Weir Group, the Glasgow-based global mining and engineering FTSE 100 firm, said on Tuesday its order pipeline is “converting as expected” and it reiterated its 2024 full year guidance as it published an update for the third quarter ended September 30, 2024.
Weir said in August it was awarded a £53 million contract for the Reko Diq greenfield copper-gold project in Pakistan’s Balochistan Province. The Reko Diq copper-gold project is a 50% owned greenfield development by Barrick Gold Corporation.
In September, Weir said it was awarded a £25 million contract to provide sustainable solutions to the next phase of OCP Group’s Benguerir and Louta greenfield phosphate projects in Morocco.
On Tuesday, Weir said Reko Diq and OCP large greenfield orders were awarded, with £51m booked in Q3.
The firm’s 2024 guidance was reiterated including “growth in constant currency revenue and operating profit.”
Weir said: “We have seen positive momentum from our customers on greenfield projects required to support the energy transition.
“In the quarter, we recognised £26m relating to orders of our ENDURON high pressure grinding rolls (HPGR), part of our sustainable solution for the Reko Diq project in Pakistan, one of the largest undeveloped copper and gold mine sites in the world.
“In addition, we secured orders for £25m at OCP’s greenfield phosphate projects, an important mineral in fertilisers. These orders are an exciting demonstration of the opportunities which lie ahead as we support our customers in accelerating sustainable mining.”
Weir has 12,000 employees operating in over 50 countries, with a presence in every major mining region of the world.
In its outlook, Weir said: “Going into the fourth quarter, we expect orders to continue to develop positively.
“For the full year, we reiterate our guidance for growth in constant currency revenue and operating profit, operating margins of c.18%, and delivery of free operating cash conversion of 90% to 100% in line with current market expectation.
“Our Performance Excellence transformation programme continues at pace, and we are on track to deliver our 2026 operating profit margin target of 20% and sustainable cash conversion of 90% to 100%.
“Looking forward the long-term fundamentals for mining and our business are highly attractive, underpinned by decarbonisation, GDP growth, and the transition to sustainable mining.”
Weir Group CEO Jon Stanton said: “We are capitalising on growing interest for our sustainable solutions with major orders received for the Reko Diq project and the OCP expansion as well as good momentum on brownfield projects.
“These orders demonstrate Weir’s mining technology leadership and our unique opportunity to provide transformative solutions for sustainable mining as the energy transition gathers pace.
“Aftermarket orders were in line with our expectations and reflect high levels of activity in core mining markets with the mine specific factors seen in H1 moderating.
“Going into the fourth quarter we expect orders to continue to develop positively, and we reiterate our 2024 guidance of growth in constant currency revenue and operating profit, together with achievement of our margin and cash conversion targets.”