Gold prices bounce off 3-week lows; demand likely longer term
IRVING, Texas - Fluor Corporation (NYSE:FLR), a $9.26 billion construction and engineering giant with an impressive InvestingPro Financial Health score of "GREAT," announced Monday it has received final notice to proceed from Barrick Mining Corporation on the Reko Diq copper-gold project in Balochistan, Pakistan. Fluor was selected as Barrick’s lead engineering, procurement and construction management partner in April.
The company recognized its portion of the contract in the second quarter, though financial details were not disclosed in the press release statement. The new contract adds to Fluor’s robust operations, which generated $16.56 billion in revenue over the last twelve months. According to InvestingPro analysis, the company maintains strong financial fundamentals with more cash than debt on its balance sheet.
According to the announcement, the Reko Diq project will be developed as a truck-and-shovel open pit operation with processing facilities producing copper-gold concentrate. The project is expected to have a lifespan extending beyond 40 years.
Construction is scheduled to begin later this year and will be implemented in two phases, with first production targeted for 2028. When fully operational, the site will have a processing capacity of 90 million tonnes per annum.
Harish Jammula, President of Fluor’s Mining & Metals business, said the project "will be a major contributor to Pakistan’s economy" with expected impact on the Balochistan province through job creation and regional economic growth.
The development will include multiple open pit mines, concentrate process facilities, and a transportation network for moving goods and concentrate between the site and port.
Mark Bristow, President and CEO of Barrick, noted that the partnership with Fluor would help ensure the project delivers value to equity partners and stakeholders, including the people of Balochistan and Pakistan.
Fluor Corporation, headquartered in Irving, Texas, reported revenue of $16.3 billion in 2024 and employs nearly 27,000 people globally. Trading at an attractive P/E ratio of 5.22, the stock has shown strong momentum in recent months. Discover more insights about Fluor’s valuation and growth potential with InvestingPro, which offers 12 additional exclusive tips and comprehensive analysis for informed investment decisions.
In other recent news, Fluor Corporation reported its first-quarter earnings for 2025, exceeding expectations with an adjusted earnings per share (EPS) of $0.73, compared to the forecasted $0.50. However, the company’s revenue for the quarter was $4 billion, falling short of the anticipated $4.18 billion. Citi analysts responded to these results by raising their price target for Fluor shares to $47, maintaining a Buy rating, and praising the company’s solid book-to-burn ratio of approximately 1.5 times. Additionally, Fluor disclosed a relocation agreement with CEO James R. Breuer, offering him a $750,000 relocation assistance bonus to support his move to the Dallas-Fort Worth area. The agreement stipulates that Breuer must repay the bonus if he does not complete the relocation by June 30, 2026, or if his employment ends within 24 months of receiving the payment. Furthermore, Fluor’s subsidiary, FDEE Consulting, Inc., entered into a six-month consulting agreement with former Chief Legal Officer John R. Reynolds, who will provide advisory services at a rate of $590 per hour. These developments reflect Fluor’s ongoing efforts to manage executive transitions and maintain strong financial performance.
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