LONDON, UK / ACCESSWIRE / September 27, 2017 / Pro-Trader Daily looks at the latest corporate events and news making the headlines for Fluor Corp. (NYSE: FLR), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=FLR. The Company announced on September 25, 2017, that its joint venture (JV) with SalfaCorp S.A. has bagged the engineering, procurement, and construction (EPC) contract for BHP's Spence Growth Option (SGO) project at the Spence open-cut copper mine located in northern Chile. The project value is estimated to be in the range of $1 billion. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FLR. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/'symbol=FLR
About the SGO project
Fluor and SalfaCorp S.A. have a 50:50 Joint Venture. As per the terms of the contract, the Fluor/SalfaCorp JV will be responsible for the construction of a copper concentrator of 95,000 tons per day and other related works at the Spence Mine. Fluor did not share the financial terms and other conditions of the contract but expects record the value from its share of this project in its Q3 2017 earnings report.
Sharing his views on bagging the contract, Tony Morgan, President of Mining & Metals Business of Fluor, said:
"Our team has worked closely with BHP since the project's initial phases to align on the project's goals and structure with an execution approach that will allow us to safely deliver this important project. Fluor's resume includes some of the world's most significant copper projects. This experience, combined with our integrated solutions approach, brings cost and execution certainty to the project."
Backdrop
BHP had announced in August 2017 that it would be infusing $2.46 billion fresh capital for extending the life of Spence copper mine. The investment is expected to extend the life of Spence mine by 50+ years. The Company's decision is not surprising as in recent years the copper prices have crossed the $6,500 per tonne mark, which is the highest price rise since 2014. BHP expects the Spence Growth Option (SGO) project would be in-line with the Company's strategy to increase copper production as well as to create long-term value for its stakeholders. BHP expects the SGO project to begin production from FY21 onwards and expects incremental production of approximately 185 ktpa (kilo tons per annum) of payable copper in concentrate and 4 ktpa of payable molybdenum in the first 10 years of operation. BHP expects that the capital investment in the SGO project will result in an internal ROI of 16% and the recovery of the investment within 4.5 years from the initial production.
BHP had indicated at the time that the SGO project would require design, engineering, and construction of a conventional large-scale sulphide concentrator for both copper and molybdenum with a 95 ktpd (kilo tons per day) nominal ore throughput capacity. The project would also need a 1,000 liter per second desalination plant for the Spence mine site. BHP estimates that the project would create up to 5,000 jobs during the initial construction phase.
About Fluor Corp.
Irving, Texas-based Fluor is a global engineering, procurement, fabrication, construction, and maintenance Company that designs, builds, and maintains capital-efficient facilities for its clients. Its clients include Companies and institutions from government and private sector covering diverse industries. It offers its clients innovative and integrated solutions to complete their challenging projects.
The Company ranks 149 on the FORTUNE 500® list and in FY16 recorded revenue of $19 billion. The Company has a presence in six continents across the globe and is supported by a global team of more than 60,000 employees.
About SalfaCorp S.A
Santiago, Chile-based SalfaCorp was founded in 1929 and is one of the largest conglomerate in construction and real estate in Chile. Its business is divided into three main divisions - Engineering, Construction, and Real Estate. The Company offers a wide variety of service catering to projects in the mining, energy, construction, and real estate sectors. The Company has a strong presence in America along with a significant presence in Peru, Colombia, Panama, the Caribbean. The Company also has a commercial office in China.
Last Close Stock Review
On Tuesday, September 26, 2017, the stock closed the trading session at $41.84, slightly rising 0.55% from its previous closing price of $41.61. A total volume of 1.17 million shares have exchanged hands. Fluor's stock price surged 10.78% in the last one month. The stock is trading at a PE ratio of 52.83 and has a dividend yield of 2.01%. At Tuesday's closing price, the stock's net capitalization stands at $5.88 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
