Medallion Metals Selects Macmahon for $240M Ravensthorpe Underground Contract

Macmahon Secures Major Ravensthorpe Contract

Medallion Metals Limited (ASX:MM8) has named Macmahon Underground Pty Ltd as the preferred tenderer for the underground mining contract at the Ravensthorpe Gold Project (RGP). The contract, valued at approximately $240 million over 36 months, is set to commence in the fourth quarter of 2026, pending final agreement and execution. This figure notably undercuts the $260 million contractor claim outlined in the RGP Feasibility Study, delivering a roughly $20 million saving on the same scope of works.

Scope and Strategic Significance of the Contract

The contract covers portal establishment, primary development, production, and ancillary works essential to advancing the underground mine. Managing Director Paul Bennett highlighted Macmahon’s extensive underground mining expertise and competitive pricing as decisive factors in their selection. He emphasised that Macmahon’s approach aligns closely with the unique challenges of the Ravensthorpe development, reinforcing confidence in the project’s execution and cost assumptions.

Active Development at Kundip and Forrestania

Mine development at the Kundip Mining Centre is now underway, with multiple workstreams progressing, including upgrades to accommodation facilities in Ravensthorpe. Additional contracts for power supply, bulk earthworks, and surface infrastructure are expected to be awarded imminently, with mobilisation planned before the end of August 2026. Meanwhile, at the Forrestania site, surface earthworks for the process plant expansion have been completed, and delivery of a secondary ball mill is scheduled for August. The refurbishment of the process plant has commenced, supporting the Early Production Strategy through toll treatment of third-party gold-bearing material.

Infrastructure Redeployment and Cost Efficiency

Medallion is relocating and refurbishing mine offices and infrastructure from the former Spotted Quoll mine to Kundip, aiming to reduce development costs and maintain the project schedule. This redeployment is expected to generate significant savings against the RGP development cost assumptions, supporting the company’s broader strategy to optimise capital expenditure while advancing towards production.

Next Steps and Project Milestones

With all regulatory approvals secured and key contracts in place, Medallion is progressing steadily towards production. The commencement of underground mining at Ravensthorpe in Q4 2026 marks a critical milestone. Investors will be watching for the finalisation of contract documents with Macmahon and the mobilisation of contracted teams, which will be pivotal in validating the project’s timeline and cost framework.