MLG Seals $45m of Contracts with Northern Star

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Stock Northern Star Resources Ltd (NST.ASX)
Release Time 16 Jan 2025, 8:16 a.m.
Price Sensitive Yes
 MLG Seals $45m of Contracts with Northern Star
Key Points
  • Execution of key contracts with Northern Star for haulage and site services across four operations
  • Total combined value of the contracts has the potential to exceed $45 million in revenue per annum
  • Two of the contracts will run until 30 June 2027
Full Summary

MLG Oz Limited (ASX: MLG) has announced the execution of key contracts with Northern Star Resources Ltd (ASX: NST) for the provision of haulage and site services across four of its operations in the Goldfields of Western Australia. The four contracts are for existing work that MLG has already been performing for Northern Star across the Jundee, South Kalgoorlie, Kanowna Belle and Kalgoorlie Consolidated Gold Mines (KCGM) operations, furthering an important relationship with Australia's largest ASX-listed gold producer. The total combined value of the contracts has the potential to exceed $45 million in revenue for MLG per annum. Two of the contracts will run until 30 June 2027. The new agreements with Northern Star come soon after a recent run of contract signings for MLG, having announced in December up to $80 million in new contracts with Evolution Mining Limited and Norton Gold Fields Pty Limited, and in November, the signing of a new contract with Evolution Mining (Mungari) Pty Limited for a further five years and with a value of $32 million per annum from the FY2026 financial year. The new Northern Star contracts encompass the provision of site services, loading and haulage of ore, Run of Mine (ROM) pad management, crusher feed works and concentrate handling and haulage.

Guidance

The total combined value of the contracts with Northern Star has the potential to exceed $45 million in revenue per annum.

Outlook

The new contracts with Northern Star extend the Company's overall relationship to more than 10 years and will see MLG play a key part in the delivery of its unique integrated service offering across Northern Star's Yandal and Kalgoorlie processing hubs.