Perenti Limited (ASX: PRN), formerly Perenti Global Limited, is a leading global mining services company with over 35 years of experience in surface and underground mining. Headquartered in Perth, Australia, the company operates across 12 countries, including Australia, Africa, Europe, North America, and India. Perenti offers a wide range of services, including mining, drilling, and mining support, with a focus on delivering projects in challenging environments. The company employs approximately 10,500 people and has a strong track record in handling major mining projects for commodities such as gold, nickel, iron ore, and lithium, creating enduring value for clients, investors, and communities.
Perenti Limited has secured its first underground mining contract in the United States through its subsidiary Barminco. The contract, valued at approximately AUD $120 million, will see Barminco undertake underground development and ground support at the Goldrush Project in Nevada, USA. This marks a significant milestone for Perenti as it continues to expand its footprint into North America, a region poised to offer substantial growth opportunities for the company.
The Goldrush Project represents a new frontier for Barminco in the USA, a critical milestone as it executes its strategic growth plan. Nevada, the leading gold-producing state in the United States, is home to some of the world’s largest gold mining operations, making it a key area for Perenti’s expansion efforts. The Nevada Gold Mines (NGM) joint venture between Barrick Gold (61.5%) and Newmont Corporation (38.5%) operates the largest gold-producing complex in the world, comprising 10 underground mines and 12 surface mines. The Goldrush Project is a new underground development, expected to produce approximately 400,000 ounces of gold annually by 2028, with a life of mine projected to last 24 years. This long-term project aligns perfectly with Perenti’s goal of securing substantial, multi-year contracts in high-growth markets.
Securing the Goldrush Project contract is a significant achievement for Barminco, which has primarily operated in Australia and Africa until now. According to Perenti’s Managing Director and CEO, Mark Norwell, the win highlights the strength of Barminco’s North American team, which has been instrumental in securing this deal. Perenti’s experience in mining operations, coupled with its existing presence in the USA through its other business unit, Swick, has provided Barminco with valuable insights and support as they venture into the North American market.
The North American market is the largest hard rock, underground mining market in the world, and this contract win opens up numerous growth opportunities for Perenti. As the largest gold-producing complex in the world, Nevada offers significant potential for future projects, and the Goldrush contract is just the beginning for Barminco’s expansion in the region. Over the next few years, Barminco is likely to see continued growth as more opportunities in the USA and Canada emerge.
With the Nevada Gold Mines JV poised for ongoing production, and the Goldrush Project expected to deliver consistent output for the next two decades, Perenti can secure a stable revenue stream from this contract. Moreover, with the global demand for gold continuing to grow, Barminco’s work on the Goldrush Project is expected to solidify its presence in one of the world’s most lucrative mining sectors. This long-term commitment further strengthens Perenti’s position as a leading player in the mining services industry.
The Goldrush Project contract marks a strategic financial move for Perenti, contributing significantly to the company’s financial performance in the coming years. The contract’s value of approximately AUD $120 million over a 36-month term provides Perenti with a solid base of income, which will support further investment into growth initiatives. Importantly, this contract requires no new growth capital for its initial scope, as Barminco will utilize its idle fleet for the project. This efficient use of resources minimises capital expenditure, ensuring that the project remains financially sound from the outset.
Perenti’s growth strategy has been focused on diversifying its portfolio of projects and expanding its reach into high-growth regions such as North America. By securing long-term contracts like Goldrush, Perenti is positioning itself for sustained financial success. Furthermore, as the company expands its presence in the North American market, it is likely to attract more clients and opportunities across a range of commodities, including gold, copper, and lithium.
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