After a long gestation period, GNG has been awarded a $366m EPC contract with Sheffield Resources (SFX) for the Thunderbird Mineral Sands Project in north-west WA. The project still requires financing and FID, but at this stage construction is expected to kick off in 2Q 2019. We have pulled back FY19 forecasts given some uncertainty over revenue timing, but note that if SFX goes ahead, slippage out of FY19 buffers FY20 and FY21. Our positive view is unchanged, and our retained $1.55 valuation reflects longer term value. BUY.
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