Perenti Shares Jump Nearly 9% After Mining Services Firm Wins More Than $200 Million in New Contracts

PERTH, Australia — Shares of Australian mining services company Perenti jumped nearly 9% on Tuesday after the company announced more than 200 million Australian dollars in new drilling and underground mining contracts across Australia, North America and West Africa.

Perenti stock closed at 2.34 Australian dollars, up 0.19 Australian dollars, or 8.84%, making it one of the strongest performers among Australian mining services stocks on the day.

The gains built through the session. The shares were trading at 2.16 Australian dollars, up less than 0.5%, in late morning trade before climbing sharply in the afternoon. It was not immediately clear what drove the late-session rally, though materials stocks were among the broader market's stronger sectors on Tuesday.

Contracts across five drilling businesses

In a statement to the Australian Securities Exchange before the market opened, Perth-based Perenti said it had been awarded multiple contracts across all five of its drilling businesses: Ausdrill, DDH1 Drilling, Ranger Drilling, Swick Mining Services and Strike Drilling.

The drilling contracts, awarded in recent weeks, cover projects in Australia, the United States and Canada. Perenti said they are expected to contribute about 185 million Australian dollars ($130 million) in revenue in the 2027 financial year.

Ben Davis, president of Perenti's Drilling Services division, said the contract wins were "indicative of the growing demand for the specialised capability we can deliver."

Senegal underground deal

Perenti's underground mining business, African Underground Mining Services, or AUMS, also won a contract with London-listed gold producer Endeavour Mining at the Sabodala-Massawa Mining Complex in Senegal.

The contract has two phases. The initial phase is valued at about 20 million Australian dollars and covers development of an exploration decline, a sloping underground tunnel used to access ore, along with supporting underground infrastructure.

A second phase covering full underground production will depend on Endeavour issuing a notice to proceed. Perenti said it would disclose the value of that phase if and when it moves ahead.

Perenti had signaled the Senegal work during its fiscal 2026 results in August, when it said AUMS had begun early works at Sabodala with a longer-term agreement under negotiation.

The deal deepens Perenti's longstanding relationship with Endeavour, one of the largest gold producers in West Africa. In June 2025, Perenti secured a 1.1 billion Australian dollar, five-year contract to provide underground mining services at Endeavour's Mana complex in Burkina Faso.

Record results and growing order book

The contract wins follow a strong year for Perenti. The company reported a record profit for fiscal 2026 in August.

Its Drilling Services division grew revenue to 843 million Australian dollars in fiscal 2026 and set a record for earnings before interest, taxes, depreciation and amortization of 85 million Australian dollars.

Contract mining remains Perenti's largest business, representing about 75% of underlying group EBITDA before corporate costs, according to the company.

Perenti has also been steadily adding new work. Earlier this year, it won a five-year, 92 million Australian dollar contract for drilling and blasting services at Vault Minerals' King of the Hills gold mine in Western Australia. Recent project wins at Bellevue, Fourmile and Dalgaranga in Australia have also added to its portfolio.

Shifting toward Australia and North America

The latest contracts fit into a broader shift in Perenti's business. The company has been reducing its exposure to surface mining in Africa while retaining underground opportunities in the region, and expanding its presence in Australia and North America.

More than 62% of Perenti's revenue now comes from Australia and North America, reflecting efforts to build a more geographically diversified and lower-risk business.

The company has said the outlook for its underground operations is particularly strong in North America, where it has visibility of about 6.4 billion Australian dollars in potential work.

The North American drilling contracts announced Tuesday add to that push, as mining activity in the United States and Canada has picked up amid strong prices for gold and copper and growing government focus on securing supplies of critical minerals.

Mining boom lifts services sector

Perenti's results reflect strong conditions across the mining services industry, which has benefited from record gold prices, rising demand for copper and increased exploration spending.

Drilling contractors in particular have seen demand rise as miners race to expand resources and develop new projects. Gold prices, though recently off record highs, remain elevated, while copper has been supported by demand linked to electrification and artificial intelligence data centers.

Mining has been the best-performing sector on Australia's benchmark S&P/ASX 200 index over the past year, and analysts expect copper to play a larger role in driving future gains for Australian mining stocks.

Broader market

Perenti's gain came on a positive day for Australian shares. The S&P/ASX 200 closed up 0.34% at 8,709.3, led by a 4.6% jump in technology stocks. The materials sector rose 1%.

The market recovered from a brief dip after the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%, its highest level in about 15 years, citing inflation pressures from high energy prices and AI-related demand.

About Perenti

Perenti, formerly known as Ausdrill, is one of the world's largest mining services companies. It provides contract mining, drilling and mining-related services to clients across Australia, Africa and North America.

The company operates through several businesses, including underground mining specialist Barminco and AUMS, along with its drilling services division. Perenti is led by managing director and CEO Mark Norwell.

Investors will be watching for Endeavour's decision on the second phase of the Sabodala contract, which could significantly increase the value of the deal, as well as further contract wins in North America.

Perenti is also expected to provide updates on its fiscal 2027 performance at its annual general meeting later this year.