Perenti secures contract extensions worth $420m

Versatile mining company Perenti announced on Thursday it had gained an additional $420 million in contract extensions, building on its recent underground mining business revenue gains. 

The announcement comes on the back of Perenti increasing its 2024 financial year guidance in October last year, from $2.8-3 billion in revenue to $3.3-3.4 billion, following the successful accqusition of Perth-based company DDH1 Drilling. 

Perenti's latest contract extensions include a 12-month deal worth approximately $180 million for work at AngloGold Ashanti's Obuasi underground gold mine in Ghana, and a year-long $125 million commitment to continue underground production and development at the Agnew underground gold mine, owned by South African company Gold Fields, which is located 375km north of Kalgoorlie.

Additionally, Perenti scored a two-year deal worth $115 million to faciliate existing underground development and production work at the Burkina Faso-based Yaramoko underground gold mine, which is owned by Canadian gold miner Roxgold. 

Perenti's contract mining president Gabrielle Iwanow said fostering key relationships had played a big part in the revenue generation. 

“In my first few weeks at Perenti, I have been very impressed with the team’s technical capability and the operational performance that they deliver to our clients," Ms Iwanow said.

"I believe that it is these factors that underpin the strength and depth of our relationships.

“With these contract awards combined with those previously announced, namely $360 million related to the Sandfire Resources A4 project in Botswana and a further $111 million related to three Australian surface and underground contract awards, the team has secured nearly $900 million of revenue for the business.

"I am very proud to be leading and supporting the contract mining team as we collectively work towards delivering our 2025 strategic objectives.”

Shares in the Perth-based company were up 3 per cent following the news, trading at 93 cents per share, as of 2.47pm AEST.