Perenti and Sandvik to collaborate in developing diesel-electric equipment

Global mining services provider Perenti and Sandvik have signed a memorandum of understanding at MINExpo INTERNATIONAL® 2024 centered on developing cutting-edge diesel-electric equipment for underground mines. This collaboration aims to enhance sustainability, efficiency, and productivity in underground mining operations.

Under the agreement, the companies will work together to optimize underground diesel-electric loaders and trucks. Through Perenti’s leading underground mining business, Barminco, the collaboration will focus on improving Barminco’s operations and generating valuable insights and data to further refine Sandvik’s diesel-electric technology.

The initial phase of the collaboration involves establishing a shared vision for optimizing Sandvik’s diesel-electric machines to meet Perenti’s requirements. Perenti will contribute to the machine design and provide feedback at various testing stages, including pre-factory testing, operational testing and trial testing.

Mark Norwell, Perenti Managing Director & CEO, welcomed the agreement, saying Perenti was excited to explore the full potential of diesel-electric solutions as part of its journey to decarbonisation.

“We are constantly looking for ways to improve the working environment and boost underground safety, efficiency and sustainability,” he said. “Diesel-electric equipment has the potential to do this.

Collaborating with our partners is a critical step in the process, and we believe that working with Sandvik enables us to benefit from cutting-edge technology and also play a role in shaping the equipment that the wider industry will be using tomorrow. That’s good for us and it’s good for our customers.”

Mats Eriksson, President of Sandvik Mining and Rock Solutions, emphasized that the mutual benefits of collaboration often do lead to better products – and safer, more efficient operations.

“Perenti, through its businesses including Barminco, is one of the world’s leading mining services providers, and can provide us with design suggestions and fantastic insights into real-world mining conditions,’ he said. “Together, we can create equipment optimized for Perenti’s working conditions while also developing the most advanced diesel-electric machines available anywhere in the world.”

Diesel-electric mining equipment is seen by many within the industry as a way of achieving cleaner, more sustainable and more reliable mining, without the structural changes required for a fully electric operation.

Diesel-electric machines typically have a diesel engine that drives a generator which, in turn, provides electricity to motors responsible for movement and operating equipment. Unlike conventional diesel, diesel-electric machines generally have no torque converter and fewer rotating components, allowing for a more flexible design, requiring less maintenance and enabling lower operating costs while maintaining high availability.

Sandvik first announced last year that it was moving ahead with developing a diesel-electric range of underground loaders and trucks to complement its leading battery-electric offering. The decision followed the showcasing of Sandvik’s Toro™ diesel-electric truck demonstrator to customers at a technology workshop in Turku, Finland in 2022.

Las Vegas, Nevada, USA, September 25, 2024

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

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

Record first half results supported by value accretive DDH1 acquisition.

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.”