- Perenti (PRN) subsidiary African Mining Services (AMS) secures a $360 million contract for open pit mining services
- The contract is for the A4 open pit within the larger Motheo copper mine in Ghanzi, Botswana
- The mine is owned by ASX-listed company Sandfire Resources (SFR)
- The contract covers a term of 73 months
- PRN shares last traded at $1.06
Perenti (PRN) subsidiary African Mining Services (AMS) has secured a $360 million contract at the A4 open pit within the larger Motheo copper mine in Botswana.
The company will provide open-pit mining services at the mine, which is owned by Sandfire Resources (SFR), over a term of 73 months.
This project is expected to commence with pre-production and development work in September 2023, followed by pre-strip mining operations beginning in October 2023.
AMS will be responsible for delivering all surface mining services connected to the development and production activities at the A4 open pit.
The A4 open pit is located approximately 8 kilometres west of Sandfire Resources’ existing T3 open pit, where AMS has already demonstrated its capabilities by successfully transitioning from development to production works.
Both the T3 and A4 open pits will operate as an integrated mining operation.
This latest contract, in addition to Perenti’s current FY24 guidance, is expected to generate substantial revenue for the company, with a total projection exceeding $1.1 billion.
Perenti was last trading at $1.06.