Perenti reports strong FY20 H1 earnings as it delivers against 2025 strategy Posted on February 26, 2020March 9, 2020 by admin Perenti has delivered a strong result in HY20, with the Company on track to meet its most recent FY20 earnings guidance. Perenti Managing Director Mark Norwell said the HY20 results demonstrated the diversity and resilience of the expanded Group. “At a Group level our underlying earnings were strong, which was an impressive achievement, given the challenges in African Mining Services (AMS), demonstrating the breadth of Perenti’s portfolio,” Mr Norwell said. “Perenti’s underground mining business, across Australia and Africa, performed exceptionally well, with earnings growing by more than one-third over the prior corresponding period as we successfully integrated Barminco into the Perenti group. “Meanwhile, in our surface mining business, our Ausdrill operations in Australia performed in line with expectations but our AMS operations in Africa delivered an unsatisfactory result that impacted Group earnings. “A key focus of our 2025 Group strategy has been on the transformation of AMS, with a range of initiatives underway including enhanced earnings, cash conversion, and efficient capital management. “In addition to the AMS transformation initiative, a strategic review of AMS has now commenced that will thoroughly assess the business more broadly. “In November, 19 of our employees tragically lost their lives and a further 26 were injured as a result of an unprecedented terrorist attack in Burkina Faso. In response, we reassessed where and how we operate, with Perenti ceasing operations in Burkina Faso’s higher risk locations given the current security situation. We also continue to do everything possible to ensure that all injured employees, work colleagues and impacted families are receiving the best possible care and support.” To see the full FY20 H1 results please visit the Investor Section of our website.
Perenti Surface Business secures more than $150 million in work Posted on February 21, 2020March 9, 2020 by admin Perenti is pleased to announce its Surface Mining Industry Sector Group (ISG) has been awarded $155.5 million in new and extended contracts. Perenti Group Managing Director Mark Norwell said the contracts reflected Perenti’s ability to deliver value for its clients by performing quality work across the Group’s diverse Surface portfolio. “We have been targeting a strong pipeline of surface and underground work and I am pleased we continue to convert these opportunities into secured contracts across a range of different projects in both Australia and Africa,” Mr Norwell said. “These latest awards add to $165 million in surface work we announced in December 2019 and the $200 million contract we recently announced for our Underground ISG. Perenti Surface Chief Executive Officer Scott Winter added: “Through our surface business, we continue to demonstrate our leading expertise and reputation in the sector. This has resulted in a number of contract extensions and expansions for our quality client base.” The new work, extensions, and expansion of scope is across ten projects, with highlights including: • A 3-year contract (with options to extend) for production drilling services with Boggabri Coal Operations (a part of Idemitsu Australia Resources Group) at its Boggabri Mine in New South Wales. • A 3-year contract extension with a major iron ore producer for reverse circulation (RC) and grade control (GC) drilling at its Western Australian operations. • A 12-month contract extension with Consolidated Minerals to support current mining operations and regional expansion projects. • Expansion of services for a major mining contractor in Queensland which will double the contract value across the current three-year contract duration. • A 12-month extension to existing works at Gold Fields’ St Ives and Granny Smith projects, which involves land and lake rigs for air core, RC and diamond drilling. • An equipment hire agreement with E&P at Gold Fields’ Damang Mine in Ghana. Full ASX Announcement can be downloaded here.
Savannah Underground Mining Contract Executed with Barminco Posted on February 21, 2020March 9, 2020 by admin Perenti is pleased to announce its subsidiary, leading hard-rock underground miner Barminco, has formally been awarded a contract by Panoramic Resources at the Savannah Project in the Kimberley, after receiving preferred contractor status last month (see ASX release dated 30 January 2020). Under the circa $200 million contract, Barminco will undertake mine development, production, and haulage over a three-year term at the nickel-copper-cobalt project, with approximately 170 people expected to be employed. Barminco has been in discussions with Panoramic over recent weeks to develop a mobilisation plan and contract mining is expected to commence in early March 2020. The newer mining fleet to be supplied by Barminco is expected to deliver enhanced equipment reliability. Together with Barminco’s proven expertise and operating systems, this is expected to significantly increase operational efficiencies and drive production volumes towards targeted levels. Barminco has commenced offering roles to the majority of the existing Panoramic underground mining and maintenance workforce at Savannah, with specialist expertise and supervision roles being introduced from the Barminco portfolio. Panoramic Managing Director and CEO, Victor Rajasooriar, commented: “The execution of a mining contract with leading underground services provider, Barminco, represents a significant step forward for the Savannah Nickel Mine and Panoramic. We now look forward to delivering a rapid and efficient transition to Barminco run operations. With their proven expertise, we are confident that underground mining productivities at Savannah are set to improve significantly over the coming months.” Perenti Managing Director Mark Norwell said: “We are pleased to have been formally awarded the contract and look forward to working closely with Panoramic to deliver on this project.” For more information please download the full ASX announcement here.
