Field Solutions wins $25m IT services contract from Kestrel Coal
Field Solutions (ASX:FSG) has recovered half its losses since February sell-offs; up 45% today
Source: iStock
Mentioned
KEY POINTS
- Field Solutions’ share price up 45% to 14.5c
- Company expects to receive $25m over length of 5Y contract from Kestrel Coal
- Contract underscores the stability of ongoing business relationship
Field Solutions’ (ASX:FSG) share price has soared 45% higher today as the provider of broadband networks snags a five year contract from QLD-based Kestrel Coal worth $25m.
Today’s contract is divided between network management ($12m) and “additional” IT and procurement ($13m).
The company has identified a way to use its existing regional telecoms infrastructure, offering a competitive advantage to Kestrel.
Expansion into mining
Today's announced partnership with Kestrel flags Field's plans to become a telecoms provider to the mining sector.
Services will be run from Emerald, QLD, 15km from the site itself, as well as from Brisbane and Hobart.
Field has already provided telecoms capacity to Kestrel since 2019.
This relationship has survived the worst of covid, the rise of ESG investments, and now a global market sell-off.
Based on Morningstar's fair value of $0.22 the stock is undervalued.
Year-to-date the company has lost -19.4% — but upward reversals today currently reflect one week performance of 51%, with one month performance at 11.5%.
Field Solutions' six month charts show the significance of today's news in relation to macro trends over the last six months
