Tag: perenti

Perenti and Sandvik to collaborate in developing diesel-electric equipment

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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

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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.”

View full ASX announcement

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.”

View ASX Announcement

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 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 announces FY23 guidance upgrade

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

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

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

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

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

You can read the full story in our Investor Centre.

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.  

idoba collaborates with Sumitomo Corporation under MOU

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

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

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

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

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

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

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

Read the full ASX release here.

idoba grows capability with Orelogy and Atomorphis aquisitions

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

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

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

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

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

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

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

Read the full ASX release here.