- AbraSilver Resource Corp. has issued a Limited Notice to Proceed for Worley to start the bridging engineering phase on the Diablillos silver-gold project in Argentina. This work builds on Worley’s earlier Definitive Feasibility Study and covers engineering design, procurement support, cost and schedule work, permitting and camp planning.
- The mandate brings together Worley’s teams in Argentina, Canada and its Global Integrated Delivery centre in Colombia into a single cross-regional assignment. This highlights how the group’s global delivery model is being used on high-altitude, remote mining work that requires careful execution planning.
- With Worley now engaged on the Diablillos bridging engineering phase, we will assess how this contract shapes the broader investment narrative.
Scan how Worley’s new Diablillos mandate compares with other mining and metals engineers by checking our curated list of 39 power grid technology and infrastructure stocks for large-scale infrastructure exposure.
Worley Investment Narrative Recap
To own Worley, you need to believe the engineering group can keep winning complex energy transition and resources work while lifting profitability from relatively thin 2.2% net margins and a mixed recent share price record. The Diablillos bridging phase fits that story, because it reinforces Worley’s role on technically demanding mining projects that play to its consulting and digital delivery capabilities. The key near term swing factor remains execution quality on large contracts, given prior pressure on high margin professional services revenue. The biggest operational risk is still margin slippage if lower value procurement work dominates.
The Diablillos award links directly to Worley’s push into resources and energy transition projects that management and analysts already highlight as key drivers. It leans on the firm’s global integrated delivery model and digital tools, which analysts expect to support cost efficiency and potential margin improvement over time. That matters for a business where professional services revenues have recently softened and where Europe and chemicals markets are described as challenging. This sort of multi region, complex mining work is exactly where Worley’s end to end project capability will be tested against those risks.
That said, there is one operational fault line in the Worley story that still deserves a closer look before getting too comfortable with Diablillos...
Read the full Worley narrative to see the case behind these numbers.
Worley's narrative projects A$13.6b revenue and A$447.8m earnings by 2029. This assumes 8.2% yearly revenue growth and an earnings increase of about A$209.8m from A$238.0m today.
Worley's forecasts place fair value at A$11.67 versus A$10.17, a 15% upside to its current price.
Exploring Other Perspectives
Some of the lowest Worley analysts lean heavily on execution risk. They worry that a backlog of very large projects could slip, which would cap earnings even if revenue reaches about A$14.0b and A$454.6m in profit by 2029. You can read this Diablillos contract and wonder if those cautious views now look too harsh.
If you want to see how other investors are pricing the story, you can compare these forecasts with 3 other fair value estimates for Worley.
The Verdict Is Yours
Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.
- A great starting point for your Worley research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
- See our latest analysis for Worley. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Worley's overall financial health at a glance.
Looking for more Worley style investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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