- Perenti Global (PRN) subsidiary Barminco receives a contract for all the underground development and production works for Evolution Mining’s (EVN) Cowal project in NSW
- The contract will significantly expand Bariminco’s scope at Cowal to include the underground mining services required to support the continued mill feed of ore
- The Cowal project is expected to produce between 230,000 to 250,000 ounces of gold in FY22 and it has a permitted mine life until 2040
- Perenti CEO and Managing Director Mark Norwell says today’s Barminco contract will generate nearly $520 million in revenue, with an initial term of four years
- Perenti is up 14.7 per cent with shares trading at 80 cents at 12:53 pm AEST
Perenti Global’s (PRN) Barminco underground mining services business has won a contract for all the underground development of Evolution Mining’s (EVN) Cowal project in New South Wales.
Barminco is already conducting some exploration work at the project, but this contract will “significantly” expand its scope at Cowal to include underground development and production works as well as the associated mining services required to support the continued mill feed of underground ore.
Perenti said the contract would deliver around $520 million in revenue, with an initial term of four years.
CEO and Managing Director Mark Norwell said this contract aligned with Perenti’s strategy of increasing its earnings in top-tier regions with top-tier clients.
“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022,” he said.
“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.”
The Cowal project lies 350 kilometres west of Sydney and has a mineral resource of 138 million tonnes at 1.03 grams per tonne (g/t) gold for 4.6 million ounces.
It is expected to produce between 230,000 to 250,000 ounces of gold in FY22 and it has a permitted mine life until 2040.
In other news, Perenti has launched an on-market share buyback for up to 10 per cent of its issued shares.
The exact number of shares will depend on market conditions, the available trading window and the share price, amongst other conditions.
Perenti’s board believes the current share price undervalues the value of the business considering the reducing COVID-19 impact on the business.
Perenti Global was up 14.7 per cent with shares trading at 80 cents at 12:53 pm AEST.