Perenti’s underground contracting division, Barminco, has secured $160 million worth of work that includes a contract from Spartan Resources.
Perenti’s underground contracting division, Barminco, has secured $160 million worth of work that includes a contract from Spartan Resources.
Barminco will construct an underground exploration drill drive at Spartan’s Dalgaranga gold project in the Murchinson region under a $18.3 million contract.
Construction is tipped to start in the current quarter and take 10 months to complete.
Spartan chief executive Simon Lawson said the drill drive was being constructed using the same dimensions as a standard underground mine development.
Barminco also notched contract extensions from Endeavour Mining for its Siou and Wona underground project at the Mana goldmine in Burkina Faso.
It also extended work with nickel miner IGO for its Spotted Quoll mine at its Forrestania operation 400 kilometres east of Perth.
Barminco secured further work from Aeris Resources at its Mt Colin copper mine in Queensland and at an undisclosed copper and gold underground mining project in Canada.
The contract extensions are collectively worth $160 million, according to Perenti.
Perenti also told the market this morning that it expected its free cash flow for financial year 2024 to be about $180 million, subject to its full-year audit, above its guidance of more than $100 million.
The contractor attributed the early result to a reduction in capital expenditure paritally due to the redeployment of assets from mothballed nickel projects Savannah and Cosmos, and the timing of capital payments.
Perenti was engaged with now under-administration Panoramic Resources under a $200 million contract for work at its Savannah nickel project, which was placed on care and maintenance.
Barminco was also contracted at IGO's Cosmos nikcl mine, under a $200 deal, which was also placed on care and maintenance.
Perenti shares were trading up by 5.6 per cent to $1.02 at 3PM AWST.
