The speciality equipment and maintenance provider has experienced a great deal of volatility since changing its name and re-instating itself in early January.
At time of writing its share price is sitting at $0.019, up 18.75% from yesterday’s closing price of $0.016.
Babylon’s contract with BHP
This morning Babylon announced that it had secured a new contract with the second largest mining company in the world, BHP.
The contract states that Babylon will supply and install power generation and dewatering pump equipment for BHP, with works expected to start immediately. Commissioning is scheduled for November 2018.
The initial contract length is six months, however Babylon is optimistic that it will continue on a rolling basis.
The initial six month term is expected to generate $670k in revenue for the 2019 financial year.
Is Babylon one to watch?
In its Quarterly Update for 2018, Babylon stated that the company had a pipeline of outstanding opportunities awaiting a decision. It can only be assumed that this was one of those.
‘The Board is encouraged by the level of activity, the number of clients offering repeat business and the level of inbound inquiry from leading companies seeking specialist service providers.’
As for growth prospects, Babylon is confident that this is only the beginning. This is definitely a stock worth keeping a close eye on.
For Money Morning
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