- Perenti (PRN) has been awarded a four-year contract extension for surface mining activities at Resolute Mining’s (RSG) Mako gold mine in Senegal
- The contract is valued at approximately US$185 million (A$275 million) and commences on January 1, 2023
- Perenti says in line with its capital management policy, it will optimise the management of the existing fleet and equipment at the project
- The extension does not have a material impact on the company’s FY23 guidance, the company says
- Shares in Perenti are up 0.39 per cent to $1.30 at 1:19 pm AEDT
Perenti (PRN) has been awarded a four-year, US$185 million (A$275 million) contract extension to continue providing surface mining services at Resolute Mining’s (RSG) Mako gold mine in Senegal.
The extension, which was signed through Perenti subsidiary African Mining Services (AMS) and takes effect on January 1, 2023, includes updated commercial conditions.
Perenti said in line with its capital management policy, it would optimise the management of the existing fleet and equipment at the project, which is forecast to have a low capital expenditure requirement and generate “sustainable returns”.
“The Mako project has been a part of the AMS portfolio for several years and we are pleased that our strong operational performance and relationship with Resolute Mining, have allowed us to execute this contract extension, which supports our 2025 Strategy,” Perenti Managing Director and CEO Mark Norwell said.
“We are confident that our dedicated, predominantly-local workforce will continue to deliver value for our client.”
The extension of the Mako contract does not have a material impact on Perenti’s FY23 guidance.
Through AMS, the company has provided surface mining activities at the Mako mine since 2017.
Shares in Perenti were up 0.39 per cent to $1.30 at 1:19 pm AEDT.