Perenti subsidiary Barminco wins $393m mining services contract with Regis Resources

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By Imelda Cotton - 
Perenti Mining PRN Regis Resources RRL ASX Barminco Duketon agreement

Perth-based mining services company Perenti (ASX: PRN) has announced that subsidiary Barminco has been awarded a $393 million contract at Regis Resources’ (ASX: RRL) Duketon operations in the goldfields region of Western Australia.

The three-year contract will commence this month and is for the provision of underground development, production and support services to the Rosemont and Garden Well mines near Laverton.

It represents an extension to a mining services arrangement between Barminco and Regis at the Duketon operations that started in February 2019.

Barminco said it was “proud to continue partnering with Regis” on the alliance-style contract with a view to creating “enduring value and certainty”.

Global service provider

Perenti markets itself as a global mining service provider of scale with capability across the entire value chain.

This is delivered through subsidiary companies including Barminco, DDH1 Drilling, Ausdrill, African Underground Mining Services, Ranger Drilling, Strike Drilling, BTP, Supply Direct and Orelogy.

The group currently has more than 100 clients operating across 60 projects in 12 regions including Africa, Australia, North America and Europe.

First half revenues

Perenti reported revenues of $1.6 billion in the first half of the 2024 financial year, up 13% on the previous corresponding period, supported by the acquisition of DDH1 Drilling in September and solid operational performance across all of its divisions.

The group’s earnings before interest, taxation, depreciation and amortisation increased by 11% on the same time last year to $312m in line with revenue, while its EBIT(A) jumped 10% to $149m.

Perenti says the quality of its earnings have increased since acquiring Barminco in 2018, with the delivery of a 229% growth in revenue, 185% jump in EBIT(A) and 55% reduction in leverage.

Underground fatality

In February, Perenti made the news when subsidiary company African Underground Mining Services reported a fatality at the Mana gold mine in Burkina Faso.

At the time, the group announced a temporary suspension of activities at the mine.

The incident is not expected to have a material impact on Perenti’s guidance for the 2024 financial year.