Perenti’s $1.1B Contract Win Raises Stakes Amid Burkina Faso’s Mining Challenges
Perenti Limited has landed a significant five-year underground mining contract worth approximately AUD 1.1 billion with Endeavour Mining, expanding its footprint in Burkina Faso’s high-grade Mana gold complex.
- Five-year contract valued at circa AUD 1.1 billion
- Operations at Siou and Wona underground sites within Mana complex
- Contract delivered via joint venture with local partner Dynamic Mining Supply
- Contract aligns with Perenti’s FY25 capital guidance
- Expected strong contribution to earnings from FY26 onwards
A Major Win in West Africa
Perenti Limited, a diversified mining services group listed on the ASX, has announced a substantial new contract with Endeavour Mining for underground mining services at the Mana complex in Burkina Faso. The contract, valued at approximately AUD 1.1 billion, spans five years and covers operations at the Siou and Wona underground areas, both known for their high-grade gold deposits.
This agreement marks an expansion of Perenti’s existing presence in the region, where its joint venture subsidiary, Underground Mining Services Burkina Faso SARL (UMS), will now take on a larger operational role. The Mana complex is situated in the highly prospective Houndé Greenstone Belt, a region that has attracted significant mining interest due to its rich mineral resources.
Strategic Partnership and Local Engagement
Perenti’s delivery of the contract will be through UMS, a joint venture with Dynamic Mining Supply SARL, a Burkinabe partner holding a 10% stake. This collaboration underscores Perenti’s commitment to fostering local partnerships, enhancing procurement, and building employment opportunities within Burkina Faso. Gabrielle Iwanow, Perenti’s President of Contract Mining, emphasized the importance of trust and reliability in sustaining these relationships and highlighted the social and economic value generated for local communities.
Financial and Operational Outlook
The contract’s commencement on 1 June 2025 aligns with Perenti’s financial guidance for the fiscal year 2025, with capital requirements already factored into their forecasts. Managing Director and CEO Mark Norwell expressed confidence that the contract will significantly contribute to Perenti’s earnings from FY26 onwards, reinforcing the company’s growth trajectory in mining services.
Services under the contract include underground development, production, and related mining activities, reflecting Perenti’s comprehensive capabilities in delivering complex mining operations. The long-term nature of the contract provides revenue visibility and operational stability in a region that continues to be a focal point for gold mining.
Broader Implications for Perenti and the Sector
This contract win not only strengthens Perenti’s position in African mining services but also signals confidence from a major gold producer, Endeavour Mining, in Perenti’s operational expertise and local partnerships. As mining companies increasingly prioritize sustainable and community-focused operations, Perenti’s approach to joint ventures and local engagement may serve as a model for future contracts in the region.
Investors will be watching closely to see how this contract influences Perenti’s financial performance and operational execution over the coming years, particularly given the geopolitical complexities and operational risks inherent in West African mining.
Bottom Line?
Perenti’s $1.1 billion Mana contract cements its African mining services growth, setting the stage for future regional expansion.
Questions in the middle?
- What are the specific capital expenditure plans for FY25 under this contract?
- How will Perenti mitigate operational and geopolitical risks in Burkina Faso?
- What impact will this contract have on Perenti’s overall revenue mix and margins?
