Perenti’s Barminco Secures A$300M Contract at Dalgaranga Gold Project
Perenti’s underground mining arm, Barminco, has secured a significant four-year contract at the Dalgaranga Gold Project, promising to bolster Australian earnings and operational scale.
- Barminco awarded a four-year underground mining contract at Dalgaranga
- Contract valued at approximately A$300 million with a 12-month extension option
- Services include underground development, production, and related mining activities
- Capital investment of around A$16 million planned for FY26
- Contract follows successful exploration decline work by Barminco at Dalgaranga
Contract Win Strengthens Barminco’s Position
Perenti Limited’s underground mining division, Barminco, has secured a substantial contract valued at circa A$300 million to provide underground mining services at the Dalgaranga Gold Project in Western Australia. This four-year agreement, with an option to extend for an additional year, marks a significant milestone for Barminco’s Australian operations.
The contract encompasses underground development, production, and related mining services, building on Barminco’s prior success in completing an underground exploration decline at Dalgaranga. This initial work was instrumental in advancing in-fill and mineralisation extension drilling, and the decline will now support ongoing production and further development activities.
Strategic and Financial Implications
With a capital requirement of approximately A$16 million planned for the 2026 financial year, this contract is expected to contribute positively to Perenti’s Australian earnings and sustainable cash flow generation. The investment aligns with recent guidance and underscores the company’s commitment to growth in its core mining services business.
Mark Norwell, Managing Director and CEO of Perenti, highlighted the contract as a testament to Barminco’s growing scale and capability in the region. He emphasized the benefits this scale brings to clients and shareholders alike, reinforcing Perenti’s strategy of delivering enduring value and certainty.
Operational Excellence and Future Outlook
Gabrielle Iwanow, President of Contract Mining at Perenti, praised the Barminco team for their role in securing the contract, noting it as validation of the high-quality work completed to date. The longer-term nature of the contract provides a platform for stable and reliable production at Dalgaranga, supporting Ramelius Resources’ operational goals.
As Barminco continues to expand its footprint through regional contract wins, this Dalgaranga project is poised to be a cornerstone of its Australian business, reinforcing Perenti’s position in the competitive mining services sector.
Bottom Line?
Barminco’s Dalgaranga contract signals robust growth momentum but raises questions on margin sustainability and future capital needs.
Questions in the middle?
- What are the expected profit margins on the Dalgaranga contract?
- How will the A$16 million capital investment be allocated across the project timeline?
- Could Barminco leverage this contract to secure further regional mining service agreements?
