Augusta Industries Announces New Electric Field Mapping Project, Shares Up 11% On News

The technology sector is positioned to have a positive year ahead as the general economic climate in the North American region continues to improve. Such general improvement is especially encouraging for companies engaged in the enterprise technology segment.

Augusta Industries Inc. (TSX-Venture:AAO) is a Canadian company which engages in the design, development, manufacture, and supply of systems using fiber optic sensors, related monitoring instruments, and software. It is active across North America and internationally.

The company announced this morning that it has received a new contract for developing a laboratory version of its electric field mapping ("EFM") technology.

The company has entered into this contract through its wholly owned subsidiary, Fox-Tek Canada Inc.

The new collaboration will involve the use of technology in a nuclear facility setup. The company claimed that the client has displayed interest in ordering more units upon the successful completion of this contract. However, the company is also required to make some changes to its operations.

Unlike its regular EFM units which are fully automatic, the new units involved in this project will require a user for taking readings.

Augusta Industries said that this contract will help in opening up new venues for the company. It is positive that this experience will help Augusta Industries in serving industrial research groups, testing labs and universities.

This project is expected to boost the topline growth for the firm. It is also expected to contribute to the technical expertise and goodwill of the firm. The company also has other encouraging prospects such as its Trans Africa Pipeline group project.

This venture involves the construction of a fresh water pipeline, associated solar power plants and desalination of sea water facilities to move potable water from the coast of Mauritania.

That project was first announced in June 2016. Since then, the company has engaged in several meetings with concerned parties including the Delegation of the Ministry of Foreign Affairs & Cooperation of Mauritania in Toronto.

Augusta Industries is scheduled to provide non-intrusive sensing equipment for verifying the integrity of the pipeline composite at key locations. The company is likely to benefit as the project is large scale in nature.

Augusta Industries shares price has been on a roll as it gained 100% in the past year. However, shares have pulled back from highs over the last few weeks. This pullback may prove to be an attractive entry level especially as Augusta continues to move forward with several other company projects such as its project with FBGS for developing advanced optical sensors.