Insights

Here’s why the Perenti (ASX:PRN) share price is travelling higher today

The company’s shares are taking off this week.
The post Here’s why the Perenti (ASX:PRN) share price is travelling higher today appeared first on The Motley Fool Australia. –

The Perenti Global Ltd (ASX: PRN) share price is climbing today after the diversified mining company announced a contract update for the Savannah Nickel Project.

At the time of writing, Perenti shares are up 4.76% trading at 77 cents. It’s worth noting that the company’s share price has accelerated by more than 10% this week.

What did Perenti announce?

Investors are driving up the Perenti share price following the company’s latest positive release to the ASX.

In its statement, Perenti revealed its subsidiary, Barminco has finalised a contract with nickel producer, Panoramic Resources Ltd (ASX: PAN). The deal will see Barminco provide development and production works at the Savannah Nickel Project in the Kimberley region of Western Australia.

Barminco, wholly-owned by Perenti, is one of the world’s largest hard rock underground mining services companies.

The finalised contract is valued at around $280 million over a four-year period.

Under the original initial Letter of Intent in April, Barminco began mobilisation efforts and early mining works ahead of schedule. As a result, the company expects development and production works to increase over the next 6 months. It hopes to achieve the full amount of revenue possible by the third quarter of FY22.

Perenti managing director and CEO Mark Norwell welcomed the partnership, saying:

We look forward to working together with the team at Panoramic to develop what we all expect will be Australia’s next long-life nickel producing mine.

Despite the challenging labour market conditions in Western Australia, we have been successful in mobilising a labour force of approximately 110 highly skilled underground employees. We expect this to increase to 170 as the project ramps-up. Securing this labour force has enabled us to commence early works ahead of schedule. We look forward to providing a safe and efficient service while delivering value and certainty for Panoramic.

Perenti share price summary

While the good news has led Perenti shares higher today, over the last 12 months, its shares are down 33%. For this year alone, the company’s share price is down almost 44% following the release of its disappointing business update in May.

Perenti commands a market capitalisation of about $537 million, with over 704 million shares on its registry.

The post Here’s why the Perenti (ASX:PRN) share price is travelling higher today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Perenti right now?

Before you consider Perenti, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Perenti wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why Althea, Audinate, Perenti, & Viva Energy shares are pushing higher

These ASX shares just sank to 52-week lows

Quarterly rebalance: Appen kicked out of ASX 100, Uniti added to ASX 200

5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!