Onsite installation commenced on January 28, and this phase is progressing well with underground cabling at an advanced stage.
Following on from the Iluka contract, WestStar’s engineering subsidiary, SIMPEC, has since been awarded further work.
Ongoing contract wins support positive outlook statement
Management has been encouraged by the calibre of clients seeking out its services as they include major players such as BHP Billiton Limited (ASX:BHP) and MSP Engineering.
MSP Engineering has engaged SIMPEC to supply high voltage and fibre optic cables for the Talison Lithium Mine at Greenbushes near Bunbury in Western Australia.
Result of tenders could provide near-term positive newsflow
SIMPEC has tendered for new projects with a value of more than $100 million in the December quarter.
Management expects that imminent newsflow will provide further positive momentum.
The company’s shares responded well to contract success in the second half of 2017, more than doubling from $0.013 to hit a high of $0.029.
The recent retracement could be a function of volatility in global markets.