Macmahon awarded five-year Dacian Gold mine contract

Company News

by Kathy Skantzos

Mining contractor Macmahon (ASX:MAH) has been awarded a five year mining contract for the Mount Morgans Gold Mine in the Western Australian goldfields from a subsidiary of Dacian Gold (ASX:DCN).

The contract anticipates Macmahon will move in excess of 100 million tonnes of material, generating around $250 million in total revenue.

There is an option to extend the contract for a further 31 months after an initial term of 60 months.

Open pit mining services at the mine is expected to start this month, with gold production on track to start in March next year.

The contract will be finalised in the coming weeks.

Shares in Macmahon (ASX:MAH) are trading flat at 22 cents.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.