Minaean SP Construction: Advancing Towards Closing Significant International Construction Contracts

Minaean SP Construction Corp. (CVE: MSP) may not be a household name among small cap investors, but that may be changing. Backed by the expertise of a major Indian construction contractor and quasi-government developmental agencies, the company appears to be making headway in its attempts to win international business. While it’s a long road to plan, negotiate and ratify new contracts, the rewards are substantial for those that make it through. Minaean appears to be on the fast track towards making that happen.

Today, Minaean SP Construction announced the submission of an Expression of Interest (EOI) for the construction of a “Super Specialty Hospital” in Madagascar. Pursuant to a March 2, 2021 meeting with the Head and management team of Direction Generale en charge des Projets (DGPP) of Madagascar, an EOI of was requested to be submitted. The project, involving design, finance and construction of a 100 bed “Super Specialty Hospital” to be executed through a Government to Government model. Based on the current indication and estimates, the budgeted construction cost of the hospital is expected to be approximately US$100 million.

This follows a recent announcement that Minaean has submitted recent Expression of Interest (EOI) for construction of a teaching hospital in Gambia, Africa. The EOI has been submitted as per the request made by the Ministry of Health, Government of Gambia, to the business development team of the company.

Backstopping its credibility with governments that infrastructure projects can deliver world class infrastructure projects is Minaean’s strategic partnership with Shapoorji Pallonji International (SPINT)—the subsidiary of Shapoorji Pallonji Group (SPG). Having operated for over 155 years and completed dozens of large-scale projects across all continents, SPG is one of India’s largest construction firms with annual revenue exceeding US$ 7 billion. It is also the company’s largest shareholder, holding an approximately 46% equity ownership.

Overall, Minaean has at least 10 potential projects in its order book with an aggregate contract value of just under US$2 billion. With a valuation of just C$17.2 million and only 58,199,883 common shares outstanding, the stock could be in position to move should it land its first 9-digit contract.

According to President & Director Mervy Pinto, that day may be coming sooner rather than later:

The order book itself, I would say, most of these contracts are in development. Out of which, two are getting to a closure, practically, by the end of this year or early next year. But the fact is that, these two contracts alone are valued at around (US)$300 million dollars. Or if you add the second phase of the first project contract, it goes up to (US)$500 million dollars. So obviously, there itself, we have—we’re hoping to have this order book with us within the next, let’s say, 12 to 18 months of about (US)$500 million dollars.

Of course, should Minaean SP Construction close that initial (and preferably, second) contract, it should lend additional confidence that additional winning tenders may be forthcoming. According to its updated investor deck, its prospect pipeline appears stacked:

Project PurposeContract Value ($USD)Gross Margin ($CA)
Uganda – Industrial Park$192 million$8.5 million
Cote D’Ivoire – University$100 million$6 million
Canada – Residential$30 million$3 million
Zambia – Healthcare$130 million$10 million
Ghana – Healthcare$150 million$13.5 million
Oman – Marina Resort$200 million$10 million
Egypt – Damietta City$200 million$5 million
Peru – Hospital$300 million$12 million
Oman – Smart City$600 million$25 million
Costa Rica – Healthcare$80 million$5 million
Totals$1.982 billion$98 million

Click on the embedded link for more of our newest interview with Minaean SP Construction Mervyn Pinto, in his own words.

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