Macmahon Holdings has been appointed as the preferred underground mining contractor for Medallion Metals’ Ravensthorpe Gold Project, locking in a $240 million, three-year deal starting December 2026.
- Preferred underground mining contractor for Ravensthorpe
- $240 million contract over 36 months
- Work includes portal establishment and production
- Contract commencement scheduled for December 2026
- Focus on safety, sustainability, and local community benefits
Significant Contract Win for Macmahon at Ravensthorpe
Macmahon Holdings Limited (ASX:MAH) has clinched a major underground mining contract with Medallion Metals Ltd (ASX:MM8) for the Ravensthorpe Gold Project. The contract, valued at around $240 million, spans an initial 36-month term starting in the December quarter of 2026. This marks a substantial addition to Macmahon’s project portfolio, reinforcing its position as a leading mining services provider in Australia.
Scope and Strategic Partnership
The agreement covers a comprehensive scope of works, including portal establishment, underground development, production, and ancillary tasks. Macmahon Underground Pty Ltd, the company’s specialist underground division, will execute the contract. Managing Director Michael Finnegan emphasised the collaborative nature of the partnership, highlighting alignment with Medallion’s ambitions and a commitment to safety, productivity, and sustainability.
Economic and Regional Implications
Beyond the technical aspects, Macmahon is positioning the contract as a catalyst for local economic benefits. The company anticipates creating employment and development opportunities for the surrounding communities, aiming to foster strong local relationships throughout the project’s life and beyond. This approach aligns with Macmahon’s broader strategy of building partnerships based on trust and transparency.
Timing and Market Position
Set to commence in late 2026, the Ravensthorpe contract fits into Macmahon’s growth trajectory following recent financial momentum, including a notable 11% revenue increase in the first half of FY26 and a 73% dividend boost. The contract win adds to Macmahon’s robust order book and supports its strategic focus on underground mining services, an area where it has established considerable expertise.
Bottom Line?
Macmahon’s Ravensthorpe contract underscores its expanding footprint in underground mining, but execution over the next three years will be critical to translating this win into sustained earnings growth.
Questions in the middle?
- How will Macmahon manage operational risks associated with underground mining at Ravensthorpe?
- What are the prospects for contract extensions or additional work beyond the initial 36 months?
- How effectively will Macmahon leverage this project to deepen local community engagement and secure future regional opportunities?