Mine services group Perenti (ASX:PRN) has landed a $300 million contract through its underground subsidiary, Barminco, to work on the Dalgaranga Gold Project for Ramelius Resources (ASX:RMS) as it expands operations.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The four-year deal will see Perenti – through Barminco, as noted – deliver underground development, production, and other related mining services.
This Dalgaranga contract comes hot on the heels of Barminco’s successful completion of an underground exploration decline at the site; that was originally undertaken to enable infill and mineralisation extension drilling. Perenti’s Barminco will use that decline as a foundation for this next term deal.
The project will require around $16 million in growth capital expenditure in FY26, which Perenti said is already baked into its recent guidance.
Should both parties be happy down the road, there’s a 12-month extension clause too.
“Securing a four-year contract for underground mining at the Dalgaranga Gold Project is another strong result for Barminco,” Perenti’s managing director and CEO, Mark Norwell, said on the new contract.
“We look forward to delivering enduring value and certainty for Ramelius,” Mr Norwell added, and said Perenti and Barminco “appreciate the opportunity.”
Ramelius has owned the Dalgaranga Gold Project since it absorbed Spartan Resources (ASX:SPR) and all its assets earlier this year. That takeover cost Ramelius as much as $2.5 billion in a cash and shares deal.
PRN heads into Thursday trade at $2.40/sh.
Join the discussion: See what HotCopper users are saying about Perenti Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please clickhere.