- Supply chain solutions provider MLG OZ (MLG) is awarded an integrated haulage contract with gold producer Red 5 (RED) to service its new King of the Hills (KOTH) processing facility in the Eastern Goldfields of WA
- The ore from Red 5’s Darlot and Greater Western mines is expected to be processed through the KOTH mill from the June quarter
- The contract is for an initial term of two years with a further one-year extension option at the discretion of Red 5
- The contract is expected to increase annual revenue with Red 5 from approximately $10 million per annum to $20 million per annum
- Shares in MLG were trading 2.73 per cent higher at 28.3 cents by the end of the day
Supply chain solutions provider MLG OZ (MLG) has been awarded an integrated haulage and road maintenance contract with gold producer Red 5 (RED) to service its new King of the Hills (KOTH) processing facility in the Eastern Goldfields of Western Australia.
The new KOTH mill is a low-cost conventional 4 million tonnes per annum (Mtpa) processing plant central to Red 5’s hub strategy to facilitate the processing of ore from multiple regional sources.
This regional strategy aligns very strongly with MLG’s existing Goldfields network.
The ore from Red 5’s Darlot and Greater Western mines is expected to be processed through the KOTH mill from the June quarter.
The contract is for an initial term of two years with a further one-year extension option at the discretion of Red 5.
The contract is expected to increase annual revenue with Red 5 from approximately $10 million per annum to $20 million per annum.
MLG Founder and Managing Director Mr Murray Leahy said the company is pleased to be given the opportunity to continue to support and grow with Red 5, which has been a long-standing customer of MLG.
“The KOTH project and Darlot expansion are very exciting opportunities for Red 5 and we look forward to supporting the company in developing its regional hub,” he said.
Shares in MLG were trading 2.73 per cent higher at 28.3 cents by the end of the day.