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.
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%.
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