A three-year extension of its Boston Shaker underground contract at the AngloGold Ashanti-operated Tropicana gold operation in Western Australia, worth about A$117 million a year, will see Macmahon working at the site through to May 2027.
The ASX-listed contractor’s CEO Michael Finnegan described the contract extension award as a “critical step toward growing the underground portfolio by 50% over the next two to three years”.
A quarter of Macmahon’s FY24 H1 revenue was generated by its underground mining arm.
“With capital already deployed in the project and no new growth capital required, we expect the extension to enhance our ROACE performance – where we recently increased our target from 15% to 20%,” Finnegan said.
Macmahon has been providing underground mining services to AngloGold at Boston Shaker since 2019.
Tropicana, 330km north-east of Kalgoorlie, is owned by AngloGold (70%) and Regis Resources (30%).
