Perenti divests MinAnalytical to ALS Limited


Perenti has announced the divestment of its MinAnalytical subsidiary to ALS Limited for $43.6 million.

Mark Norwell, Managing Director and CEO of Perenti said, “The divestment is part of the ongoing strategic review of the Company’s portfolio, including our services, operating regions and businesses. As we continue to focus on optimising the performance of our business and creating long-term sustainable value for our shareholders, we are pleased to have entered into a binding agreement for the divestment of our MinAnalytical business to ALS.”

“ALS is a premier provider of analytical testing data world-wide and has a track record of acquiring and embedding complementary businesses and analytical technology to deliver value for their clients. MinAnalytical, and the significant new technology offering of the Chrysos PhotonAssay machines, is a natural fit for the ALS portfolio and will benefit greatly from the synergies and economies of scale that ALS can offer.”

“Following the transaction, Perenti will retain our 8% equity holding in Chrysos because we, much like ALS, appreciate the significant current and future value proposition that the Chrysos business represents.”

He added, “In line with our significant focus on liquidity and capital management, the net proceeds of this transaction will be allocated across our portfolio to maximise shareholder value. We will continue to evaluate and progress a number of capital management initiatives designed to generate cash flow, streamline our portfolio, liberate cash, sustainably reduce our leverage ratio and efficiently allocate capital across our business.”

“On behalf of the Group Executive and Perenti Board, I want to thank the MinAnalytical team for their valuable contribution over the past 11 years and wish them every success as they transition to ALS.”

Read the full ASX release here.

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 launches idoba – our technology driven service offering

Perenti has launched idoba, a new technology-driven service offering for the mining industry, that leverages in-house technology and data expertise to add value to our global mining services activities.  

Mark Norwell, Managing Director and CEO of Perenti, said: “When looking to the future of the mining industry, it is evident that innovation and technology will play a much greater role in the way we do business and ultimately how we continue to generate value for all our stakeholders. 

“With this in mind, it is with great pleasure that we launch idoba, our new technology driven service offering which will enable tomorrow by allowing us to respond to our clients’ evolving needs both today and into the future. 

“I am also pleased to announce the appointment of Sarah Coleman as Chief Executive Officer, idoba.  Sarah has significant mining experience and a passion for driving improvements through innovation to create value.” 

idoba is a name that was co-created using human and artificial intelligence input, which connected the Greek word eidos meaning “essence” and the Japanese term “ba”, meaning knowledge mobilising space.  

The idoba team was formed by combining businesses that Perenti acquired over the last 12 months, Sandpit Innovation, ImpRes and Optika. The founders of these businesses, Sarah Coleman, Aaron Carter and Matt Schneider and their teams are passionate, talented and diverse – with a high proportion of female, multicultural and neurodiverse individuals. Their collective experience comes from global mining companies, digital product commercialisation, data analytics and sustainability.    

idoba is the culmination of Perenti’s strategic technological growth which, in addition to supporting the Perenti business, will provide digital product and technology service offerings to mining and mining service clients with revenue and earnings generated from these services.  

Apart from contributing to Perenti’s revenue and earnings growth in the medium term, we expect to leverage the innovation and technological skill sets of the idoba team to unlock productivity improvements across our current suite of service offerings.  

Ultimately and in time, these efforts will reduce risk, increase productivity, and drive performance for Perenti as well as creating new capabilities for idoba to offer to the broader resources sector.   

This is an exciting time for our business as we welcome idoba to Perenti. 

Perenti secures new surface mining contract at Iduapriem gold mine in Ghana

Perenti is pleased to announce that AMAX, a joint venture between Perenti’s surface mining business in Africa, African Mining Services and leading Ghanaian mining services company, MAXMASS has been awarded a new $470 million five-year contract at AngloGold Ashanti’s Iduapriem gold mine in the Western Region of Ghana.

The new contract is structured as a 60:40 joint venture agreement between AMS and MAXMASS and represents AMS’s significant and ongoing commitment to developing and expanding the capacity and capability of our local partners.

Mark Norwell, Managing Director and CEO of Perenti, said the continued transformation of AMS, including the winning of quality projects underpinned by robust financial and commercial disciplines remains a key strategic initiative in Perenti’s 2025 Group Strategy.

“We’re delighted to be extending our relationship with our long-standing client, AngloGold Ashanti. AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation. We look forward to continuing to partner with AngloGold Ashanti.”

Perenti Mining Chief Executive Officer, Paul Muller, said AMS had a long history of delivering operational excellence and value to clients, having provided mining services in Ghana for 30 years.

“We have provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti. We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate. Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contractors to our operations under previous contracts. The joint venture also expects to employ more than 475 Ghanaians with approximately 40% of the workforce employed from the surrounding local communities and the remaining 60% from other regions within Ghana.”

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 Managing Director and CEO Mark Norwell addresses delegates at ADU2020 and talks about the Group’s 30-year African journey

 

Perenti Managing Director and CEO Mark Norwell presented on day one of the African Down Under 2020 conference at the Pan Pacific Hotel in Perth. Mr Norwell talked about Perenti’s 30-year journey in Africa through its businesses AMS, Barminco, AUMS, Supply Direct and Logistics Direct, and how strong relationships with stakeholders have underpinned the Group’s success in the region over three decades. A key theme in the presentation was community engagement and the Group’s strong track record of training African citizens and sharing skills and knowledge to leave a lasting legacy of education and economic benefit in the communities that we have become a part of. Finally, Mr Norwell touched on the Group’s response to COVID-19 and the extraordinary logistical efforts that the team has gone to in keeping its people safe and sustaining international and regional crew change activities that have enabled operational continuity for Perenti’s clients in Africa.

To watch the video click here.

To view the full presentation 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.”