New Dendrobium mining services contract valued up to $255m

Key points

• New contract with GM3 for Dendrobium mine
• Initial term: 2 years with estimated $85 million in gross revenues
• Two 2-year extension options available
• Potential total gross revenues: $255 million over 6 years

Full summary

Mastermyne Group Limited (ASX Code: MYE) has announced the execution of a new mining services contract with GM3 for its Dendrobium underground coal mine in New South Wales. The contract, valued up to $255 million, includes an initial 2-year term with estimated gross revenues of approximately $85 million. Additionally, there are two 2-year extension options, which, if exercised, would extend the contract to six years. The contract will add more than 140 new roles and builds on Mastermyne's existing services at the Dendrobium mine.

Guidance

Estimated gross revenues: $85 million for initial 2 years, $255 million over 6 years

Outlook

The company enters FY27 with a strong order book and pipeline of opportunities, driven by sustained demand for specialist underground coal mining services.