Perenti shares reverse course after $1b contract announced
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More news: Perenti's share price have pared early gains and is now down in line with the broader market after it announced its subsidiary African Underground Mining Services has secured a $1 billion contract to deliver mining services at the Obuasi Gold mine in Ghana through a local joint venture.
The numbers: Perenti shares had risen 2.01% to $1.53 at 11:45am AEST but at 1:46pm were trading 0.54% lower at $1.48, while the ASX 200 was down 0.57%.
The stock’s price is still up 48.5% over the last 12 months.
Perenti JV signs $1bn mining services contract in Ghana
The news: A subsidiary of mining services firm Perenti has landed a $1 billion contract through a joint venture to deliver underground mining services at the Obuasi Gold mine in Ghana for South African miner AngloGold Ashanti (AGA).
The numbers: Perenti subsidiary African Underground Mining Services (AUMS), via the majority owned Underground Mining Alliance joint venture, has secured a $1.02 billion contract that runs for 60 months from 1 February 2025.
The context: AUMS has worked with AGA at the Obuasi mine since February 2019.
The joint venture partner is Ghanaian civil and mining contractor Rocksure International. No new growth capital will be required as AGA will provide the major capital expenditure.
What they said: “We are pleased to sign the Obuasi contract with AngloGold Ashanti for an additional five years. We highly value our relationship with AGA and look forward to continuing and deepening our positive working relationship,” Perenti managing director and CEO Mark Norwell said.
The source: ASX
