Aerometrex Ltd (ASX: AMX) shares are rising today after news from the company of a $1.1 million government contract. At the time of writing, the Aerometrex share price is trading 5.26% higher at $1.05.
The aerial imagery and mapping company announced this afternoon that it's been awarded four major projects from the Queensland Government's Spatial Imagery Subscription Program (SISP).
Let's take a closer look at what the company announced.
Image source: Getty Images
What's driving the Aerometrex share price?
The Aerometrex share price is on the rise after the company announced that the four projects it has won include aerial surveying of more than 170,000 square kilometres throughout Queensland.
According to the company's release, the projects represent a value increase of 10% more than last year's program from SISP, which was also won by Aerometrex.
The largest of the four projects will take place at Galilee Basin East. Aerometrex stated this project will cover an area three times the size of Belgium.
Another will be taking place between Noosa and the New South Wales border. One will include a few townships around the Scenic Rim and the final project will be in North Queensland.
Aerometrex has stated that work is to begin on the projects next month.
Commentary from management
Aerometrex managing director Mark Deuter commented on the company's positive update:
We are pleased to continue our partnership with the Queensland Government, having first commenced work with the Department in 2009, and we are especially pleased to have been awarded the majority of the SISP contract this year. The result endorses our commitment to capturing high-quality imagery, to generate outstanding data products and to exceed expectations of delivery timelines.
Aerometrex share price snapshot
The Aerometrex share price started the day off slowly, opening 0.7 cents lower than Friday's close of 99.7 cents. It then faced a morning of sluggish trade.
After announcing its new contract, however, Aerometrex's shares started to trend upwards.
The company's share price has dropped by 22% since this time last month, leaving it down 16% year to date. Although, its still up by around 22% over the last 12 months.
Aerometrex has a market capitalisation of around $94 million with approximately 94 million shares outstanding.
