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Highlights
- Perenti shared a series of significant announcements on the ASX today that primarily pushed its share price up on the ASX.
- The company shared its qualitative guidance for FY23, followed by launch of the on-market share buyback program.
- The company also secured the Cowal Underground project contract that is likey to generate revenue worth AU$520 million.
The shares of Perenti Global Limited (ASX:PRN) were spotted trading 16.187% higher at AU$0.807 per share at 10:39 AM AEST on the ASX today (7 June). More than 3.7 million shares of Perenti were traded within the short span of time after the ASX opened for trading on Tuesday morning.
The ASX-listed mining company came up with several significant updates on the ASX this morning.
The share price of Perenti has gained by 25% on the ASX over the past 12 months. On the other hand, Perenti’s year-to-date share price fell over 12% (as of 10:39 AM AEST on the ASX today, 7 June).
Why did Perenti shares gain the ASX today?
The share price of Perenti was driven by several price-sensitive announcements released by the company.
Image Source © 2022 Kalkine Media ®
The following are the updates released by Perenti today:
- On market share buyback program
Perenti will be launching an on-market share buyback program, it announced today. The company had shared earlier that its FY22 capital management and rationalisation activities had delivered cash of AU$134.7 million.
As a result, the board of Perenti has approved the launch of the share buyback strategy as a part of the company’s capital management policy after considering the current share price of Perenti. The company is likely to buy up to 10% of its total issued shares.
Also read: Why is Perenti Global (ASX:PRN) in news today?
- Perenti’s 2025 strategy update
Today Perenti also released its updated 2025 strategy, which primarily focuses on delivering total competitive returns to shareholders by repositioning its business model, delivering positive operational performance, and maintaining a disciplined approach to capital management.
On 23 May 2022, the company had announced that its expected revenue for FY22 is AU$2.4 billion. Subsequently, Perenti’s expected EBIT(A) for financial 2022 is likely to be between AU$170 million and AU$175 million.
Image source: © Allisgood76 | Megapixl.com
The company was supposed to deliver its FY23 guidance after releasing its FY22 financial and operational results.
However, today Perenti released its qualitative guidance for FY23 by saying that its FY23 EBIT(A) will be stronger than that of FY22. On the other hand, Perenti’s capital expenditure will be significantly lesser than that of FY22. Meanwhile, the company’s cash flow also seems to be stronger in FY23 compared to FY22.
Also read: Perenti (ASX:PRN) sees a profitable end to the first half of FY22
- Perenti secures the Cowal Underground project
Perenti also shared today that its Barminco underground mining business has secured the contract for all underground development and production works for Evolution Mining’s (ASX:EVN) Cowal Underground project in New South Wales.
The Managing Director and CEO of Perenti, Mark Norwell, said that the Cowal contract is the largest underground mining project in Barminco’s history. The project is expected to generate a revenue of nearly AU$520 million. The contract is valid for four years, from a contract commencement date in early July 2022.
