Ausdrill wins mining contract from Perseus Mining
African Mining Services (AMS), a wholly owned subsidiary of Ausdrill Limited, has been awarded a mining services contract from Perseus Mining to provide open pit mining services at its Edikan gold mine’s Eastern Pits operations in Ghana, West Africa.
The three year contract, which has an option to extend for a further two years, will commence in the second quarter of 2015 and will generate close to $224 million in revenue over a five-year period.
Ausdrill managing director Ron Sayers said: "We are delighted to extend the relationship we have developed with Perseus in Africa.’
"The award of this contract clearly demonstrates the capability of AMS to deliver quality service on schedule."
Previously known as the Central Ashanti Gold project, the Edikan gold mine in Western Africa has 5.25 million ounces of measured and indicated gold resources. It includes reserves of 2.36 million ounces of gold and 2.17 million ounces of inferred gold resources.
AMS has provided mining services to Perseus since 2011.
Formed in 1987, Ausdrill provides services in contract mining, grade control, drill and blast, exploration, mineral analysis, procurement and logistics, and manufacturing. The diversified mining services company has operations across Australia, Africa and the United Kingdom.
Barrick profit beats expectations as copper, gold prices up
Barrick Gold has reported a 78% jump in first-quarter profit, beating analyst expectations thanks to rising gold and copper prices, and said it was on track to meet annual forecasts.
Production in the second half is expected to be higher than the first, the gold miner said, thanks in part to the ramp-up of underground mining at the Bulyanhulu mine in Tanzania and higher expected grades at Lumwana in Zambia, reports Reuters
Barrick’s first-quarter gold production fell to 1.10 million from 1.25 million ounces due partly to lower grades at its Pueblo Viejo mine in Dominican Republic.
Adjusted profit surged 78% to $507mn in the quarter ended March 31, from $285mn a year earlier, and Barrick announced a 9 cent per share quarterly dividend.
Stronger prices helped boost Barrick’s revenue from its copper mines in Chile, Saudi Arabia and Zambia by 31% from the fourth quarter. Overall earnings per share were $0.29, ahead of analysts’ estimate of $0.27.
“We expect a positive stock reaction to the earnings beat and strong cash flow,” said Credit Suisse analysts.
Potential for South Africa merger
Barrick CEO Mark Bristow, who has championed mergers across the gold industry, said he backed the idea of South Africa-listed miners Goldfields and AngloGold Ashanti combining.
Speculation has been swirling around the two companies and Sibanye-Stillwater, whose CEO Neal Froneman floated the idea of a three-way merger.
“I’m a South African, and this country has such a great mining history and it would be great to see a real gold business come out of the many failed discussions that we’ve seen,” said Bristow.
Goldfields declined to comment. In a statement, AngloGold Ashanti said it was focused on delivering on its growth plan to unlock value from its portfolio of gold assets.
Bristow also said he had met with the Democratic Republic of Congo’s new mines minister and other officials and was continuing to work on getting $900mn belonging to its Kibali mine joint venture out of the country.
“We have a solution, it just needs to be sanctioned by the appropriate authorities which haven’t been around for a while,” he said, referring to a recent government overhaul by President Felix Tshisekedi.