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Highlights

  • Perenti’s Barminco business awarded a three-year, AUD 200 million underground mining contract by Westgold Resources

  • FY25 financial guidance reaffirmed: revenue projected at AUD 3.4–3.6 billion, with free cash flow exceeding AUD 150 million

  • Contract supports long-term growth with additional secured work for FY26 and beyond.

Perenti Limited (ASX:PRN) has announced a significant development for its underground mining division, Barminco, which has secured a new contract with Westgold Resources Limited (ASX:WGX) for the provision of underground mining services at the Great Fingall project in Western Australia.

The contract, valued at approximately AUD 200 million, spans an initial term of 36 months with an option for a 12-month extension. Mobilisation is expected to begin in July 2025. The scope of work includes underground mine development, production, and a range of associated services.

Perenti noted that around AUD 16 million of growth capital will be allocated to support the project in FY26. This contract adds to the company’s growing portfolio of Australian underground projects and will contribute to work-in-hand and earnings in the coming years.

Managing Director and CEO of Perenti, Mark Norwell, expressed confidence in the collaboration, stating that the agreement aligns with the company's ongoing focus on generating sustainable cash flow and expanding its underground mining operations in key regions.

At the time of writing on 26 June 2025, Perenti’s share price had risen by 1.44% to AUD 1.59.

FY25 Guidance Reaffirmed

In another ASX update, Perenti reaffirmed its full-year FY25 guidance. The company expects revenue between AUD 3.4 billion and AUD 3.6 billion, while EBIT(A) is projected to be in the range of AUD 325 million to AUD 345 million. Free cash flow is forecast to exceed AUD 150 million for the financial year.

Capital expenditure is estimated at around AUD 330 million, and the company’s leverage is expected to remain within the range of 0.6x to 0.7x.

Growth Momentum Continues

Perenti has also seen its total work-in-hand increase significantly, now totalling AUD 2.6 billion. This growth is attributed to recent major contract wins, including Agnew (AUD 500 million), Obuasi (AUD 1 billion), and Mana (AUD 1.1 billion). The company continues to pursue a strong pipeline of tender opportunities, particularly across North America, Australia, and Africa.