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Despite a year that has tested the mettle of mining service providers globally to breaking point, Perenti hasn’t only hung on—it’s smashed through. The diversified mining major has surpassed its FY25 cash flow estimate, delivering an astonishing A$190 million of underlying free cash flow, more than its A$150 million estimate.
That is not a number. That is a sign—a large, simple sign to investors, joint ventures, and the broader resources community that Perenti can dig deep, both under the ground, but in the bank too.
The cash flow tale: A more-than-lucky quarter
Step it out.
Perenti’s free cash flow top-line number was approximately A$280 million. Deduct A$92 million that was the result of strategic sales of assets—i.e., the plant and materials divested on Barminco’s withdrawal from Botswana—and you get an organic result that beats the company’s own estimates by more than 25%.
This is not happenstance. It’s the result of deliberate behavior, excellent management, and a company-wide initiative to get leaner, more capital-efficient in our usage.
In the background, this result is the consequence of several giant wins:
- Botswana non-core asset sale (A$75 million from equipment and plants, A$17 million from inventory)
- Focus on cash conversion, percentages above 95%
- Delay in some capex investments, lowering net spend to A$300 million
- Thoughtful oversight across DDH1, Barminco, and the broader suite of mining services.
The people machine driving the bottom line
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It’s very easy to get caught up on charts and tables. But when you sit down with Perenti insiders, the story always comes back to people.
Group CEO Mark Norwell was quick to say that this bottom line victory is a result of actual people, on the ground and out in the field, working hard well.
“Our teams have delivered strong operational performance across the board,” Norwell said. “The result also owes something to careful capital management and discerning portfolio choices which are now paying off.”
It’s a reminder that no matter the billion-dollar game and all the hard logistics, it’s still boots on the ground that win or lose the year.
Why this result matters now
In today’s world of mining, achieving cash flow targets is no easy feat. Project costs are increasing and geopolitics imposing pressures on commodity cycles, so most service providers are just attempting to stay alive.
Perenti, meanwhile, is on the attack. This cash result sets the business in an improved financial position—to prepay debt (at present level of 0.5x leverage ratio), finance growth in the future, or even return value to owners.
It translates to a business with more room to move and less risk for investors.
For clients, it signals a partner with staying power and the ability to deliver across geographies—from the deserts of WA to the copper belts of Africa.
And for Perenti’s 8,000+ global staff, it means continuity, investment, and confidence in their operations.
Barminco, Khoemacau, and the power of underground
A sizable portion of the story this year is underground mining, where Perenti’s subsidiary Barminco has made a name as one of the elite underground miners.
The work Barminco undertook for Khoemacau’s copper mine in Botswana, along with the timing of disposals, shows not only technical capability but strategic reasoning. Entering and exiting the project, along with disposal of surplus assets, were timely decisions that freed up precious capital and are now backing Perenti’s operations.
While Barminco is focused on Kukama and the mining service contracts they hold at home, at locations like Agnew and Sunrise Dam, ultimately Perenti is not constrained by being tied to one commodity, one country, or one cycle. By intent, Perenti is diversified.
Looking ahead: FY26 and beyond
Perenti isn’t stopping here. The company has reiterated its full-year guidance:
- Revenue between A$3.4 and A$3.6 billion
- Underlying EBIT(A) between A$325 and A$345 million
- Perenti expects to maintain strong free cash flow, aiming to keep it well above the A$150 million mark in FY26.”
Those targets are prudence and confidence—a firm well-versed in the terrain but not presuming.
Number one now? Continue hammering away at working capital productivity, speed improvements in underground and surface mining faster, and target growth areas that supplement its strength.
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A second type of mining success
We like to associate major mining news with discoveries, acquisitions, or benchmark ore movements. But what Perenti just announced is a victory of a different sort: a story of budget restraint, operating smarts, and thinking ahead.
It’s the kind of result that won’t land on tabloid front pages, but it’s greater than most.
While there are other players that ride the waves and surf the surf of commodity price volatilities, Perenti is showing the strength in building a strong business model. A model that does not wait for the market to change—it changes itself.
Last word
In an industry where the only thing that is constant is change, Perenti merely proved that control, clarity, and consistency are still important.
With FY25 wrapping up in grand fashion and FY26 in good standing, this is a mining story where the gold isn’t merely on the ground—it’s in the books.
Whether you’re a deep-involved investor in miners or just watching from the side lines, Perenti’s latest result deserves attention—not just for what it did, but for what it speaks to regarding the way mining services can evolve in an ever-changing world.
