Macmahon Holdings Limited announced the extension of its appointment by PT Agincourt Resources (PTAR) as the Martabe gold project’s mining contractor.
Since 2016, Macmahon has supported PTAR at the Martabe gold project site, and its on-site team has expanded to over 600 people. The next stage of development for Macmahon will include open cut mining activities such as drilling, loading, haulage, and mine site development.
The contract extension is for seven years, beginning on 1 April 2023, with the option to extend for another two years. It is estimated to generate $350 million in income over the first seven years, adding to Macmahon’s secured order book.
The Company’s underlying earnings guidance for FY23 remains unchanged at $105 million to $125 million. Contract extension capital expenditure is budgeted for the FY23 sustaining capex. Nonetheless, $4 million in prepayments for FY24 sustaining capex have been made to assure a longer lead time for FY24 equipment delivery.
The company is maintaining its $105 million to $125 million underlying profits target for FY23. The sustaining capex budget for FY23 includes contract extension capital expenses. To ensure long lead time equipment deliveries for FY24, $4 million in prepayments related to sustaining capex have been made.
“We are delighted to be re-appointed by PTAR as the mining contractor for its Martabe gold project and believe this reflects the significant efficiencies delivered on the project. Since 2016 we have built, and continue to build, a strong relationship with the PTAR team and look forward to being part of the further successful development of the mine. I would like to thank our Macmahon team at the Martabe project in Indonesia. Their continued dedication and support are what makes this project successful,” CEO and Managing Director Michael Finnegan said.
