Perenti is projected to surpass its 2024–25 financial year (FY25) cash flow guidance of more than $150 million, delivering approximately $190 million.
While the mining services provider’s audited results are yet to be finalised, the preliminary results are “materially above expectations”, with the cash flow “also expected to reduce net debt” and improving leverage to 0.5x.
Perenti has cited several factors for its success, including the company wrapping up its underground mining contract at the Khoemacau copper mine in Botswana.
As of June 30, Perenti has received $75 million in proceeds from the sale of property, plant and equipment located at Khoemacau and $17 million from the inventory on site.
The company has also strengthened its working capital outcomes, including cash flow conversion sitting above 95 per cent and reducing net capital expenditure from approximately $330 million to about $300 million.
“In FY25, Perenti has continued to generate value and certainty for our people, our clients, our shareholders, and the communities in which we live and work,” Perenti managing director and chief executive officer Mark Norwell said.
“This performance has been made possible through the operational performance of our people and the effective management of our portfolio of businesses that are consistently delivering strong free cash flow.
“We remain dedicated to continuing these exceptional results in FY26 and beyond.”
Perenti and its subsidiaries have several ongoing contracts in the global mining industry.
Barminco, Perenti’s underground mining subsidiary, recently signed a $200 million contract with Westgold Resources for the Great Fingall gold mine near Cue, Western Australia. The contract is for a three-year term, with a 12-month option to extend.
Barminco also signed a $500 million contract with Gold Fields for the Agnew gold mine near Leinster, WA. The contract is also for three years and includes a 12-month option to extend.
Outside of Australia, Underground Mining Services – a 90:10 joint venture between Barminco and Dynamic Mining Supply – will deliver underground development, production and related mining services to the Siou and Wona mines within the Mana complex in Burkina Faso, West Africa. The $1.1 billion contract with SEMAFO Burkina Faso S.A spans five years.
African Underground Mining Services will also carry out underground mining services at AngloGold Ashanti’s Obuasi gold mine in Ghana’s Ashanti region under a $1.02 billion agreement.
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