Tag Archives: Garden Well

Perenti books exploration, development and production work with Australian miners

Perenti says it has secured new work and contract extensions with the likes of Regis Resources, BHP Mitsubishi Alliance (BMA) and Catalyst Metal in Australia representing nearly A$150 million ($97 million) of revenue across its 2024 and 2025 financial years.

It has booked a A$70 million, six-month contract for the continuation of underground development and production works at the Regis Resources Garden Well and Rosemont underground gold mines. Barminco and Regis continue to progress collaboratively towards further and material contract extensions at these two mines, it says.

It has also sealed a A$27 million, 24-month contract for exploration surface drilling services at the BHP Mitsubishi Alliance in Queensland, while a A$14 million, 24-month contract has been awarded for underground diamond drilling works at Catalyst Metal’s Plutonic underground gold mine in Western Australia, subject to finalisation of contract terms.

Furthermore, AUMS (through UMA, a joint venture with Rocksure International) received a limited notice to proceed related to the initial underground development works at the Newmont Akyem underground gold mine in Ghana. The finalisation of contractual negotiations continues, however, once finalised it is forecast that the contract could represent circa-A$32 million of revenue over an initial term of 11 months, with a capital structure that is likely to be similar to that adopted for Newmont’s Subika project.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said: “The award of these contracts and the limited notice to proceed across both our underground and surface mining businesses demonstrates the diversity of our service offering and the strength of the relationships we share with our clients. Collectively these three contracts and the limited notice to proceed represent nearly A$150 million of revenue across FY2024 and into FY2025 and come after the recent announcement in which Perenti secured circa-A$360 million of revenue at the Sandfire Resources A4 project in Botswana.”

Barminco wins extension at Regis Resources’ Rosemont, Garden Well operations

Barminco says it is further extending its relationship with Regis Resources Ltd, securing a A$70 million ($45 million), six-month extension at the gold miner’s Rosemont and Garden Well operations in Western Australia.

With both gold mines in close proximity, it allows Barminco to continue to be agile with resourcing and equipment to provide comprehensive underground mining services to our client, it says.

Regis recently opened the Balkau Decline at its Garden Well South underground mine, which is an underground extension of the Garden Well open-pit mine: a key production source at Regis’ Duketon gold project, located in the Goldfields region.

Rosemont, meanwhile, includes the Rosemont open pit and underground mine, as well as Baneygo open pit. The Rosemont and associated surface deposits are mined using conventional open-pit mining truck and shovel methods. The Rosemont underground produces approximately 600,000 t/y and is mined using mechanised open stoping.

Perenti’s Barminco to carry out development works at Evolution Mining’s Ernest Henry mine

Australia-based Perenti has provided an operational update and an upgrade to its financial year 2023 guidance to end-June 2023, which includes confirmation of a new contract for Barminco at Evolution Mining’s Ernest Henry mine in Queensland and a variation to expand its work scope at Regis Resources’ Garden Well mine in Western Australia.

The positive momentum noted in the operational update released on November 14 has continued as Perenti heads toward the end of the calendar year, with this momentum expected to continue into 2023, it noted.

“Since the release of the most recent operational update Perenti has secured improvements to commercial conditions across several Australian and African projects, including retrospective rate adjustments in relation to work that has previously been completed,” it said.

“These rate adjustments are the key catalyst in providing a further guidance upgrade one month after our previous upgrade.”

The contract at Ernest Henry (pictured) is for development work at the underground gold and copper mine. As Barminco transitions out of MMG’s Dugald River mine – where it has been carrying out development and production works – early next year, employees and capital resources from Dugald River will be mobilised to the new contract at Ernest Henry, it said. Underground development work at Dugald River, meanwhile, is to be taken on by Redpath Australia.

The Garden Well extension follows the commencement of underground mine development at the deposit in 2021.

On November 14, Perenti updated its FY23 guidance to forecast FY23 revenue of between $2.6-$2.7 billion ($1.7-1.8 billion). With the announcement of improved commercial conditions, and in consideration of securing work at Ernest Henry and scope growth at Garden Well, Perenti now forecasts that the company’s FY23 revenue will be between $2.7-$2.9 billion.

Mark Norwell, Managing Director and CEO of Perenti, said: “In addition to generating greater returns in FY23, we are focused on continuing to pursue business and project optimisation initiatives which will facilitate the delivering our 2025 strategy. Our strategy is designed to drive positive momentum in shareholder value well into the future. Perenti’s outlook is underpinned by our world-class Contract Mining Division, and the continued development of our Mining Services and idoba divisions. Our focus on generating enduring value for our people, clients and communities, will ensure we continue to deliver sustainable returns for our shareholders.”