Barminco extends two contracts and Virgin Australia announces improved results.
On 19 October 2018, mining services company, Barminco Holdings (Barminco), announced that it had been awarded two four-year contracts at the Agnew gold mine owned by Gold Fields. The extension effectively postpones the expiry of each of its existing underground mining services and diamond drilling contracts through to 2022. The combined contracts are worth approximately AUD335m. This contract renewal comes on the back of the renewal of the AngloGold contract in September, meaning that the company only has less than 15% of revenue linked to contracts expiring in the current fiscal year. The takeover of Barminco by Ausdrill is continuing, with the next major step being Ausdrill’s annual general meeting later this week when Ausdrill’s shareholders will be voting on the proposed acquisition.
Barminco’s USD senior secured notes due May 2022 are available to wholesale investors only.
On 22 October 2018, Virgin Australia provided a trading update in relation to the 1Q19. In this update, Virgin Australia announced that revenue was up 9.7% against the corresponding quarter in FY18 and it expects revenue to be up by about 10% in the 2Q compared to FY18. In addition, the company indicated that it expected underlying profit before tax of at least AUD100m, against AUD81.9m in the 1H18. This is despite rising fuel costs, which the company estimates could be as high as AUD88m year-on-year.
Virgin Australia’ USD notes due November 2019 and October 2021 and AUD notes due May 2023 are available to wholesale investors only.
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