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Seeing Machines (LON:SEE) report: Contract with BHP Billiton Subsidiaries

Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Seeing Machines announces it has signed a contract for the supply of its DSS product suite with two BHP Billiton subsidiaries, BHP Navajo Coal Company and San Juan Coal Company, part of BHP Billiton's Energy Coal business unit, its largest DSS installation in the mining sector. The contract covers the entire haul truck fleet, a number of ancillary vehicles and ongoing support services at the Navajo mine in New Mexico, USA. Seeing Machines report that installation will be completed next month.

- Navajo is an open cut mine with two draglines located on the Navajo Indian Reservation, supplying coal to the Four Corners Power Plant and employing 433 people; the neighbouring San Juan mine employs 576 people: [http://www.bhpbilliton.com/bb/ourBusinesses/energyCoal/newMexicoCoal.jsp].

- Seeing Machines reports that it is also “in dialogue” with BHP Billiton Energy Coal about “further deployments of the DSS across other mines”.

- Seeing Machines CEO, Nick Cerneaz said: "We are very pleased to be working with BHP Billiton on such a significant contract for Seeing Machines. The operational conditions for drivers in the mining industry are very demanding and the DSS provides a proven technology option for mine site operators to use in their efforts to minimise both the direct costs of accidents and those knock-on effects of interrupted production."

- This is further evidence that Seeing Machines’ profile amongst major mining companies is rising rapidly. The Billiton contract requires that we review potential contribution to earnings and our related valuation and target price. On our current earnings outlook Seeing Machines trades on just 3.4x Jun’11(E) EV/EBITDA.

*Daniel Stewart acts as Broker to Seeing Machines