- Macmahon (MAH) has secured a $220 million contract with Silver Lake Resources (SLR) for mining works at the Deflector underground mine
- The gold and copper site in WA was previously mined by Macmahon’s subsidiary GBF, until it was acquired by MAH in 2019
- The new contract will run until April 2025 and incorporates all underground development, ground support and production activities
- Macmahon is up 10.2 per cent trading at 27 cents per share, while Silver Lake Resources is down 0.95 per cent, trading at $1.57
The underground mining division of Macmahon (MAH) has been awarded a four-year contract with Silver Lake Resources (SLR) to perform the mining works at the Deflector gold and copper mine in WA.
A subsidiary of Macmahon, GBF, has been providing underground mining services at the Deflector mine since early 2016 when mining first began at the site. Macmahon acquired GBF in 2019, allowing Macmahon to expand its underground mining services market.
The new contract with Silver Lake will run until April 2025 and is expected to generate around $220 million in revenue for the company.
The new contract incorporates all underground development, ground support and production activities, including all labour and mobile mining equipment.
“This new contract is an important milestone in our strategy to expand our underground business and is a clear demonstration of the benefits we are now realising from the GBF acquisition,” said Macmahon CEO and Managing Director, Michael Finnegan.
“Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market”.
Macmahon Holdings is up 10.2 per cent trading at 27 cents per share, while Silver Lake Resources is down 0.95 per cent, trading at $1.57 at 10:57 am AEDT.