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Record first half results supported by value accretive DDH1 acquisition.

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Perenti has delivered a record operational and financial performance for 1H24 building on its record FY23 financial results and continuing the positive momentum generated in the business over the past two years. The results reflect the continued disciplined implementation of our 2025 Strategy and the efforts of our 11,000 people.

Mark Norwell, Managing Director & CEO of Perenti, said: “With the completion of the transformative acquisition of DDH1, Perenti is pleased to have welcomed the committed and highly capable DDH1 employees into the wider Group. Since 6 October 2023, integration activities are progressing extremely well, with strong cultural alignment, which has already established a sense of camaraderie within the newly created Drilling Services Division.

“We are pleased with the consolidated operational and financial performance that was delivered during 1H24. One of the many benefits of our globally diversified business is that the overall performance of the Group is not leveraged to any one project, commodity, jurisdiction or business. We have nearly four decades of experience across a range of our service offerings and are confident that the fundamentals of our business are robust, with the acquisition of DDH1 complete and with cash generation an ongoing strategic priority.

“The ongoing performance of our business is a credit to our 11,000 people across the organisation. The safety and wellbeing of our people remains our number one focus of our sustainability priorities as announced in 2023.”

You can read more about our half year results for financial year 2024 on our Investor Centre

Perenti secures A$420 million of contract extensions

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Perenti has announced its underground mining businesses have been awarded contract extensions valued at ~A$420 million. The contract extensions include:

  • A 12-month ~$125 million contract extension to continue underground development and production works at the Gold Fields Agnew underground gold mine.
  • A 12-month ~A$180 million contract extension at the AngloGold Ashanti plc’s Obuasi underground gold mine in Ghana.
  • A 2-year ~A$115 million, contract extension of existing underground development and production works at the Roxgold Inc. Yaramoko underground gold mine in Burkina Faso. Importantly, under the terms of the contract, no new growth capital is required for the execution of this contract extension.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said, “We pride ourselves on our enduring relationships, so we are especially pleased to be continuing our relationship with these long-term clients. Our Contract Mining division is now led by Gabrielle Iwanow and will continue to focus on safely delivering for our clients and on our strategic objectives. I look forward to providing an update on the business, including the excellent progress we have made on the integration of DDH1, as part of our 1H23 results which will be released to the market in February.”

Gabrielle Iwanow, President Contract Mining said, “In my first few weeks at Perenti, I have been very impressed with the team’s technical capability and the operational performance that they deliver to our clients. I believe that it is these factors that underpin the strength and depth of our relationships.

“With these contract awards combined with those previously announced, namely ~A$360 million related to the Sandfire Resources A4 project in Botswana and a further A$111 million related to three Australian surface and underground contract awards, the team has secured nearly A$900 million of revenue for the business.

“I am very proud to be leading and supporting the Contract Mining team as we collectively work towards delivering our 2025 strategic objectives.”

Changes to the Perenti Group Executive Committee

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Perenti is pleased to announce the following changes to our Group Executive Committee.  

Gabrielle Iwanow has been appointed President of Perenti’s Contract Mining Division. Gabrielle is one of Australia’s leading mining executives with extensive experience working at senior operational and executive levels within the resources sector.

Gabrielle was also named as one of the Top-100 Global Inspirational Women in Mining in 2020. Her career includes significant time in senior management positions at ASX 100 listed mining companies OZ Minerals and Rio Tinto, and most recently she was the Managing Director & Chief Executive Officer of Mincor Resources.

Paul Muller, currently President Contract Mining, will be taking up a new role within the Perenti Group Executive Committee, following a short period of study leave between January and May 2024.

Mark Norwell, Perenti Managing Director & Chief Executive Officer, said, “A key strategic focus for the Group is managing and developing our senior talent across the organisation, ensuring we have robust succession plans in place and continue building capability and capacity within our senior leader cohort, including within the Group Executive Committee.

“Gabrielle’s addition to our Group Executive Committee provides the business with additional depth in talent as we continue to build on our record FY23 financial results, transformative acquisition of DDH1, ongoing execution of our 2025 strategy and development of our 2030 strategy.

“I would like to welcome Gabrielle to Perenti and thank Paul for his ongoing contribution to Perenti. This is an exciting time for the business as we continue to deliver on our purpose of creating enduring value and certainty for our clients, investors, our people and the communities in which we operate.”

Perenti and DDH1 – Implementation of Scheme of Arrangement

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Perenti is pleased to announce that the DDH1 Limited scheme of arrangement has been implemented today and Perenti has now acquired 100% of the issued share capital of DDH1.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said Perenti is pleased to welcome the DDH1 team members who are joining the Perenti Group today and looks forward to working together to continue to deliver value and certainty for all our stakeholders.

“The acquisition of DDH1 is a very important milestone in the continued growth and evolution of Perenti, and we are very pleased to welcome the circa 2,000 DDH1 employees, their four highly respected brands of DDH1 Drilling, Strike Drilling, Ranger Drilling and Swick Mining Services along with their expansive client base into the wider Perenti Group. DDH1 leverages and builds on nearly 40 years of drilling expertise that our Ausdrill brand holds, enabling Perenti to establish a stand-alone Drilling Services Division of significant scale and global relevance. Perenti is now one of the largest drilling services contractors globally offering a complete range of underground and surface drilling services, including specialisation in deep directional drilling.

“With the completion of the acquisition, we look forward to demonstrating the significant value proposition that the combination of Perenti and DDH1 can offer to all our stakeholders.

For more information about the completion of the transaction visit our Investor Centre.

Perenti increases work in hand

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Perenti has secured the following new work and contract extensions:

• $70 million, six-month contract for the continuation of underground development and production works at the Regis Resources Garden Well and Rosemont underground gold mines. Barminco and Regis continue to progress collaboratively towards further and material contract extensions at these two mines.

• $27 million, 24-month contract for exploration surface drilling services at the BHP Mitsubishi Alliance in Queensland.

• $14 million, 24-month contract award for underground diamond drilling works at Catalyst Metal’s Plutonic underground gold mine in Western Australia, subject to finalisation of contract terms.

Furthermore, AUMS (through UMA, a joint venture with Rocksure International) received a Limited Notice to Proceed related to the initial underground development works at the Newmont Akyem underground gold mine located in Ghana. The finalisation of contractual negotiations continues, however, once finalised it is forecast that the contract could represent ~A$32 million (US$21 million) of revenue over an initial term of 11 months, with a capital structure that is likely to be similar to that adopted for Newmont’s Subika project.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said “The award of these contracts and the Limited Notice to Proceed across both our underground and surface mining businesses demonstrates the diversity of our service offering and the strength of the relationships we share with our clients. Collectively these three contracts and the Limited Notice to Proceed represent nearly A$150 million of revenue across FY2024 and into FY2025 and come after the recent announcement in which Perenti secured ~A$360 million of revenue at the Sandfire Resources A4 project in Botswana.”

Perenti awarded US$235 million contract expansion at Motheo

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Perenti is pleased to announce our surface mining business in Africa, African Mining Services (AMS), has been awarded the contract for open pit mining services at the Sandfire Resources A4 open pit within the larger Motheo Copper Mine in Ghanzi, Botswana. The contract is valued at US$235 million (~A$360 million) over a term of 73 months.

Under the terms of the contract, AMS will deliver all surface mining services associated with development and production activities at the A4 open pit. The A4 open pit is located approximately 8km to the west of the Sandfire’s existing T3 Open Pit, where AMS has successfully progressed from development into production works. Perenti anticipates A4 pre-production and development work to commence in September 2023, with pre-strip mining to start in October 2023.

The T3 and A4 open pits are expected to be operated as a larger, integrated mining operation and therefore will leverage the resulting benefits of scale and the operational synergies to optimise the return on capital aligned with our financial targets. The primary synergies include the optimisation of existing infrastructure, mining equipment, maintenance facilities and both technical and operational management. Perenti’s current FY24 guidance (as released to the ASX on 22 August 2023) already takes these operational synergies and capital efficiencies into account and includes the respective A4 revenue and earnings, although as with every opportunity we will be looking to generate further value for our client and shareholders.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said: “We are excited about the opportunity to expand our partnership with Sandfire Resources. Motheo is a long-life asset in the Kalahari Copper belt, and the expansion of our role here is in keeping with our strategy of disciplined growth within top-tier mining jurisdictions with high quality partners. Sandfire is now one of our largest clients and over the term of the combined contracts, the T3 and A4 open pits are expected to generate total revenue of over A$1.1 billion, delivering strong returns for Perenti and its shareholders.”

Paul Muller, President of Contract Mining said: “Since Barminco commenced operations in 2019 and AMS later in 2021, Perenti has established itself as the leading international mining contractor in the Kalahari Copper belt. With the award of our third mine in the region, we look forward to playing our part in Sandfire’s expansion of their world class Motheo Copper Mine. Beyond this, I am proud of the contribution Barminco, AMS and Perenti continue to make to the development of Botswana’s mining industry and the community more broadly.”

Perenti delivers record financial performance in FY23

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Perenti has delivered record FY23 financial results, headlined by record revenue and record underlying earnings. The sustained improvement in financial and operational performance has placed Perenti in a strong financial position, which enabled the announcement in June 2023 of the value accretive acquisition of Australian-based drilling business DDH1, with final completion expected in October 2023.

Mark Norwell, Managing Director & CEO of Perenti, said: “Perenti continues to go from strength to strength, as the foundations we have laid with our 2025 Strategy allow us to deliver excellent operational performance, strong client relationships and disciplined commercial and capital management.

“Year-on-year we delivered significant revenue and earnings improvement as our growth projects continued to progress through their respective ramp-up phases, as our strategy enabled each of our businesses to capitalise on and take full advantage of the improvement to macro-economic conditions, including the ‘end of COVID’ and as we saw continued strength in markets for the metals and minerals we mine on behalf of our clients. Although I would note that various macro-economic challenges still exist, however we are cautiously optimistic.

“Our ~9,000 people have again demonstrated their commitment to continually doing better, every day, for our clients. On behalf of the Board and Group Executive I sincerely thank them for their contribution to the business.

“Perenti is focused on supporting sustainable mining, with our investment in developing mines for the future, and our focus on reducing our own emissions.

“Perenti has a strong track record of delivering value and certainty for all of its stakeholders. As we look to the future, our proposed acquisition of DDH1 will complement and enhance the Perenti business and further cement our diversified global value proposition.”

You can read more about Perenti’s FY23 Annual Results on our Investor Centre.

Perenti and DDH1 – Continued creation of enduring value 

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Perenti has announced that it has entered into an agreement under which it will acquire 100% of the issued share capital of DDH1 Limited subject to satisfaction of conditions.  

DDH1 brings significant capability across a range of specialised surface and underground drilling services that complement Perenti’s existing service offering.

Perenti will benefit from increased scale, and the ability to leverage the operational and financial strengths of both companies. This will enable improved margins and increased free cash flow, which will accelerate the delivery of our FY25 financial targets.

Following the completion of the transaction, which is subject to DDH1 shareholder approval and other conditions, Perenti will become one of the largest drilling services companies globally, increasing growth opportunities for the business and our people.  

Mark Norwell, Managing Director & CEO of Perenti said: “This is a compelling transaction that represents an exciting next step in delivering on Perenti’s purpose, to create enduring value and certainty, by building a portfolio of complementary high quality businesses.  

“Perenti has a long history in drilling from its Ausdrill heritage and Barminco Diamond Drilling business and understands the attractiveness of the market.  

“The long term outlook for a sustained production cycle needs increased drilling spend to ensure mining reserves are not diminished, and drilling is becoming more complex, resulting in larger programs and demand for specialist services.  

“DDH1 is a highly respected tier 1 global operator, with significant capabilities across a complete range of specialised surface and underground drilling services, that are complementary to our existing clients and service offering.  

“We have a clearly articulated framework against which we assess all investment opportunities, with this transaction addressing our key assessment criteria in relation to strategic attractiveness, fit within Perenti and value creation potential.” 

Following the Transaction, the DDH1 business will form part of a newly created Drilling Services Division, which will also comprise Perenti’s existing Ausdrill business. Sy Van Dyk (current Managing Director & CEO of DDH1), will be appointed as President of the newly created division. Each of the four existing DDH1 brands, DDH1 Drilling, Ranger Drilling, Strike Drilling and Swick Mining Services, will be maintained and led by their existing leadership teams, with a focus on providing a consistent offering and customer continuity. 

Rob Cole, Chair of Perenti said “We look forward to welcoming the DDH1 team to Perenti and working together to deliver on the significant value upside that will be delivered from this Transaction. Sy and the DDH1 management team are highly experienced executives leading a globally respected operator, which will continue as part of our newly established Drilling Services Division. We also look forward to working with our new colleagues Diane and Andrea who bring significant skills and experience to the Perenti Board, with Mark Hine announcing his intention to retire from the Perenti Board. On behalf of the Perenti Board, I would like to thank Mark for his enormous contribution to Perenti over the years, spanning major strategic shifts in the business from the combination of Ausdrill and Barminco, up until the Transaction being announced today.” 

For more information visit our Investor Centre. 

IGO awards Cosmos electrification study to Perenti and ABB collaboration

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Perenti and ABB, in collaboration, have been awarded an inaugural contract by IGO Ltd to undertake a study for the full underground electrification of IGO’s Cosmos Nickel Project.

The electrification study is a significant step in IGO’s commitment to continuously improving its sustainability performance by trialling new technologies and decarbonising its operations, helping to create a green energy future.  

Perenti-website-IGOs-Cosmos-Project-bird-eye-view
Bird-eye view of IGO’s Cosmos Nickel Project in Western Australia

In November 2022, Perenti signed a Memorandum of Understanding (MoU) with global technology company ABB to collaborate to develop a service offering that combines Perenti’s mining expertise and technical capability with ABB’s electrical and technological expertise. 

The study will see experts from Perenti and ABB work side by side with IGO to provide a pathway for the optimum design of mine electrification at Cosmos. All aspects of electrification will be considered in the study.  

“Valuing the environment and enabling the energy transition is one of Perenti’s three key sustainability imperatives and this study demonstrates the capabilities of our electrification collaboration with ABB,” said Raj Ratneser, Executive Sponsor of Decarbonisation at Perenti. “Decarbonisation and electrification are critical to the future of mining, and we are privileged to be working with our client IGO on this pioneering study.” For more information visit our Investor Centre.

Perenti Strategy Briefing and Business Update June 2023

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Perenti has provided an update on progress against our 2025 Strategy including a positive business update, the release of sustainability imperatives and priorities, an update to our 2025 targets and an updated Capital Management Policy.

Positive Business Outlook

As announced 21 February 2023, Perenti expected FY23 revenue of $2.8 billion to $2.9 billion, EBIT(A) of between $250 million and $265 million, leverage to be ~1.0x and capital expenditure is expected to be at $330 million. Perenti now expects FY23 revenue of $2.9 billion, EBIT(A) of between $260 million and $265 million, leverage of ~1.0x and capital expenditure of ~$290 million.

FY24 guidance will be delivered with the release of our FY23 financial and operational results in August 2023, however qualitative FY24 targets include:

• FY24 revenue will be in-line with FY23;

• FY24 EBIT(A) growth on FY23 EBIT(A);

• FY24 capital expenditure slightly higher than FY23;

• FY24 free cash flows will be stronger than FY23;

• FY24 leverage will be <1.0

Furthermore, Perenti has updated its FY25 revenue target from $2.5 billion up to $3.0 billion. All other FY25 targets remain unchanged.

Sustainability and Capital Management

Sustainability is fundamentally linked to everything that we do, and we recognise that in order to deliver on our safety and sustainability objectives and support further growth initiatives beyond our current service offerings, that an appropriate allocation of capital, above and beyond stay in business capital is required.

This capital commitment is aligned with our Purpose and is focused on ensuring Perenti is a sustainable business and supports industry and societal initiatives focused on sustainability.

The updated Capital Management Policy now formally allocates between 10% and 20% of free cash (free cash flows after sustaining capital, interest and taxes but before growth capital) generated by the business towards future focused strategic investments including to support progress on the delivery against our sustainability imperatives and new value creation initiatives.

Perenti anticipates that these opportunities will primarily see investment in:

• Technology and engineering solutions to more effectively mitigate and manage risks inherent in underground mining;

• Development of new services to support decarbonisation; and

• idoba product development.

Mark Norwell, Chief Executive Officer & Managing Director of Perenti said, “This time last year, we updated our 2025 Strategy and since then, our global workforce comprising 9,000 highly talented, motivated, resilient and determined people have continued to execute on our strategic objectives and in many cases have outperformed expectations. With the end of FY23 only weeks away, we expect the positive momentum built up in FY23 to continue and are targeting for FY24 will be a third consecutive year of earnings growth, margin expansion and a strengthening balance sheet.

“In addition, an important component of our 2025 Strategy update last year was the introduction of our focus to embedding sustainability in everything we do. Today, we are taking this commitment a step further by outlining our sustainability imperatives and priorities. We view these as strategic enablers and a key differentiator for our business that will guide the work we do, underpin the future value that we expect to generate and shape the company we become.”

Perenti secures a new five year contract with Newmont at the Subika underground mine

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Perenti is pleased to announce that through its UMA joint venture, its subsidiary African Underground Mining Services (AUMS) has been awarded a new, 60-month contract at the Newmont Subika underground gold mine in Ghana. The contract is effective from 1 January 2023.

UMA is a joint venture between Perenti’s subsidiary, AUMS and Rocksure International, a local Ghanaian civil and mining contractor. Under the terms of the contract, through the UMA joint venture, Perenti will undertake all underground development and production activities, diamond drilling and associated support services at the Subika Underground Mine, located approximately 310 kms to the northwest of Accra, Ghana.

AUMS commenced development and production activities at the Subika underground mine in mid-2017 and the new contract will reduce the capital intensity of the project for Perenti while still delivering strong returns.

Mark Norwell, Managing Director and CEO of Perenti said, “With this new contract, Perenti not only expands its tenure in Ghana but furthers its relationship with Newmont, the world’s leading gold company with a world-class portfolio of assets in favourable mining jurisdictions. We are very pleased that we will continue to deliver value and certainty to Newmont and our other stakeholders in Ghana and beyond.”

Paul Muller, President Contract Mining of Perenti said, “Ausdrill commenced operations in Ghana in 1991 and with this 60-month contract, Perenti through its subsidiaries, will have accumulated nearly 40 years of in-country expertise with a strong track record of prioritising local procurement, training and employment opportunities across a wide range of local and regional Ghanaian stakeholders.”

You can view the full ASX release here:

Perenti secures contract extension at Red Chris in Canada

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Perenti subsidiary Barminco has been awarded a 12-month contract extension at Newcrest Mining’s Red Chris mine in British Columbia, Canada.

Since June 2021, Barminco has continued to progress the development of an underground exploration decline, an essential first stage of works that will provide a platform for future underground exploration activities, and which may also be used to support access to potential block cave workings. This contract extension enables Barminco to continue underground development works and is expected to deliver approximately A$90 million of revenue over the 12-month contract term. 

Mark Norwell, Managing Director & CEO of Perenti said, “Our strategy in North America is to partner with tier-one operators and long-life assets, where we can add value over the long term. We continue to diligently progress our North American growth strategy and have key executive management personnel based in the region to ensure we develop the right relationships and become engrained within the sector while remaining disciplined in the execution of our strategy.”

Paul Muller, President of Contract Mining said, “Since mid-2021 our team in North America has worked closely with the Red Chris JV as it transforms the mine into a long life, tier-one underground operation. We have developed very strong relationships with the local communities including a partnership with the Tahltan Nation Development Corporation and are very pleased to be on site at Red Chris for at least the next 12 months.”

Perenti secures a contract extension at IGO’s Flying Fox mine

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Perenti is pleased to announce that our subsidiary Barminco, has been awarded a nine-month contract extension at the Flying Fox mine which is owned and operated by IGO Limited. The contract extension is effective from 1 January 2023 and has a value of approximately $30 million over the nine-month term.

IGO’s 100% owned Forrestania Operation is located approximately 400 kms to the east of Perth, Western Australia, and includes both the Flying Fox and Spotted Quoll underground nickel mines. Barminco has been the primary underground mining contractor at Flying Fox since December 2004. The nine-month contract extension will see Barminco continue to provide all underground drilling, development and mining activities at Flying Fox.

Mark Norwell, Managing Director & CEO of Perenti said “In Australia, the labour market is still tight, and inflation and cost escalation remains stubbornly persistent, however strong and collaborative working relationships, like the relationship between IGO and Barminco, are key to the success of our business as well as the success of our clients. By working collaboratively with our clients, we continue to navigate and manage challenging macro-economic conditions.”

Paul Muller, President of Contract Mining said, “We have a very long and proud history of operating within the Forrestania Operation and we are pleased to have delivered value and certainty at the Flying Fox mine from a greenfield development project through a mature operating mine as it is today. We look forward to continuing our relationship with IGO, our largest client in Australia.”

Perenti committed to achieve gender balance in signing up to 40:40 Vision

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In celebration of International Women’s Day 2023 and the focus on #embracingequity, we are pleased to announce Perenti has signed up to the 40:40 Vision, and in doing so, we have committed to achieve gender balance in our Board and executive leadership by 2030.

Perenti’s commitment to 40:40 is a pledge to have Board and Executive representation of 40 per cent women and 40 per cent men by 2030 with 20 per cent any gender.

Managing Director & CEO Mark Norwell said Perenti had joined other listed companies in signing up its support for industry super fund HESTA’s 40:40 Vision.

“Perenti recognises the business and social importance of achieving gender diversity. Participating in the 40:40 Vision is a way of furthering this commitment and ensuring we hold ourselves accountable to these targets and are transparent about our progress.

“A key finding of our It’s Not OK program, which aims to eliminate harmful behaviour in our workplace, is that in order to build a safe, diverse and inclusive workforce where people are respected for who they are, we must improve female participation across the business at an accelerated rate.

“There is clear evidence that gender balance in leadership is not only fairer, but also very positive for overall business performance.”

Perenti first half FY23 results and business update

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Perenti has released its financial and operational results to the market for the first half of FY23.  

Mark Norwell, Managing Director & CEO of Perenti, said: “First and foremost, my thoughts are with the families, friends and workmates of Trevor Davis and Dylan Langridge, our colleagues who tragically lost their lives as a result of the incident at the Dugald River underground mine last week. This is a tragic incident and a devastating loss, with a magnitude that has been and will continue to be felt across our whole organisation. I would like to thank everyone who carried out the search and rescue effort for Trevor and Dylan last week as well as the wider organisation for their support to people directly involved in the incident or more generally, the care provided to each other.

“During the period from 1 July 2022 through to 31 December 2022, Perenti’s ability to deliver for our clients with strong operating performance under a sustainable and disciplined financial framework – while caring for our people and communities – underpins our strong results for this half.

“Our dedicated team of over 9,000 employees have done a fantastic job of developing and executing our 2025 Strategy to the point where we have delivered consecutive periods of earnings and margin expansion. This result is something for everyone at Perenti to be proud of.

“We recognise that the current external market conditions have improved since Covid-19 restrictions started to ease and that our business is in a position to take advantage of these conditions. However, we are also acutely aware of the potential volatility that still exists and we working to manage the controllable aspects of this environment by remaining disciplined in the execution of our strategic objectives.”

You can read more about Perenti’s first half FY23 results and business update here.

Ausdrill secures contract extension at Fimiston

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Perenti has announced that its subsidiary Ausdrill, has been awarded a new Australian surface contract at the Northern Star Resources owned Kalgoorlie Consolidated Gold Mines (‘KCGM’) Fimiston open pit gold mine in Kalgoorlie, Western Australia. The new circa $160 million, 60-month contract incorporates activities that commenced 1 March 2022 and will continue to March 2027.

Ausdrill has been contracted to provide up to 14 production blast hole drill rigs to support ongoing operations. Given the scale and quality of its existing Ausdrill fleet, Perenti does not expect any new capital outlay to support this contract.

Mark Norwell, Managing Director & CEO of Perenti said, “We continue to remain focused on supporting the families, friends, and colleagues of Trevor and Dylan following the tragic incident at the MMG owned and Barminco operated, Dugald River mine in Queensland last week. However, over the weekend Ausdrill executed a material contract and in-line with our disclosure obligations, we are providing the market with an update.

“We have secured our largest ever surface contract in Australia, which continues our relationship at one of Ausdrill’s first ever projects. We are very proud to be part of Kalgoorlie’s history and we look forward to continuing to deliver certainty and value for Northern Star, our employees and business partners.”

He added, “Since the release of our operational update on 19 December 2022, we have continued to deliver on our strategic objectives and while we have seen some strengthening of the Australian dollar relative to the US dollar, we have seen overall margin improvement and continued to win or extend existing contracts, positively resolve commercial negotiations and further simplify our business. Market conditions continue to remain favourable into the second half of FY23 in support of further delivery against our 2025 strategy. We look forward to providing additional details when we release our 1H23 results tomorrow.”

Paul Muller, President Contract Mining at Perenti said, “Ausdrill began with two drill rigs in 1987 at the Fimiston mine. Since then, Ausdrill has continued to expand its services to include blast hole and grade control drilling, utilising a fleet of drill rigs specifically designed and manufactured (in-house) to meet the unique specifications required by the Fimiston open pit mine.

“We look forward to continuing to provide our value-add expertise to the KCGM operations while extending our long-standing relationship with our local and regional stakeholders.”

Tragic outcome in search for missing miners at Dugald River

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Following a significant search and rescue operation at the Dugald River Underground Mine and further to recent announcements, it is with great sadness that Perenti advises of the tragic loss of our colleagues Trevor Davis and Dylan Langridge, the two previously missing Barminco employees.

Managing Director & CEO of Perenti Mark Norwell said, “This is a devastating outcome and I want to extend my deepest sympathies and condolences to the families, friends, colleagues and loved ones of Trevor and Dylan, both of whom should have come home safely from work yesterday.”

Yesterday morning, at approximately 125 metres below the surface, an incident occurred resulting in three Barminco employees, one in a drill rig and two in a light vehicle, falling approximately 15 metres into a void within a previously backfilled stope. The drill rig operator was rescued and received medical treatment for minor injuries. Tragically, through the rescue effort it has been confirmed that the two other Barminco employees, Trevor Davis and Dylan Langridge were fatally injured.

Dylan Langridge was 33 years old and joined Barminco in March 2020 as a truck operator at Savannah before joining the service crew at Dugald River later that year. Dylan continued to progress his career at Dugald River and in October 2021 took up the role of charge up operator.

Trevor Davis was 36 years old and joined Barminco in August 2020 as a shotcrete operator at Rosemont, before transferring to Dugald River as a charge up operator in November 2021.

Both Dylan and Trevor were valued team members and well respected across both sites and the wider Barminco team.

Mark Norwell added, “Our immediate and ongoing focus is on providing support to the families, friends and colleagues of Trevor and Dylan.

“Barminco has been operating at MMG’s Dugald River mine since early 2012 with members of our workforce residing in the local area. This tragic incident is devastating and will have a lasting impact on not only the families and friends of Trevor and Dylan but also on the workforce of Dugald River, the Cloncurry and Mount Isa communities and the entire Perenti workforce.

“The safety of our employees is an absolute priority for Perenti, as it is for the industry more broadly. I am devastated that the families and friends of our two workmates have lost their loved ones. This outcome is simply not acceptable.

“In collaboration with MMG and the relevant authorities in Queensland, we will work to understand the circumstances behind this tragic incident and what additional measures need to be put in place to prevent this type of incident happening again.

“We would like to thank everyone who worked tirelessly under very challenging conditions in the recovery of Trevor and Dylan.

“The rescue operation has now sadly completed. Our primary focus is that of support for the families and colleagues of Trevor and Dylan and in parallel completing a comprehensive investigation.”

Unless further material information comes to light, no further formal updates will be provided such that our full resources can continue to focus on supporting the families and conducting the investigation.

We ask that the privacy of the families of Trevor and Dylan, and their work colleagues, is respected during this deeply distressing time.

Further update to the incident at Dugald River

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Further to our announcement yesterday, Perenti provides an update in relation to the incident at the Dugald River underground mine in Cloncurry, Queensland.

Rescue efforts continued overnight as Barminco worked closely with MMG and relevant authorities to undertake and progress the search and rescue operation.

The rescue team have employed the use of drones, void scanning technology and video imagery and this has enabled them to locate the light vehicle that we believe the two missing employees were driving.

The rescue team have been working throughout the night including with the use of heavy underground mining equipment to gain access to the vehicle.

Managing Director & CEO of Perenti, Mr Norwell, said the highly skilled mine rescue team is focused on executing the rescue operation as quickly and safely as possible.

“While the situation is still evolving, we are in contact with the family members of our missing team members and Perenti is providing support to their colleagues and rescue team.

“Everyone at Perenti is feeling the impact of this incident and whilst we hold deep concerns for the safety of our colleagues, we continue to be hopeful that a positive outcome can be achieved.”

We will provide further updates as relevant information becomes available.

Incident at Dugald River

15 February 1730 AWST

Further to the announcement made this morning, Perenti provides an update in relation to the incident that occurred earlier today at the Dugald River underground mine in Queensland.Unfortunately, two Barminco employees remain unaccounted for and the site emergency response team has been activated. Barminco is working closely with MMG and relevant authorities to undertake the search and rescue operation.

We can confirm the following:

  • Three of our employees were involved in an incident, approximately 125 meters below surface.
  • Two separate vehicles, a light vehicle and a drill rig fell into a void in a previously filled stope.
  • One of the employees, a drill rig operator, has been rescued and received medical attention for minor, non-life threatening injuries.
  • We believe the two missing Barminco employees remain 125 meters below the surface and we are using drone technology to understand the specific conditions of the area. This will enable us to ensure the safety of the emergency rescue team.
  • This drone is fitted with technology that can capture video and data regarding the size of the cavity where the light vehicle is located.
  • The rescue will commence post analysis of the data and in accordance with a rescue management plan.
Managing Director & CEO of Perenti, Mr Norwell, said the highly skilled mine rescue team is focused on executing a rescue operation as quickly and safely as possible.

“Our teams have been operating MMG’s Dugald River mine since 2012 with much of our workforce residing in the local area.  I know that a large proportion of the local Cloncurry community either work at the site or know someone who works at the site.  My thoughts are with the families and friends of our two missing colleagues, and with the Cloncurry community.”

“Everyone at Perenti is feeling the impact of this incident and we continue to be hopeful that a positive outcome can be achieved. While the situation is still evolving, Perenti is also providing support to family members and colleagues of our missing team members. We will provide further updates as relevant information becomes available.”