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.

Perenti Surface Business secures more than $150 million in work

Perenti Surface Business secures more than $150 million in work • PROJECTS PEOPLE 7

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

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.

Ausdrill has been awarded $79m in new contracts for a range of exploration and production drill & blast works

We’re pleased to announce that we’ve recently been awarded $79m in new contracts for a range of exploration and production drill & blast works both in Queensland and Western Australia.

The projects are across multiple commodities and for both new and existing clients, reflecting our diverse capabilities and our focus on delivering value and certainty to our customers.

Ausdrill continues to provide our clients with safe, productive and quality drilling outcomes with our innovative range of custom-built drill rigs.

Our two new CAT MD6310 drill rigs are already up and running at the Middlemount project in Queensland, with another few diamond rigs making its way to Queensland later this month as the team and fleet numbers grow in the region. The team is excited to have new equipment to operate, whilst delivering a full turnkey drill and blast contract for our client.

If you’re interested in working in one of these new projects or more generally for a leading mining contractor, visit our careers page at www.ausdrill.com.au/working-with-us

Ausdrill has been awarded $79m in new contracts for a range of exploration and production drill & blast works • Ausdrill Middlemount Project January 2020
Middlemount Project, Queensland

Barminco successfully pilots Remote Operations Centre – BROC

Leading underground mining services provider Barminco, a subsidiary of Perenti, has successfully piloted a new operations centre that allows it to remotely operate underground equipment on a client’s mine site anywhere around the world.

In what the company believes is a world first, Barminco operated a machine, working underground, from its head office in Perth at a client mine site in the Goldfields. 

The innovation was made more impressive given the remote operation occurred via the internet, instead of through a fibre-optic cable, which is the method that mine owner-operators have historically used.

Barminco successfully pilots Remote Operations Centre – BROC • Operating remotely from Perth
Operating remotely from Perth

Barminco Chief Executive Officer Paul Muller announced the momentous achievement at the third annual Sandvik Digitalization in Mining Event in Brisbane.

“Barminco has cemented its place as one of the world’s leading underground mining service providers through the use of technology and automation,” Mr Muller said.

“A key strategic initiative under our parent company, Perenti’s, 2025 strategy is to deliver a ‘technology driven future’, and our ability to remotely operate underground machinery from our head office is a significant achievement in delivering on that strategy.”

The Barminco Remote Operating Centre or BROC was successfully trialled in collaboration with Sandvik and Independence Group NL (IGO) back in July of this year.

The new system was trialled in the early morning at Barminco’s Head Office in Hazlemere (Perth, Western Australia) for a machine located at IGO’s Nova Minesite, almost 1000 kilometres away.

Barminco successfully pilots Remote Operations Centre – BROC • Map PerthToNova Distance
Map Perth to Nova – Distance
Barminco successfully pilots Remote Operations Centre – BROC • Remote operations onsite at Nova 1
Remote operations onsite at Nova

Barminco General Manager Technology and Innovation Darren Kwok said the trial was a great success.

“Whilst many mine sites have operators remotely operating equipment from the mine’s surface, we are one of the first, if not the first service provider, to operate underground equipment on a client’s site from a much greater distance,” Mr Kwok said.

“BROC enables us to connect multiple sites and operators at the same time, meaning if there is an issue at any point, we have contingencies in place.”

Barminco successfully pilots Remote Operations Centre – BROC • Barminco Remote Loader Operator
Barminco Remote Loader Operator

Barminco’s first trial involved the remote operation of a Sandvik LH517 loader being operated in Perth by Barminco employee, Guy Gilbert and Mr Kwok said Barminco was now working with IGO to make BROC a permanent fixture at their Nova mine site.

“The advantages in improving the safety of our workplace and the efficiencies for our clients are enormous,” Mr Kwok said.

Barminco successfully pilots Remote Operations Centre – BROC • Surface Remote Operations at Nova
Surface Remote Operations at Nova

Independence Group Chief Operating Officer Matt Dusci said the Company was thrilled to be part of the successful trial.

“At IGO, we continually look for ways to improve how we do business and deliver operational excellence. By integrating innovative SMART solutions at our operations, such as working with Barminco on BROC, we improve the safety and wellbeing of our people, realise step change opportunities, and optimise efficiencies and productivity,” Mr Dusci said.

“Our future plan is to have a dedicated remote operating centre manned 24/7 where our team and our client’s people can work collaboratively side by side to deliver a world class mine-site,” Mr Kwok said.

“Clients who work with Barminco should expect more from our business along with the broader Perenti group of companies and BROC is one such example of how we are delivering on this promise.”

Barminco successfully pilots Remote Operations Centre – BROC • Underground remote set up at Nova
Underground remote set-up at Nova

The Sandvik event concludes tomorrow and showcases best practice examples of industry leaders integrating digitalization into their operations across the mining, construction and quarrying industries.

The announcement comes just over a week after Barminco was awarded Large Employer of the Year 2019 at the National Australian Training Awards in Brisbane.

The award acknowledges a company which is focused on upskilling and advancing its employees and we were recognised for our leading focus on ensuring our employees are the best they can be.

Barminco named ‘Australia’s Large Employer of the Year 2019’ at the Australian Training Awards

Barminco named 'Australia’s Large Employer of the Year 2019’ at the Australian Training Awards • L Brian Finlay Group Mgr Training and R Patrick Bourke GM Safety and People accepting the... 1
Brian Finlay, Group Mgr Training and Patrick Bourke, GM Safety and People accepting the award

Perenti company Barminco was named ‘Australia’s Large Employer of the Year 2019’ at the National Australian Training Awards in Brisbane. This award recognises a company which is focused on upskilling employees.

Barminco Chief Executive Officer Paul Muller said it was an honour to be recognised.

“Our vision is to be the world’s leading hard rock underground mining service provider, and our people are at the core of that vision”.

“We are aiming to significantly increase the size of our business in the next five years in what is a highly competitive labour market and our focus is firmly on training and our integrated people strategy.”

“It is wonderful to be recognised nationally for our work in this area”, Mr Muller said.

Barminco was established in Coolgardie 30 years ago with just 30 employees and today has 3,900 employees across 22 projects in 8 countries and 4 continents.

Key elements of Barminco’s training strategy are the Barminco Training Centres, the first of which has just opened in its Hazelmere head office in Western Australia, with a second facility being replicated on a larger scale in Botswana that is due to open shortly.

“These unique facilities replicate what it is like to be underground. There is a focus on operational skills and they utilise technology to offer customised virtual reality scenarios for all the different underground jobs”, said Barminco’s General Manager, Safety and People, Patrick Bourke. 

“This is a game-changer for us as it ensures new employees go to site with a much better understanding of the underground environment so they are safer and can operate more efficiently.”

“Barminco’s focus on training people extends to several other programs, including its successful apprenticeship program that has been running for more than 20 years and its unique leadership program designed to provide career progression for employees, a key retention tool to develop and progress staff into management roles.”

Mr Bourke said Barminco’s rapid growth was down to the people the Company employed and therefore investment in their training was essential.

“We are extremely proud of our innovative training programs and it has made an enormous difference to our business.”

Barminco was one of three named finalists for the 2019 Australian Training Award – Large Employer of the Year, following a win for the same category at the WA Awards in September.

Barminco named 'Australia’s Large Employer of the Year 2019’ at the Australian Training Awards • Barminco has sucessfully operated apprentiship programs for more than 20 years
Barminco has sucessfully operated apprentiship programs for more than 20 years
Barminco named 'Australia’s Large Employer of the Year 2019’ at the Australian Training Awards • The new Barminco Training Centre replicates the underground environment and provides an authent...
The new Barminco Training Centre replicates the underground environment and provides an authentic training experience
Barminco named 'Australia’s Large Employer of the Year 2019’ at the Australian Training Awards • Virtual Reality blended for effect
Virtual Reality – blended for effect

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