Macmahon chosen to develop Awak Mas gold project years after Nusanatra

Macmahon Holdings (ASX:MAH) has been selected to lead development at the Indonesian Awak Mas Gold Project in South Sulawesi, a decision made by Indika Energy.

The A$463M project will now see Macmahon assets on-site to oversee drilling, hauling, and development of the open-cut mine play based on acreage first identified for prospectivity back in the 1980s.

The project will not touch Macmahon’s FY25 spend projections, with a $230M CapEx expectation already including the Awak Mas project in its pricing.

Earnings through the fiscal are expected to hit $160 million to $175 million.

Based on a seven-year contract, the company is set to kick off works on-site in 1H CY25; equipment will be deployed from the existing fleet.

“This project will add to our secured work in hand and we are pleased to have negotiated a low capital solution utilising existing fleet and variable leases,” Macmahon CEO Michael Finnegan said.

“I would like to thank the Macmahon team who have worked closely with PT MDA over the last 12 months to build a strong relationship which I am confident we will continue to build on.”

The Awak Mas project boasts 26.9Mt of reserves for 100Koz gold per year. Deposits “contain low amounts of fine-grained disseminated sulphide.”

Now de-listed former ASX constituent Nusanatra Resources had at one stage been the head developer of Awak Mas but COVID-19-era difficulties ended up slamming the company, prompting it to update a definitive feas in ’21.

MAH last traded at 33cps.

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