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.”

Barminco secures five year A$800 million contract in Botswana

Diversified mining services company Perenti Global Limited (ASX: PRN) is pleased to announce its subsidiary, leading hard-rock underground miner Barminco, has been awarded a 5-year underground mining services contract at the Zone 5 Mine in Botswana from Khoemacau Copper Mining (Pty) Limited (Khoemacau) worth approximately A$800 million.

Perenti Managing Director Mark Norwell said: “We are very pleased to have been awarded this significant contract in Botswana, a highly desirable country to do business in Africa. This contract award is further endorsement of our acquisition of Barminco and its strong contribution to our international growth strategy.”

Khoemacau’s Zone 5 operation is a new, large and long-life mine development project located in the highly-prospective Kalahari copper belt in Botswana. Barminco’s scope of services includes mine development, establishment of underground mine infrastructure, diamond drilling and mine production at an initial rate of 3.6 million tonnes per annum of copper ore with multiple expansion opportunities.

Barminco will commence mining services in December 2019. In awarding the contract, Cupric Canyon Capital and Khoemacau Chief Executive Officer Johan Ferreira said: “We are delighted to partner with Barminco at Zone 5 to create a safe, largescale, highly productive and fully mechanised mine, delivering high quality employment and sustainable skills development and employment outcomes for Botswana citizens.”

Barminco Chief Executive Officer Paul Muller said: “In addition to excellent safety, quality and productivity outcomes at Zone 5, success will also be measured by the creation of a highly skilled local workforce through effective training, skills transfer and leading technology programs.”

BTP secures 3-year contract extension with Peabody Energy

Diversified mining services company Perenti Global Limited (ASX: PRN) is pleased to announce its earthmoving parts and equipment subsidiary, BTP, has been awarded a three-year extension worth $126 million to its existing contract with Peabody Australia. Under the extension BTP will continue to rent mining and ancillary equipment to Peabody’s coal mines located in the Hunter Valley and Bowen Basin.

BTP has been working as a key partner with Peabody since April 2015. This three-year contract extension is effective from 1 April 2019, with Peabody having an option to extend this by a further two years.

Perenti Managing Director, Mark Norwell, said: “We are delighted to have been awarded this contract extension and look forward to continuing to provide equipment and related services to Peabody, building on the strong relationship BTP has formed with Peabody over a number of years.” Peabody (NYSE: BTU) is the leading global pure-play coal company and a member of the Fortune 500, serving power and steel customers in more than 25 countries on six continents.