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Perenti 1H26 Results: Execution of strategy continues to reshape the portfolio and deliver earnings growth

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Perenti has delivered a solid first half result, remaining on track to deliver another strong full year result. Consistent with prior years and as outlined at the FY25 results call in August 2025, earnings in FY26 are expected to be weighted to the second half of the year.

The Board and Management remain confident in Perenti’s outlook, supported by improving market conditions, disciplined capital allocation, further strengthening of the balance sheet, and a strong pipeline of opportunities across the Group’s diversified portfolio.

Market conditions across Contract Mining and Drilling Services continue to improve, particularly in North America where tender activity has increased materially during recent years. While growth opportunities are emerging, Perenti remains focused on maintaining a disciplined approach to capital allocation, prioritising sustainable delivery of earnings over headline revenue growth. The Group continues to maintain strong work-in-hand and a growing pipeline of opportunities.

The exploration drilling market showed moderate growth during the period, with further increases in activity expected through the fourth quarter of FY26. Utilisation within the Drilling Services division continued to trend higher in line with market conditions. Margins are expected to improve during the second half and into FY27 as available drilling capacity in the market decreases, and recently mobilised projects in North America shift to steady state operations.

Mark Norwell, Managing Director & CEO of Perenti, said: “Perenti has delivered another consistent first half result and is positioned to deliver a strong FY26. As communicated previously, earnings will be weighted to the second half, consistent with prior periods.”

“We are particularly pleased with the improvement in EBIT(A) margin to 9.3% compared to 9.0% in 1H25, partially due to a successful demobilisation from an underperforming underground project in Botswana and a shift towards other higher-performing projects.”

“Similar to prior years, several customers paid invoices in early January 2026, which had a timing impact on half-year free cash flow. After adjusting for these late receipts, normalised free cash flow of $33 million for 1H26 remains in line with our FY26 guidance expectations.”

“The Board’s confidence in the outlook is reflected in the declaration of an interim dividend of 3.25 cents per share, an increase of 8% on 1H25.”

For the full results package visit our Investor Centre

Perenti secures contract extension at the Mako Gold Mine in Senegal

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Perenti is pleased to announce that its surface mining business in Africa, African Mining Services (AMS) has been awarded a contract extension for surface mining activities, including load and haul, drill and blast, grade control and crusher feed, at Resolute Mining’s Mako Gold Mine in Senegal. The contract is valued at approximately US$185 million over a period of four years, commencing 1 January 2022.

Through AMS, Perenti has provided surface mining activities at the Mako mine since 2017. This contract extension includes updated commercial conditions and in-line with Perenti’s Capital Management Policy, the Company will optimise the management of existing fleet and equipment at the project, which is forecast to have a low capital expenditure requirement and generate sustainable returns.

The extension of the Mako contract does not have a material impact on Perenti’s FY23 guidance, which remains unchanged and as announced on 19 December 2022.

Mark Norwell, Managing Director & CEO of Perenti said “The Mako project has been a part of the AMS portfolio for several years and we are pleased that our strong operational performance and relationship with Resolute Mining, has allowed us to execute this contract extension, which supports our 2025 Strategy. We are confident that our dedicated, predominantly local workforce will continue to deliver value for our client. We look forward to continuing our relationship with Resolute Mining at the Mako project as we seek to deliver enduring value and certainty for all our stakeholders.”

Perenti announces FY23 guidance upgrade

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For the second time this financial year, we are pleased to provide an operational update and deliver an upgrade to our FY23 guidance.

Since the initial guidance revision in November, Perenti has continued positive momentum, securing improvements to commercial conditions across a number of Australian and African projects. In addition, our subsidiary Barminco has been awarded a new contract at Evolution’s Ernest Henry underground gold and copper mine in Queensland as well as secured a variation to expand its work scope at Regis Resources’ Garden Well mine.

As a result of these positive developments, the revised FY23 guidance now puts expected revenue between $2.7 billion and $2.9 billion and EBIT(A) between $230 million and $250 million.

Perenti CEO and Managing Director, Mark Norwell said: “Together, over the last four years, our 9,000 dedicated employees have been unrelenting in delivering on our purpose of creating value and certainty for our stakeholders. Over these four years, by being smarter together and by taking no shortcuts, Perenti has navigated a period of unprecedented uncertainty and, whilst challenges still exist, we are now seeing the significant effort of our people translate into value upside to our shareholders.”

He added, “In addition to generating greater returns in FY23, we are focused on continuing to pursue business and project optimisation initiatives which will facilitate the delivering our 2025 strategy. Our Strategy is designed to drive positive momentum in shareholder value well into the future. Perenti’s outlook is underpinned by our world class Contract Mining Division, and the continued development of our Mining Services and idoba Divisions. Our focus on generating enduring value for our people, clients and communities, will ensure we continue to deliver sustainable returns for our shareholders.”

You can read the full story in our Investor Centre.

Perenti and ABB agree to jointly explore solutions to help mining customers decarbonise operations

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Perenti has signed an agreement with leading global technology company ABB to collaborate and explore approaches to support net zero emissions targets for underground and open-pit mines. Experts from the two companies will work together to address electrification in mine hauling operations, power distribution, energy efficiency and power management.

Perenti’s significant mining expertise and technical capability will be complemented by ABB’s technology expertise. Together, the teams plan to explore business models and solutions to provide wider services for pilot, brownfield and greenfield mining customer projects to support the electrification of operations.

ABB has been calling for open collaboration within the mining industry and has taken action on several similar initial non-binding agreements to build commitments with original equipment manufacturers (OEMs), technology innovators and mining companies. Key relationships have subsequently been formalised, with technologies and solutions created as a result of these deals.

“Mining customers are committed to facing environmental, societal and economic challenges head on as they aim to decarbonise mining operations,” said Joachim Braun, Division President, Process Industries, ABB. “With ABB’s sector leading position in electric-mine technology development, and Perenti’s excellence and experience in mine development and mine operations, the scope of this collaboration is a perfect opportunity to make real progress in providing electric solutions that will decarbonise the industry.”

Mark Norwell, Perenti Managing Director & CEO with Joachim Braun, Divisional President, Process Industries, ABB

“ABB and Perenti share a vision to develop energy efficient solutions for the mining industry,” said Mark Norwell, Managing Director & CEO, Perenti. “By combining our experience across mining operations and digital solutions with ABB’s leading technologies we are focused on supporting the decarbonisation of mining through electrification. We look forward to working with ABB on this exciting new venture.”

ABB is committed to creating sustainable progress for today and for future generations by helping mining customers through their energy transition. ABB launched its ABB Ability™ eMine portfolio of technologies and methodologies last year, an approach to make the all-electric mine possible, with fully integrated electrification and digital systems from mine to port.

Perenti is committed to acting on climate change through promoting innovation, developing and deploying low emissions technology and working with its clients to implement projects that improve energy efficiency and reduce emissions. 

You can read the full story in our Investor Centre.

Excellence in Mining – Winner

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Perenti congratulates idoba’s President, Sarah Coleman, on winning the ‘Excellence in Mining Award’ at the national Women in Industry Awards night on Thursday 8th September at Doltone House, Jones Bay Warf, Sydney.

The Women in Industry Awards recognise outstanding women from across a range of industrial sectors, including those who work in mining, transport, manufacturing, engineering, logistics, bulk handling, waste management, rail and construction and infrastructure.

The ‘Excellence in Mining Award’ recognises an individual who has made a positive contribution to one of the many facets of the mining industry. Sarah has vast experience in mining and management consulting, with an impressive background spanning operations, improvement, innovation, technology, and asset management.

Under Sarah’s leadership as President, idoba has grown through the strategic acquisitions of Optika Solutions, Orelogy, and Atmorphis, and is now a leading innovation ecosystem.

“I’ve had an amazing opportunity over the last couple of years to really look at how we rethink, transform and disrupt the mining industry. In my view we can’t innovate without diversity and I’m very privileged to say that our team is over 40% female and we have a strong autistic and neurodiverse contingent in the team.

Unlocking the potential of women in our industry has been a personal and professional passion of mine. It’s an incredible honour to be presented with the award and I am so excited to see current and future generations of excellent women bringing their unique ideas, perspective, and diverse skills to the mining and technology industries.” Sarah said.

Sarah has previously been recognised for her excellence, including being named in WA Business News’ ‘40 under 40’ list, acknowledged as a female finalist for ‘Most Outstanding Young Professional’ by the Chamber of Minerals and Energy and named WA State Owner Manager of the Year by the Australian Institute of Management.

Perenti Managing Director and CEO, Mark Norwell states,“We are extremely proud of Sarah and all of her achievements, both personal and professional. The work she has accomplished in bringing idoba to life is testament to her intelligence and dedication and it is great to see her hard work recognised at the Women in Industry Awards.”

idoba is a technology driven service offering for Perenti and the mining industry, that leverages in-house technology and data expertise to add value to our global mining services activities.

Perenti congratulates the Excellence in Mining finalists, Gina Rinehart and Maria Ruiz, as well as all other finalists and award winners from the Women in Industry Awards. 

To the full Excellence in Mining Award media release.  

Perenti posts strong finish to FY22 and well positioned for further earnings growth in FY23

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Perenti has delivered strong FY22 financial and operational results, headlined by a significant step-up in 2H22 earnings, and continued improvement in leverage.

Mark Norwell, Managing Director and CEO of Perenti, said: “Our strategic focus on maximising cashflow generation from our activities, effectively managing capital and driving operational performance, combined with the professionalism, dedication and resilience of our people, has enabled Perenti to deliver solid financial results for FY22, with a strong second half.

“Our 9,000 employees continue to show dedication, passion and resilience, collectively contributing to our improving performance. On behalf of the Board and Group Executive Committee, I thank them for everything they have done in what remains a challenging environment.

“We have continued to re-shape our business and are positioned to create a blended portfolio of complementary services through three operating divisions. This portfolio will be underpinned by our Contract Mining Division, which remains our core business and is the source of our major growth projects with globally recognised and respected brands.

“Our portfolio also includes the divisions of Mining Services and idoba, which will both support our contract mining activities as well as provide strong medium and long-term growth opportunities in new and future facing services, with lower capital intensity.

“Combined with a streamlined corporate centre, Perenti is positioned to deliver a step-up in cash backed profits in FY23, with further improvements expected to drive earnings growth through to FY25 and beyond.”

For more information on Perenti’s FY22 Full Year Results visit our Investor Centre.

Perenti announces strategic investment in idoba by Sumitomo Corporation

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Perenti is pleased to announce it has successfully executed a share sale agreement in relation to a strategic investment by Sumitomo Corporation (Sumitomo) in idoba, Perenti’s technology informed services business. The transaction further strengthens Sumitomo’s commitment to the idoba business, following the Memorandum of Understanding announced in February 2022.

Under the Agreement, Sumitomo will acquire 10% of the issued shares in idoba for a total of $5.4 million. This implies a current idoba Equity Value of $54.0 million and Enterprise Value of $80.0 million reflecting the unique value proposition of the idoba ecosystem, and the significant embedded growth potential within both its consulting services and suite of Software as a Service products.

Mark Norwell, Managing Director and Chief Executive Officer of Perenti, said that the strategic investment in idoba by a world class counterparty is in recognition of the embedded value of idoba within Perenti, and the substantial growth opportunity that the business represents.

More information on the agreement can be found in our Investor Centre.

Perenti secures additional ~$520 million of Australian revenue with new Cowal Underground contract

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Perenti is pleased to announce that its Barminco underground mining business has been awarded the contract for all underground development and production works for Evolution Mining’s Cowal Underground project in New South Wales.

Barminco, a leading global underground mining services business, with operations in Australia, Africa and North America, is currently developing an exploration decline and conducting diamond drilling services at Cowal. The award of this new contract significantly expands Barminco’s scope at the site to include the development of a second portal, all underground development and production works, and associated underground mining services required to support the continued mill feed of underground ore.

Mark Norwell, Managing Director and CEO of Perenti said the award of the Cowal contract aligns with Perenti’s strategy of increasing its earnings in top-tier regions and with top-tier clients.

“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022,” Mr Norwell said.

“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.”

Mining Chief Executive Officer, Paul Muller said, “Our purpose is to create enduring value and certainty for our clients, our people, our shareholders and the communities in which we work. At Cowal we will prioritise local and indigenous training and employment and local procurement opportunities while maintaining a transparent and consistent approach to community and indigenous engagement. We look forward to working with Evolution to develop a safe, sustainable, highly-productive world class operation in New South Wales.”

To read the ASX release visit the ASX announcements section of our website.

Perenti delivers solid results in-line with expectations

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Perenti has delivered solid financial and operational results for the six months ended 31 December 2021 that reflect significant revenue growth despite the continued COVID-19 challenges, while progressing the ramp-up of several growth projects and taking proactive portfolio and capital management measures to generate cash and support sustainable leverage reduction.

Mark Norwell, Managing Director and CEO of Perenti, said: “We are pleased with the overall performance of the Group over the last six months. The business has delivered solid consolidated results that show an improvement on the prior half and are consistent with guidance despite the continuation, and in some cases worsening, of macro-economic and operating conditions.

“Labour has remained tight, supply chains have continued to see disruptions, and the impacts of COVID-19 have arguably worsened both domestically and internationally. Yet despite this, our people have remained resilient which is absolutely appreciated by all of our Executives and the Board.

“Impressively, we welcomed almost 1,000 additional employees into the business, we continued to see improvements in our AMS business reflecting the positive outcomes of our recent strategic review and remained focused on delivering on our commitments while creating enduring value for all stakeholders.

“Looking ahead to the remainder of FY22, we expect the current macro-economic landscape to persist until the end of FY22 but remain confident in Perenti’s ability to continue to deliver on our commitments to our employees, our clients, our suppliers and our shareholders.”

To the full Perenti 1H22 Results media release.   

idoba collaborates with Sumitomo Corporation under MOU

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idoba, Perenti’s technology driven products and services business, has been operating under a Memorandum of Understanding with Sumitomo Corporation for the co-creation and joint development of digital mining products for the advancement of sustainable mining practices.

Sumitomo is a major investment and trading group, consisting of over 900 companies in 112 countries. Sumitomo will leverage its global mining industry network to bring a unique user perspective that will complement Perenti and idoba’s mining services and technology expertise.

Under the terms of the MOU, Sumitomo and idoba will collaborate and jointly develop digital mining services, including mining process optimisation and carbon footprint management.
• Mining process optimisation – by connecting and analysing mine performance data to predict future performance and provide decision support; and
• Carbon footprint management – to generate predictive decision guidance that will help mine owners on their pathway to net zero carbon equivalent emissions, while optimising cashflow and performance against global emission standards.

Mark Norwell, Managing Director and CEO of Perenti, said, “Our agreement with Sumitomo is a vote of confidence in idoba’s industry-leading capability. The combination of Sumitomo, idoba and our contract mining expertise will support our business evolving to meet the needs of the ever-changing mining industry and global expectations.

“In idoba we are building an innovation-based business with a focus on helping clients achieve operational excellence and world’s-best environmental performance through product and service development.”

Sarah Coleman, Chief Executive Officer of idoba, said, “The mining industry recognises the value that advanced digital technologies bring to operational performance, asset efficiency and sustainable business.

“The MOU with Sumitomo will help us expand our suite of technology driven products and services to meet the mining industry’s demand for technology and sustainability to be integrated with mining domain expertise, and a human-centred approach.”

Read the full ASX release here.

idoba grows capability with Orelogy and Atomorphis aquisitions

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idoba’s strategic acquisitions of two complementary businesses, Orelogy and Atomorphis, are aligned with Perenti’s strategy of establishing digital, innovation and technology services that improve sustainability and operational performance outcomes for the mining industry.

Orelogy are specialist resource consultants with multi-commodity expertise across resource sector project development and management, mine planning and cost modelling optimisation, as well as pre-feasibility and feasibility studies. Orelogy has a track record of delivering significant value across a range of projects and commodities.

Atomorphis is a resource sector data science group that delivers agent-based software modelling capability. Agent-based modelling is the next iteration in Discrete Event Simulation. Their solutions include modelling mine fleet variability in 3D using parameters such as loading rates, payload, spotting and dumping times. This provides mining companies with the ability to model their operations and see the true impact of fleet interactions, increasing productivity and reducing costs.

Mark Norwell, Managing Director and CEO of Perenti, said, “We are extremely pleased to add agile and innovative businesses like Orelogy and Atomorphis into Perenti. The expertise of Orelogy and Atomorphis will add value to our contract mining business and as part of idoba will continue building out the required capability in support of our strategy.

“In idoba we are building an innovation-based business with a focus on helping clients achieve operational excellence and world’s-best environmental performance through product and service development.”

Sarah Coleman, Chief Executive Officer of idoba, said, “The mining industry recognises the value that advanced digital technologies bring to operational performance, asset efficiency and sustainable business.

“The acquisitions of Orelogy and Atomorphis will help us expand our suite of technology driven products and services to meet the mining industry’s demand for technology and sustainability to be integrated with mining domain expertise, and a human-centred approach.”

Read the full ASX release here.

Perenti divests MinAnalytical to ALS Limited

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Perenti has announced the divestment of its MinAnalytical subsidiary to ALS Limited for $43.6 million.

Mark Norwell, Managing Director and CEO of Perenti said, “The divestment is part of the ongoing strategic review of the Company’s portfolio, including our services, operating regions and businesses. As we continue to focus on optimising the performance of our business and creating long-term sustainable value for our shareholders, we are pleased to have entered into a binding agreement for the divestment of our MinAnalytical business to ALS.”

“ALS is a premier provider of analytical testing data world-wide and has a track record of acquiring and embedding complementary businesses and analytical technology to deliver value for their clients. MinAnalytical, and the significant new technology offering of the Chrysos PhotonAssay machines, is a natural fit for the ALS portfolio and will benefit greatly from the synergies and economies of scale that ALS can offer.”

“Following the transaction, Perenti will retain our 8% equity holding in Chrysos because we, much like ALS, appreciate the significant current and future value proposition that the Chrysos business represents.”

He added, “In line with our significant focus on liquidity and capital management, the net proceeds of this transaction will be allocated across our portfolio to maximise shareholder value. We will continue to evaluate and progress a number of capital management initiatives designed to generate cash flow, streamline our portfolio, liberate cash, sustainably reduce our leverage ratio and efficiently allocate capital across our business.”

“On behalf of the Group Executive and Perenti Board, I want to thank the MinAnalytical team for their valuable contribution over the past 11 years and wish them every success as they transition to ALS.”

Read the full ASX release here.

Pedestrian Safety the Focus of Underground Mine Technology Partnership

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Perenti’s Barminco, Newtrax and Sandvik are partnering to develop a new technology-led solution that improves the safety of pedestrians working near heavy vehicles (HVs) underground.

Between 2008 and 2018, there were 12 fatalities that involved HVs in the underground mining industry in Western Australia. Seven of those deaths were pedestrians.

This statistic is a reminder that these mining machines – that weigh a minimum of 4.5 tonnes and operate in areas of poor visibility – are a significant risk factor for people who work in close proximity to them in an underground environment.

As one of the world’s leading underground mining contractors, Barminco currently operates 25 projects in seven countries and employs more than 5,600 people. Almost all of these employees will be exposed to a working HV during their career. In fact, every hour of every day of the year, there are approximately 2,000 Barminco employees working underground interacting with heavy vehicles.

Barminco’s scale and underground mining expertise, combined with Newtrax’s leading-edge capability to develop collision avoidance systems and the high penetration of Sandvik HVs featuring advanced controls, means this partnership is uniquely positioned to understand how people and equipment interact in underground mines.

Newtrax has developed a collision avoidance system that links “intelligent” cap lamps to the warning system inside the cab of an underground HV. The system provides the vehicle operator with virtual visibility of any pedestrians in the immediate area of their vehicle, along with an escalated warning system to both the pedestrian and operator as the distance between them reduces. This escalation transitions from warning to vehicle intervention, where the HV automatically reduces speed and comes to a controlled stop, when the system senses any pedestrian wearing an intelligent cap lamp in the high-risk zone.

Under the partnership, Newtrax will deploy its next-generation Level 9 Collision Avoidance System across Barminco’s Sandvik fleet, including the supply of intelligent cap lamps with advanced electronic safety features to Barminco’s underground mines. The technology is due to undergo initial testing at one of Barminco’s underground sites in January 2022.

Paul Muller, Perenti Chief Executive Officer, Mining, said the focus of the project was twofold – the safety of its people and the sustainable adoption of the technology industry-wide. 

“The exposure of pedestrians to heavy vehicles underground is a significant risk not just for us, but for everyone involved in the underground mining industry,” Mr Muller said.

“The combination of Newtrax’s technology, our underground operating experience and Sandvik’s role in supplying heavy mining vehicles can put us in a position to offer the entire industry a smart solution to a complex problem.”

Simon Waghorn, Newtrax Regional Vice President – APAC, said the collaboration with Barminco would provide the partners with real-world experience that would help optimise the system as it develops.

“Although the Newtrax Collision Avoidance System is the best available system on the market, many more enhancements are required to accelerate adoption,” Waghorn said. “This partnership with Barminco, a world-class underground hard rock mining contractor, will enable collaborative product development which will result in an even better product for the industry.”

“Barminco is a very important customer for Sandvik and we are pleased to take on the challenge to develop and deliver the industry-leading intervention controllers, to enable slow-to-stop control of the equipment in Barminco’s fleet,” said Wayne Scrivens, Vice President – Sales Area APAC, Sandvik Mining and Rock Solutions.

Perenti delivers solid FY2021 Results: proactively managing headwinds and positioning for growth

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Perenti has delivered an FY21 result consistent with its revised expectations, achieving solid operational performance and growth from its Underground Mining business and an improved second half performance from its Surface Mining business.

This solid result was delivered in a year where the Company’s financial performance was impacted by headwinds including the ongoing impacts of the COVID-19 pandemic on our international operations, tighter Australian labour market and a strengthening Australian dollar.

Perenti continues to invest in our people, systems and mining equipment to build strong foundations and support the ramp-up of the Company’s key growth projects in FY22 to deliver business growth in FY23 and beyond.

Mark Norwell, Managing Director and CEO of Perenti, said: “Firstly, I want to recognise our people, who provided high quality mining services to our clients with a focus on continuity of operations to deliver enduring value and certainty.

“Our Underground business continued to be a standout performer, delivering a third consecutive year of earnings growth with a strong FY21 contribution. Impressively, this growth has been delivered in a year where we saw the slower than anticipated ramp up at several recently secured international projects due to the prolonged, and ever-changing, nature of the COVID-19 pandemic.

“As expected, due to the planned contraction of our Surface Mining business following our strategic transition out of Yanfolila and Boungou, FY21 revenue, EBIT(A) and margins were softer than FY20. Pleasingly during the second half of FY21, earnings and margins generated by the Surface business more than doubled compared to the first half.

This tangible and sustainable improvement in performance is attributable to the implementation of the findings of the AMS Strategic Review and continued solid performance from our Australian business. We are in a good position to move our AMS business forward and are encouraged by securing the Motheo and Iduapriem contracts, both of which are examples of the quality of contracts that AMS will pursue.”

“The Investments business navigated difficult conditions during FY21 with softer east coast equipment rental market conditions impacting revenue and earnings. In response, we revitalised the leadership team and have increased our market activities including the implementation of a more targeted sales strategy, which has increased asset utilisation rates by 5 per cent since December 2020.

“We continue to look to the future. Throughout FY21 we made prudent investments in our people and systems, while managing our balance sheet to ensure we are well positioned to fund our 2025 strategic growth aspirations. An integral part of this strategic growth is our technology driven service offering, idoba, launched in July. Through idoba we plan to improve our competitive advantage by developing a unique capability in emerging digital mining, technology and innovation.”

You can read the full ASX Release here.

Perenti launches idoba – our technology driven service offering

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Perenti has launched idoba, a new technology-driven service offering for the mining industry, that leverages in-house technology and data expertise to add value to our global mining services activities.  

Mark Norwell, Managing Director and CEO of Perenti, said: “When looking to the future of the mining industry, it is evident that innovation and technology will play a much greater role in the way we do business and ultimately how we continue to generate value for all our stakeholders. 

“With this in mind, it is with great pleasure that we launch idoba, our new technology driven service offering which will enable tomorrow by allowing us to respond to our clients’ evolving needs both today and into the future. 

“I am also pleased to announce the appointment of Sarah Coleman as Chief Executive Officer, idoba.  Sarah has significant mining experience and a passion for driving improvements through innovation to create value.” 

idoba is a name that was co-created using human and artificial intelligence input, which connected the Greek word eidos meaning “essence” and the Japanese term “ba”, meaning knowledge mobilising space.  

The idoba team was formed by combining businesses that Perenti acquired over the last 12 months, Sandpit Innovation, ImpRes and Optika. The founders of these businesses, Sarah Coleman, Aaron Carter and Matt Schneider and their teams are passionate, talented and diverse – with a high proportion of female, multicultural and neurodiverse individuals. Their collective experience comes from global mining companies, digital product commercialisation, data analytics and sustainability.    

idoba is the culmination of Perenti’s strategic technological growth which, in addition to supporting the Perenti business, will provide digital product and technology service offerings to mining and mining service clients with revenue and earnings generated from these services.  

Apart from contributing to Perenti’s revenue and earnings growth in the medium term, we expect to leverage the innovation and technological skill sets of the idoba team to unlock productivity improvements across our current suite of service offerings.  

Ultimately and in time, these efforts will reduce risk, increase productivity, and drive performance for Perenti as well as creating new capabilities for idoba to offer to the broader resources sector.   

This is an exciting time for our business as we welcome idoba to Perenti. 

Perenti secures new surface mining contract at Iduapriem gold mine in Ghana

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Perenti is pleased to announce that AMAX, a joint venture between Perenti’s surface mining business in Africa, African Mining Services and leading Ghanaian mining services company, MAXMASS has been awarded a new $470 million five-year contract at AngloGold Ashanti’s Iduapriem gold mine in the Western Region of Ghana.

The new contract is structured as a 60:40 joint venture agreement between AMS and MAXMASS and represents AMS’s significant and ongoing commitment to developing and expanding the capacity and capability of our local partners.

Mark Norwell, Managing Director and CEO of Perenti, said the continued transformation of AMS, including the winning of quality projects underpinned by robust financial and commercial disciplines remains a key strategic initiative in Perenti’s 2025 Group Strategy.

“We’re delighted to be extending our relationship with our long-standing client, AngloGold Ashanti. AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation. We look forward to continuing to partner with AngloGold Ashanti.”

Perenti Mining Chief Executive Officer, Paul Muller, said AMS had a long history of delivering operational excellence and value to clients, having provided mining services in Ghana for 30 years.

“We have provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti. We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate. Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contractors to our operations under previous contracts. The joint venture also expects to employ more than 475 Ghanaians with approximately 40% of the workforce employed from the surrounding local communities and the remaining 60% from other regions within Ghana.”

Perenti to partner with Sandfire Resources at the Motheo Project in Botswana

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Perenti is pleased to announce its surface mining business in Africa, African Mining Services (AMS), has been awarded the contract for open pit mining services at the Sandfire Resources Motheo Copper Project (Motheo) in Ghanzi, Botswana.

The contract, which is yet to be finalised, has an estimated value of US$496 million (A$648 million at 100% basis) over an initial term of seven years and three months with a provision for a one-year extension.

Under the terms of the Mining Services Contract, AMS will identify a suitable local Botswana company or companies as a Joint Venture partner for the project and transition to the joint venture before the commencement of mining in early 2022.

Perenti Managing Director and Chief Executive Officer Mark Norwell said Motheo represents a game changing growth opportunity for AMS and will substantially increase Perenti’s presence in Botswana, one of the world’s most attractive mining jurisdictions, ranked the eleventh most attractive region for global mining investmenti and holds Africa’s strongest credit rating of BBB+ from S&P.

“Partnering with Sandfire is a great opportunity and collectively we share a strong commitment to the creation of shareholder value while demonstrating the highest standards of safety, responsibility and sustainability. We look forward to demonstrating our capabilities as we deliver on our commitments at the Motheo Project.

“Growing our footprint in Botswana is aligned with our 2025 strategy, to further expand into stable mining jurisdictions and pursue quality projects. The benefit of adding Motheo to the Perenti project portfolio is the opportunity to leverage our existing in-region operational presence at Zone 5 as well as partnering with Sandfire to develop Botswana’s next large-scale, highly productive, world-class copper mine.

“The Motheo project is another positive step in the ongoing transformation of our AMS business as we seek to create value and certainty for our client Sandfire and the Ghanzi community.” Mr Norwell added.

Mining Chief Executive Officer Paul Muller said: “We are committed to creating a lasting, positive legacy in Botswana and we expect the Motheo project will create a significant number of high-quality employment opportunities and generate social and economic value for local and regional communities of Botswana. Through this commitment and the establishment of a local joint venture partnership, we expect that more than 95% of the workforce will be citizens of Botswana.

“Furthermore, and leveraging our existing Maun based state-of-the-art mining training centre, our workforce will have access to the latest mining techniques and technology to enable the creation of a safe, highly skilled and productive workforce to support economic growth and diversification within Botswana.

“We are also excited by the opportunity to deploy future-focussed mining technology initiatives on this project that will not only provide expected productivity and safety benefits to Sandfire but are also aligned with helping to achieve our combined sustainability goals.”

Read the ASX release here.

Posted in AMS

Perenti’s expansion in North America continues with Letter of Intent for works at the Red Chris Project

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Perenti is pleased to announce its subsidiary, leading hard-rock underground miner Barminco, has received a Letter of Intent from Newcrest Mining Limited for the development of an underground exploration decline at the Red Chris Project in British Columbia, Canada.

The Red Chris Project is a 70:30 joint venture partnership between Newcrest and Imperial Metals Corporation (TSX:III) and is located approximately 1,700kms north of Vancouver.

The Red Chris Project lies within Tahltan Territory, home to some of Canada’s richest mineral resources in an area known as the Golden Triangle. Barminco has developed a strong relationship with the Tahltan Nation Development Corporation and intends to establish the foundations for an ongoing partnership to create social and economic value for the members of the Tahltan Nation and the region.

Perenti Managing Director and Chief Executive Officer Mark Norwell said the opportunity at Red Chris is a very encouraging step on the road to expanding the Company’s North American presence.

“Geographic expansion has been a key focus of our 2025 strategy and this early-stage work at Red Chris builds on our regional growth capabilities after commencing in North America just over a year ago” Mr Norwell said.

“The underground exploration decline works are a significant opportunity and puts the Company in a strong position to access the much wider scope of works associated with the potential block cave development that Newcrest aims to progress towards in the coming years. This project fits with our strategy as we continue to pursue high quality growth opportunities within attractive mining jurisdictions, partnering with top-tier producers holding multi-mine portfolios and long-life, expandable assets.”

Mining Chief Executive Officer Paul Muller said: “We acknowledge and respect the Tahltan as the First Nations people of the area and we look forward to working together at the Red Chris Project. In partnership with the Tahltan Nation Development Corporation, Barminco will also look to work with local Tahltan-operated businesses and provide local employment, education, training and development initiatives to support the social and economic development of the Tahltan people.”

“Our focus at Red Chris will be on delivering safe, reliable and efficient development services and we look forward to building a long and productive relationship with Newcrest, the members of the Tahltan Nation and all of our stakeholders in British Columbia.”

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Perenti secures new A$235 million contract at the Geita Complex

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Perenti is pleased to announce that its subsidiary, leading African hard-rock underground miner, African Underground Mining Services, has secured a new two year contract to continue operations at AngloGold Ashanti’s Geita Mine in Tanzania. The two-year contract will take effect immediately and increases Perenti’s current work in hand by circa A$235 million (Perenti’s sharei).

Mark Norwell, Managing Director and CEO of Perenti said, “We are very pleased to be continuing our strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine.

“This contract extension includes the addition of Geita Hill, a new underground development within the Geita Complex, which will see a steady increase in our scope of works as the development ramps up from a single heading decline into multiple work areas and then into production later in 2021.”

“This contract extension is expected to generate an improved earnings contribution for Perenti over the contract term. Winning new contracts and extending existing contracts is one of our key strategic priorities and we continue to make great progress on the execution and delivery of our 2025 strategy.”

Perenti’s Mining Chief Executive Officer Paul Muller said “Perenti first started operating in Tanzania in the late 1990’s and the award of the contract extension at the Geita mine provides us with a fantastic opportunity to continue to partner with, and support our numerous local businesses, suppliers and contractors. We look forward to expanding on these relationships as we seek to create enduring value and certainty for all of our stakeholders.”

For more information click here.

Disciplined strategy execution and strong Underground performance underpin Perenti’s 1H21 financial results

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Perenti has delivered robust operating and financial results for the first half of financial year 2021 (FY21) and continues to deliver value and certainty for our clients through disciplined strategy execution, despite the challenging global environment.

Mark Norwell, Managing Director and CEO of Perenti, said: “The financial and operational performance of the Group in the first half of FY21 was very encouraging as we continue to take steps to deliver on our 2025 Group Strategy while navigating the challenging and ever-evolving COVID-19 pandemic, which continues to impact our international operations.

“Our COVID-19 taskforce has done a fantastic job putting the steps in place to protect our people and our business from the most severe impacts of the pandemic, allowing us to deliver continuity of service for our clients. While this is a great achievement, we must also recognise that our financial results have been impacted, not only by COVID-19, but by the strengthening of the Australian dollar against the United States dollar and a softer than expected Australian east coast equipment rental market.

“Our Underground business delivered record earnings of $110.0 million, representing 90% of our Group EBIT(A) at an average margin of 15.1%. In addition, since 1 July 2020 the Group secured $970.0 million of new underground work and contract extensions, predominantly in Western Australia, demonstrating the strength of Perenti and our ability to generate value for our clients through the delivery of high-quality mining solutions.

“The Surface business remained profitable, generating $4.0 million EBIT(A), supported by our Australian operations and the Sanbrado Project in Burkina Faso. During the half we completed our strategic review of African Mining Services (AMS) and implemented a number of the report findings, including progressing negotiations of an early exit from the loss-making Yanfolila contract and the conclusion of the sale of Boungou assets. Upon completion, these two actions are expected to generate between $80 to $90 million of cash, of which $14 million has been received, to redeploy across the business where we are targeting to generate returns of +20%.

“Another outcome of the strategic review is the consolidation of our Surface and Underground businesses into a single Mining business, under the leadership of Paul Muller as our Mining CEO. Paul has been the CEO of Barminco for 3.5 years and is highly experienced in both surface and underground mining and is an excellent leader with an enviable track record of delivering positive outcomes and I look forward to his continued success.

“Looking ahead, the resources sector continues to go from strength to strength. Exploration expenditure is forecast to increase during 2021 and the value of committed mining projects, in Australia alone, is the highest in a decade with many more feasibility stage projects in the pipeline. Perenti has a strong balance sheet, a highly experienced team with a track record of delivering excellence across our businesses. The significant investments we have made in our people, our business structure and our systems will ensure we continue to be well positioned to capitalise on the expected resources sector growth as we deliver against our 2025 strategy.”

For more information and to view the full Results package click here.