Barminco wins $393m contract

Perenti's underground mining business Barminco has won a three-year $393 million contract with gold producer Regis Resources. 

As part of the rolling contract, which can be extended annually, Barminco will provide a range of mining services - including underground development and production works - at Regis' Duketon gold project, located in Western Australia's Goldfields region.

“We're very pleased to continue our partnership with Regis Resources at the Duketon Operations where Barminco has been providing value to our client through both development and production works since February 2019," Perenti's managing director Mark Norwell said.

"This award adds Australian based underground earnings to our portfolio, which is aligned with the ongoing delivery of our strategy.”

ASX-listed Regis, which has interests in both Western Australia and Africa, told the market on March 18 that its overall production for the March 2024 quarter in WA had been impacted by heavy rain, however said its annual production guidance target of 415,000-455,000 ounces for the 2024 financial year would remain unchanged. 

Subiaco-based Regis posted a net loss after tax of $92 million up until December 31 2023, which climbed from a $30 million loss during the prior corresponding period, primarily due to a hedge delivery cost of $81 million coupled with final hedge book close-out costs of $98 million. 

During its recently released half year report for the 2024 financial year, Perenti said both its overall revenue growth and earnings before interest and tax had risen significantly since it acquired Barminco in 2018.