Perenti (ASX:PRN) finalises contract for Savannah Nickel Project

Company News

by Lauren Evans

Perenti Global (ASX:PRN) has announced that its subsidiary, hard-rock underground miner Barminco, has finalised a contract with Panoramic Resources for development and production works at the Savannah Nickel Project in the Kimberley region of Western Australia. The project produces nickel, copper and cobalt.

The finalised contract represents a value of approximately $280 million over the four-year contract term. Under the terms of the initial letter of intent, announced on 6 April 2021, Barminco commenced mobilisation and early mining works ahead of the schedule. With finalisation of the contract, Barminco expects development and production works will ramp up over the coming six months to achieve full run rate of revenue early in the third quarter of FY2022.

Perenti’s Managing Director and CEO, Mark Norwell said, "We look forward to working together with the team at Panoramic to develop what we all expect will be, Australia’s next long-life nickel producing mine. Despite the challenging labour market conditions in Western Australia, we have been successful in mobilising a labour force of approximately 110 highly skilled underground employees. We expect this to increase to 170 as the project ramps-up. Securing this labour force has enabled us to commence early works ahead of schedule. We look forward to providing a safe and efficient service while delivering value and certainty for Panoramic."

Shares in Perenti (ASX:PRN) are trading 4.4 per cent higher at $0.77.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.