Medallion Metals Selects Macmahon for Ravensthorpe Mine Contract
Key points
- Macmahon selected as preferred tenderer for Ravensthorpe underground mining contract
- Contract value approximately $240 million over 3 years, with works expected to commence in Q4 2026
- Compares favourably with Feasibility Study costs for the same work package, yielding approximately $20 million of savings
Full summary
Medallion Metals Limited (ASX: MM8) announced that Macmahon Underground Pty Ltd, a subsidiary of Macmahon Holdings Limited (ASX: MAH), has been selected as the preferred tenderer for the Ravensthorpe Gold Project (RGP) underground mining contract. The contract includes portal establishment, primary development, production, and ancillary works, with an estimated value of approximately $240 million over 36 months, expected to commence in Q4 2026. This selection represents a favorable outcome compared to the RGP Feasibility Study, which had an estimated cost of approximately $260 million for the same work package, indicating a potential savings of about $20 million over the contract's life.
Guidance
Contract value approximately $240 million over 3 years, expected to commence in Q4 2026
Outlook
Medallion Metals anticipates the commencement of underground mining at Ravensthorpe in Q4 2026, with the contract expected to span a period of 36 months.
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