Macmahon (ASX:MAH) has announced the extension of its mining services contract with AngloGold Ashanti Australia for an additional three years at the Boston Shaker underground mine, part of the Tropicana gold operation in Western Australia.
The contract extension will run until 1 May 2027, with an expected annual revenue of $117 million, contributing $352 million to Macmahon’s secured order book. During this period, Macmahon will primarily use its existing fleet to fulfil the contract requirements.
“We are delighted to have been awarded an extension at Boston Shaker where we have worked to build an excellent relationship with our client, focused on driving safety and performance outcomes,” said CEO and Managing Director Michael Finnegan.
Tropicana is a gold mine jointly owned by AngloGold (70%, and operator) and Regis Resources (30%), located 330 kilometers northeast of Kalgoorlie.
Since 2019, Macmahon has been providing underground mining services to AngloGold at Boston Shaker, covering mine development, production drilling, cable bolting, and ore stoping.
“The contract extension award is a critical step toward growing the underground portfolio by 50% over the next two to three years,” Michael Finnegan said.
“With capital already deployed in the project and no new growth capital required, we expect the extension to enhance our ROACE performance – where we recently increased our target from 15% to 20%.”
MAH last traded at 24 cents.