engineering was awarded a contract for the design, supply, installation and commissioning of a new paste backfill plant and infrastructure at the Renison tin operations.
Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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