Grant Thornton Australia Principal for Mining Will Kendall says that mining contractors are entering a new phase of opportunity, following the release of its latest report that examines how contractors are navigating a renewed upswing in activity.
“Commodity tailwinds are lifting activity, and balance sheets are giving contractors the flexibility to grow,” Kendall says.
In the ‘Preparing for the next phase of growth’ report, Grant Thornton highlights how diversification, disciplined capital management, and emerging profit-sharing models are reshaping risk and opportunities across the sector.
It includes insights from Mineral Mining Services comparing these structures with traditional schedule-of-rates contracts and highlighting how they can provide junior mine developers with a credible alternative to established debt and equity capital.
Stronger prices
Supported by stronger commodity prices across gold and copper, as well as early signs of recovery in lithium, commodity prices are bringing higher cost, previously marginal projects into production, driving increased demand for contract mining services while also introducing new risk considerations.
As previously reported, gold reinforced its reputation in Q1 2026, buoyed by ongoing geopolitical tensions and persistent economic uncertainty.
At the time of writing, gold’s price sat at US$4,633 ($6,442) an ounce, according to Trading Economics.
Despite gold’s recent price drop, Saxo forecasts gold could reach up to US$6,000 an ounce in the coming quarters. Should this scenario unfold, silver could also extend its gains and potentially revisit US$100 an ounce. At the time of writing, silver’s price sat at US$80.5 an ounce.
Copper futures hovered around US$6 per pound at the time of writing, trading largely sideways as stalled US-Iran peace efforts and ongoing disruptions in the Strait of Hormuz kept energy prices elevated and inflation risks in focus, as Trading Economics reports.
Over the past month, copper’s price has risen 9.67% and is up 24.8% compared to the same time last year.
Meanwhile in the lithium space, the battery metal’s market is entering a new phase, as this news service reported.
Demand is no longer a straight line, and supply is no longer simply a race to scale. The battery metal’s success is increasingly dependent on execution, resilience, licensing and permitting, and resource size.
Trading Economics reports lithium carbonate prices in China rose to ¥175,000 per tonne in late April, the highest in three months and nearly 50% up year-to-date amid evidence of growing long-term demand.
Mixed but improving
Grant Thornton’s report shows first-half FY26 performance is mixed but improving, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins have moderated due to a shift toward lower capital-intensity services.
Contractors are delivering stronger capital efficiency, improved balance sheets, and rising return on equity, reflecting diversification and disciplined capital management.
Grant Thornton notes at the time, the report cautions that contracting with higher cost operations, often owned by single-asset miners, can increase contractor exposure if commodity prices soften or funding becomes constrained.
It also highlights the need for contractors to assess risk at the project level, understand the capital structure, and proactively monitor credit to protect cashflow.
The consulting firm adds that the report also identifies mine rehabilitation as an emerging structural growth market.
“Regulatory reforms and rising social expectations are shifting rehabilitation from an end-of-life obligation to an ongoing operational priority, creating a more predictable pipeline aligned with contractor capabilities and a meaningful path to diversify revenue beyond production cycles,” Grant Thornton says.
Grant Thornton is an independently owned and managed accounting and consulting firm providing assurance, tax, and advisory services.
Write to Aaliyah Rogan at Mining.com.au
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