Perenti has secured a $1.1 billion underground mining contract with an Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) subsidiary for the Mana gold complex in Burkina Faso. The deal, announced on Monday, is part of a broader series of agreements the mining services company has secured in recent weeks, totalling more than $2.1 billion.
Perenti also announced, on May 22, a $1 billion contract with AngloGold Ashanti (ASX:AGG) for underground mining services at the Obuasi Gold Mine in Ghana. And on May 19, it revealed a $500 million contract between its underground mining subsidiary, Barminco, and Gold Fields Limited (ADR) (NYSE:GFI) for the Agnew Gold Mine in Western Australia.
The latest agreement demonstrates the company’s “enduring” relationship with Endeavour, said Gabrielle Iwanow, president of contract mining at Perenti.
“We are proud to be working alongside our local JV partner Dynamic Mining Supply to take further steps to support development of local procurement, capability and employment in Burkina Faso,” she said.
Key terms of the Endeavour deal
The new five-year contract with Endeavour Mining subsidiary SEMAFO Burkina Faso S.A. will see Perenti, through its joint venture subsidiary Underground Mining Services Burkina Faso SARL (UMS), provide underground mining operations at the Siou and Wona areas of the Mana complex. The contract is expected to contribute significantly to Perenti's revenue starting in the 2026 financial year.
UMS — a joint venture with Burkina Faso-based Dynamic Mining Supply SARL — is expanding on the work of another company, African Underground Mining Services Burkina Faso SARL (AUMS), which has been delivering underground mining and support services at Mana since 2018.
The expanded scope of work under the new agreement strengthens the relationship between Perenti and Endeavour Mining, with the Houndé Greenstone Belt, where the Mana complex is located, continuing to be a key gold-producing region.
Broader strategic implications for Perenti
Perenti's recent deal-making spree underlines its strategy of securing long-term contracts with leading global miners. Along with the $1.1 billion Endeavour contract, the company’s agreement with AngloGold Ashanti and the Agnew contract further cement its footprint in key gold-producing areas.
Notably, these contracts do not require significant new capital investment, which ensures stable revenue streams without the pressure of additional growth capital.
With ongoing expansion in West Africa, Perenti's strong relationships with major players like Endeavour Mining, AngloGold Ashanti and Gold Fields demonstrate its operational reliability and capacity to meet the demands of large-scale mining operations.
A stable revenue outlook
The deals also help stabilise Perenti’s revenue outlook, positioning it for growth well into the 2026 financial year. The company’s ability to secure such significant deals with minimal capital requirements is a key strength as the mining services sector remains competitive.
Investors will be closely monitoring the execution of these contracts as they ramp up over the next few years, with Perenti’s ability to deliver on its commitments crucial to maintaining shareholder confidence.
As the global demand for mining services continues to grow, Perenti’s position as a reliable partner to major players in West Africa and Australia is likely to remain a key component of its long-term strategy.
Shares in Perenti (ASX: PRN) were up by about 4% as of 2 pm AEST on Monday, to $1.64. On the London Stock Exchange, Endeavour shares fell by about 1.15%.