Perenti (ASX:PRN) has secured new work and contract extensions including 66-month contract for the continuation of underground development and production works at the Regis Resources (ASX:RRL) Garden Well and Rosemont underground gold mines valued at $70 million.
The $699 million market capitalisation company notes that Barminco and Regis continue to progress collaboratively towards further and material contract extensions at these 2 mines.
Diversified mining services firm Perenti also reports it has also secured a $27 million 24-month contract for exploration surface drilling services at the BHP Mitsubishi Alliance (BMA) (ASX:BHP) in Queensland.
This is in addition to the $14 million, 24-month contract awarded for underground diamond drilling works at Catalyst Metal’s (ASX:CYL) Plutonic underground gold mine in Western Australia, subject to finalisation of contract terms.
Furthermore, AUMS (through UMA, a joint venture with Rocksure International) received a Limited Notice to Proceed related to the initial underground development works at the Newmont (NYSE:NEM) Akyem underground gold mine located in Ghana.
“Collectively these 3 contracts and the Limited Notice to Proceed represent nearly $150 million of revenue across FY2024 and into FY2025 and come after the recent announcement in which Perenti secured $360 million of revenue at the Sandfire Resources A4 project in Botswana“
The finalisation of contractual negotiations continues, however, once finalised it is forecast that the contract could represent $32 million (US$21 million) of revenue over an initial term of 11 months, with a capital structure that is likely to be similar to that adopted for Newmont’s Subika project.
Mark Norwell, Managing Director & CEO of Perenti says the award of these contracts and the Limited Notice to Proceed across both the firm’s underground and surface mining businesses “demonstrates the diversity of our service offering and the strength of the relationships we share with our clients”.
“Collectively these 3 contracts and the Limited Notice to Proceed represent nearly $150 million of revenue across FY2024 and into FY2025 and come after the recent announcement in which Perenti secured $360 million of revenue at the Sandfire Resources A4 project in Botswana.”
Perenti continues to forecast FY24 revenue of $2.8 billion to $3 billion, EBIT(A) of between $260 million to $275 million, net capital expenditure of $330 million and leverage between 0.8x to 0.9x.
Write to Adam Orlando at Mining.com.au
Images: Regis Resources