MLG Oz locks in substantial contract haul


Three new mining services deals worth up to $90 million

MLG Oz locks in substantial contract haul
MLG founder and CEO Murray Leahy hits the ground running after his firm's ASX listing

 

One of MLG Oz’s first major moves since listing on the Australian Securities Exchange (ASX) is to announce three new integrated site services and haulage contracts across its Western Australian operations.

It renews an allegiance with resource firm Northern Star while adding Norton Gold Fields and Mincor Resources to its client base.

The anticipated combined value of the contracts is $29 million per annum, to start between August 2021 and the first quarter of 2022.

The Northern Star deal expands MLG’s services with with the company; it will now provide integrated site support and haulage capacity for its Jundee gold operation.

Subject to negotiation and execution, the new three-year contract is expected to start around August 2021 and deliver approximately $12 million revenue per annum.

MLG will conduct all crusher feed, bulk haulage and site civil works for the operations under its integrated operating platform.


Read about MLG's listing on the ASX, here


"We are very pleased to be given the opportunity to continue to support and grow with Northern Star which has been a long-standing customer of MLG," MLG CEO Murray Leahy says.

The Norton Gold Fields agreement sees MLG chosen to provide integrated site support services and haulage for its Paddington gold operation over a three-year period, expected to commence in September 2021.

Revenue from this opportunity is estimated to be approximately $14 million per annum, with formal contract documentation anticipated to be finalised in the coming weeks.

"We are delighted that the Norton Gold Fields board has selected MLG to support the Paddington processing facility," Leahy says.

"The mill is 35km north-west of Kalgoorlie and aligns very strongly with our existing Kalgoorlie network."

Further, "in line with MLG’s desire to broaden its service offering across different commodities and in particular, the battery metals space", MLG secures contract with Mincor Resources for the provision of the logistics services associated with its Kambalda nickel operation.

The contract is expected to deliver approximately $3 million in revenue per year over four years and is expected to begin in the first quarter of 2022.

"Our new contract at the Kambalda operations is an important first step for MLG in developing a longer term relationship with Mincor in support of its goal of being a key supplier of nickel to the emerging battery metals market," Leahy says.

MLG notes it remains in line to achieve its forecast for FY2021 of $241.6m revenue and $41m earnings before interest, taxes, depreciation, and amortisation (EBITDA), "despite a recent fall in crushing and screening volumes due to the ore production constraints being experienced by several crushing clients".

 

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