Lycopodium Ltd’s (ASX:LYL) shares have surged 6% to $2.60 after being awarded an engineering, procurement and construction (EPC) contract for the Sissingué Gold Project in Ivory Coast by Perseus Mining Ltd.
The contract revenue is estimated to be $38.4 million with the full amount expected to be reported in FY2017.
The total cost for Perseus to complete the construction of the Sissingué Gold Project is forecast to be US$100 million.
The new contract is a continuation of Lycopodium’s association with Perseus, following the successful completion of the definitive feasibility study and front end engineering and design for the project.
Earlier this month, Lycopodium won a $68.5 million contract for the delivery of a gold processing plant and other facilities in Senegal for a UK-based private company, Toro Gold.
The company has forecast an after-tax operating profit of at least $3 million on a revenue of $126 million for the full 2015-2016 financial year.
That compared with last year’s $1.02 million loss on revenue of $122.8 million.
Lycopodium’s share price has more than doubled during the last 6 months.
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