Perth-based GRD Ltd has posted a net profit after tax of $2.2 million for the year ended 31 December 2005, up from a 2004 loss of $23.4 million.
Perth-based GRD Ltd has posted a net profit after tax of $2.2 million for the year ended 31 December 2005, up from a 2004 loss of $23.4 million.
The company recorded revenue of $306 million, up 22 per cent on the previous year.
It said 2006 should see significant growth in earnings before tax and, given the present construction workbook and current business environment, 2007 should be an even stronger year.
GRD Minproc, GRD Ltd's construction subsidiary, reported earnings before tax of $14.1 million, up 55 per cent on 2004, while OceanaGold recorded earnings after tax of $13.9 million, or 3.9 cents per share.
At 1245 WST, shares in GRD were down 3 cents to $2.80.
Below is the full announcement:
GRD today released its Preliminary Final Report for the year ended construction31 December 2005.
2005 is the first full year that GRD has reported under the new Australian Development equivalent to International Financial Reporting Standards (AIFRS). 2004 comparative numbers in the Preliminary Final Report and this report companyhave been restated accordingly.
Revenue was up 22 per cent to $306 million. Profit before tax and minority interests was $14.8 million, up from a 2004 loss of $68.6 million.
GRD Minproc profit before tax contribution was up 55 per cent to $14.1 million, on revenue of $152 million.
OceanaGold recorded earnings after tax of $13.9 million, or 3.9" per share.
GRD net profit after tax attributable to members for the year was $2.2 million. In 2004 it was a loss of $23.4 million (restated to reflect AIFRS). 2006 should see significant growth in earnings before tax and, given the present construction workbook and current business environment, 2007 should be an even stronger year.
The Company will not propose a final divided due to the capital commitments of the Lancashire Waste to Resource project.
On 31 December 2005, GRD acquired the economic interest in Global Renewables managed by Hastings Funds Management for $65 million, plus interest, payable on or before 30 June 2010. The consolidated 2005 balance sheet incorporates the assets and liabilities of Global Renewables, which was previously accounted for under the principals of equity accounting.
Global Renewables was awarded preferred bidder status for the Lancashire Waste PFI Project, which has a capital cost of around $500 million and is designed to process more than 20 million tonnes of municipal solid waste under a 25 year A$6 billion revenue contract. GRD Minproc completed the definitive feasibility study and was subsequently awarded the EPCM contract for the A$1.6 billion Niquel do Vermelho nickel laterite project in Brasil by CVRD.
GRD established a base in Brasil and expanded the African and United Kingdom presence.
Earnings Before Tax was $14.1 million, up 55 per cent on 2004.
A secured order book with a capital value of $2.5 billion.
A preferred bidder pipeline of $0.5 billion.
GRD Minproc continued with the engineering design and construction for BHP Billiton's Ravensthorpe Nickel Project in Western Australia. GRD Minproc is implementing the engineering, procurement, and construction management (EPCM) contract in a joint venture with Hatch Associates.
GRD Minproc successfully completed construction and commissioning of the Kansanshi Copper Project in Zambia on time and on budget for First Quantum Minerals and the Telfer Stage 7 expansion project for Newcrest.
Work is progressing on all current projects, including the Kansanshi Copper Expansion Project in Zambia, the Bogoso Biox Expansion Project in Ghana, and the Langer Heinrich Uranium Project in Nambia.
A Brasilian office has been opened to execute CVRD's Niquel do Vermelho project and facilitate further expansion into this significant South American market. Mr Paulo Bahia-Guimaraes has been appointed as chairman of GRD Minproc South America. Mr Bahia-Guimaraes is a highly regarded South American businessman, whose previous roles included director/president of BHP Brazil Ltda.
An integrated joint venture has been established with Bovis Lend Lease (UK) to construct the circa $500 million Lancashire Waste Partnership PFI Project.
GRD Minproc was awarded the 2005 WA Engineering Excellence Award, International Projects and Exports, for the design and construction of First Quantum Mineral's Kansanshi Copper Project in Zambia.
Development - Construction (GRD Minproc)
GRD Minproc completed the definitive feasibility study and was subsequently awarded the EPCM contract for the $1.6 billion Niquel do Vermelho project in Brasil by CVRD.
GRD Minproc was awarded feasibility studies for major prospective projects, including Phelps Dodge's Tenke Fungurume Copper
Project in the Democratic Republic of Congo, Oxiana's Prominent Hill Copper Project in South Australia, and Iluka's Northern Murray Basin mineral sands project in Victoria, Australia.
GRD's study pipeline has a capital value of more than $4 billion.
Development - Waste to Resources (Global Renewables)
GRD was awarded preferred bidder status for the Lancashire Waste PFI Project, which has a capital cost of around $500 million and is designed to process more than 20 million tonnes of municipal solid waste under a 25 year A$6 billion revenue contract. Investment fundamentals for the project are:
- IRR circa 15 percent
- Financial close mid 2006
- Operational commencement forecast for mid 2008
- Five of the UK's leading PFI banks committed to supporting the bid
- The investment structure utilised provides for:
- Recovery of development costs at financial close
- Receipt of UR-3R intellectual property licence fees for the life of the project
- Receipt of development and ongoing management fees
- Revenue is projected at three times the revenue per tonne at the Eastern Creek UR-3R facility in Sydney, Australia
- A$6 billion revenue over 25 years.
Bovis Lend Lease (UK) will acquire a 25 percent equity position in Lancashire project and enter into an integrated JV with GRD Minproc to design and construct the facilities.
Nameplate capacity was achieved at the Eastern Creek UR-3R Facility, Sydney, which successfully completed the independent load tests, including those for throughput, diversion, environmental emissions, recyclate quality, and residuals. In addition, the Facility has successfully completed all the required technical and financial bank completion tests.
Australian Standards AS4454 certification was achieved for the quality of compost produced by the Eastern Creek UR-3R Facility.
Negotiations have continued for the construction and operation of a 225,000 tonnes per annum UR-3R Facility for the Western Region Waste Management Group in Victoria. GRD is preferred bidder for this project.
Global Renewables continued to explore opportunities for UR-3R Facilities in the United Kingdom, Australia, Europe and Asia.
Development - Resources (OceanaGold)
OceanaGold recorded earnings after tax of A$13.9 million, or 3.9" per share.
Gold production totalled 170,019 ounces at a cash cost of A$378 per ounce in 2005.
OceanaGold's total company resources have increased 14 per cent to 7 million ounces of gold, the highest level in the 15 year operating history.
Production is set to increase by over 60 per cent to 300,000 ounces per annum based on the planned development of Frasers Underground and the Globe Progress project.
