MLG Oz Limited (ASX: MLG) Secures $80 Million in New Contracts
Major Contract Wins
MLG Oz Limited (ASX: MLG) has secured significant contracts valued at over $80 million, showcasing its continued growth in the infrastructure sector. A new civil project awarded by Evolution Mining Limited (ASX: EVN) entails constructing a 26km all-weather bitumen sealed haul road connecting the Castle Hill mining centre to the Mungari mill. This project is crucial for Evolution’s ‘Mungari 4.2’ expansion and supports efficient mining operations at Castle Hill.
The company has also extended its partnership with Norton Gold Fields through a new three-year contract for integrated services at Norton’s Paddington Mill. MLG has been providing these services since 2021, and the extension will secure ongoing operations until at least 2027.
Project Details
The haul road construction project, valued at approximately $16 million, will commence in December 2024 and is expected to be completed by May 2025. MLG will transition resources from an existing project to facilitate this work seamlessly.
The Norton Gold Fields contract will yield an estimated annual revenue of $22 million, primarily involving ore loading, haulage, and road maintenance. It is projected that MLG will handle about 11 million wet metric tonnes over the contract term.
Executive Insights
Murray Leahy, Managing Director of MLG Oz Limited, highlighted the significance of the Evolution project, stating, “This large-scale off-road hub and spoke haulage project will ensure optimised haulage rates between the pit and mill.” He expressed satisfaction with the extended partnership with Norton Gold, emphasizing the importance of providing critical infrastructure services.
Leahy concluded that these contracts reinforce MLG’s position in the market during a strong phase for gold operations in the region.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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