Perenti posts strong finish to FY22 and well positioned for further earnings growth in FY23

Perenti has delivered strong FY22 financial and operational results, headlined by a significant step-up in 2H22 earnings, and continued improvement in leverage.

Mark Norwell, Managing Director and CEO of Perenti, said: “Our strategic focus on maximising cashflow generation from our activities, effectively managing capital and driving operational performance, combined with the professionalism, dedication and resilience of our people, has enabled Perenti to deliver solid financial results for FY22, with a strong second half.

“Our 9,000 employees continue to show dedication, passion and resilience, collectively contributing to our improving performance. On behalf of the Board and Group Executive Committee, I thank them for everything they have done in what remains a challenging environment.

“We have continued to re-shape our business and are positioned to create a blended portfolio of complementary services through three operating divisions. This portfolio will be underpinned by our Contract Mining Division, which remains our core business and is the source of our major growth projects with globally recognised and respected brands.

“Our portfolio also includes the divisions of Mining Services and idoba, which will both support our contract mining activities as well as provide strong medium and long-term growth opportunities in new and future facing services, with lower capital intensity.

“Combined with a streamlined corporate centre, Perenti is positioned to deliver a step-up in cash backed profits in FY23, with further improvements expected to drive earnings growth through to FY25 and beyond.”

For more information on Perenti’s FY22 Full Year Results visit our Investor Centre.

Perenti announces strategic investment in idoba by Sumitomo Corporation

Perenti is pleased to announce it has successfully executed a share sale agreement in relation to a strategic investment by Sumitomo Corporation (Sumitomo) in idoba, Perenti’s technology informed services business. The transaction further strengthens Sumitomo’s commitment to the idoba business, following the Memorandum of Understanding announced in February 2022.

Under the Agreement, Sumitomo will acquire 10% of the issued shares in idoba for a total of $5.4 million. This implies a current idoba Equity Value of $54.0 million and Enterprise Value of $80.0 million reflecting the unique value proposition of the idoba ecosystem, and the significant embedded growth potential within both its consulting services and suite of Software as a Service products.

Mark Norwell, Managing Director and Chief Executive Officer of Perenti, said that the strategic investment in idoba by a world class counterparty is in recognition of the embedded value of idoba within Perenti, and the substantial growth opportunity that the business represents.

More information on the agreement can be found in our Investor Centre.

Perenti secures additional ~$520 million of Australian revenue with new Cowal Underground contract

 

Perenti is pleased to announce that its Barminco underground mining business has been awarded the contract for all underground development and production works for Evolution Mining’s Cowal Underground project in New South Wales.

Barminco, a leading global underground mining services business, with operations in Australia, Africa and North America, is currently developing an exploration decline and conducting diamond drilling services at Cowal. The award of this new contract significantly expands Barminco’s scope at the site to include the development of a second portal, all underground development and production works, and associated underground mining services required to support the continued mill feed of underground ore.

Mark Norwell, Managing Director and CEO of Perenti said the award of the Cowal contract aligns with Perenti’s strategy of increasing its earnings in top-tier regions and with top-tier clients.

“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022,” Mr Norwell said.

“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.”

Mining Chief Executive Officer, Paul Muller said, “Our purpose is to create enduring value and certainty for our clients, our people, our shareholders and the communities in which we work. At Cowal we will prioritise local and indigenous training and employment and local procurement opportunities while maintaining a transparent and consistent approach to community and indigenous engagement. We look forward to working with Evolution to develop a safe, sustainable, highly-productive world class operation in New South Wales.”

To read the ASX release visit the ASX announcements section of our website.

Perenti delivers solid results in-line with expectations

Perenti has delivered solid financial and operational results for the six months ended 31 December 2021 that reflect significant revenue growth despite the continued COVID-19 challenges, while progressing the ramp-up of several growth projects and taking proactive portfolio and capital management measures to generate cash and support sustainable leverage reduction.

Mark Norwell, Managing Director and CEO of Perenti, said: “We are pleased with the overall performance of the Group over the last six months. The business has delivered solid consolidated results that show an improvement on the prior half and are consistent with guidance despite the continuation, and in some cases worsening, of macro-economic and operating conditions.

“Labour has remained tight, supply chains have continued to see disruptions, and the impacts of COVID-19 have arguably worsened both domestically and internationally. Yet despite this, our people have remained resilient which is absolutely appreciated by all of our Executives and the Board.

“Impressively, we welcomed almost 1,000 additional employees into the business, we continued to see improvements in our AMS business reflecting the positive outcomes of our recent strategic review and remained focused on delivering on our commitments while creating enduring value for all stakeholders.

“Looking ahead to the remainder of FY22, we expect the current macro-economic landscape to persist until the end of FY22 but remain confident in Perenti’s ability to continue to deliver on our commitments to our employees, our clients, our suppliers and our shareholders.”

To the full Perenti 1H22 Results media release.   

Pedestrian Safety the Focus of Underground Mine Technology Partnership

Perenti’s Barminco, Newtrax and Sandvik are partnering to develop a new technology-led solution that improves the safety of pedestrians working near heavy vehicles (HVs) underground.

Between 2008 and 2018, there were 12 fatalities that involved HVs in the underground mining industry in Western Australia. Seven of those deaths were pedestrians.

This statistic is a reminder that these mining machines – that weigh a minimum of 4.5 tonnes and operate in areas of poor visibility – are a significant risk factor for people who work in close proximity to them in an underground environment.

As one of the world’s leading underground mining contractors, Barminco currently operates 25 projects in seven countries and employs more than 5,600 people. Almost all of these employees will be exposed to a working HV during their career. In fact, every hour of every day of the year, there are approximately 2,000 Barminco employees working underground interacting with heavy vehicles.

Barminco’s scale and underground mining expertise, combined with Newtrax’s leading-edge capability to develop collision avoidance systems and the high penetration of Sandvik HVs featuring advanced controls, means this partnership is uniquely positioned to understand how people and equipment interact in underground mines.

Newtrax has developed a collision avoidance system that links “intelligent” cap lamps to the warning system inside the cab of an underground HV. The system provides the vehicle operator with virtual visibility of any pedestrians in the immediate area of their vehicle, along with an escalated warning system to both the pedestrian and operator as the distance between them reduces. This escalation transitions from warning to vehicle intervention, where the HV automatically reduces speed and comes to a controlled stop, when the system senses any pedestrian wearing an intelligent cap lamp in the high-risk zone.

Under the partnership, Newtrax will deploy its next-generation Level 9 Collision Avoidance System across Barminco’s Sandvik fleet, including the supply of intelligent cap lamps with advanced electronic safety features to Barminco’s underground mines. The technology is due to undergo initial testing at one of Barminco’s underground sites in January 2022.

Paul Muller, Perenti Chief Executive Officer, Mining, said the focus of the project was twofold – the safety of its people and the sustainable adoption of the technology industry-wide. 

“The exposure of pedestrians to heavy vehicles underground is a significant risk not just for us, but for everyone involved in the underground mining industry,” Mr Muller said.

“The combination of Newtrax’s technology, our underground operating experience and Sandvik’s role in supplying heavy mining vehicles can put us in a position to offer the entire industry a smart solution to a complex problem.”

Simon Waghorn, Newtrax Regional Vice President – APAC, said the collaboration with Barminco would provide the partners with real-world experience that would help optimise the system as it develops.

“Although the Newtrax Collision Avoidance System is the best available system on the market, many more enhancements are required to accelerate adoption,” Waghorn said. “This partnership with Barminco, a world-class underground hard rock mining contractor, will enable collaborative product development which will result in an even better product for the industry.”

“Barminco is a very important customer for Sandvik and we are pleased to take on the challenge to develop and deliver the industry-leading intervention controllers, to enable slow-to-stop control of the equipment in Barminco’s fleet,” said Wayne Scrivens, Vice President – Sales Area APAC, Sandvik Mining and Rock Solutions.

Perenti delivers solid FY2021 Results: proactively managing headwinds and positioning for growth

Perenti has delivered an FY21 result consistent with its revised expectations, achieving solid operational performance and growth from its Underground Mining business and an improved second half performance from its Surface Mining business.

This solid result was delivered in a year where the Company’s financial performance was impacted by headwinds including the ongoing impacts of the COVID-19 pandemic on our international operations, tighter Australian labour market and a strengthening Australian dollar.

Perenti continues to invest in our people, systems and mining equipment to build strong foundations and support the ramp-up of the Company’s key growth projects in FY22 to deliver business growth in FY23 and beyond.

Mark Norwell, Managing Director and CEO of Perenti, said: “Firstly, I want to recognise our people, who provided high quality mining services to our clients with a focus on continuity of operations to deliver enduring value and certainty.

“Our Underground business continued to be a standout performer, delivering a third consecutive year of earnings growth with a strong FY21 contribution. Impressively, this growth has been delivered in a year where we saw the slower than anticipated ramp up at several recently secured international projects due to the prolonged, and ever-changing, nature of the COVID-19 pandemic.

“As expected, due to the planned contraction of our Surface Mining business following our strategic transition out of Yanfolila and Boungou, FY21 revenue, EBIT(A) and margins were softer than FY20. Pleasingly during the second half of FY21, earnings and margins generated by the Surface business more than doubled compared to the first half.

This tangible and sustainable improvement in performance is attributable to the implementation of the findings of the AMS Strategic Review and continued solid performance from our Australian business. We are in a good position to move our AMS business forward and are encouraged by securing the Motheo and Iduapriem contracts, both of which are examples of the quality of contracts that AMS will pursue.”

“The Investments business navigated difficult conditions during FY21 with softer east coast equipment rental market conditions impacting revenue and earnings. In response, we revitalised the leadership team and have increased our market activities including the implementation of a more targeted sales strategy, which has increased asset utilisation rates by 5 per cent since December 2020.

“We continue to look to the future. Throughout FY21 we made prudent investments in our people and systems, while managing our balance sheet to ensure we are well positioned to fund our 2025 strategic growth aspirations. An integral part of this strategic growth is our technology driven service offering, idoba, launched in July. Through idoba we plan to improve our competitive advantage by developing a unique capability in emerging digital mining, technology and innovation.”

You can read the full ASX Release here.

Perenti secures new A$235 million contract at the Geita Complex

Perenti is pleased to announce that its subsidiary, leading African hard-rock underground miner, African Underground Mining Services, has secured a new two year contract to continue operations at AngloGold Ashanti’s Geita Mine in Tanzania. The two-year contract will take effect immediately and increases Perenti’s current work in hand by circa A$235 million (Perenti’s sharei).

Mark Norwell, Managing Director and CEO of Perenti said, “We are very pleased to be continuing our strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine.

“This contract extension includes the addition of Geita Hill, a new underground development within the Geita Complex, which will see a steady increase in our scope of works as the development ramps up from a single heading decline into multiple work areas and then into production later in 2021.”

“This contract extension is expected to generate an improved earnings contribution for Perenti over the contract term. Winning new contracts and extending existing contracts is one of our key strategic priorities and we continue to make great progress on the execution and delivery of our 2025 strategy.”

Perenti’s Mining Chief Executive Officer Paul Muller said “Perenti first started operating in Tanzania in the late 1990’s and the award of the contract extension at the Geita mine provides us with a fantastic opportunity to continue to partner with, and support our numerous local businesses, suppliers and contractors. We look forward to expanding on these relationships as we seek to create enduring value and certainty for all of our stakeholders.”

For more information click here.

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.”