Following a week of share price gains Forge Group Limited
(ASX:FGE) has confirmed it is set to start Phase 3 of works on Gina Rinehart's Roy Hill iron ore project in Western Australia.
The company has been provided with formal notification to proceed on the engineering, procurement and construction contract for the Roy Hill proceeding facility.
The news comes after Forge was awarded the $830 million contract by Samsung C&T at the beginning of September but then saw its shares plunge about 90 per cent after issuing a profit warning in November.
Managing Director and CEO David Simpson says today’s development is pleasing and underpins the company’s order book for the remainder of 2014 and into 2015.
Forge shares climbed more than 40 per cent last week after which the company could only point to the prior week’s $40 million worth of contract awards to explain the price spike.
Forge Group reported a net profit of $62.9 million in the 2013 financial year.
