Citi upbeat on revenue prospects for Australian mining contractors

Monadelphous

08/04/2025 22:41

** Analysts at Citi see multi-year revenue stability for Australia's biggest mining contractors NRW NWH.AX and Monadelphous Group MND.AX

** Brokerage says projects in Western Australia, which are already operating, committed or proposed over the next 17 years, have an estimated capital cost of A$575 billion ($342.87 billion)

** "Even at these levels, we think risk is likely to the upside to this given there are large number of proposed projects without estimated capital costs attached for now" - brokerage

** MND and NRW are well placed to benefit, given their commodity exposure, with their order books likely to continue to be replenished or step up progressively - Citi

** NRW stock is down 34.6% YTD as of last close, while MND is up 4.4%

($1 = 1.6770 Australian dollars)

(Reporting by Aaditya Govind Rao in Bengaluru)

((Aaditya.govindrao@thomsonreuters.com;))