SubZero Group (ASX:SZG) has been awarded a contract worth more than $10 million from Glencore (LON:GLEN) for the provision of mine rehabilitation works at the Bulga Open Cut in the Hunter Valley, New South Wales.
Total value for the contract will be subject to the final rehabilitation area and materials supplied with contract completion scheduled for December 2017.
Earlier this month, the company was elected as one of the Contractor Providers for onsite and offsite repair, refurbishment and fabrication of mining equipment and components at BHP Billiton’s (ASX:BHP) Mt Arthur Coal mine.
Its share of contract value is $20 million per annum.
Both the Glencore and BHP contracts are included in the mining services provider’s revenue pipeline of $75 million.
The company’s revenue has increased steadily since January to $5 million for May with gross profit margins consistently improving over the last five months due to cost reduction initiatives implemented last year and increased utilisation of staff and assets.
It also produced positive EBITDA in May following close to breakeven EBITDA before non-recurring costs for February, March and April.
SubZero has achieved $11.5 million of the $15 million cost savings announced in September last year and is on target to deliver the balance.
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