Shaft Sinkers shines on Implats contracts

Shares of Shaft Sinkers surged after it announced new contracts with Impala Platinum for its underground mining operation on the Bushveld Complex in South Africa.

The firm, which specialises in shaft sinking and underground construction work, said the contracts with Impala are worth a total £47.8m and include £28.6m for the development of levels 21 to 24 of the Impala 16 ventilation shaft.

It has also signed a new shaft services contract, worth £12.5m and an amendment to an existing contract for additional work, worth £6.7m, for equipping Impala 16 main shaft.

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Shafts said the contracts are in line with management expectations for new works and contract extensions to be secured during the year.

Chief executive Alon Davidov said, "The award of additional contracts for existing clients is encouraging and we are delighted to continue to work with Impala Platinum. The business development teams continue to focus on tenders and we remain optimistic regarding the year and future prospects of the group."

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