The scope for Macmahon will include open cut mining activities including drilling, loading, hauling, and mine site development. The seven-year contract, with an option to extend for a further five years, is expected to commence in 1H25 and will add approximately AUS$463 million to Macmahon’s secured order book.
Key mining equipment required at commencement will be deployed from existing fleet with approximately AUS$17 million growth capital spread over the first four years. This spread of capital is included in the current growth capital target of AUS$30 million per year.
The FY25 total capital expenditure budget is unchanged at AUS$230 million and includes the AUS$30 million growth capital previously reported.
There is no expected change to net debt for FY25 and the company’s FY25 underlying earnings guidance of AUS$160 million to AUS$175 million remains unchanged.
CEO and Managing Director Michael Finnegan said:
“We are delighted to be selected as the mining contractor for the Awak Mas gold project in Indonesia which presents a great landscape for us given our existing relationships. This project will add to our secured work in hand and we are pleased to have negotiated a low capital solution utilising existing fleet and variable leases. I would like to thank the Macmahon team who have worked closely with PT MDA over the last 12 months to build a strong relationship which I am confident we will continue to build on.”
