Perenti delivers record revenue and EBITDA earnings in FY20

Perenti has delivered strong operating and financial results in FY20, demonstrating the strength of its global mining services business to withstand challenges and provide certainty. Perenti is set to deliver similar
revenue and operating margins in FY21, subject to COVID-19 impacts, with solid growth expected in FY22.

In FY20 Perenti delivered record revenue – exceeding $2 billion for the first time – record EBITDA, significantly strengthened its liquidity position, and has entered FY21 with more than $5 billion work in hand and almost
$11 billion in contract rollovers and targeted tender opportunities.

Perenti Managing Director & CEO, Mark Norwell said the FY20 financial results reflected the team’s ability to successfully navigate a turbulent year and deliver value and certainty for Perenti’s clients and investors.

“To report record revenue and earnings, end the year in a stronger financial position than 12 months ago, and maintain a substantial order book is impressive, but to do so in the midst of the operational and economic
challenges presented by COVID-19 is exceptional,” Mr Norwell said.

“Perenti experienced isolated impacts of COVID-19 at Perenti’s projects, with a strong response by our internal executive led COVID-19 taskforce. The company also achieved tangible progress against key initiatives under the
2025 Group strategy, positioning Perenti for the future.

“Of note, we converted close to 100 per cent of earnings into cash, remained focused on capital discipline, and made considerable progress in transforming our Surface business in Africa, AMS, with stronger financial
performance in the second half of FY20. Meanwhile, Underground delivered standout financial and operational performance through the Barminco and AUMS businesses across both Australia and Africa.

“We also secured almost $1 billion in contact extensions and new work across our Surface and Underground ISGs in FY20 and successfully commenced operations in attractive mining jurisdictions of Botswana and Canada.

“Importantly, we continued to look to the future by investing in the business and our people that will enable us to deliver on our 2025 Group strategy.

“The results and achievements reflect the dedication of our high calibre team and the strength of our operating discipline and I would like to thank our employees and their families for their support.”

For more information on Perenti’s FY20 Results visit the investors page .

Perenti Group Managing Director Mark Norwell outlines company response to COVID-19

Yesterday morning Perenti Group Managing Director & CEO Mark Norwell spoke to investors regarding the situation facing the Group and how it is responding to the current COVID-19 pandemic.

He stressed that to date there has been minimal impact on the company’s operations but Perenti remains mindful of the considerable impact COVID-19 is having globally.

Mr Norwell said the company’s key priorities in dealing with COVID-19 is the health and safety of its people, limiting the spread of the virus and delivering value for its customers by doing everything possible to continue operating safely in what is a complex and everchanging environment.

“We are focused on protecting the wellbeing of our people and working closely with key stakeholders so that we can continue to operate safely and effectively during this unprecedented period,” he said.

 “We are doing all that we can to minimise any disruption and we will continue to focus on capital management as part of our 2025 Group strategy to ensure Perenti is well positioned to deliver through all economic cycles.”

Mr Norwell also praised employees who had gone above and beyond in recent weeks, especially expats who had stayed in country to support its international operations, FIFO workers for their resilience as well as the families of all its employees for their support and understanding.

Barminco set for Canada debut with Hemlo contract

Barminco set for Canada debut with Hemlo contract • Barminco image 1

Perenti is pleased to announce its subsidiary, leading hard-rock underground miner Barminco, has received a letter of intent from Barrick to provide underground contract mining services at Barrick’s Hemlo Mine, located in the Marathon mining district of north western Ontario, Canada.

Under the proposed three-year, approximately $200 million mining services contract, Barminco will bring industry-leading technology and productivity to Hemlo in support of Barrick’s goal to modernise and improve the performance of the mine and establish it as a tier two asset within its group.  

Barminco’s scope includes undertaking mine development, production and haulage, utilising mining equipment provided by Barrick. The company anticipates employing more than 300 people at the operation, with works commencing in April 2020.

The Hemlo Mine has produced more than 21 Million ounces of gold over 30 years of operation.

Perenti Group Managing Director Mark Norwell said the contract award was another significant step in the Group’s international growth strategy to enter attractive and stable mining jurisdictions.  

“This is Barminco and Perenti’s first significant contract in North America and builds on our regional growth capabilities, after expanding into Botswana last year with an $800 million contract. We look forward to supporting Barrick to deliver outstanding results at Hemlo,” Mr Norwell said.

Underground Chief Executive Officer Paul Muller said: “We are thrilled to be in a position to support Barrick to improve the performance of the Hemlo mine.  We intend to work very closely with Barrick and all key stakeholders, including the incumbent workforce at Hemlo, the Pic River and Pic Mobert First Nations people and the Marathon community more generally to deliver a sustainable improvement in performance, thereby assuring the future of Hemlo.”

Perenti reports strong FY20 H1 earnings as it delivers against 2025 strategy

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.

Savannah Underground Mining Contract Executed with Barminco

Savannah Underground Mining Contract Executed with Barminco • Savannah Nickel Mine

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.

Ten up as Ausdrill renews as Hockeyroos’ Naming Rights Partner

Ten up as Ausdrill renews as Hockeyroos’ Naming Rights Partner • C3A8344

The partnership between Ausdrill and the world number two ranked Hockeyroos has been further strengthened with a new two year contract renewal that will take the partnership past a decade.

Mark Norwell Group Managing Director – Perenti and Scott Winter Chief Executive Officer – Ausdrill were at Perth Hockey Stadium with Hockey Australia Chief Executive Officer Matt Favier and the Hockeyroos to celebrate the renewal.

Ausdrill’s association with Australia’s national hockey teams first began in 2011, and its continuation as the Official Naming Rights Partner of the Hockeyroos and the Official Supporting Partner of the Kookaburras will take the partnership up to 2021.

In addition to valuable funding for the Hockeyroos and Kookaburras High Performance Program, the partnership also encompasses a range of other benefits.

Ausdrill is dedicated to supporting Hockeyroos players with career development, study and employment opportunities to assist them during and post playing hockey.

Both parties will develop a joint plan focused on promoting hockey through indigenous engagement and other community development initiatives, while also looking to promote gender diversity in mining. 

“The wonderful, longstanding and ongoing support Ausdrill and Perenti have provided to our two elite national teams has been absolutely invaluable,” said Hockey Australia CEO, Matt Favier.

“Ausdrill has shown incredible loyalty and commitment in its alliance with Hockey Australia and particularly the Hockeyroos, and we look forward to continuing to build on the partnership and strong relationships that have been forged.”

The timing of the announcement comes at a fitting time with the Hockeyroos preparing for their Olympic Qualifying Series against Russia this Friday and Saturday.

Since the start of the partnership the Hockeyroos have risen from seventh to second in the world rankings.

“The Hockeyroos are one of the most successful national sporting teams in Australia and we are proud to be part of that and to extend our partnership with them, the Kookaburras and Hockey Australia for a further two years,” said Scott Winter Chief Executive Officer of Ausdrill.

“This partnership is about supporting the teams on the pitch to help them realise their Olympic dreams as well as supporting the players off the pitch through personal development opportunities.

“This is an exciting time for the team and we wish them all the best for the Olympic qualifier this coming Friday and for the duration of our partnership.”

Ten up as Ausdrill renews as Hockeyroos’ Naming Rights Partner • C3A8271
Matt Favier – CEO Hockey Australia, Scott Winter – CEO Ausdrill, Emily Chalker, Mark Norwell – Group Managing Director Perenti, and Paul Gaudoin – Hockeyroos Coach after Ausdrill renewed their sponsorship of the Hockeyroos at a function at the Perth Hockey Stadium today, Wednesday October 23, 2019
Ten up as Ausdrill renews as Hockeyroos’ Naming Rights Partner • C3A7965
Scott Winter – CEO Ausdrill, Mark Norwell – Group Managing Director Perenti, Matt Favier – CEO Hockey Australia, Tim Cherry – General Manager of Commercial Hockeyroos, with the Hockeyroos squad
Ten up as Ausdrill renews as Hockeyroos’ Naming Rights Partner • C3A8117
Scott Winter – CEO Ausdrill with Rachael Lynch, Georgia Wilson and Grace Stewart from the Hockeyroos team

Perenti delivers on transformational year, forecasts growth in FY20

Diversified mining services company Perenti Global Limited (Perenti) (ASX: PRN) has delivered a strong result, outperforming earnings guidance for the third consecutive year whilst successfully completing the acquisition of underground mining contractor Barminco that has transformed the business.

Perenti Managing Director and CEO Mark Norwell said the FY19 results demonstrated the scale of the Group’s transformation during the year.

“This strong result demonstrates our ability to continue to deliver for our clients in the year whilst ensuring we successfully integrated the Barminco business,” Mr Norwell said.

“We have evolved from an Australian drilling business into a global mining services company, with a workforce of more than 8,000 people working at more than 50 projects across four continents.

“We have used this transformational year to build on our proud heritage by establishing a new operating model and implementing the 2025 Group strategy, with our aspiration to become the indispensable mining services company.

“Our recent group rebrand to Perenti gives us a strong and identifiable brand in the market and a platform to grow our business in the future while the evolution of our tagline to Expect More supports our aspiration and purpose, underlining our commitment to deliver for all our stakeholders.

“With a strong balance sheet and an order book that has grown to $7.0 billion after securing $3.4 billion in new and extended contracts since 1 July 2018, Perenti is well positioned for growth in FY20.”

To view the full ASX release and Annual Report visit our Investor Centre.

Introducing the new name in mining services – Perenti

Ausdrill Limited is pleased to announce that the Ausdrill Group is adopting a new brand and identity, “Perenti“. “Perenti Global Limited” will be the trading name of the Group company and listed entity and will sit above the Industry Sector Groups (ISGs); Surface Mining, Underground Mining and Investments.

The Board considers the new name and brand better reflect the Group’s status as a diversified global mining services group and provides a strong platform that will support the Group’s strategic direction and future growth ambitions. 

The Group’s Managing Director Mark Norwell said the change represents a new chapter in the Group’s proud history and is a natural step given the evolution of the business. 

“Over the past year there has been transformational change within the Group. We have doubled our revenue through the acquisition of Barminco, developed a new strategy and implemented a new operating model to set a platform for future growth.

“We have evolved from an Australian drilling company into a global mining services company that has businesses in surface mining, underground mining and mining support services (our Investment ISG). We have offices and operations in four continents across 13 countries and we employ more than 8,000 people globally.”

Mr Norwell said having a strong, identifiable brand is a critical enabler of the Group’s growth strategy.

“As a group of businesses we are resilient and agile and have the ability to embrace change, a key aspect that is directly embedded in our company principles. We also pride ourselves on successfully operating in many challenging and remote locations the world over.

“This name change is more than cosmetic, it’s an important step in culturally binding our businesses together under a common identity and it supports our new aspiration, purpose and strategy we rolled out earlier in the year,” Mr Norwell said.

Existing customer facing brand names will be retained as they are well established in their respective markets. The Ausdrill name has a long and proud history and that name will be retained for the Group’s surface drilling operations in Australia. In addition, our other iconic brands such as Barminco, BTP, AMS and more, will continue to be used in their own right.

To support the new brand and direction the Group has also evolved its tagline from Bringing More to Mining, to Expect More, underlining a commitment to all its stakeholders. 

“For the Group to achieve our aspiration and deliver our purpose we have to constantly raise the bar in everything we do. Our stakeholders, whether they are customers, suppliers, employees or the communities we operate in, should Expect More from us,” he said.

For more information visit our investor page.

Group Managing Director Mark Norwell’s presentation at Diggers and Dealers 2019

Perenti Global was the only mining services company to be presenting at Diggers & Dealers 2019. The message from our Group Managing Director Mark Norwell at the mining forum was clear. The Group has undergone transitional change over the last 12 months, doubling our revenue, bolstering our leadership team and laying the foundation blocks for future growth. These are exciting times to be part of the Group.

AMS appointed preferred open pit mining contractor at Sanbrado

The Group is pleased to announce that its wholly owned subsidiary, African Mining Services (AMS), has been selected as the preferred open-pit mining contractor by West African Resources Limited (ASX: WAF) at the Sanbrado Gold Project in Burkina Faso.

The Sanbrado Gold Project is a low-cost, high-grade operation located only 90 kilometres from the country’s capital, Ouagadougou, and is the 14th commercial gold mine in Burkina Faso in 14 years.

The project economics are robust, with Sanbrado forecast to have average annual production of 217,000oz gold at All-In Sustaining Costs of less than US$600/oz in its first five years of mine life.

The AMS scope of work includes a full suite of open pit mining services – including site preparation, drill and blast, load and haul, and maintenance works – over a five year term, generating approximately AUD$235 million in revenue under a schedule of rates contract.

AMS anticipates it will employ approximately 190 personnel at the project, with the workforce to be predominantly local. AMS expects to use a mix of new and existing equipment to deliver on the project.

AMS and West African Resources are in the process of finalising the contract terms, which will include the provision of an optional deferred payment arrangement for up to US$10m at a commercial interest rate, with works expected to commence in early CY2020.

Perenti Managing Director, Mark Norwell, said:“A key focus for the group has been to enhance our surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries.

“Being selected as preferred contractor at the Sanbrado Gold Project is a significant achievement and represents the excellent progress we are making in building on the suite of quality projects on which AMS operates in the region.”

Ausdrill Surface CEO, Scott Winter, said: “The Group has been operating in Africa for almost 30 years and we will draw on our leading expertise in open pit contract mining to deliver on this exciting new gold project for West African Resources.”

West African Resources Managing Director, Richard Hyde, said: “Sanbrado is the highest margin gold project in construction in West Africa and we are on target for approximately 300,000 ounces of gold in the first 12 months of production. We look forward to partnering with AMS to bring this fully funded project into production in mid-2020.”