GR Engineering Services' (ASX:GNG) AU$75 million contract will strengthen the company's fiscal 2025 and 2026 order book and boost earnings in the second half of the year and the first half of fiscal 2026, according to a Tuesday note by Euroz Hartleys.
The company won an engineering, procurement, and construction contract worth AU$75.1 million from Greenstone Resources, a unit of Vault Minerals (ASX:VAU), for the stage 1 upgrade of Greenstone's King of the Hill operations in Western Australia.
Euroz Hartleys believes that sustained strong gold prices will see ongoing investments in gold production facilities, expanding GNG's opportunity pipeline.
The firm expects that GNG will continue to meet earnings expectations and deliver a dividend yield of over 6%.
Euroz Hartleys maintained the company's buy rating but increased its price target to AU$3 from AU$2.50.
Shares of the company rose nearly 1% in recent Wednesday trade.
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