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Johannesburg - Shares in construction group Basil Read Holdings [JSE:BSR] jumped more than 7% in afternoon trade on the JSE on Wednesday after it said that its Majwe mining joint venture had secured a five-year multibillion-rand contract with Debswana Diamond in Botswana.
In late afternoon trade, Basil Read stock had gained 7.18% or 85 cents to R12.69.
The contract will start in June and is for services at the Debswana diamond mine in Jwaneng, Botswana.
Majwe consists of joint venture partners Basil Read Mining, the Leighton Group and Bothakga Burrow Botswana.
Basil Read said its order book following the award of the contract is valued at just under R10bn.
Debswana is the world's largest diamond producer by value, with mining operations at Jwaneng, Orapa, Letlhakane and Damtshaa in Botswana. All of these mines use open pit mining methods.
Last month, the group reported a 16% rise in revenue to R5.4bn for the year ended December 2010.
Diluted headline earnings per share dropped to 209.25 cents from 332.43c a year ago. Operating profit was down 5% to R408.7m from R429.2m in the previous corresponding period.
The group declared a final dividend of 30c/share, which, together with the interim dividend, amounted to 72c.
"A strong order book and equally strong relationships with clients, suppliers and subcontractors again enabled the group to manage these conditions effectively," the company said, adding that its order book stood at R8.5bn.
In late afternoon trade, Basil Read stock had gained 7.18% or 85 cents to R12.69.
The contract will start in June and is for services at the Debswana diamond mine in Jwaneng, Botswana.
Majwe consists of joint venture partners Basil Read Mining, the Leighton Group and Bothakga Burrow Botswana.
Basil Read said its order book following the award of the contract is valued at just under R10bn.
Debswana is the world's largest diamond producer by value, with mining operations at Jwaneng, Orapa, Letlhakane and Damtshaa in Botswana. All of these mines use open pit mining methods.
Last month, the group reported a 16% rise in revenue to R5.4bn for the year ended December 2010.
Diluted headline earnings per share dropped to 209.25 cents from 332.43c a year ago. Operating profit was down 5% to R408.7m from R429.2m in the previous corresponding period.
The group declared a final dividend of 30c/share, which, together with the interim dividend, amounted to 72c.
"A strong order book and equally strong relationships with clients, suppliers and subcontractors again enabled the group to manage these conditions effectively," the company said, adding that its order book stood at R8.5bn.
