Macmahon Holdings (ASX:MAH) has secured a $463 million mining services contract from PT Masmindo Dwi Area’s subsidiary PT Indika Energy, for the Awak Mas Gold Project in Indonesia.
The scope for Macmahon, which has a market capitalisation $700.37 million, will include open cut mining activities including drilling, loading, and hauling, as well as mine site development.
Under the seven-year contract, which has an open to extend for an additional five years, the company will begin work in H1 2025.
CEO Michael Finnegan says the Awak Mas Gold Project presents a great landscape for the company, given its existing relationships.
“This project will add to our secured work in hand, and we are pleased to have negotiated a low-capital solution utilising existing fleet and variable leases,” Finnegan says.
Key mining equipment required at the beginning of activities will be deployed from the existing fleet with $17 million growth capital spread over the first four years. This spread of capital is included in the current growth capital target of $30 million per year.
Macmahon notes this financial year’s total capital expenditure budget is unchanged at $230 million and includes the $30 million growth capital previously reported.
There are no expected changes to net debt for FY25 and Macmahon’s underlying earnings guidance of $160 million to $170 million remains unchanged.
Macmahon Holdings is a mining and civil infrastructure services provider throughout Australia and Southeast Asia.
Write to Aaliyah Rogan at Mining.com.au
Images: Macmahon Holdings
