Category: Perenti Group

Perenti delivers another record year of earnings and free cash flow in FY24

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Perenti has delivered another year of strong financial results, headlined by record revenue and underlying earnings and free cash flow of $184 million. The consistent strong cash flow and the fundamental strength of the business has enabled the declaration of a 4 cents per share final dividend. This lifts the total dividend for FY24 to 6 cents per share, implying a 5.9% yield based on the 19 August 2024 closing share price.

Mark Norwell, Managing Director & CEO of Perenti said, “The Perenti team has successfully delivered another year of impressive results. The strong free cash flow has allowed us to further reduce leverage, recommence dividends and continue our buyback, all whilst maintaining investment in earnings growth during FY24.

“During recent years, our business has built significant scale and diversity across our divisions. Our scale and diversity allows for fluctuations related to operations or capital requirements to be smoothed out as projects move through the different stages of development, operational ramp up and mine closure. This ultimately allows for greater consistency in earnings and reliable free cash flow generation. The recommencement of dividends is a tangible demonstration of our optimism that we will continue to deliver free cash flow in the future. To offer our shareholders additional certainty, we are pleased to announce that the Board has agreed to a dividend policy targeting a payout of 30-40% of underlying NPAT(A) during the years ahead.

“Perenti is focused on delivering value and certainty for all its stakeholders. I am incredibly proud of our dedicated team who have delivered this record result. On behalf of the Board and Group Executive I sincerely thank all our staff, and I look forward to working with them to deliver again in FY25.”

For more information on Perenti’s FY24 Results visit our Investor Centre

Barminco secures underground contract extension with Barrick at Hemlo, Canada

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Perenti is pleased to announce that its underground mining business, Barminco, has signed a three-year contract with Barrick Gold Corporation to continue contract mining at the Hemlo gold mine in Canada.

Hemlo is located 350 kilometres east of Thunder Bay in Ontario, Canada and has been in production since 1989. In 2019, Barrick transitioned the operation to a contract mining model from owner operator, and Barminco has been the main underground contractor since. The contract is initially for 36 months, but also includes two 12-month options to extend. If these options are exercised, Barminco will be operating at Hemlo until 2029.

Under the terms of the existing contract, Barrick owns the current fleet of underground equipment and will procure any additional fleet required for the mine. This significantly reduces the capital intensity of the project for Barminco. The total contract value is worth more than AUD$200 million and involves underground mine development, production and mining support services.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said “The continuation of our relationship with Barrick at the Hemlo gold mine for at least the next three years is another great example of how our Contract Mining team extends contracts over the life of a mine operation. The long-term nature of these relationships is built on a foundation of creating enduring value and certainty for our clients. This aligns our operational success with the goals of our clients and creates a collaborative working environment.

“The low capital intensity of this project is one of several capital light contracts we operate across the organisation, with our first capital light contract secured in 2018.”

Gabrielle Iwanow, President of Contract Mining at Perenti said “We are pleased to continue working with Barrick and demonstrating our leading underground capability in the North American market. Barrick is an important client for Barminco and we look forward to continuing to partner with them to deliver safe production at Hemlo.”

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Award of Spartan Resources contract and contract extensions totalling A$160M

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Perenti is pleased to announce that Barminco has been awarded a new development contract with Spartan Resources and extensions to four existing projects. The scope of the Spartan Resources contract includes the construction of an underground exploration drill drive at the Dalgaranga Gold Project in the Murchison region of Western Australia. The drive has been designed to run in parallel and adjacent to the mineralised gold zones of Never Never, Pepper, Four Pillars and West Winds, to facilitate underground exploration and subsequently support future production plans.

Construction of the drive is due to start in the current quarter and is expected to take 10 months to complete. It will utilise a combination of existing capital equipment and an additional A$5m of new growth capital.

In addition to the Dalgaranga Project, extensions to contracts have also been signed for the following projects:

• Siou and Wona underground at the Mana gold mine for Endeavour Mining in Burkina Faso.

• An existing copper and gold underground mining project in Canada.

• Spotted Quoll nickel mine for IGO in Australia.

• Mt Colin copper mine for Aeris Resources in Australia.

In combination, these projects are expected to contribute approximately A$160 million of revenue to FY25. The project extensions do not require new growth capital.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said, “The greenfield underground at Dalgaranga project is an exciting opportunity. The resource has the potential to grow into a high-grade gold mine and we look forward to supporting Spartan Resources to achieve their targets during the months ahead.

“In addition, the four contract extensions are another example of the 90%+ success rate the Contract Mining division has in extending and renewing contracts. Maintaining client relationships is critical to our long-term success, so we always strive to find ways to deliver value to our clients when possible.”

Gabrielle Iwanow, President of Contract Mining at Perenti said, “We are pleased to be working with Spartan Resources on the new underground Dalgaranga Gold Project in Western Australia. Barminco has a long history of working with Western Australian gold producers and we look forward to building an excellent relationship with their team as they advance towards production.”

Barminco and MMG agree continuation of mining contract at Khoemacau Copper Mine

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We are pleased to announce that our underground mining business, Barminco, has finalised discussions regarding the existing 5-year mining services contract for the Khoemacau Copper Mine in Botswana with Khoemacau Copper Mining Proprietary Limited, a subsidiary of MMG Limited.

Khoemacau is one of the highest quality copper mines globally, with a strong case for expansion to meet growing global copper demand. Barminco has been operating at Khoemacau since the mine commenced in 2019.

Barminco is working to deliver on the current mine plan whilst MMG explores potential expansion opportunities at Khoemacau. Botswana is considered one of the most attractive mining jurisdictions in Africa and is rated investment grade by both Moody’s and S&P Global.

The contract details include:

  • Contract value:                    The remaining contract value is circa AUD$240 million.
  • Contract term:                     Continuation of existing contract, on revised terms, until 30 June 2025.
  • Services:                               Underground development, production, and mining support services.
  • Capital requirement:          Capital expenditure within existing Budget.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said “We are pleased to continue working at Khoemacau. The expansion under consideration has the potential to supply increasing global demand for copper and we are proud to be working with MMG as they assess various future opportunities.”

Gabrielle Iwanow, President of Contract Mining at Perenti said “The continuation of this contract enables the Barminco team to continue working at Khoemacau under revised terms. The region surrounding the operations includes multiple resources beyond the current scope. Cumulatively, these resources have potential to support much higher production and maintain many years of mine life. We look forward to working with MMG to continue high quality operations at Khoemacau.”

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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.”

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.”

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.”

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 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.