Perenti secures $420m in contract extensions

Perenti’s (ASX:PRN) underground mining businesses have been awarded contract extensions valued at $420m.

The extensions include:

• A 12-month $125m contract extension to continue underground development and production at the Gold Fields Agnew underground gold mine.
• A 12-month $180m contract extension at AngloGold Ashanti’s Obuasi underground gold mine in Ghana.
• A two-year $115m contract extension of existing underground development and production work at Roxgold’s Yaramoko underground mine in Burkina Faso.

Perenti managing director and chief executive Mark Norwell says the company is pleased with the extensions.

“We pride ourselves on enduring relationships, so we are especially pleased to be continuing our relationship with these long-term clients,” he said.

“Our Contract Mining division is now led by Gabrielle Iwanow and will continue to focus on safely delivering for our clients and on strategic objectives.”

Perenti comprises of four divisions — Contract Mining, Drilling Services, Mining Services and idoba — that provide services across the mining value chain. Each division plays a crucial role in contributing significant value for the company.

Operating across Australia, Africa and North America, Perenti is one of the world’s largest mining contractors, while is Drilling Services division is one of the world’s largest drilling services contractors.

Perenti’s Mining Services division is a specialised, lower capital intensity business and idoba is a technology informed services and products business who provide unique end to end digital, technology and consulting services.

Ms Iwanow commented on the extensions.

“With these contract awards combined with those previously announced, namely $360m related to the Sandfire Resources A4 project in Botswana and a further $111m related to three Australian surface and underground contract awards, the team has secured nearly $900m of revenue for the business,” she said.

“I am very proud to be leading and supporting the Contract Mining team as we collectively work towards delivering our 2025 strategic objectives.”