Australian contract mining heavyweight Perenti has lifted its FY23 revenue and earnings forecasts on the back of strong market conditions and new work.
The ASX-listed company adjusted its guidance in mid-November, putting full-year revenue at A$2.6-2.7 billion, and earnings before interest, tax and amortisation (EBITA) at $215-230m, with capital expenditure for the year of $340m.
Perenti said this week the positive momentum noted in its earlier operational update had continued, “with this momentum expected to continue into 2023”.
“Perenti has secured improvements to commercial conditions across several Australian and African projects, including retrospective rate adjustments in relation to work that has previously been completed. These rate adjustments are the key catalyst in providing a further guidance upgrade one month after our previous upgrade.”
It is now forecasting revenue of $2.7-2.9 billion, and EBITA of $230-250m. Capex hasn’t changed.
The company would “continue to negotiate potential contract extensions and rate adjustments to bring earnings back to historical levels as the business continues to focus on delivering its FY25 target EBITA margin of 10%”.
Perenti subsidiary Barminco has also been awarded a new mine development contract at Evolution Mining’s Ernest Henry underground copper-gold mine in Queensland, and a variation to expand its work scope at Regis Resources’ Garden Well gold mine in Western Australia.