Guess which ASX All Ords stock is lifting on a $55m deal with Fortescue

Stock in All Ordinaries Index (ASX: XAO) industrial services provider SRG Global Ltd (ASX: SRG) is gaining this morning. It comes after the company revealed its secured a $55 million contract with iron ore giant Fortescue Metals Group Limited (ASX: FMG).

The SRG Global share price is lifting 2% shortly after open to trade at 74 cents right now.

Let’s take a closer look at the latest news of the All Ords stock’s business with S&P/ASX 200 Index (ASX: XJO) giant Fortescue.

ASX All Ords stock lifts on $55m Fortescue contract win

The SRG Global share price is in the green after the company announced its new infrastructure contract with Fortescue.

The new deal sees the diversified industrial services provider having announced more than $1 billion of new contract wins since the beginning of financial year 2023.

Its latest mine site project will see it building a 21-kilometre haul road at the iron ore producer’s Eliwana Mine, located in Western Australia’s Pilbara region.

The contract is expected to kick off this month and take around nine months to complete.

It’s just the latest deal between the All Ords company and the ASX 200 mining favourite.

SRG Global signed a $150 million, five-year contract to provide services at the iron ore giant’s Pilbara operations in 2021.

Its Aboriginal joint venture Bugarrba was also awarded an approximately $40 million, five-year contract with Fortescue’s Iron Bridge in October. That was on the back of an approximately $25 million contract Bugurrba signed with Fortescue in 2021.

Commenting on today’s news, SRG Global managing director David Macgeorge said:

We are pleased to extend our longstanding relationship with Fortescue and look forward to delivering these works for Fortescue in addition to the asset maintenance works we are performing across a number of Fortescue’s site locations.

SRG Global share price snapshot

The SRG Global share price has outperformed the broader All Ords so far this year.

The stock has gained 10% since the start of 2023. It’s also currently 14% higher than it was this time last year.

For comparison, the All Ords has gained 1% year to date and has dumped 6% over the last 12 months.

The post Guess which ASX All Ords stock is lifting on a $55m deal with Fortescue appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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