ABN 95 009 211 474
Annual
Report
CREATING
ENDURING VALUE
AND CERTAINTY
Contents
About Perenti
Group Performance Overview
1-17
Year in Review
2
Our Strategy
4
Chair’s Message
6
MD & CEO’s Message
8
Perenti Executive Team
10
Organisational Structure
11
Financial Review
12
Our People
16
Operational Overview
18-25
Contract Mining
18
Drilling Services
20
Mining Services
22
idoba
24
Governance and Risk
28
Sustainability Report
33
Financial Report
55
*ecoStar+ 100% recycled uncoated paper
*
Who we are
Employees
10+
Commodities
12
Countries
4
Continents
Our Principles
Smarter
Together
Walk in
their shoes
No
shortcuts
Enable
tomorrow
Never
wasteful
Appendix 4E
24
23
($’000)
($’000)
Results for Announcement to the Market
Revenue from ordinary activities
Up 16.0% to
3,342,020
2,880,136
Profit from ordinary activities after
tax attributable to members
Down (0.3)% to
95,476
95,739
Net profit for the period
attributable to members
Down (0.3)% to
95,476
95,739
24
23
Net tangible assets per ordinary share
$1.26
$1.17
Dividends
On 19 August 2024, the directors have determined the payment of a final partially
franked dividend of 4.0 cents per fully paid share to be paid on 23 October 2024, with
a record date of 9 October 2024 (2023: nil). The Company’s Dividend Reinvestment
Plan (DRP) is currently suspended until further notice.
Annual General Meeting
The 2024 Annual General Meeting (AGM) of Perenti Limited will be held on 3 October
2024. Details of the business of the meeting will be provided in the AGM notice. The
AGM will be held as a hybrid meeting allowing for attendance in person or online via
a live webcast.
This report is based on accounts that have been audited.
Financial year ended 30 June 2024
Perenti is an ASX listed, diversified
mining services group with interests
in contract mining, drilling services,
mining services and technology
solutions. Headquartered in Perth and
with offices and operations across
four continents, we employ more than
10,500 fantastic people focused on
creating enduring value and certainty
for our investors, clients, people and
the communities in which we operate.
ABOUT THIS REPORT
This Annual Report is a summary
of Perenti and its operations,
activities and financial position as
at 30 June 2024. All dollar figures
are expressed in Australian dollars
unless otherwise stated.
~10,500
ii
Perenti Annual Report 2024
NORTH AMERICA
The Red Chris Mine in British
Columbia, Canada
EUROPE
Equipment arrives at the
Rupice Project in Bosnia
AFRICA
AUSTRALIA
Current operations
AUSTRALIA
AFRICA
EUROPE
NORTH AMERICA
Perenti provides a combination of contract mining, contract drilling, mining services
and technology solutions to clients across four continents. Our diverse global workforce
is focussed on creating enduring value and certainty for all stakeholders.
The Sunrise Dam operation south
of Laverton in Western Australia.
The Motheo Copper Mine is part of the
Kalahari Copper Belt in Botswana.
1
Perenti Annual Report 2024
Group Performance Overview
Year in
review
As a result of the ongoing efforts of our 10,500 people, the Group delivered
record revenue and underlying profits, buoyed by solid operational performance
and bolstered by the addition of the DDH1 group of companies (DDH1).
Up 16% on FY23
Up 19% on FY23
Record Group EBIT(A) was successfully
delivered due to the addition of DDH1
and margin improvement.
Addition of DDH1 and solid
operational performance.
Margins have lifted due to better
contract management and
optimisation of Group overheads.
Up 23 bps on FY23
REVENUE
$3.34B
EBIT(A)
$314.2M
EBIT(A) MARGIN
9.4%
Strong cash generation has
allowed declaration of a final
dividend. This takes the full year
dividend to 6.0c per share.
Significant free cash flow from
operating performance and
redistribution of idle capital to
offset expenditure.
Strong EBITDA and reduction
in net debt.
Note: EBIT(A) is underlying.
1) Free cash flow is defined as net cash inflow from operating activities after interest, tax and all
capital expenditure net of proceeds from sale of assets.
2) Net debt / underlying EBITDA.
FREE CASH FLOW1
$184.5M
LEVERAGE2
0.7x
FINAL DIVIDEND
4.0c
MILLION ($M)
MILLION ($M)
MILLION ($M)
2,438
176
(68.7)
2,880
3,342
264
314
117.3
184.5
FY22
FY22
FY22
FY23
FY24
FY24
FY23
FY23
FY24
REVENUE
EBIT(A)
FREE CASH FLOW
All references, unless specifically provided, relate to underlying figures and a reconciliation to statutory results is on page 12.
Group Performance Overview
2
Perenti Annual Report 2024
Creating enduring value
through FY24
Continuously improving our
safety performance
Safety has continued to be our
primary focus during FY24. The
incident at the Mana Mine in
Burkina Faso in February when our
colleague Siswantoro tragically
lost his life has been devastating to
everyone, particularly Siswantoro’s
family, friends and colleagues. We
progressed many improvement
initiatives through Divisional Safety
Transformation plans with an
updated approach to critical control
management and verification
activities. Implementation of these
plans will continue across our
divisions as we look to continuously
improve our safety performance.
Supporting the decarbonisation
of mines
In May 2024, in partnership with
our client IGO and global technology
leader ABB, we released the findings
of a study on the full electrification
of a mine in Western Australia.
The study, found that the cost of
electrifying the underground fleet at
the mine would not be prohibitive
over the envisaged lifespan, while
power requirements would be
similar to, or less than, that of the
existing diesel operation.
Perenti and DDH1 –
creating enduring value
In October 2023, Perenti completed
the transformative acquisition of
DDH1 Limited, including its brands
DDH1 Drilling, Ranger Drilling, Strike
Drilling and Swick Mining Services.
These brands have been integrated
into Perenti’s new Drilling Services
division along with Ausdrill, creating
one of the largest drilling service
providers globally and significantly
expanding our contract drilling
capabilities.
Successful issuance of US$350
million senior notes offering
In April 2024, we further
strengthened our financial position
by successfully issuing a US$350
million senior notes offering. In
a volatile environment in which
interest rates were considerably
higher than at the time of our
last placement in 2020, the
issuance was more than six times
oversubscribed, with a high level
of interest from leading global
institutions. This positive outcome
reflects the significant improvement
in our financial performance and
outlook, is aligned with executing
our strategy and has been achieved
through the hard work of our people
across the organisation.
Building a safe and respectful
workplace
We believe an inclusive and
respectful workplace is essential for
delivering further improvement to
our performance, including safety,
and supporting the diverse culture
required to succeed in an ever-
changing industry. An employee
survey conducted in December
2023 demonstrated we are making
positive progress in this area when
compared to the baseline survey
conducted in 2022.
$2.1 billion in new and extended
contracts
Since 1 July 2023, Perenti has
recorded new and extended
contracts in excess of $2.1 billion
highlighting the global scale of our
project portfolio and the strength
of our relationships with clients.
New and extended contracts
included; Motheo and Khoemacau
in Botswana, Obuasi in Ghana,
Yaramoko and Siou in Burkina Faso,
Hemlo and Red Chris in Canada and
Duketon, Agnew and Sunrise Dam in
Australia. These contract awards and
extensions reinforce our excellent
record of retaining our clients.
More on page 38
More on page 5
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More on page 41
More on page 15
More on page 19
Group Performance Overview
3
Perenti Annual Report 2024
No shortcuts
Never wasteful
Walk in their shoes
Smarter together
Enable tomorrow
To create enduring
value and certainty
Deliver competitive Total Shareholder
Returns by building a portfolio of
complementary businesses that
deliver consistent and quality cash
profits to create enduring value for our
clients, our people and our investors
Sustainability underpins everything we do
Caring for
our people &
communities
Valuing the environment
& enabling the energy
transition
Acting ethically &
responsibly
Our sustainability imperatives
Our sustainability priorities
Perenti has continued to make
significant progress towards the delivery
of our 2025 Strategy. Key highlights
in support of our strategic objectives
include the successful acquisition
and integration of DDH1, sustained
investment in leadership capability,
continued disciplined approach to capital
management and the work undertaken
in pursuit of our future-focused
sustainability priorities.
Our proven technical expertise, strong client partnerships and
consistent operational performance have driven year-on-year
improvement across all financial metrics.
Our expanded Drilling Services offering, globally recognised
capability in Contract Mining, growing market position
in Mining Services and significant enhancements in our
technology product solutions, ensures that the business is
well-positioned to take advantage of existing and emerging
industry trends.
In FY25, we will continue to strengthen our business model,
capitalise on strategic growth opportunities and maintain our
focus on delivering enduring value and certainty for all of our
stakeholders.
Our strategy
in action
Our Purpose
Our Principles
Our Strategy
Preventing adverse
life changing events
Safety has continued to be our primary focus during FY24. The incident at the Mana Mine in Burkina
Faso in February when our colleague Siswantoro tragically lost his life has been devastating to
everyone, particularly Siswantoro’s family, friends and colleagues. During FY24, we progressed
many improvement initiatives through Divisional Safety Transformation plans with an updated
approach to critical control management and verification activities. Implementation of these plans
will continue across our divisions as we look to continuously improve our safety performance.
Creating safe and
respectful workplaces
Perenti launched our program to create safer and more respectful workplaces in 2022 with a
focus on workforce education campaigns, leader training and coaching and the development of
division specific programs. The campaign has progressed well with a marked improvement in our
psychological safety index from our FY22 baseline to FY24.
Achieving gender
balance
In early FY23, Perenti signed up to the Hesta 40:40 Vision pledging to have Board and Executive
representation of 40% women and 40% men by 2030. We made significant inroads into these targets
in FY24 increasing female Board representation to 57%, up from 29% at the end of FY23. To further
support our focus on gender equality, plans have been developed to increase female participation
across all areas of our business.
Accelerating
decarbonisation
A key priority for Perenti is Accelerating decarbonisation both through our own initiatives or by
working with our clients and partners. Our Contract Mining division continues to lead the way in
trialling and deploying underground electric fleet. Additionally, our groundbreaking study on the
full electrification of a mine in Western Australia, in partnership with our client IGO and electrification
partner ABB, sets a new standard in the industry. During the year we also expanded our scope 3
GHG emissions disclosure.
Partnering with
our communities
With a global footprint spanning four continents, we prioritise investing in our communities to
ensure local people and businesses benefit from our operations. In FY24, Perenti invested more
than $1.4 million in supporting communities through sponsorships, donations, and community
investments. Additionally, we invested more than $1.4 billion in local procurement, with nine out of
every ten international employees being locals in their respective operations.
Group Performance Overview
More on page 38
More on page 41
More on page 41
More on page 46
More on page 44
4
Perenti Annual Report 2024
Perenti and DDH1 - creating enduring value
and certainty
The landmark acquisition of DDH1 in October this financial
year marked a pivotal moment in the Company’s history,
establishing Perenti as one of the world’s leading providers
of integrated exploration and drill & blast services.
The combination with DDH1 means we now have a
best in class fleet of 303 rigs, which has been integrated
into a new Drilling Services division, yielding substantial
synergies while opening new avenues for growth.
DDH1’s specialised expertise in surface and underground
drilling services through its brands DDH1 Drilling, Swick
Mining Services, Ranger Drilling and Strike Drilling
complements Perenti’s existing capability within our
foundation Ausdrill business and will help accelerate
our progress towards our FY25 financial targets.
Key operational milestones include the initiation
of pioneering programs like hands-free systems
for rig retrofitting, automation initiatives to
reduce hazards and increased productivity, and
continuing development for rig electrification.
Perenti’s Drilling Services division now has a diverse
portfolio of specialist brands that offers a suite of
drilling services that can be deployed across the mining
cycle—from early exploration, to resource development,
grade control, engineering and blast hole drilling.
The strategic acquisition of DDH1 is value accretive for
Perenti, while providing the group with strategic options
to leverage new client relationships across our business.
Enable tomorrow
Enable tomorrow
Charging the future
The global drive towards Net Zero is being enabled by the
critical minerals and other materials produced by the mining
industry. Mining itself also needs to reduce its emissions, and
Perenti, with its clients and partners, is playing a leading role
in reducing mining’s carbon footprint.
This year Perenti, IGO and ABB joined forces to undertake a
groundbreaking study into the electrification of underground
mining fleets.
The Cosmos Underground Electrification Study was a
pre-feasibility level study that confirmed replacing
the Cosmos diesel mining vehicle fleet with battery-electric
vehicles (BEVs) could result in significant safety
and environmental benefits.
The study also found that the cost of electrifying the Cosmos
underground fleet would not be prohibitive over the mine’s
envisaged lifespan, while power requirements would be
similar to, or less than, that of the existing diesel operation.
Cost savings were also identified, as the elimination of diesel
fumes and waste engine heat would cut the ventilation and
cooling infrastructure required underground.
With more BEV options being developed by equipment
manufacturers there is room for further improvement in
the case for the electric mine of the future.
With the collaboration of our partners, Perenti will continue
to step up to help the industry with its critical transition to
Net Zero in line with our sustainability priority of Accelerating
decarbonisation.
Case study
Case study
Case study
Case study
Case study
Never wasteful
Smarter together
Smarter together
Group Performance Overview
Scan the QR code for
further information on the
the Cosmos Underground
Electrification study.
5
Perenti Annual Report 2024
A message from the Chair
Since joining your Board in October 2023 post the DDH1 acquisition and
becoming Chair in March 2024, I have been privileged to work with a team
of industrious and dedicated people displaying a commitment to deliver in
accordance with Perenti’s Principles. These Principles are not mere words
they are shared beliefs that guide our actions.
This commitment to deliver, combined with our world-leading
capabilities in delivering mining services, is the foundation upon
which Perenti has and will continue to build success. Pleasingly,
Perenti’s strategy is backed by a disciplined approach to capital
management which has sharpened the focus on achieving the
right balance between free cash flow generation and growth.
In 2024, record underlying EBIT(A) earnings of $314.2 million,
were delivered on the back of record revenue of $3.34 billion.
The strength of the result has allowed your Board to reinstate
dividends this year. Also during FY24, your Board took
advantage of the capital efficient opportunity presented
by the share price to return further value to shareholders
through a share buyback program totalling $31.5 million.
Disciplined adherence to our 2025 Strategy has been a
feature of the year with the leadership team focused on
strategy execution. This execution is exemplified by the
seamless integration of DDH1, allowing the establishment
of the Drilling Services division which commands industry
leading capability in the global drilling services market.
Whilst financial performance has improved year on year
and again met guidance, the same cannot be said about
safety. In February, our African Underground Mining
Services colleague, Siswantoro, was tragically killed while
undertaking a maintenance activity at the Mana Mine in
Burkina Faso. This incident was devastating for everyone
concerned. We extend our condolences and deepest
sympathy to Siswantoro’s family and his colleagues at Mana.
We have made important progress in many areas of our
safety performance as detailed in our Sustainability Report.
There is, however, more work to do to reach our goal of
no adverse life changing events. Safety, and ensuring our
people return to their families and friends safely, is core to
our values and the number one priority for the Board, Group
Executive Committee and our broader leadership teams.
Following the identification of several sustainability
imperatives and priorities in 2022, Perenti has continued
to embed sustainability across the business.
Highlights during the year include work to create
a safe, respectful and diverse workplace with
several initiatives implemented across our divisions.
In addition, we have set meaningful targets to increase
the number of women across the Group.
In May, a landmark white paper on the electrification
of underground mining was published. The joint study
between Perenti, our client IGO and leading global
technology company, ABB, supports both our own
decarbonisation journey and that of our clients, highlighting
the growing opportunity for us in the energy transition.
The Board accepts the feedback we received from shareholders
at last year’s AGM regarding executive remuneration, particularly
relating to safety performance accountability. The Board, in
consultation with independent advisors, has taken active steps
to address these concerns, particularly as they relate to the
short-term incentive plan. These changes are explained in the
Remuneration Report (page 65). We believe these changes
strike a balance that will drive the type of performance we
aspire to across all critical aspects of our Company, including
safety, environmental outcomes, governance, and financial
results, and at the same time engage our management team.
I thank my fellow directors for their professionalism,
commitment and support as I have transitioned into the
Chair role. Andrea Sutton also joined the Board this year.
Andrea’s valuable mining industry experience was an asset
to the DDH1 Board and is proving the same at Perenti,
particularly in relation to workplace health and safety.
In March, we made changes to our governance structure
and Board committees. Non-executive Director,
Tim Longstaff became the Chair of the People and
Remuneration Committee while Andrea Sutton became
the Chair of the Safety and Sustainability Committee.
Other changes to Board committee composition are
detailed in the governance section of this report.
We thank Rob Cole for his six years on the Board,
including almost three years as Chair, where he
provided leadership integral to Perenti’s evolution.
Group Performance Overview
6
Perenti Annual Report 2024
OUR FY24
FINANCIAL
PERFORMANCE
FREE CASH FLOW
$184.5M
REVENUE
$3.34B
EBIT(A) MARGIN
9.4%
LEVERAGE
0.7x
DIVIDENDS
6.0c
Emerging from the initial combination of Ausdrill and
Barminco during Rob’s tenure, Perenti is now a global
leader in mining services, operating across 12 countries.
We also thank Mark Hine who stepped down from the
Board in October after nearly nine years of service.
Your Board and I very much appreciate the thoughtful
leadership of Mark Norwell, our Managing Director &
CEO. Mark has worked with your Board to build a well-
balanced, diverse and highly talented leadership team that
continues to deliver for shareholders and other important
stakeholders. The Group Executive Committee has displayed
a noteworthy ability to support their teams to deliver while
dealing with considerable uncertainty across our industry.
Your ongoing support of Perenti is appreciated. I look
forward to meeting many of you at our AGM, and reporting
on what we plan to be another strong year in 2025.
Diane Smith-Gander AO
Chair
Perenti Managing Director & CEO
Mark Norwell with Perenti Chair
Diane Smith-Gander on a recent
visit to the Subika Mine in Ghana.
Group Performance Overview
7
Perenti Annual Report 2024
For the second consecutive year Perenti has delivered a record financial result,
driven by our talented and dedicated team of people, a disciplined approach to
executing our strategy and a commitment to operational excellence in support of
our clients’ objectives.
A message from the
Managing Director &
CEO
In 2024, Perenti delivered another
year of record financial performance
across revenue, EBIT(A), leverage and
free cash flow. All metrics were within
or better than our guidance, with free
cash flow of $184.5 million, a strong
beat to our guidance of $100 million.
This focus on free cash flow and
operational performance continued
the deleveraging of our business to the
lowest point in more than ten years. We
are pleased with this performance, and
with the consistency of the financial
results we are now delivering, and
will continue to deliver, supporting
ongoing returns to shareholders via
share buybacks and dividends.
Safety
Our safety imperative is no adverse
life changing events. This is a goal
that everyone at Perenti aspires to.
Tragically, in February of this year we
were devastated when one of our
colleagues, Siswantoro, was fatally
injured while undertaking a maintenance
activity at the Mana Mine in Burkina
Faso. The loss of Siswantoro was felt
by his family friends, work colleagues
and across the business. We have and
will continue to provide support to
Siswantoro’s family and colleagues.
The loss of Siswantoro comes
after several other fatal incidents in
proceeding years and the Board, along
with the whole organisation, are deeply
committed to continually drive safety
improvements across our Group.
Through the Safety Transformation
Taskforce established in FY23, we have
implemented a multi-layered approach
to continuously assess and improve
our safety performance. This includes
a focus on leadership, safety systems,
assurance activities, working with our
clients and culture. Our Principles,
which are at the heart of our culture,
speak directly to safety, with a focus
on No shortcuts and being Smarter
together, to be safer together.
As part of the taskforce, we appointed
world-leading safety experts to open
our thinking to different concepts
and perspectives and we have further
increased our focus on critical risks and
controls. Our Contract Mining, Drilling
Services and Mining Services divisions
have established working groups and
developed safety transformation plans.
The work of each division is under the
leadership and accountability of the
divisional president with a focus on
delivering improvements at the front line
to ensure the safety of our employees.
This approach is critical as we work
in challenging environments across
the world, especially in underground
mining. We are also utilising technology
solutions and constantly looking for
engineering controls to minimise the
exposure of our people to the inherent
risks associated with our industry.
We remain committed to identifying,
developing and sharing safety solutions
with the broader mining industry.
Financial and operational
performance
Our 2024 results were underpinned
by strong performance across our
portfolio. Importantly, our businesses
are generating strong free cash flow,
the ultimate measure of business
performance, which provides us
with financial strength and flexibility.
We have started to use this flexibility
to return value to shareholders
via our share buyback program
and by reinstating dividends.
During the year, we completed the
acquisition of DDH1 Limited and
their businesses DDH1 Drilling, Swick
Mining Services, Strike Drilling and
Ranger Drilling. We took a proactive
approach to integrating DDH1’s
1,650 employees into our Company,
combining our Ausdrill drilling business
with DDH1 Limited’s businesses to
create a new Drilling Services division.
Despite demand for drilling services
being subdued in FY24, the DDH1
acquisition has generated value for
our shareholders, with the division
delivering $598.1 million in revenue,
$110.1 million in EBITDA and strong
free cash flow. This demonstrates
the value of having a Drilling Services
division that is a global industry leader
and positions us extremely well for
the inevitable upturn in demand.
Across all the businesses in our portfolio
we continued to work hard during
the year to maximise the value of
our strong operational performance
by maintaining a highly disciplined
approach to managing our capital,
controlling costs, and ensuring we
have the right levels of accountability
and governance through The Perenti
Way, our operating model and blue-
print for the way we work together.
We are focused on developing and
delivering solutions for our clients, and
it is their confidence in Perenti through
the opportunities they provide us, that
underpins our business. We value their
support and build strong relationships
with them by consistently creating lasting
value and certainty. This is demonstrated
by our Contract Mining division who
have secured more than $2.1 billion
in new and extended contracts with
our clients since July 1, 2023. These
successes reflect our enduring client
relationships, and we are grateful for
their continued support.
In April, we further strengthened our
financial position by successfully issuing
a US$350 million senior notes offering.
The issuance was more than six times
oversubscribed, with a high level of
interest from leading global institutions.
Group Performance Overview
8
Perenti Annual Report 2024
This positive outcome reflects the
significant improvement in our financial
performance and outlook, is aligned
with executing our strategy and has
been achieved through the hard work
of our people across the organisation.
Strategy
Since embarking on our 2025 Strategy
in 2019, the Board and Group Executive
Committee have been focused on
improving the Perenti business. Having
navigated the global pandemic and
addressed numerous historical issues
within the business, we set ambitious
performance targets in June 2022.
Our strong operational performance
and deep mining technical expertise
have led to significant improvements
across all financial metrics. With
ongoing incremental improvements
in FY25, we expect to achieve a
level of performance that meets or
exceeds the targets previously set.
As a result, we plan to update our
strategy to build on these strong
foundations and further improve the
long-term prospects of the business.
Our updated strategy will be focused
on five key areas that will drive our
competitive advantage; Sustainability,
People and talent, Portfolio
management, Perenti Performance
System and Capital allocation. In
combination with targets that are
focused on year on year performance
improvements, our updated strategy
will ensure that we continue to deliver
enduring value and certainty for all
of our stakeholders. We look forward
to sharing further details in FY25.
Our people are our difference
Our workforce grew to more than
10,500 people with the integration of
DDH1. We have always believed that
developing and training our people helps
build capability and a strong culture in
our organisation which in-turn supports
the implementation of our strategy.
This year, we continued to strengthen
our leader’s core capabilities and
drive cultural transformation through
our Leading@Perenti program. The
program was also extended to mid-
level management roles with the
introduction of Managing@Perenti
further building leadership capability
and supporting leader development.
We have maintained our commitment
to apprentices and trainees, taking
more than 900 people through our
programs over FY24 and retaining our
mantle as one of the largest private
sector employees of apprentices
in Western Australia. At our training
centre in Botswana, we have trained
more than 800 people to be part
of our Khoemacau and Motheo
operations and we proudly maintain
greater than 90% local employment
across our international operations.
Following the DDH1 acquisition,
we welcomed former DDH1 Chair,
Diane Smith-Gander, and Board
member, Andrea Sutton, to the Board
and in December, Gabrielle Iwanow
joined the Perenti Group Executive
Committee as the President of
Contract Mining. These appointments
have added significant capability to
our Board and executive team.
This year, our Chief Financial Officer
of 11 years, Peter Bryant, elected to
leave the mining sector and take a new
opportunity with another high profile
Western Australian business, while our
President of Drilling Services, Sy Van Dyk,
has also resigned to take up a new role in
May 2025. Both Peter and Sy have been
valuable contributors to Perenti and I
would like to thank them both for their
support, counsel and contribution to the
organisation. Peter and Sy will remain
with the business for several months
to ensure a smooth transition and, as
outlined in our FY25 results presentation
to the market, several important
changes to the Group Executive
Committee will take place in FY25.
Building a sustainable future
A focus for FY24 has been
progressing our sustainability imperatives
and priorities that were identified
and outlined in FY23. An important
development has been the finalisation
of a series of targets to measure our
progress.
We believe an inclusive and respectful
workplace is essential for delivering
further improvement to our
performance, including safety, and
supporting the diverse culture required
to succeed in an ever-changing industry.
An employee survey, conducted
in December 2023, demonstrated
since our last survey in 2022 we are
making positive progress in this area.
We have also invested in plans to
ensure we achieve greater female
participation across our businesses.
While we are committed to managing
the environmental impact of our
activities to deliver sustainable outcomes
for people and the planet, we also work
in partnership with our clients, complying
with their environmental approvals
and permits and adopting robust
environmental management systems.
Society’s push for a sustainable world is
reflected in demand for minerals that will
support decarbonisation of the global
economy. This directly impacts our
clients, who are increasingly looking to
provide these minerals in a sustainable
way. The development and use of
technology is a critical component to
unlocking sustainable mining methods.
This year we were proud to be part of the
Cosmos Electrification Study, with IGO
and ABB, which produced a landmark
detailed assessment of what it would
take to fully electrify an existing fossil
fuel powered mine. This was a truly
collaborative effort, and we were pleased
to deliver the study’s findings to industry
via a white paper released in May.
Looking ahead
We enter FY25 with momentum,
consistency of performance and with
a balance sheet that is the strongest
it has been for more than ten years.
The ongoing implementation of our
Divisional Safety Transformation plans
will be a priority, as we continue to
build a safe, inclusive and respectful
team that can support sustainable
growth across the Group.
We are excited about the year ahead.
We have an outstanding team, strong
balance sheet, clear strategy and
we are well positioned to capitalise
on global growth opportunities
while maintaining our disciplined
approach to capital management.
In closing
I’d like to thank the thousands of people
who come to work every day at Perenti.
We are a collection of strong and proud
businesses, each with a rich history and
a bright future, and it’s the dedication
of our people to creating value and
certainty for our clients that allows us to
succeed. And it is our clients that provide
us with the opportunity to support their
business objectives, for which we are
extremely appreciative and grateful for.
Rob Cole and Mark Hine both left our
Board this year, and I thank them both for
their leadership and counsel throughout
their time on the Board. I also thank our
existing Board, and our new Chair, Diane
Smith-Gander, for their leadership and
support. The complementary skillset,
diversity of experience and aligned
people focused values of Diane and I is a
strong combination that will enable the
business to go from strength to strength.
Finally, thank you to Perenti’s
shareholders. Together we are part
of a genuine Western Australian
success story, taking Australian
mining expertise globally with a
focus on creating enduring value and
certainty for all our stakeholders.
Mark Norwell
Managing Director & CEO
Group Performance Overview
9
Perenti Annual Report 2024
The Perenti
Group Executive Committee
MANAGING DIRECTOR &
CHIEF EXECUTIVE OFFICER
MARK NORWELL
CHIEF STRATEGY OFFICER
CAMERON BAILEY
Mark was appointed as the Managing
Director & CEO of Perenti in September
2018. Mark has more than 25 years’
experience in the mining industry
throughout Australia, New Zealand,
Africa and the Americas.
Cameron is a business and corporate
development executive with more
than 30 years’ experience in mining,
construction and the heavy industry
environment.
CHIEF FINANCIAL OFFICER
PETER BRYANT
Peter is a CFO with more than 30 years’
experience. He has served in various
executive roles across the mining,
construction and media sectors.
PRESIDENT
DRILLING SERVICES
PRESIDENT
CONTRACT MINING
PERENTI GROUP EXECUTIVE COMMITTEE
SYBRANDT VAN DYK
GABRIELLE IWANOW
PAUL MULLER
Sy has more than 30 years’ experience
primarily in the resources sector. Sy
joined Perenti in October 2023 and was
previously Managing Director & CEO of
DDH1 Limited.
Gabrielle was appointed President
Contract Mining in December 2023.
Gabrielle has more than 20 years’
experience in the mining industry both
in Australia and internationally.
Paul has more than 30 years’ experience
in the mining industry, working for both
mining services providers and mine
owners in Australia, Asia and Africa.
PRESIDENT
idoba
SARAH COLEMAN
Sarah has more than 20 years’ mining
and management consulting experience
with an impressive background spanning
operations, improvement, innovation,
technology and asset management.
CHIEF LEGAL AND RISK OFFICER
RAJIV RATNESER
Raj is a senior executive with more than
30 years’ national and international
experience across legal, commercial,
governance, risk and internal audit
primarily in the resources, engineering
and construction industries.
PRESIDENT – MINING SERVICES
CHIEF PEOPLE AND SUSTAINABILITY OFFICER
BEN DAVIS
With experience spanning more than
20 years, Ben has held a number of
operational, corporate and executive
functional roles in energy and
resources across Australia, Africa
and North America.
Group Performance Overview
10
Perenti Annual Report 2024
A global mining contractor
with demonstrated
industry-leading expertise
in hard-rock surface and
underground mining.
A portfolio of specialised
businesses delivering
value-added services to
meet the evolving needs
of mining sector clients.
A global drilling contractor
with unmatched expertise
in drilling complex holes
and consistently delivering
optimal results in any
terrain.
A technology business
delivering unique
end-to-end digital
products and services to
revolutionise the mining
industry and beyond.
Perenti Organisational
Structure
Group Performance Overview
11
Perenti Annual Report 2024
Record financial performance
During FY24, Perenti delivered another record year of revenue, underlying profits
and free cash flow. Significant financial highlights include further deleveraging
of the business, successful integration of DDH1 and another year of consecutive
growth since the disruptive Covid period.
Reconciliation of statutory NPAT to underlying NPAT (A) for FY24
$MILLION
REVENUE
EBITDA
EBIT
NPAT
Statutory results
3,342.0
624.9
246.4
107.2
Non-cash amortisation of customer related intangibles
—
—
47.4
47.4
Statutory results before customer related intangibles amortisation
3,342.0
624.9
293.8
154.6
Non-underlying items:
Gain on acquisition (DDH1 acquisition)
—
(25.4)
(25.4)
(25.4)
Transaction, restructuring and other one-off costs
—
10.2
10.2
10.2
Net foreign exchange loss
—
20.6
20.6
20.6
Redemption premium on 2025 High Yield Bonds, and
release of capitalised borrowing costs
—
—
—
8.3
idoba product development
—
14.3
15.0
15.0
Net tax effect
—
—
—
(17.5)
Underlying results
3,342.0
644.6
314.2
165.8
Perenti’s statutory revenue and net profit after tax (NPAT)
for FY24 was $3,342 million (FY23: $2,880 million) and $107
million (FY23: $103 million) respectively. When compared to
the prior comparative period, revenue increased by 16% and
net profit after tax increased by 4%. The results were largely
driven by continued strong operational performance, the
acquisition of DDH1 contributing to the results in FY24 and
the resolution of commercial matters across several projects.
In accordance with the Perenti strategic plan, 99% of the
revenue growth during FY24 was sourced from Australia,
North America and Botswana.
The statutory profit for FY24 included several abnormal items
presented as “non-underlying” items in the reconciliation
table below. This included the gain on acquisition in relation
to DDH1 of $25.4 million.
Costs included the following items: Transaction,
restructuring and other one-off costs of $10.2 million
which mainly comprised DDH1 acquisition related costs;
Net foreign exchange losses of $20.6 million predominately
related to unrealised foreign exchange on intercompany
loans and
tax optimisation strategies; Bond refinance-related activities
which contributed approximately $8.3 million of additional
interest expense comprised of the call premium paid for
partial early redemption of the 2025 US144A Notes of
$5.7 million and the associated accelerated amortisation of
capitalised borrowing costs of $2.6 million and $15.0 million
of costs related to product development in idoba was also
classified as “non-underlying” in FY24.
A reconciliation from Perenti’s statutory results to its
underlying net profit after tax before amortisation of
customer related intangibles (NPAT(A)) is presented below.
From an underlying perspective, the Group delivered record revenue and underlying EBIT(A) in FY24, another year of
consecutive growth since the disruptive Covid period. Underlying EBITDA, EBIT(A), and NPAT(A) increased by $92.0 million
(16.7%), $50.1 million (19.0%) and $34.0 million (25.8%) respectively when compared to FY23. The FY24 EBITDA and EBIT(A)
margins of 19.3% and 9.4% also improved by 10 bps and 23 bps against the prior comparative period.
Group Performance Overview
12
Perenti Annual Report 2024
Revenue
$2,542M
Revenue
$598M
Revenue
$202M
Our Performance
Underlying EBIT(A)
$287.3M
Underlying EBIT(A)
50.6M
Underlying EBIT(A)
25.4M
Margin
11.3%
Margin
8.5%
Margin
12.6%
(Down 97 bps on FY23)
(Up 119 bps on FY23)
(Up 893 bps on FY23)
Group Performance Underlying Results
By country (%)
Revenue
• Australia
50.7
• Western Africa
27.5
• Botswana
11.1
• Southern Africa
5.1
• North America
5.3
• UK / EU
0.3
Revenue from tier one mining
jurisdictions increased from 62%
in FY23 to 67%
High proportion of gold projects
due to Perenti’s stringent client
selection process.
By commodity (%)
• Gold
62.0
• Copper
12.8
• Nickel
9.1
• Iron Ore
4.2
• Lithium/Manganese
0.4
• Other
11.4
By project (%)
• Top Project
6.3
• Top 2-10 Projects
39.8
• Top 11-20 Projects
22.9
• All others
31.0
Diversified revenue sources
retained.
Battery Minerals
(Up 3% on FY23)
(Up 195% on FY23)
(Up 2% on FY23)
(Down 5.5% on FY23)
(Up 243% on FY23)
(Up 249% on FY23)
Contract Mining
Drilling Services
Mining Services and idoba
(%)
(%)
(%)
Group Performance Overview
13
Perenti Annual Report 2024
Contract Mining
The Contract Mining division contributed 76.1% of the
Group’s revenue and 79.1% of underlying EBIT(A) before
corporate overheads. The segment’s underlying EBIT(A)
result in FY24 decreased by $16.8 million (5.5%) with a margin
of 11.3% (2023: 12.3%). Strong operational performance
continued in FY24, with the successful ramp up of the A4
Motheo Project in Botswana and focus on delivery for all our
clients. The lower EBIT(A) result year on year was impacted
by the positive one off rate adjustment of $11.3 million for
the Iduapriem Project in FY23. In comparison in FY24, the
underlying EBIT(A) was impacted by the Savannah Nickel
Mine closure which amounted to $11.2 million incorporating
the doubtful debt provision and demobilisation costs. After
normalising for these non-recurring items, Contract Mining
has demonstrated another consistent year of underlying
performance.
Drilling Services
On 6 October 2023, the DDH1 scheme of arrangement
was implemented, where Perenti acquired 100% of DDH1
issued capital. The transaction resulted in Perenti issuing
279,704,558 ordinary shares and paying $50 million in cash to
DDH1 shareholders. The four DDH1 brands of DDH1 Drilling,
Ranger Drilling, Strike Drilling and Swick Mining Services
and Perenti’s existing drilling services business Ausdrill, were
subsequently combined to form the Drilling Services division.
Ausdrill’s transfer sees it part of a division better aligned to its
service offering.
The newly formed Drilling Services division contributed
17.9% of Group revenue and 13.9% of Group EBIT(A) before
corporate overheads. The FY24 Drilling Services division
results include 12 months of operations from Ausdrill and
nine months of operations from the four DDH1 brands.
Rig utilisation has been lower than forecast, particularly
during the second half of FY24, impacting divisional
performance in comparison to forecasts at the time of the
acquisition.
Despite this, Drilling Services contributed strong free cash
flow and now has global scale and capability in production,
development and exploration drilling. The Drilling Services
division will be a strong contributor to future earnings when
rig utilisation returns to historical levels.
Mining Services and idoba
The Mining Services and idoba reporting segment
contributed 6.0% of Group revenue and 7.0% of Group
EBIT(A) before corporate overheads in FY24. The segment’s
underlying EBIT(A) result in FY24 increased by $18.1 million
(249%) with a margin of 12.6% (2023: 3.7%). The increase from
the prior year was driven by improved performance in BTP
and Supply Direct in addition to idoba product development
costs classified as non-underlying in FY24. BTP remained
the largest contributor of revenue within the division and
delivered strong earnings on improved demand and utilisation
of its rental fleet while parts sales grew in all regions,
underpinned by a strong rebuild pipeline. Supply Direct
delivered another year of record earnings through continuing
to develop new high margin product lines.
Cash flows and cash conversion
The Group’s FY24 net cash inflow from operating
activities was $487.8 million, an increase of 22.5% over the
$398.1 million reported for FY23. Receipts from customers
increased by $608.0 million or 20.2% reflecting improved
performance, growth in the underlying businesses and
inclusion of DDH1 for the nine month period to 30 June
2024. Underlying EBITDA to operating cash flow conversion
of 98% was higher than FY23 (FY23: 95%)representing an
improvement in converting EBITDA to cash by continued
focus on working capital initiatives. Cash tax paid was higher
in FY24 due to higher profits in overseas entities and timing
of tax payments during the period. Net interest payments
increased by $1.3 million in FY24 due to an increase in global
interest rates and timing of interest payments.
Net investing expenditure in FY24 was $382.7 million
against $280.7 million in FY23. Investment expenditure
for property, plant and equipment and intangible assets,
excluding proceeds from sale of plant and equipment,
was $335.2 million in FY24 compared to $373.9 million
in FY23, a reduction of $38.8 million.
14
Perenti Annual Report 2024
The reduction is due to a combination of lower stay-in-
business capital, as a result of the Subika Project transitioning
to a capital light operating model, and the redeployment of
assets from the Savannah and Cosmos Nickel projects that
were placed in care and maintenance in FY24. These offset
the inclusion of DDH1 capital spend in FY24. During FY24,
proceeds of $31.9 million were received from the sale of
assets (mostly in Africa).
Net cash inflow from financing activities in FY24 was
$52.8 million compared to a net outflow of $(167.7) million in
FY23. During the period, Perenti received proceeds from the
issuance of the new 2029 US144A Notes of $538.8 million, of
which $350.5 million was applied towards partial redemption
of the 2025 US144A Notes and the balance towards
repayment of Perenti syndicated debt facility.
Capital return to Perenti shareholders was $48.9 million,
comprising $29.8 million paid for shares bought back on-
market between October 2023 and the end of June 2024,
as well as $19.1 million in dividends in relation to the interim
FY24 dividend. Payment of borrowing costs from refinancing
activities totalled $15.0 million relating to the bond refinance
and extension of Perenti’s syndicated debt facility. Perenti
also paid a $5.7 million call premium for the partial early
redemption of the 2025 US144A Notes. Finally, $3.4 million
was paid in dividends to non-controlling interests relating to
profits from overseas operations.
Balance sheet and capital management
In accordance with Perenti’s capital management strategy to
deliver competitive returns to shareholders, the Company has
completed on-market share buybacks across FY22, FY23 and
FY24 of a total 56.9 million ordinary shares at an average price
of $1.05 per share and a total cost of $54.0 million.
The current share buyback program remains in place with an
indicative end date of 30 Aug 2024. In accordance with its
capital allocation framework, Perenti aims to utilise free cash
flow on value accretive opportunities to optimise shareholder
returns.
During FY24, leverage reduced under the threshold of 1x
EBITDA/Net Debt, allowing for the resumption of dividends.
The payment of 2c/share as an interim dividend has now
been followed up with a 4c/share final dividend. Perenti will
continue to prioritise returns to shareholders in the form of
dividends in the future.
In addition to the share buyback in April 2024 Perenti
successfully issued new US144A Notes with a US$350 million
principal amount, further strengthening our financial position.
The new Notes are unsecured and at an interest rate of
7.5%, an attractive coupon relative to US Treasury rates and
reflecting the significant improvement in the strength of
the Perenti business since the last high yield notes issuance
in 2020. The new US144A Notes provides Perenti with a
significantly lengthened maturity profile with repayment due
in April 2029. Proceeds were used to partially redeem the
existing 6.5% 2025 US144A Notes of US$230 million, with the
balance allocated to the repayment of Perenti’s syndicated
debt facility. As at 30 June 2024, the balance of the 2025
US144A Notes is US$202.9 million.
Net leverage has significantly improved to 0.7x from 0.9x in
accordance with our strategic plan and is driven by strong
operational performance, record free cash flow performance
and the acquisition of DDH1 in FY24. Further demonstration
of Perenti’s improved balance sheet is shown with gearing
(defined as net debt / (net debt + equity)) at 20.8%, its lowest
level since the acquisition of Barminco in October 2018. With
available liquidity of $825.9 million, comprised of cash and
cash equivalents of $459.1 million and undrawn amounts
under the syndicated debt facility of $366.8 million, Perenti is
well positioned to meet its strategic objectives.
Delivery of our financial objectives requires a continued
focus on the generation of free cash flow. With a disciplined
approach to capital allocation and continued optimisation
of overheads, the business is positioned to provide sustained
free cash flow for many years ahead. This free cash flow
will allow for self-funding of measured growth in addition
to providing returns to shareholders via dividends and share
buybacks when appropriate.
Group Performance Overview
15
Perenti Annual Report 2024
Our People
Creating safe and respectful workplaces
In FY24, we continued to make solid progress on our
sustainability priority of Creating safe and respectful
workplaces through the introduction of a number
of Group-wide initiatives. These included workforce
education campaigns, leader training and coaching and
the development of division specific programs. We also
implemented a reporting mechanism to monitor and share
information about psychosocial hazards, including harmful
behaviours, across the Group.
To track our progress against this priority, during the year
we conducted an employee survey in Australia which
demonstrated a marked improvement in our psychological
safety index from our FY22 baseline survey conducted in
2022.
Perenti is already a diverse business operating in 12 countries
globally. We understand that continuing to build a diverse
workforce is critical to our success. It will support improved
innovation, teamwork and decision making while also
creating a work environment that allows our people to thrive,
regardless of ethnicity, gender identity, race, religion or any
other attributes.
Achieving gender balance
We understand that to create a safe and respectful workplace,
we must also have greater female participation across the
Group. We have introduced a series of meaningful targets
to achieve this, including our commitment to HESTA 40:40
which is for at least 40% of our Board and Group Executive
Committee being female by 2030.
During the year, we made significant inroads into these
targets increasing female Board representation to 57%, up
from 29% at the end of FY23. To further support our focus
on gender equality, plans have been developed to increase
female participation across all areas of our business.
At Perenti, it is simple, our people are integral to our success. We are dedicated to
fostering an inclusive workplace where every member of our team is valued equally.
Each and every day, the skills, focus and commitment of our people ensures we
continue to collectively create enduring value and certainty for our investors, clients,
colleagues and the communities in which we operate.
Investing in our people
At Perenti, we are proud to be one of the largest private sector
employers of apprentices and trainees in Western Australia
and our focus on developing our people has continued
throughout FY24. Our apprenticeship program numbers
increased with 202 apprentices across the Group. In addition
to our commitment to apprentices, we also supported 721
traineeships, a significant increase recorded on the back of
the DDH1 acquisition.
Participation in our graduate programs remained steady
with 51 participants throughout FY24 with graduates coming
together for our annual graduate forum which supports these
future leaders to develop leadership skills, as well as a focus
on safety, technology and innovation and alignment with the
Perenti Principles.
Building our leaders for tomorrow
Leadership and capability development is vital to ensure the
success of Perenti’s business strategy and generating value
from The Perenti Way, our operating model. The programs
are also an integral part of Creating safe and respectful
workplaces across our divisions.
Throughout FY24, 106 senior leaders participated in the
Leading@Perenti Program which aims to strengthen core
leadership capabilities, support cultural transformation and
help leaders understand their role in implementing Perenti’s
business strategy.
In September 2023, we commenced Managing@Perenti, a
bespoke program centred on developing the capability of our
middle management level roles within the business. Since the
launch, 110 managers have attended the program.
Work continues throughout the divisions to enhance frontline
leader capability and build confidence to support creating
teams that are safe, respectful and inclusive. An example of
this is the Project Leaders Program recently rolled out in our
Contract Mining division.
Group Performance Overview
16
Perenti Annual Report 2024
Workforce numbers
remain strong with 4,800
employees in Australia and
5,700 internationally.
Employees
10,500
Local employment in our
international operations has
remained stable at 90%.
Local employment
internationally
90%
up from 29% at the end
of FY23.
Board female
representation
57%
Participation in our
graduate programs
remained steady with
51 graduates in FY24.
Graduate programs
51
Female participation rates
are consistent with FY23
while women occupy 17%
of our senior management
positions up from 15% in
FY23.
We have a strong
commitment to training
our workforce of tomorrow
with 202 apprentices and
721 trainees.
Female participation
11.0%
Apprentices and trainees
923
up from 21% at
end FY23.
Female Board and Group
Executive Committee
representation
40%
Achieved a marked
improvement in
psychological safety
index from our FY22
baseline to FY24.
Improvement in
psychological safety
Building a workforce to succeed in a constantly evolving industry
Group Performance Overview
17
Perenti Annual Report 2024
Perenti Contract Mining Division
A continued focus on market leading operational
performance across the Contract Mining division’s global
portfolio of mining projects saw the division deliver
financial results in line with expectations in FY24.
COUNTRIES
7
16
20
CLIENTS
PROJECTS
133.43
DEVELOPMENT ADVANCE
PRODUCTION TONNES
LONGHOLE DRILL METRES
TKMs
RHINO METRES
km
Mt
km
15.82
2,407
106.72
12.91
Mtkm
km
DIAMOND DRILL METRES
485.54 km
UNDERGROUND
SURFACE
TOTAL PEOPLE
7,634
AUSTRALIA
AFRICA
NORTH AMERICA
2,099
5,139
396
4 YEARS
IN NORTH AMERICA
33 YEARS
IN AFRICA
35 YEARS
IN AUSTRALIA
DRILL & BLAST
BCM Blasted
LOAD AND HAUL
BCM Mined 44
42
2.95
M
M
M
Metres Drilled
Operational Overview
Key Physicals FY24
18
Perenti Annual Report 2024
Across the three regions in which we operate – Australia,
Africa and North America – delivering on our client’s
development and production targets was key in FY24, as
the division focussed on improving efficiencies and growing
operations at long-life projects.
These efforts were reflected with new or extended contracts
at Motheo and Khoemacau in Botswana, Obuasi in Ghana,
Yaramoko and Siou in Burkina Faso, Hemlo and Red Chris in
Canada, and Duketon, Agnew and Sunrise Dam in Australia.
These contract awards and extensions reinforce our excellent
record of retaining our clients.
The on target financial performance was achieved despite
volatility in the battery metals market impacting two projects
in Australia that were subsequently placed into care and
maintenance. The division was able to redeploy the affected
workforce quickly and successfully utilise existing equipment
across other operations. This action allowed a reduction in
planned capital expenditure and importantly, the retention of
people.
An ongoing focus for the division has been the safety of our
people following the incident at the Mana mine in Burkina
Faso where our colleague, Siswantoro, tragically lost his life
in February. Divisional Safety Transformation action plans are
underway to deliver tangible safety improvements in pursuit
of delivering our goal of no adverse life changing events.
Technology is one area of focus in the divisional safety
plan and we progressed industry leading safety initiatives,
including new infra-red technology recently introduced to
our Australian jumbo fleet. The technology deactivates the
booms on a jumbo should it detect movement in proximity
to the equipment and if primary manual controls are
overlooked. See case study below.
In January, the division welcomed the appointment of a new
President. As one of Australia’s leading mining executives,
Gabrielle Iwanow took over the position from Paul Muller
who has transitioned into the Chief Corporate Services
Officer role. These appointments ensure continuity, ongoing
capacity and the ability to retain vital knowledge across key
leadership positions within the business, as the division looks
towards driving safety and productivity improvements across
the Contract Mining portfolio in FY25 and beyond.
Case study
Technology provides additional safety layer
Removing people from line-of-fire tasks is crucial to
continually improve how we operate in a global mining
environment and ensuring the workplace is as safe as
possible for our frontline workforce.
The Contract Mining Technology team has been looking
at ways to further reduce risk to people from stepping in
front of and being struck or entangled in the booms of an
operating jumbo.
As part of Contract Mining’s commitment to improving
how we work through the Division’s Safety Transformation
plan, new sensor and infra-red equipment is being fitted to
Barminco’s jumbo fleet within Australia.
The Area Denial System (ADS) is an additional technological
safeguard to existing manual safety controls.
Workers are required to manually deactivate a jumbo’s
hydraulics to stop the operator being able to move the
booms, by engaging the OEM-fitted movement inhibitor
switch.
Use of the movement inhibitor switch remains the primary
control, however in the case of a momentary lapse in
concentration, the ADS will activate and prevent the booms
from being able to be engaged by the operator.
The system works through a series of sensor units and
infra-red to create a 3D detection zone over the boom
movement area, and is programmed to prevent boom
movement upon reflective PPE being detected.
It is another layer of protection for our people and
another step towards a safer underground work
environment, should the primary manual control be
overlooked.
To meet operational requirements, Barminco worked
with OEMs, Auto Control Systems and German-based
IFM, to redesign existing equipment used in aviation,
agriculture and shipping industries.
The project took eight months to refine the technology
to develop a fit-for-purpose system suitable for the
underground mining environment.
The technology is now being considered for use by other
mining companies, which is recognition of Barminco’s
commitment and dedication to developing safety
systems that others in the sector now wish to adopt.
Case study
Operational Overview
19
Perenti Annual Report 2024
Perenti Drilling Services Division
SURFACE
Key Physicals FY24
DIAMOND DRILLING
1,396.4 km
UNDERGROUND
INFRASTRUCTURE DRILLING
73.73 km
EXPLORATION
4,726.8 km
2,621.7 km
Operational Overview
154
100
CLIENTS
PROJECTS
TOTAL PEOPLE
2,216
AUSTRALIA
INTERNATIONAL
2,138
160
15 YEARS
IN NORTH AMERICA
12 YEARS
IN EUROPE
37 YEARS
IN AUSTRALIA
DRILL & BLAST
SURFACE DRILL & BLAST
62
SURFACE EXPLORATION
140
UNDERGROUND
101
FLEET
COUNTRIES
5
20
Perenti Annual Report 2024
Remote drilling highlights DDH1 Drilling’s
resilience and dedication
Since its inception, DDH1 Drilling’s focus has been on
delivering the highest level of support and service to our
clients, from top tier miners to the smallest explorers.
In FY24, Rig 4, an exploration rig, epitomised this
commitment by working in some of Australia’s most
isolated regions, including drilling the most remote hole
in their history for Encounter Resources.
Over the course of the year, Rig 4 successfully
completed eight remote drilling programs, showcasing
the resilience of operations and our dedication to
aiding the exploration efforts for our clients. These
programs required navigating complex mobilisations
and demobilisations, with crews sometimes travelling
more than 2,000 kilometres between projects. Through
meticulous planning and execution, all operations were
carried out safely and efficiently despite challenging
environments, which included Cyclone Ilsa.
Rig 4 was proud to support Antipa Resources, Rincon
Resources, CGN Resources, Carawine Resources,
Essential Metals, Encounter Resources and Red Metal
throughout the year and play a role in aiding the
discovery of new resources throughout Australia.
These projects not only underscore DDH1’s technical
capabilities but align with the broader Perenti purpose
to create enduring value for clients. DDH1 is a trusted
partner in the exploration sector, delivering exceptional
service even under the most challenging conditions.
We look forward to seeing where clients will take DDH1
Drilling in FY25.
In October 2023, Perenti successfully finalised the acquisition
of DDH1 Limited and its highly regarded drilling businesses
DDH1 Drilling, Ranger Drilling, Strike Drilling and Swick Mining
Services.
This strategic move established Perenti’s position as one
of the leading drilling contractors worldwide. Together,
DDH1 brands joined Ausdrill in Perenti’s newly formed and
dedicated Drilling Services division, Perenti’s second-largest
division with nearly 2,300 employees and a fleet of 303
rigs. Each brand has continued with its own identity and
management structures as they provide specialised services
to exploration and mining clients.
Since the DDH1 acquisition, the Drilling Services division
businesses have been actively collaborating to pool their
knowledge, expertise, and capabilities to drive continuous
improvement and stimulate growth. By capitalising on
synergies between the companies, we have optimised
our operations by sharing best practices in procurement,
maintenance, and equipment rebuilds.
Against a backdrop of volatile commodity prices and
reduced capital market support for explorers, the division has
continued to invest in our people and equipment. Utilisation
of our fleet was impacted by lower demand, however, the
division has celebrated numerous contract wins and secured
multiple contract extensions with existing clients, showcasing
our resilience and reputation in the industry.
Furthermore, the division has spearheaded a range
of innovative programs, from hands-free handling to
automation, which have streamlined operations while
prioritising safety and precision. Notably, there has been
significant progress towards the electrification of rigs,
signalling an exciting and forward-thinking approach to
operations.
Case study
Case study
Operational Overview
21
Perenti Annual Report 2024
Perenti Mining Services Division
Key Physicals FY24
38
100+
9
1000+
13,000m2
26
280+
QUALIFIED
SERVICE
PERSONNEL
COMPONENT
REBUILD BAYS
ASSETS FOR
HIRE
WORKSHOP
BAYS
PARTS IN
INVENTORY
WORKSHOP
SPACE
1,322
COMPONENT
REBUILDS
MACHINE
REBUILDS
LOCATIONS
6
37 YEARS
IN AUSTRALIA
26 YEARS
IN AFRICA
TOTAL PEOPLE
421
AUSTRALIA
AFRICA
357
64
Operational Overview
The Mining Services division performed
very strongly in FY24, with full-year
results exceeding internal targets.
22
Perenti Annual Report 2024
Strategic move for Supply Direct supports
sustainable growth
In a move designed to improve safety and increase
opportunities for business growth, Supply Direct has
relocated to larger premises within Johannesburg,
South Africa.
Previously, Supply Direct operated out of two separate
buildings that were located 5 kilometres apart. Working
out of two facilities created logistical challenges, reduced
efficiency, and presented an increased safety risk when
goods were transferred between the two locations.
However, relocating to new premises has allowed the
team to consolidate all stock and business operations in
a single location.
Supply Direct now has over 10,000m2 of warehouse
capacity, more than five times greater than the combined
size of the previous sites. The increased warehouse size
allows equipment and stock to be accessed more easily
and safely, and also enables efficiencies in layout and
operational functionality.
The move provides Supply Direct with exciting
potential for growth and development, with a focus
on consolidating existing business and, where there is
opportunity, increasing market share across key product
lines in the region. In addition, Supply Direct is now in a
position to broaden their scope with additional product
lines over the coming years.
Supply Direct’s expansion into new premises is an
investment in the safety of our people and the future
growth of the business.
In FY24, the division focused on implementing our
Divisional Safety Transformation plan, reinforcing our
commitment to providing a safe and inclusive workplace.
A key element of this plan is critical risk management and
ensuring all critical controls are in place and understood.
This focus will continue over the coming year.
Our mining equipment parts, rental and rebuild business
BTP achieved robust results during FY24. External part
sales increased by more than 200%, and the rebuild
program has gone from strength to strength. A strong
pipeline of work is scheduled over the next 12 months,
including a number of projects for blue-chip clients.
Although Logistics Direct has experienced difficult market
conditions in Africa, they have maintained 100% client
retention this financial year. The business specialises in cost-
effective freight-forwarding and transport solution services.
Procurement and mine logistics business Supply Direct
achieved its best financial year on record in FY24. Their
recent relocation within Johannesburg has greatly increased
their warehousing capacity. The new facility provides
a safer working environment, improved operational
workspace and enables significant opportunities for
future business growth. See case study below.
Overall, the division is in a strong position to consolidate
our earnings and develop new opportunities in
the mining services sector during FY25.
Case study
Case study
Operational Overview
23
Perenti Annual Report 2024
idoba
Mining is in a rapid transition as the consumers
of minerals and metals, and mine owners, seek
cleaner, more sustainable mining practices in line
with the evolving global focus on environmental,
social and governance considerations. As a result,
mine optimisation is becoming more complex and
interrelated than ever before.
Operational Overview
12
20
36%
15%
DIIMOSTM NAVIGATOR
SITE IMPLEMENTATIONS
PEOPLE CAPABILITIES
EXPANDED
DIVERSITY IN NEW
HIRES INCREASED
CELEBRATING OUR
NEURODIVERSE WORKFORCE
Successfully implemented
DiiMOS™ Navigator across all
12 of Barminco’s underground
mining sites in Australia.
Expanding our capabilities with
20 new talented individuals
including software developers,
mining consultants, and
leadership roles.
Embracing diversity:
36% of new hires and 42% of
new leaders were female.
Celebrating Neurodiversity.
A recent survey of our poeple
at idoba indicated 15% of our
workforce is Neurodiverse.
96
TOTAL PEOPLE
24
Perenti Annual Report 2024
DiiMOSTM in action
During FY24, idoba successfully onboarded all Australian
Barminco sites to its first fully in-house developed
product, DiiMOSTM Navigator (MPN). This milestone marks
a significant achievement for both idoba and Perenti.
DiiMOS Navigator is designed to streamline the work of
mining engineers and operational staff, shifting their focus
from spreadsheets to operational improvements, mine
planning, and designs that maximize asset potential.
The onboarding of the Australian sites was completed
over a carefully managed four week period, with 15
training sessions conducted for 46 employees, including
operations managers, project managers and mine
engineers. Comprehensive training and user guides were
also provided to ensure continued support.
DiiMOSTM Navigator enhances mining operations by
leveraging data collected during normal activities
and transforming it into actionable insights. It utilises
Perenti’s Data Lake, providing sites with automated daily
production updates, enabling quick identification of
performance improvement areas. DiiMOSTM Navigator’s
deep learning neural network models predict operational
performance for key activities like trucking, bogging,
long-hole drilling, and development, based on historical
data and client schedules.
The learning from this roll out has informed idoba’s
development of DiiMOSTM Simulation, an underground
mining simulation tool created by underground miners,
for underground miners. This first of its kind simulation
on demand for the underground industry, reflects idoba’s
commitment to continually improving and supporting
underground mining operations, ensuring that both
DiiMOSTM Navigator and Simulation drive future success
and efficiency.
idoba continues to partner with the Barminco team
to enhance our products, with more features and
improvements planned for the future.
idoba is a technology business focused on the development
of end to end digital products and services. We combine
deep domain knowledge with extensive expertise to provide
clients with tailored, innovative solutions that enhance
safety, productivity and profitability through advanced digital
technologies and AI. idoba’s focus is on ensuring clients’
projects are prepared for future technological advancements
and market changes.
In 2024, the division has accelerated the development
of DiiMOS™, idoba’s Distributed Intelligent Integrated
Management Operating System. The platform takes a human
and problem-centred approach, optimising decisions through
modelling, simulation and navigation providing solutions to a
wide range of operational challenges.
Throughout FY24, significant time has been invested in digital
product development with elements of the DiiMOS™ platform
already operational on some client sites and internally within
the Perenti group of companies. The broader Perenti business
provides a test, learn and develop environment for idoba’s
products so they can be refined and enhanced before going
to market. In FY25, idoba will continue the development of
DiiMOS™ and its integrated systems while introducing those
products to the market.
Case study
About DiiMOS™
DiiMOS™ is an advanced integrated decision optimisation
platform that is designed to solve a variety of operational
challenges. DiiMOS™ lets clients model their operation for
enhanced visibility, navigate with predictive insights, simulate
scenarios for effective planning, and optimise processes
to make the best decisions. The platform is designed to
integrate seamlessly across the whole value chain.
The idoba difference
idoba’s unique value lies within its simulation and
optimisation capabilities. Traditional optimisation methods,
while effective for predicting general trends, often fall short
when it comes to handling the inherently unpredictable and
interconnected dynamics of mining. These methods lack the
flexibility and precision needed to adapt to rapid changes and
make accurate day to day decisions.
Leveraging the 30+ years of Perenti’s operational data
and through the application of agent based modelling
idoba can not only predict operational outcomes with
unprecedented precision, but also adapt in real-time to the
changing conditions of the mine. This capability represents
a true digital twin of a mine and will provide for substantial
improvements in productivity, safety, profitability and ESG
sustainability.
Model
Navigate
Simulate
Optimise
Case study
Operational Overview
25
Perenti Annual Report 2024
ORGANISATIONAL STRUCTURE AND LINES OF RESPONSIBILITY AND ACCOUNTABILITY
BOARD
Accountability to shareholders for strategy, performance and governance
MANAGING DIRECTOR & CEO
AUDIT AND RISK
COMMITTEE
NOMINATIONS
COMMITTEE
SAFETY AND
SUSTAINABILITY
COMMITTEE
PEOPLE AND
REMUNERATION
COMMITTEE
BOARD
COMMITTEES
PGF
Framework to create
and coordinate policies
and controls to manage
regulatory and internal
legal, risk and compliance
requirements
PERENTI GOVERNANCE FRAMEWORK (PGF)
Divisions
Provision of services to
clients and managing
risk
Corporate
Expertise, support,
monitoring and
challenge on risk
related matters
GROUP EXECUTIVES
EXTERNAL ASSURANCE PROVIDERS
Internal Audit
Independent and objective
assurance and advice on
all matters related to the
achievement of objectives
KEY:
Delegation, direction,
resources, oversight
Alignment, communication,
coordination, collaboration
Accountability,
reporting
Independent
reporting line
Governance and risk
26
Perenti Annual Report 2024
Skills / competency
Leadership
Strategy
Industry specific experience
Capital management
Legal and regulatory compliance
Corporate governance
Financial acumen
Health, safety and environment
People and culture
Digital, data and technology
Risk management
ESG
International experience
Expert – Deep knowledge / formal qualification or
experience over many years
Moderate – Moderate skills / experience –
knowledgeable but not highly skilled
Aware – Some knowledge and can follow a discussion
1
2
3
4
5
6
7
Board committees
The Board has established four committees that are
structured in accordance with the Corporate Governance
Principles and Recommendations 4th Edition of the ASX
Corporate Governance Council (ASX Recommendations) and
enable the Board to effectively discharge its responsibilities.
The committees review relevant matters and make
recommendations to the Board.
Each committee has a charter that outlines the roles and
responsibilities of the committee, its members, meetings
and reporting requirements. All charters were reviewed for
best practice in FY24. Further information about corporate
governance as well as copies of the Board and committee
charters can be found in the corporate governance section of
the Company’s website at perentigroup.com.
Corporate Governance Statement
The Company’s 2024 Corporate Governance Statement
outlines the Company’s current corporate governance
framework, by reference to the ASX recommendations. The
Corporate Governance Statement is current as at 19 August
2024 and has been approved by the Board.
The statement can be found in the corporate governance
section of the Company’s website at perentigroup.com.
The related ASX Appendix 4G, a checklist cross-referencing
the ASX recommendations to disclosures in the Corporate
Governance Statement and the 2024 Annual Report can
be found under the ASX Announcements section of the
Company’s website at perentigroup.com.
Board skills matrix
In FY24, an internal review was conducted of the Board
skills as part of the annual Board evaluation process to
identify the key skill areas for the Board to discharge its
responsibilities in accordance with high standards of
governance and to execute the Company’s 2025 Strategy.
The results of this review were evaluated to ascertain whether
there were any skill gaps that would need to be addressed
through succession planning and/or director professional
development programs. The combination of skills and
experience were chosen to align with the Company’s 2025
Strategy as well as the Company’s current and emerging
risks, opportunities, challenges and developments and is
reflected in the FY24 Board skills matrix. The Company’s
FY24 Board skills matrix shows the extent of the knowledge
and experience of the directors in each area, taking into
consideration their years of direct experience.
Governance and risk
27
Perenti Annual Report 2024
Membership
Role
Key responsibilities
Audit and Risk Committee
Andrea Hall (Chair)
Craig Laslett
Timothy Longstaff
To assist the Board in
fulfilling its oversight
responsibilities in
relation to the integrity
of the Company’s
financial reporting, the
effectiveness of the
Company’s systems of
risk management and
controls, the Company’s
legal and regulatory
compliance and internal
and external audit.
The responsibilities of the committee are to monitor, review and, where
appropriate, make recommendations to the Board in line with its charter.
These responsibilities include key activities on the following matters:
•
Relevant changes in legislation and corporate governance in relation to
financial and risk reporting.
•
Material accounting policies and practices and the adequacy of the
Company’s financial controls.
•
Adequacy of and compliance with the Company’s risk management
framework and policy and the material emerging business risks.
•
Procedures for the appointment, dismissal and rotation of the external
auditor, independence and performance of the external auditor, external
audit reports and annual audit plan and work program.
•
Performance of internal audit function, the internal audit plan and work
program and internal audit reports and recommendations.
•
The Company’s tax risk governance framework and tax reporting.
•
Assessment of processes to ensure compliance with legal and regulatory
requirements.
Reviewing the half and full year financial statements and the integrity of
periodic corporate reports released to the market.
•
Any material reports received through Speak Up or breaches of the
Company’s Anti-Bribery and Corruption Policy.
Nomination Committee
Diane Smith-Gander
(Chair)
All non-executive directors
To assist the Board in
fulfilling its oversight
responsibilities
in relation to the
Board’s composition,
performance and
succession planning.
The responsibilities of the committee are to monitor, review and make
recommendations to the Board in line with its charter. These responsibilities
include key activities on the following matters:
•
Criteria for appointment of new directors.
•
The composition of the Board and committees.
•
Director induction program.
•
Board performance evaluation.
•
Board skills matrix.
•
Board succession planning.
•
Director professional development program.
•
Director independence and associated disclosures.
People and Remuneration Committee
Timothy Longstaff (Chair)
Andrea Hall
Andrea Sutton
Alexandra Atkins
To assist the Board in
fulfilling its oversight
responsibilities in
relation to people and
remuneration and
ensuring the Company
has a remuneration
framework and policies
to attract, reward
and retain a diverse
workforce.
The responsibilities of the committee are to monitor, review and, where
appropriate, make recommendations to the Board in line with its charter.
These responsibilities include key activities on the following matters:
•
The Company’s inclusion and diversity strategy and policy.
•
The Company’s remuneration framework, policies and practices.
•
Chair, Non-executive director, MD & CEO and Group Executive
remuneration.
•
MD & CEO and Group Executive succession planning.
•
Organisational culture.
•
Breaches of the Code of Conduct.
•
The Company’s incentive plans.
Safety and Sustainability Committee
Andrea Sutton (Chair)
Alexandra Atkins
Craig Laslett
To assist the Board in
fulfilling its oversight
responsibilities in relation
to the Company’s
policies, practices and
governance in safety,
health, environment,
climate change,
communities and human
rights.
The responsibilities of the committee are to monitor, review and, where
appropriate, make recommendations to the Board in line with its charter.
These responsibilities include key activities on the following matters:
•
Sustainability policies and strategies.
•
Sustainability risk management.
•
Compliance with legal and regulatory obligations relating to sustainability.
•
The Company’s performance in relation to sustainability matters and
commitment.
•
Safety and safety investigations.
•
Relevant changes in legislation, corporate governance, standards or
expectations in relation to sustainability.
•
The Company’s sustainability reporting.
Committee composition and responsibilities
28
Perenti Annual Report 2024
Risk management framework
Perenti adopts a consistent and proactive approach to risk
management across its global operations, aligning with
ISO 31000 and the ASX Principles and Recommendations.
Effective risk management serves as a competitive advantage,
enabling the company to adapt to the dynamic mining
industry within a complex external environment.
While we have established controls to prevent and mitigate
risk, we recognise the importance of making informed risk-
reward decisions based on relevant data and intelligence.
Our framework revolves around comprehending and
managing events that can significantly affect our strategic
and operational objectives. By integrating sustainability into
our approach, we aim to reduce the likelihood and impact of
threats and capitalise on value accretive opportunities.
Perenti’s risk framework outlines enterprise risks that hold
significance at a Group level, considering factors such as
materiality, strategic time horizon and applicability across
the broader Group. The management of enterprise risks falls
under the purview of the Group Executive Committee, with
the Board providing effective oversight.
The Audit and Risk Committee is responsible for
monitoring the overall effectiveness of our risk
management framework.
Enterprise risk management is a fundamental
component of the Perenti Governance Framework and
enables effective second and third line assurance to test
the adequacy and effectiveness of the internal control
environment to increase the likelihood of achieving
business objectives.
Perenti maintains a proactive approach to risk
management, continuously monitoring the external
environment for emerging risks and opportunities. The
global landscape remains complex, with geopolitical
tensions, supply chain disruptions and global economic
conditions posing ongoing challenges. We proactively
review the impact of these factors on our strategic
and operational objectives, enabling us to respond
effectively.
Perenti adopts a consistent and proactive approach to risk management across its global
operations, aligning with ISO 31000 and the ASX Principles and Recommendations.
Effective risk management serves as a competitive advantage, enabling the company to
adapt to the dynamic mining industry within a complex external environment.
Governance and risk
29
Perenti Annual Report 2024
Key enterprise risks
Some risk areas have the potential to significantly affect strategic outcomes, thus holding significance for existing and
prospective stakeholders. The principal enterprise risks areas are outlined below, supported by an overview of management’s
strategy to control and manage these risks areas. The risk areas are not prioritised by importance and this list does not aim to
encompass all the risks and uncertainties associated with the Group’s business.
Risk description
Potential impacts
Management strategy
Evolving mining services market
The pace of technological advancements
in the mining industry is accelerating,
accompanied by the potential
introduction of new competing
technologies by both direct and indirect
competitors.
•
Given our market share, competitive
advantages and brand strength combined
with the diversified capability of the
wider Group, Perenti is well placed to
realise the opportunities provided by the
dynamic external environment.
•
Structural changes to the mining services
market could result in lost market share,
impacting earnings, cashflow and ability
to fund growth.
•
Continued commitment to allocate cash
towards enhancing digital technology
capabilities.
•
Ongoing strategies to align service
offerings with market demand.
Climate change and decarbonisation
Climate change presents both risks and
opportunities for the business. Whilst
mining has a critical role in providing
the commodities critical for the energy
transition it is also important the sector
decarbonises as part of this process.
The mining and metals sector is
already experiencing climate related
risks (physical and transition risks). For
example, certain geographies will be
more impacted by extreme weather
events than others whilst certain
commodities will be favoured in the
transition to the low carbon economy.
By seeking electrification service offerings,
we may meet changing market demand
for decarbonisation. In addition, we may
reduce our own operating costs and position
ourselves as a mining services provider of
choice.
Extreme weather events could cause health
and safety impacts, operational delays,
supply chain disruption and an increase in
capital expenditure.
Failure to electrify and decarbonise in line
with market and client expectations could
affect our ability to win work with preferred
clients and access capital at desirable rates
The perception that the Group is not acting
on climate change could adversely impact
our ability to attract and retain talent.
•
The Perenti climate change position
statement outlines our climate related
commitments.
•
Periodic climate scenario analyses
supports decision making.
•
Scope 1 and 2 reduction targets are
included in employee incentive programs.
•
A Decarbonisation Steering Group
provides recommendations for Group
decarbonisation activities.
•
A mine electrification collaboration with
global technology company ABB.
Winning work and market risk
Ensuring the continuity of Perenti’s
project pipeline is crucial to achieve a
balanced approach towards our strategic
growth objectives. Perenti endeavours
to secure and retain high quality projects
that are supported by robust financial and
commercial practices, thereby facilitating
the realisation of our organic growth
targets. However, the pricing of major
projects is inherently uncertain, given the
risk landscape in which we operate.
Moreover, we may encounter disruptions
arising from the evolving technology
landscape and the dynamics of the
mining services market. These factors
necessitate our adaptability to effectively
navigate and respond to the changes
and challenges that emerge within these
environments.
The change in prices of specific
commodities (e.g. gold, copper, zinc, nickel)
could affect our financial performance,
impact shareholder returns, and raise
concerns among external stakeholders
about the strength of our balance sheet.
Failure to meet growth forecasts can cause
difficulties in raising capital for future
investments or expansion and can erode
investor confidence in the Company’s ability
to deliver on its promises.
•
Balance the risk and reward carefully
with all projects and be selective in the
contracts that we enter to optimise return
on capital.
•
Application of the Group estimating
and work procurement practices and
structured approval processes.
•
Diversification of portfolio by geography,
market, activity and client to mitigate the
impact of emerging trends and market
volatility.
•
Investment in our technology capability
to expand and diversify mining services
revenue sources.
30
Perenti Annual Report 2024
Risk description
Potential impacts
Management strategy
Project delivery and margins
The Group’s activity levels and results
are dependent on production levels at
clients’ mines while revenues are linked
to the production volumes and not to
the short term price of the underlying
commodity. Perenti is exposed to
uncertainty over the availability and cost
of key resources, including talent, assets
and key supplies.
Development of innovative mining
techniques, utilising economies of scale,
or utilising technology can boost
productivity while minimising cost.
Sub optimal project execution can put
pressure on earnings, cashflow and ability
to fund growth.
Contracts can be terminated for
convenience by the client at short notice
and without penalty, although this is not a
common occurrence.
•
The Group derives most revenues from
mines which are already in production
and focuses on providing services to large
lower cost producers.
•
A focus on ensuring execution of work to
a high standard and improving operations
to increase our value proposition to
clients.
•
Negotiation of rise and fall provisions into
key contracts to compensate Perenti for
key project input cost movements.
Financial risk
Liquidity risk is where Perenti will not
be able to meet its financial obligations
as they fall due. This could be as a
result of counterparty risk, project
underperformance and an inability to
repatriate and recycle cash on timely
basis, amongst other things.
Funding risk is where Perenti is unable to
access to capital which could adversely
impact the Group’s ability to meet our
strategic objectives and other funding
requirements as and when required.
Foreign exchange risk is where the
Group’s financial performance or
position will be affected by fluctuations in
the exchange rates between currencies.
Foreign exchange risk mainly arises from
the different international jurisdictions in
which the Group operates, suppliers that
it pays and debt from its US144A notes on
issue and other credit lines. The Group’s
foreign currency exposure is primarily in
US dollars, Euro and West African francs
(which is pegged to the Euro).
Interest rate risk is where fluctuations
in interest rates can affect the Group’s
financial performance or position. The
Group is exposed to interest rate risk
through its debt structures, investments
and derivative instruments linked to
interest rates.
Failure to manage liquidity may result in
the Group’s inability to meet its financial
obligations as they fall due. Potential
inability to access future financing on
favourable terms and on a timely basis may
compromise ours ability to commence new
contracts, perform existing contracts or
may prevent the Group from achieving its
strategic objectives.
Revenue, expenses, profits, debt service
requirements, assets and liabilities of
the Group may be adversely exposed to
fluctuations in the exchange rate between
currencies.
Increase in interest rates may affect the
costs of servicing existing borrowings,
which may adversely impact the Group’s
business, financial condition, and financial
performance.
•
Monitor the minimum liquidity thresholds
through short, medium and long term
cash flow forecasting and through active
management of credit and equity funding
lines.
•
Disciplined capital allocation process
targeted at maintaining an appropriate
capital structure and allocation of capital
in accordance with the Group’s capital
management framework.
•
Maintain an acceptable net balance
sheet exposure by matching foreign
denominated financial assets with
financial liabilities, and natural cash
flow hedges with certain cash inflows
and outflows denominated in the same
currency.
•
The majority of the Group’s debt is issued
at fixed interest rates and Perenti regularly
reviews its exposure and may hedge
borrowings to fixed or floating rates as
appropriate to manage exposure levels.
Sovereign and security risk
Some of the jurisdictions within which
the Group operates are subject to
sovereign and security risks. Changes
in government, regulation and tax in
overseas jurisdictions has the potential
to impact the Group’s performance.
Unfavourable actions undertaken by
governments and other entities may lead
to cost implications, operational or project
delays, as well as the revocation of permits
or licenses necessary for our projects.
Laws and regulations in the countries where
we operate may change or be implemented
in a manner that could have an adverse
effect on the Group.
Security incidents could impact our people
and stakeholders and damage to our assets
can cause financial losses or impacts to our
reputation.
•
Comprehensive evaluations of overseas
jurisdictions inform Board approval for
new country entry.
•
Internal security expertise is in place to
manage the Group’s security framework.
•
The Group also limits its risks
contractually by only accepting a
manageable risk profile within the terms
and conditions of its contracts.
•
Contracts with external security and
medical response vendors that provide
a range of services to both mitigate and
respond to an incident.
Governance and risk
31
Perenti Annual Report 2024
Risk description
Potential impacts
Management strategy
Labour costs and availability of skilled people
The Group is exposed to changing
labour costs in markets where the
demand for labour is strong. Changes
to labour laws and regulations may limit
productivity and increase costs of labour.
The implementation and enforcement
of such changes could have adverse
effects on revenues, as well as diminish
operating margins due to increased costs
or reduced productivity. Perenti also
runs the risk of losing key executives,
senior management, or key operational
personnel.
Insufficient capability within our organisation
can lead to suboptimal performance in
our operations. Tight labour markets and
changing demand for mining technology
could introduce heightened competition
for critical skills, such as expertise in
underground mining, decarbonisation and
information technology.
Shifting societal expectations may exert
pressure on our brand as an employer,
necessitating enhanced communication to
clearly convey our Purpose and Principles.
•
Labour costs are typically protected by
rise and fall mechanisms within client
contracts.
•
In Australia, wage labour costs are
typically governed by agreed enterprise
agreements.
•
An apprenticeship program provides a
consistent pipeline of workers.
•
The key components of the talent
management framework are reward /
remuneration, succession planning and
talent development.
Health and safety
Mining is inherently hazardous and as
a result, it is possible that the Group
may experience incidents, including
lifechanging events which have the
potential to cause psychological or
physical harm. Perenti is committed
to providing a systematic process to
manage these hazards.
Health and safety incidents resulting in
injuries, illnesses, fatalities, or damage to our
assets can cause financial losses or impact
our reputation.
Failure to operate responsibly can have long
term adverse effects on host communities
and the environment while eroding trust in
our organisation’s integrity.
•
Governance of health and safety is
overseen by the Safety and Sustainability
Board Committee.
•
The HSE management system is
consistent with international standards
and includes:
•
Management of psychosocial hazards
•
Provision of appropriate training,
supervision and resources
•
Critical risk standards for preventing
and mitigating fatality risk
•
Leadership training and development
•
Integrated assurance
•
Incident reporting and investigation
•
Operational divisions have Safety
Transformation plans. The primary
objective is to support further and
significant improvement in our health and
safety performance as well as contribute
to broader industry wide positive change
in health and safety.
Cyber security and data protection
The increasing reliance on data and
digital technologies has resulted in
a corresponding escalation of cyber
related risks, encompassing aspects such
as ransomware proliferation, nation state
espionage activities and the continued
monetisation of cybercrime. The rapid
adoption and accessibility of AI powered
tools have lowered the technical barrier
to entry for threat actors. Consequently,
robust and vigilant cybersecurity
measures are imperative to safeguard
systems and data against these pervasive
and ever evolving threats.
The potential ramifications of a
cybersecurity incident, resulting in a loss
of confidentiality, integrity, or availability of
Perenti’s information systems or data can
encompass a broad range of associated
impacts. Such an event has the potential
to disrupt our business operations,
compromise the safety of our employees,
expose confidential information, tarnish our
reputation and pose financial, legal, and
regulatory risks for the Group.
The Perenti cyber security framework
includes:
•
Cyber security (governance)
framework, including security and data
protection Group standards.
•
24x7 managed security operations
centre service.
•
Endpoint detection and response
capability.
•
Multifactor authentication.
•
Security education and awareness
materials.
•
Independent penetration and
assurance testing of our control
environment.
•
Critical incident response simulation(s)
exercises for cyber incident scenarios.
•
Business resilience and recovery
planning.
•
Integrated assurance.
Fraud, bribery and corruption
Perenti is exposed to fraud, bribery and
corruption risk which could result in
fines, reputation impacts and the loss of
growth opportunities. Our compliance
framework enables a strong ethical
culture, strengthens our internal controls,
promotes awareness, and enables
effective detection and response to
potential incidents. Ultimately, it helps
protect the Group’s reputation, assets,
and stakeholders’ trust.
The consequences resulting from fines,
penalties and other obligations, along with
the accompanying reputational damage
arising from adverse proceedings, could
have a material impact.
•
Management authority is effectively
delegated through risk based delegation
of authorities.
•
Appropriate segregation of duties are in
place and compliance risks form a key part
of Perenti’s broader risk framework.
•
Group level policies and standards
supported by assurance processes,
including our Code of Conduct set out the
standards of behaviour and are supported
by web based training packages.
32
Perenti Annual Report 2024
ABN 95 009 211 474
Sustainability
Report
*ecoStar+ 100% recycled uncoated paper
*
34
Contents
Introduction from the Chair of the
Safety and Sustainability Committee
34
Year in review
35
Introduction
36
Caring for our people and
communities
38
Valuing the environment and
enabling the energy transition
46
Acting ethically and responsibly
50
PwC Assurance Certiificates
51
A message from the
Chair of the Safety and
Sustainability Committee
On behalf of the Board, I am pleased to provide you with Perenti’s
FY24 Sustainability Report which details our efforts to improve our
sustainability performance and address the risks and opportunities
material to our business.
In FY23, we set out a Sustainability Blueprint for Perenti, identifying
three imperatives and five priorities for the business to work towards
a more sustainable future and to support the delivery of our Purpose,
to create enduring value and certainty. We have made meaningful
progress against many of these priorities in FY24 with further details on
our achievements and challenges outlined in this report.
Of our five priorities, none has greater value than preventing adverse
life changing events. The incident at the Mana Mine in Burkina Faso
in February where our colleague Siswantoro tragically lost his life has
been devastating to everyone, particularly Siswantoro’s family, friends
and the colleagues he leaves behind. His memory is the reason we
need to continuously improve our safety. We remain steadfast in our
commitment to ensuring our workplaces are safe and respectful for all.
The Safety Taskforce, established in FY23, provided the Board and
executive team with fresh thinking and perspectives on safety, new
ideas as well as assurance and governance over safety transformation
activities. These include the strong focus on managing our critical
controls and conducting internal safety audits to identify and prioritise
risks and how we can mitigate against them. With the completion of its
initial objectives, the role of the Taskforce has concluded, replaced by
enhanced group-wide governance.
A key focus for the Board’s Safety and Sustainability Committee
this year has also been the consolidation of our FY25 sustainability
commitments with the identification of clearer targets for the business.
This is reflective of our maturing systems and processes, which have
also enabled us to publish a Sustainability Databook in support of this
report. Our databook outlines our targets and progress in areas such
as our psychological safety index and increased female participation,
along with data relating to our partnerships with communities.
As a diversified mining services provider operating across four
continents, community engagement and investment is critical to
maintain a ‘social licence to operate’. I am proud of the role we play
in the countries that host us, supporting their economies by investing
in local businesses, providing job opportunities and training for local
people and exporting our mining know how to support community
development.
Andrea Sutton
Chair - Safety and Sustainability Committee
19 August 2024
Acknowledgement of Country
We respectfully acknowledge the
Whadjuk people of the Noongar Nation,
the Traditional Custodians of the land on
which this report was developed. We pay
our respects to their elders past, present,
and emerging, and extend that respect
to all Aboriginal and Torres Strait Islander
peoples who have cared for this land for
millennia and for all the lands on which
we operate.
As we reflect on the importance of
sustainability in our work, we recognise
the profound wisdom inherent in
Indigenous cultures worldwide. We
acknowledge Indigenous Peoples’ deep
connection to the land, their sustainable
practices, and their profound respect
for the environment which serve as an
inspiration for our sustainability efforts.
In acknowledging the Traditional
Custodians of the lands on which we
operate and recognising the invaluable
contributions of Indigenous Peoples to
the global understanding of sustainability,
we reaffirm our commitment to caring
for our people and communities, valuing
the environment and enabling the energy
transition, and acting ethically and
responsibly.
Perenti Sustainability Report 2024
Artwork developed with Acacia Collard.
35
Perenti Sustainability Report 2024
35
35
Year in review
Metric
2024
2023
2022
Caring for Our People and Communities
Safety and Health
Total fatalities
# employees
1
2
3
# contractors
0
0
0
Total Recordable Injury Frequency Rate (TRIFR)
# incidents per million
hrs worked
5.3
5.4
6.9
Serious Potential Incident Frequency Rate (SPIFR)
# incidents per million
hrs worked
2.6
2.7
2.7
Our people
Total workforce
#
10,514
9,012
8,939
Employees by region:
• Australia
%
46.1
39.4
38.9
• Africa
%
49.6
56.7
56.7
• Europe
%
<1.0
<1.0
<1.0
• North America
%
4.1
3.8
4.3
Total Voluntary Turnover Rate
%
17.7
15.6
26.6
Females on the Board 1
# / %
4/57
2/29
2/39
Females in senior management
%
17.2
15.4
18.8
Females in the workplace
%
11
11
10.6
Australian workforce employed as an apprentice
%
4.2
5.2
4.4
Australian workforce provided with a traineeship
%
14.9
6.4
8.1
Our communities
Local procurement expenditure2
AUD$ B
1.47
1.51*
1.48
Community investment and donations
AUD$
1,462,732
615,474
368,601
Local participation in international workforce 3
%
90.3
90.2
89.4
Valuing the Environment and Enabling the Energy Transition
Greenhouse gas emissions – scope 1
tonnes CO2-e
2,003
2,671
2,323
Greenhouse gas emissions – scope 2 (market based)
tonnes CO2-e
1,689
1,906
-
Greenhouse gas emissions – scope 2 (location based)
tonnes CO2-e
2,914
2,496
4,361
Energy consumed (scope 1 and 2)
Gigajoules
53,290
64,207
63,665
Scope 3 category 1
(purchased goods and services)
tonnes CO2-e
386,500
-
-
Scope 3 category 2 (capital goods)
tonnes CO2-e
131,700
-
-
Scope 3 category 3
(fuel- and energy-related activities)
tonnes CO2-e
129,000
-
-
Scope 3 category 4
(upstream transportation and distribution)
tonnes CO2-e
17,800
-
-
Scope 3 category 6 (business travel)
tonnes CO2-e
27,800
-
-
Scope 3 category 13
(downstream leased assets)
tonnes CO2-e
613,500
442,000**
-
Total significant environmental incidents
#
0
0
0
Fines and convictions
#
0
0
0
Acting Ethically and Responsibly
Speak Up notifications alleging a
Code of Conduct breach
# received
6
5
1
# investigated and
actioned
6
5
1
Compliance with continuous disclosure
# breaches
0
0
0
Internal audits completed
# internal audits
6
5
12
Material information data breaches
# material breaches
0
0
0
1 Females on the Board is based on the absolute number at the end of the financial year.
2 Local procurement expenditure refers to the purchasing of goods and services from a supplier registered or based within the same country as the operation.
3 Local participation is country Nationals (Locals) only, does not include third country nationals.
* Local procurement expenditure revised down from 1.55 B to 1.51 B due to a data error identified in FY24.
** Fuel used in operating mining fleet at client sites.
FY24 Summary of our performance
36
Perenti Sustainability Report 2024
Introduction
Our approach
Beyond delivering financial results,
we are committed to embedding
sustainability into everything we do.
We recognise the strategic advantage
of optimising our Environmental,
Social and Governance (ESG)
outcomes for our people, clients,
shareholders and the communities
in which we operate.
OUR PURPOSE
To create enduring value and certainty
OUR SUSTAINABILITY IMPERATIVES
Caring for our people
and communities
Valuing the environment
and enabling the energy
transition
Acting ethically &
responsibly
OUR SUSTAINABILITY PRIORITIES
Preventing adverse
life changing events
Creating safe and
respectful workplaces
Achieving gender
balance
Accelerating
decarbonisation
Partnering with
our communities
OUR SUSTAINABILITY TARGETS
NO
ADVERSE
LIFE CHANGING EVENTS
of scope 1 and 2
emissions by the
end of FY26, from
a FY22 baseline
SUSTAINABILITY EMBEDDED IN EVERYTHING WE DO
of our people feel
their teams are
psychologically safe
by the end FY25*
+75%
40%
33%
40%
of our senior leaders** are
female by the end of FY33
female representation
across our global
workforce by end of FY33
female executive and
Board representation by
the end of FY30
NET
ZERO
BY END OF FY30
scope 1 and 2
greenhouse gas
emissions, from a
FY22 baseline
40%
ABSOLUTE
REDUCTION
*Australia only.
** Senior Leaders include Group Executive, Vice Presidents, General Managers and Department Heads.
To support our sustainability journey, in FY23 we launched
our three evergreen sustainability imperatives:
• Caring for our people and communities;
• Valuing the environment and enabling the energy
transition; and
• Acting ethically and responsibly.
Underpinning these imperatives, we also announced our
current five sustainability priorities:
• Preventing adverse life changing events;
• Creating safe and respectful workplaces;
• Achieving gender balance;
• Accelerating decarbonisation; and
• Partnering with our communities.
Each priority is led by an executive sponsor who has direct
responsibility to embed these sustainability priorities across
our business. We further progress these priorities with group
wide initiatives, clear targets, and investments that link to
tangible ESG outcomes across our business.
37
Perenti Sustainability Report 2024
Report structure and scope
This report reflects on our FY24 progress against our
Sustainability Blueprint. Our sustainability achievements,
challenges, commitments, and targets are correspondingly
outlined against each of our three sustainability imperatives
within this report.
To increase transparency in FY24 on non-financial
reporting, we are publishing our first Sustainability Databook.
You can find additional ESG metrics in our databook and
background information that supports this report on our
website perenti.com/sustainability. This report also forms a
section of our annual reporting suite when printed, however
a digital download is also accessible on sustainability-only
related matters. When using the digital report, it should
be noted that topics such as governance, enterprise risk,
operating model and other matters that are covered by the
financial reporting requirements are contained within those
sections of the annual reporting suite. Checklists against
ESG frameworks are provided in the databook to map to our
public disclosures.
Scan the QR
code to read our
Sustainability
Databook.
Forward looking statements
The FY24 Sustainability Report and the supporting databook
includes Forward-looking Statements regarding future
events, circumstances, targets, commitments, and the future
performance of the Group in relation to environmental,
social, governance, climate change and broader sustainability
matters (“Forward-looking Statements”).
The Forward-looking Statements do not constitute factual
statements, guarantees, or predictions and are not intended
to provide guidance on the future performance of the Group.
The Forward-looking Statements are based on the Group’s
expectations as at the date of the FY24 Sustainability Report
and reflect judgements, assumptions, estimates, and other
available information as at the date of the report. Readers are
cautioned not to place undue reliance on these statements
No representation or warranty, express or implied, is given
as to the accuracy, completeness or correctness, likelihood
of achievement or reasonableness of any Forward-looking
Statement. Forward-looking Statements are subject to known
and unknown risks, uncertainties and other factors, many of
which are beyond the Company’s control, and which may
cause the actual results, performances or achievements of
the Group to differ materially from those expressed or implied
in the statements contained in the FY24 Sustainability Report.
The Forward-looking Statements apply as at the date of the
FY24 Sustainability Report. Except as required by applicable
regulations or law, the Company does not undertake any
obligation to publicly update or revise any Forward-looking
Statements whether as a result of new information or future
events.
IMPORTANT ISSUES
Innovation and technology
Workforce management
Community relations
Water use and management
Cyber security
Supply chain
Waste management
Land rehabilitation
HIGHEST PRIORITIES
Safety
Workplace health and wellbeing
Governance
Financial performance
Business ethics and
anti-corruption
Climate change
Community involvement
Indigenous engagement
Talent attraction and retention
Security
Diversity and inclusion
Labour relations
Human rights and
modern slavery
IMPORTANCE TO PERENTI
IMPORTANCE TO STAKEHOLDERS
Alignment with frameworks
The development of this report has been guided by external
frameworks including the Global Reporting Initiative (GRI)
Standards and Taskforce on Climate-related Financial
Disclosures (TCFD) which has since been incorporated into
the International Sustainability Standards Board (ISSB). We
recognise that changes to the way we report will occur
considering incoming Australian legislation and global
disclosure frameworks.
As an ASX listed company, we will prioritise alignment with
the Australian Accounting Standards Board (AASB) standards
on sustainability reporting as they come into effect from
FY25. Through the publication of our first Sustainability
Databook we are also aiming to increase the interoperability
of our metrics between the different global frameworks and
taxonomies that are relevant to our operations.
We have completed our first year of limited assurance on four
key safety and sustainability metrics.
DDH1 integration update
During the FY24 reporting period, Perenti successfully
acquired the DDH1 Limited (DDH1) business as described
in the Annual Report. Targets and metrics within the
sustainability report contain DDH1 data from October 2023
and targets remain absolute against the FY22 baseline and
apply correspondingly to the DDH1 businesses.
Our material sustainability topics
Our performance has progressed on the sustainability issues
we identified as material in FY20. These issues are presented
in the graphic below, with safety remaining our most material
issue.
Despite our continued attention on improving our safety
performance, the death of our colleague Siswantoro in
February 2024 highlights that we still have more work to do.
We remain committed to no adverse life changing events.
Further detail on our safety performance is provided on pages
38-39 of this report.
Several material changes occurred in FY24, including the
acquisition of DDH1, and the evolution of regulatory ESG
reporting requirements. We also commenced working with
our clients on their decarbonisation commitments and
will continue to use our unique position in the market to
participate in electrification opportunities and the green
energy transition. Accordingly, Perenti will update its ESG
materiality assessments in FY25 in line with best practice
guidance and standards.
38
Perenti Sustainability Report 2024
Safety performance
We acknowledge that improving safety performance
remains a perpetual challenge for us and within the broader
industry, particularly given our multinational presence and
significant underground mining portfolio. As a collective
of leading business brands, we bear a responsibility to
foster and enact industry-wide transformations. Primarily,
Perenti’s duty commences with a steadfast dedication
to preventing adverse life changing events and ensuring
the well-being of our people takes precedence.
Despite our continued emphasis on safety, tragedy occurred
in February with the passing of our colleague, Siswantoro, at
the Mana Mine in Burkina Faso. We have clearly fallen short
of our most important objective of no adverse life changing
events for our people. Like many across our business, we
are heartbroken for the family of Siswantoro. Sadly, we
cannot change the outcome, but we can commit to:
1.
providing ongoing support to Siswantoro’s
wife and children; and
2.
continuing our unwavering commitment to improve safety
across our business and the industry more broadly.
Mana Mine fatality
Siswantoro, a 38-year-old maintenance fitter, was fatality
injured during a tyre inflation task. He was struck by a
metal locking ring propelled from a multi-piece tyre and
rim assembly for an underground jumbo drill rig that was
being inflated. The indications are that the locking ring
parted under pressure. Siswantoro was an Indonesian
national and is survived by his wife and three children.
A review of tyre inflation practices was conducted
throughout the business with a focus on the performance
of critical control verification activities embedded as
part of Divisional Safety Transformation plans.
Safety Transformation Taskforce
The Safety Transformation Taskforce (STT) has driven
substantial safety initiatives across the organisation, resulting
in the creation of bespoke Divisional Safety Transformation
plans. Dr Sidney Dekker and Peter Wilkinson, along with
Board member, Alex Atkins, challenged our thinking and
approach to safety risk. With Divisional Safety Transformation
plans now in place, the STT will conclude its formal role.
Going forward, the primary focus will be on divisional
implementation, with accountability ensured through
monthly, quarterly, and biannual safety reporting routines
and targeted ‘deep dive’ reviews. Improvement initiatives
are being tracked to ensure completion and, where
applicable, integrated into our safety management system.
Safety Transformation Plans
Our operations are unique across businesses and our
Safety Transformation plans are adapted to each division.
In FY24, the Presidents of Contract Mining, Drilling Services
and Mining Services, along with their leadership teams,
focused on enhancing our critical control management,
front-line leadership development and the introduction
of Learning Teams amongst other initiatives.
Critical Control Management
All divisions within Perenti are enhancing their critical control
management (CCM) with guidance taken from the International
Council on Mining and Metals (ICMM) CCM Framework. This
program of work will continue in FY25 and forms the basis to
enhance our existing critical control verification processes.
Engineering and technology solutions
A Technology Project Implementation Process was integrated
into the formalised Project Governance Framework
in May and marks a significant milestone enhancing
transparency across projects aimed at bolstering safety
measures. Among the ongoing technology initiatives:
• Enhanced Camera Systems have been successfully
deployed on all Contract Mining underground loaders in
Australia and Africa.
• Area Denial System technology has been installed on all
operational jumbo units in Australia.
• A University of Technology Sydney partnership has been
established to redesign workshop pulling and pressing
tooling with the aim of removing people from harm and
providing workers with pressure and force indicators.
Front-line leadership development
As part of our Safety Transformation plan initiatives,
ensuring the ongoing development of our frontline leaders
is crucial to improving safety outcomes. Frontline leaders
have a direct impact on day-to-day operations and our
training is designed to equip leaders with effective skills that
cultivate a safety culture, respond promptly to incidents
and drive continuous improvement in safety practices.
The Contract Mining Project Leaders Program covers
leadership foundations, managing self, leading psychological
safety, safety foundations and leadership communications
which provides frameworks and skills aimed at developing
leader capability to improve safety outcomes. To support
the learning from the program, external safety coaches
have also been deployed across our Contract Mining
projects to further develop supervisor skills during daily
activities on site. Since launching the first course in April
2024, 176 Contract Mining leaders across the globe have
participated in the program, with an additional 150-200
leaders scheduled to complete the program in Q1 FY25.
Ranger Drilling has developed a Field Leadership Program and
schedule to promote peer to peer leadership and coaching,
commencing with the general manager and cascading
throughout the business to new starters. As part of the program
they have introduced leadership team coaching to conduct
field leadership activities incorporating principal hazard
control to better empower the field teams to widen their
knowledge, understand risk and reduce incidents. The program
has seen an increase of 170% in field leadership activities.
Learning Teams
Learning Teams offers a facilitated means of engaging with
workers to learn from incidents that occur in the workplace or
from sharing everyday best practice and safe work practices
across the organisation. Contract Mining has trained seven
senior Health and Safety team members to become Learning
Teams facilitators with a view to training additional HSE
employees across operations in FY25. Specialist consultants
have been engaged to establish a framework to integrate
Learning Teams within the Contract Mining division.
Preventing adverse life changing events
Caring for Our People
and Communities
39
Perenti Sustainability Report 2024
FY24 Safety Performance
SPIFR
INSIGHTS:
TRIFR
FATALITY
26%
40%
of all injuries relate to
fingers/hands
of injuries relate to
‘line of fire’
of all SPIs relate to Mobile Equipment
operations and interactions
50%
Between March and May 2024, there was an extensive
evaluation on mine re-entry processes across three mine
sites, with seven Learning Teams conducted involving thirty-
six crew members to learn from and foster a collaborative
environment for sharing knowledge and experiences. This
provided valuable insights into operational practices resulting
in several organisational wide observations and insights being
uncovered that will provide systemic safety improvement.
Safety culture diagnostic
In collaboration with organisational safety culture experts,
Sentis, we conducted safety climate surveys and on-site
assessments throughout our Mining Services Division,
building on those completed in Contract Mining in FY23.
These assessments yielded insights such as high trust
in supervisors and employee interest in further training
and development. Leadership, culture and psychological
safety were identified as priority areas for improvement
initiatives within the Safety Transformation Plan.
Future safety metrics
Current metrics and frequency rates such as total
recordable injury frequency rates (TRIFR), hold value as
they are widely recognised and requested by stakeholders,
however, they are not directly indicative of fatality
prevention efforts, or underlying safety performance.
In this context, we undertook a comprehensive evaluation
of safety metrics across the mining sector and other related
industries to determine more effective metrics for anticipating
and evaluating safety performance. This assessment
has leveraged the collective expertise of the Taskforce’s
steering and working groups, as well as insights from the
ICMM. In FY24, we commenced collecting additional safety
data and increased our analytical capabilities and we are
currently finalising our suite of future safety metrics.
In FY24, Perenti voluntarily obtained limited assurance over
the serious potential incident frequency rate (SPIFR) and total
recordable injury frequency rate (TRIFR). The methodologies,
principles, boundaries and standards used to calculate and
report SPIFR and TRIFR can be found in the Basis of Preparation
- Health and Safety document on Perenti’s corporate website.
10,351
2.6
5.3
1
CheckIns
CRITICAL RISK CONTROLS COMPLETED
35,554
448
Critical Control Field
Verifications (CCFV)
SystemChecks
Drilling Services autonomous technology
Perenti Drilling Services, one of the top three global
drilling businesses by volume, is setting a new standard
for autonomous technology with a future focus
on remote operations, demonstrating a significant
step towards a positive future for the industry.
The five independent businesses operating within the
Drilling Services division, namely DDH1 Drilling, Swick
Mining Services, Ausdrill, Strike Drilling, and Ranger
Drilling, are partnering with industry experts to deliver
semi-automated rigs and solutions to customers, marking
a significant leap in drilling operations. The Drilling
Services fleet currently includes 14 semi-autonomous
rigs, with plans to develop fully automated operations.
Drill automation reduces manual intervention, enhances
reliability, minimises wear and damage, increases rig
availability and boosts productivity, while remote operating
enables real-time equipment monitoring, productivity
tracking, and troubleshooting. These technological
advancements improve safety in operations such as rod
handling and broaden employment opportunities.
Perenti’s commitment to integrating technology and
automation is paving the way for a safer, more inclusive
and more efficient future for the mining industry.
Smarter together
Case study
Case study
Case study
Towards autonomous operations
- improving operational and
safety performance.
Enable tomorrow
Case study
Case study
Case study
40
Perenti Sustainability Report 2024
High voltage safety secures award
In Burkina Faso, African Underground Mining
Services (AUMS) electrical employees at Yaramoko
have been honoured with the Roxgold Fortuna Zero
Harm Safety Award, a health and safety recognition
program by Fortuna Silver Mines for clients and
contractors. This award acknowledges proactive
and innovative measures to control or eliminate
hazards and mitigate workplace risks effectively.
Environment, Health, Safety, and Training Coordinator
John Virgo praised Electrical Foreman Ken Parker
and the electrical team for their work in sourcing and
installing remote switching capabilities for high voltage
electrical loads. This initiative allows electricians to
safely control high voltage networks from a distance,
removing them from potentially hazardous areas
without the need for arc flash protective suits. The
team’s efforts were selected from more than 30
submissions, exemplifying the Perenti Principles of
working Smarter together and taking No shortcuts.
No shortcuts
The electrical team triumphed
after coming out on top from
more than 30 submissions for
the coveted award.
Smarter together
41
Perenti Sustainability Report 2024
We acknowledge that Perenti is part of the mining industry
which historically has a male dominated workforce. We
acknowledge that men have and continue to contribute
significantly to the industry and to Perenti. We also know that
a more inclusive and diverse workforce is better for all of us
and Perenti is committed to providing a work environment
that allows all its people to thrive, regardless of ethnicity,
gender identity, race, religion or any other attributes.
In FY23, Perenti joined the HESTA 40:40 vision which
represents our commitment to gender participation targets
for our Board and executive leadership by 2030. In FY24,
we made significant progress against these targets with
our appointment of two additional female non-executive
directors to the Perenti Board resulting in female Board
representation of 57%.
In FY24, our Culture and Inclusion Steering Group and
working groups across the business continued to work on our
key priorities relating to the It’s Not OK program in FY22 and
insights from the December 2023 employee pulse survey.
Key achievements in FY24 include:
• Developed and deployed a reporting tool and a leader’s
guide to support deployment of a new Group-wide human
resources procedure to change how we identify, report
and resolve concerns and complaints about potentially
harmful behaviour across our teams.
• Undertook a detailed review of gender participation by
region and role to inform inclusion plans and identify
systemic barriers to be worked on to promote and support
more women in our workforce and address the gender pay
gap over time.
• Developed inclusion plans across each division and
corporate, sponsored by senior leadership teams, to define
specific goals and actions to support increased gender
participation and address underlying conditions to support
diverse teams.
• Conducted an employee pulse survey (in Australia) to
check progress relating to the factors required to foster
psychological safety and inclusion and identify areas to
strengthen.
• Achieved a marked improvement in our psychological
safety index from our FY22 baseline to FY24.
Our key areas of focus continue to be on both building
the talent pool into entry level roles and accelerating the
development of women into leadership pathways. Our work
in FY25 will be primarily aimed at these areas.
Creating safe and respectful workplaces and
Achieving gender balance
Remuneration
In FY24, our People and Remuneration Committee
conducted an in-depth review of Perenti’s remuneration
framework and strategy, reaffirming our commitment to
align remuneration with the company’s strategic goals and
maintain market competitiveness. Our key focus in the
financial year included aligning remuneration outcomes to
holistic business performance, addressing concerns raised in
the FY23 remuneration report that resulted in a first strike, and
continuing our work to address the gender pay gap. We have
made significant progress in both areas, including substantial
changes to our short-term incentive program for FY25 and
implementation of targeted initiatives to advance gender
participation and close the gender pay gap. More information
can be found in our Remuneration Report on page 65.
People systems
We continued to invest in systems that enable us to deliver
an improved leader, employee and candidate experience.
Our focus in FY24 has been on embedding the HR system
within the Contract Mining division’s African businesses
as well as the newly formed Drilling Services division. This
work will continue into FY25. In addition, further HR system
enhancements to increase functionality for all people-system
users remained a key focus in FY24.
Leadership and capability development
During FY24, we have continued to make strong
progress with our leadership development programs
across Perenti. 106 senior leaders participated in our
bespoke Leading@Perenti program which helps senior
leaders strengthen their core leadership capabilities to
support cultural transformation and understand their role
in implementing Perenti’s business strategy and operating
model. A new bespoke Managing@Perenti program
commenced in September 2023, and since then,
110 mid-level managers have attended. This program
focuses on enhancing the capability of our leaders in middle
management level roles. In addition, we plan to focus on
upskilling our frontline leaders to help build their confidence
and improve their capability in creating teams that are safe,
respectful and inclusive.
Labour relations and management
Perenti is committed to ensuring our people are treated in
a fair, equitable and ethical manner. We are proud of our
reputation and processes on workplace relations matters.
This is evidenced by the lack of industrial disputes across
our varied employment jurisdictions, where we work
closely with relevant governments, union representatives,
employee and contractor groups to ensure adherence and
compliance to the required labour laws, human resources
regulations and labour rights policies. In the event any of our
businesses become subject to employment disagreement,
our experienced operations managers are able to manage
these issues with the support of our local human resources
teams and if necessary, our internal legal advisors, who are
experienced in the relevant laws and regulations of our host
countries.
Caring for Our People
and Communities
42
Perenti Sustainability Report 2024
INSIGHTS:
57%
106
110
Female Board
representation
Senior leader participation in
Leading@Perenti program
Mid-level manager participation
in Managing@Perenti program
Case study
Case study
Case study
Celebrating neurodiverse talent at idoba
At idoba, we believe embracing neurodiversity enriches
our workplace and drives innovation. A recent internal
survey revealed that 15% of employees at idoba, or one
in seven, are likely to be neurodivergent.
We believe it is important to celebrate the unique
skills of the neurodiverse, however, we recognise that
neurodivergent individuals often require specialised
support to thrive. As a result, awareness and education
for leaders and team members is crucial.
In FY24, we implemented several initiatives to raise
awareness and foster a more inclusive environment,
including introduction to neurodiversity workshops,
monthly leader training and one-on-one specialised
support for leaders.
These initiatives have led to a more psychologically
safe work environment, with increased acceptance and
awareness of neurodivergence, as well as leaders who
feel more confident in addressing and supporting the
diverse needs of their team members.
Additionally, we have actively engaged with industry by
promoting the benefits of a neurodiverse workforce and
sponsoring events focused on neurodiversity, including
Perth’s Neurodiversity Network and the National
Association of Women in Operations. We are now
exploring additional partnerships to assist with spreading
neurodiversity awareness.
Walk in their shoes
“Emphasise training and support
leaders to manage neurodiverse
teams effectively through workshops
and tailored guidance, ensuring they
understand the unique dynamics of
neurodiversity.”
– Jacinta Reynolds
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Perenti Sustainability Report 2024
Case study
Case study
Case study
Walk in their shoes
Breaking Barriers Underground: Perenti’s
commitment to female participation
Perenti’s commitment to increasing female participation
in our workforce is breaking barriers underground
in Ghana. This dedication is exemplified by three
remarkable women making significant strides in the
mining industry: Ruth Amponsah, an AUMS bogger
operator; Rosemond Osei Bonsu, a Underground Mining
Alliance (UMA) jumbo operator; and Rhyda Amanfo Ofori,
a truck operator for UMA and Captain of Ghana’s national
T20 women’s cricket team.
Located across the Obuasi and Subika sites, these
women are dedicated to upskilling and achieving their
career goals. Rosemond Osei Bonsu became the first
fully trained and qualified female jumbo operator in our
African business, overcoming numerous challenges with
determination and support from her leaders.
Rhyda Amanfo Ofori balances her role as a truck
operator with her passion for cricket. As the captain
of Ghana’s national T20 women’s cricket team, she
has raised the profile of women’s cricket in Ghana.
Supported by Perenti, Rhyda exemplifies the company’s
commitment to diversity and female participation.
At Subika, Ruth Amponsah is paving the way as a bogger
operator, aspiring to become a trainer in underground
mining equipment. Ruth values continuous learning
and advocates for equal opportunities for women in
traditionally male-dominated roles.
These inspiring women showcase Perenti’s dedication
to fostering a diverse and inclusive work environment
where women can thrive and advance their careers,
breaking barriers and supporting female participation in
the mining industry.
Rhyda Amanfo Ofori Captain
of the Ghana Womens
Cricket team and AUMS truck
operator.
Ruth Amponsah, an AUMS
bogger operator.
Rosemond Osei Bonsu,
a UMA jumbo operator.
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Perenti Sustainability Report 2024
Community engagement
Perenti continues to play an active role in the communities
where we operate and we are committed to strengthening
and prioritising our relationships with local community
groups.
While we always endeavour to be respectful guests in
the communities where we work, we recognise that
concerns and grievances can arise from time to time and
we are committed to fostering a culture of openness and
accountability. Our community grievance mechanism
provides an opportunity for communities to raise complaints
and grievances, and enables us to work together to find a
resolution. We have commenced our data collection on this
topic and in FY25 will disclose the number of complaints and
grievances and the resolution timeframes relating to these,
to demonstrate a culture of openness and accountability.
We are committed to strengthening our community spend
frameworks and working with communities to understand
how we can better support them to achieve the outcomes
they want for their communities. We define our community
spend as financial or in-kind support provided through
sponsorships, donations, or community investments.
If FY24, Perenti provided a total contribution of AU$1,462,732
to local, regional and national programs.
Our biggest community spend (63%) occurred in Africa with
contributions of ~AU$918,000. Sponsorships, donations
and investments in this region focused on education
(~AU$368,000) and economic development (~AU$275,000)
programs. In FY25, we will continue to prioritise supporting
the communities where we operate with community
investment projects in line with the needs of the community.
Local training, employment and procurement
In FY24, Barminco registered as a member of Supply Nation,
Australia’s largest national directory of verified Indigenous
businesses. We joined as a first step toward increasing our
supplier diversity through engaging with more Indigenous
businesses in Australia.
At the Red Chris Project in British Columbia, Canada, we
work collaboratively with the Tahltan Nation Development
Corporation (TNDC) and have a collaboration agreement
with TNDC. As part of this agreement, we hire approximately
35% of our fleet for the Red Chris Project from TNDC and
currently employ 10 Tahltan members and associations.
We additionally contribute to various initiatives that benefit
the Tahltan Nation.
We are also committed to training local people to support
the development of their careers as well as building local
capacity to capitalise on opportunities within the industry.
In Botswana, the Barminco Training Centre (Kavuru) in
Maun, continues to deliver training programs in all the core
competencies required in the mining induction process.
In FY24, at Kavuru, we had:
• 162 employees complete induction training.
• 162 employees complete the cultural awareness training.
• 162 employees complete Level 1 First Aid training.
• 34 tradespeople complete hand and power tools training.
• 7 tradespeople complete hydraulics and pneumatics
training.
This brings the total training numbers at Kavuru to 1,881.
In addition to the core competency training, the Kavuru
centre also commenced upskill training packages for heavy
vehicle plant fitters. This program enables Botswana and
Australian training qualification alignment and requires us to
work closely with the Human Resource Development Council
and Botswana Qualifications Authority. Work is continuing
to ensure the issue of in-country certification for completed
training can be achieved.
Partnering with our communities
Africa
Australia
North America
Europe
Education
Health
Arts and culture
Social welfare
Economic development
Community spend by category
Community spend by region
32
31
63
19
32
11
3
7
2
Caring for Our People
and Communities
(%)
(%)
Case study
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Perenti Sustainability Report 2024
Tjiwarl on-country experience
In FY24, ten of our leaders accompanied First Nations
Australian anthropologist, artist and Indigenous rights
activist, Kado Muir and his brother Talbot Muir, a traditional
artefacts maker and cultural preservationist, on an on-
country experience on the Wanjarri Nature Reserve in the
northeastern goldfields in Western Australia. The group
was able to visit various sites of Indigenous importance in
the surrounding area, learning about First Nations heritage,
including The Dreaming and connection to country.
Kado Muir said, “As senior Tjiwarl cultural custodians, Talbot
and I were deeply heartened with the respect for country and
culture shown by Barminco participants. That coupled with
an enthusiasm to learn and willingness to engage in activities
made this a very uplifting and rewarding cultural immersion
experience. I’m sure the relationships we each developed, the
learning and experiences will inspire us well into the future.”
This experience has underscored the importance of
deepening our understanding of First Nations culture and the
lands we operate on. We look forward to building upon this
experience and sharing this unique opportunity with other
employees in the future.
INSIGHTS:
AU$ 1.46M
90.3%
AU$1.47B
community spend
(sponsorships, donations
and investments)
local employees
in international
workforce
local participation
in international
workforce
local
expenditure
5,067
HSET cadet
Barminco’s Health, Safety, Environment and Training
cadetship demonstrates our commitment to guiding the
next generation of mining professionals and providing
opportunities for young people to excel in a resources
career.
At the age of 25, Keenan Russell holds the distinction of
being Barminco’s first North American HSE cadet. Manager
HSE North America, Clint McDonald, said Keenan is a
valued member of the Red Chris team.
Demonstrating our commitment to employee and
community development, Barminco proudly sponsors
Keenan for the Occupational Health and Safety program at
the British Columbia Institute of Technology,” Clint said.
“Our sponsorship is crucial to help Keenan secure his
Canadian Registered Safety Professional certification, which
is a strategic move that will greatly benefit his career growth
and provide Barminco with another future leader.
“Keenan is also a member of the Tahltan Nation, which
further strengthens our relationship with the community
and aligns with our core objectives of employee
development, retention and community engagement.”
The program is designed to provide cadets with hands-
on training and expedite their exposure to underground
mining. “I’m very thankful for the opportunity,” Keenan said.
“HSE is something I’m passionate about and for Barminco
to award me an opportunity to be exposed to the level
of underground operations during my cadetship is an
experience I’m grateful for, as it provides a solid foundation
of the development behind block caving.
“My hope is to showcase to other members of the Tahltan
Nation, that there are endless opportunities within the
mining industry, and Barminco has proven they are willing
to invest in their people.”
Walk in their shoes
Walk in their shoes
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Perenti Sustainability Report 2024
Accelerating decarbonisation
Our response to climate change
Perenti is committed to acting on climate change. We
recognise that climate change is one of the most pressing
issues of our time and that it requires leadership and action
from all parts of society. The importance of companies
responding to climate change is clearly reflected in changing
regulatory and investor requirements, including the
International Sustainability Standards Board’s sustainability
disclosure standards and the Australian climate disclosure
standards.
Governance of climate change challenges starts with the
Board Safety and Sustainability Committee which has
oversight of climate-related issues at Perenti, while the Chief
People and Sustainability Officer has overall responsibility
for ensuring that climate change risks and opportunities
are assessed and managed. A Decarbonisation Steering
Group, co-sponsored by our Chief Financial Officer and
Chief Legal and Risk Officer in FY24, provides advice and
recommendations for our decarbonisation activities.
Last year, we commenced our climate change scenario
analysis which can be found in the FY23 Sustainability Report
and in our FY24 Sustainability Databook. We are now focused
on using this data to integrate into Perenti’s overarching
risk management framework which is aligned with ISO
31000:2018 and the ASX Principles and Recommendations.
Accelerating decarbonisation
As a contract mining and mining services provider, the
biggest impact we can make in reducing emissions is in our
scope 3 emissions profile. In response, we are collaborating
on climate change opportunities to assist our clients to meet
their ambitious carbon targets.
Electrification, and decarbonisation more broadly, is a
significant opportunity for Perenti and we are striving to
deliver full scope mine electrification studies for our clients
by partnering with technology leaders, including ABB, to
assist us in our decarbonisation efforts and service offerings.
In doing so we are developing our knowledge of heavy
industry decarbonisation and identifying new opportunities
in a rapidly transitioning commodities market.
Electrification
Perenti continues to trial electric equipment and collaborate
with clients and original equipment manufacturers to explore
solutions for mine owners to decarbonise operations.
In FY24, Barminco and Sandvik trialled an electric 65-tonne
underground truck at AngloGold Ashanti’s Sunrise Dam Mine,
and deployed an electric longhole drill at IGO’s Nova Mine.
Barminco has now trialled and deployed a range of electric
mining equipment, including shotcreters, charge-up vehicles
integrated tool carriers and light vehicles.
In the Drilling Services division, Swick is building the first
production version of the underground diamond drill
Gen3 E-Rig. The Gen3 drill rig removes all diesel power by
operating on a large battery and upgrades the hydraulically
driven rotation unit to a direct current (DC) motor.
In FY24, Perenti collaborated with IGO and ABB to publish
a white paper of a mine electrification study at the Cosmos
Mine (see page 5 of the Annual Report). The study showed
that the cost of underground electrification was not
prohibitive over the life of the mine, and net power usage
at the mine could decrease due to reduced refrigeration.
In conjunction to the adoption of physical equipment, idoba’s
DiiMOSTM software provides a digital mining platform that
caters for a complex and interconnected operational reality
of an electric mine. Several modules are now in operational
deployment or advanced development.
Greenhouse gas emissions
Perenti applies the operational control approach to report
consolidated GHG emissions, consistent with the GHG
Protocol and Australian National Greenhouse and Energy
Reporting Scheme. Facilities where Perenti has operational
control include workshops and offices owned or leased by
Perenti. Facilities where Perenti conducts business activities
but does not have operational control include client mine
sites and exploration sites.
In FY24, Perenti voluntarily obtained limited assurance of
scope 1 and 2 emissions. The methodologies, principles,
boundaries, and standards used to calculate and report scope
1 and 2 emissions can be found in the Scope 1 and 2 Basis of
Preparation document on Perenti’s corporate website.
A scope 3 relevancy assessment was completed in FY24
to evaluate which of the 15 scope 3 categories are most
material to Perenti. All material scope 3 categories have
been estimated and disclosed this year using methodologies
described in the Sustainability Databook. We will work to
improve the accuracy of the scope 3 calculations over time.
In October 2023, Perenti acquired DDH1 Limited and its four
drilling businesses, DDH1 Drilling, Swick Mining Services,
Ranger Drilling and Strike Drilling. These businesses have
been integrated into Perenti’s greenhouse gas reporting
from 1 October 2023.
Greenhouse gas targets
Perenti has committed to achieve net zero scope 1 and
2 emissions by the end of FY30 from an FY22 baseline,
including an absolute reduction of scope 1 and scope 2
(market-based) emissions of 40% by the end of FY26.
FY22 was set as the baseline year for our targets with the
first year of verifiable emissions available.
The target applies to the entire Perenti group of companies
and is underpinned by a pathway which plans to:
• Reduce scope 2 emissions using solar panels and
renewable energy certificates (RECs) in the short term.
• Introduce operationally and commercially suitable hybrid
and electric equipment into the fleet.
• Neutralise residual emissions at the end of FY30 using high
quality offsets.
The scope 1 and 2 target was set to align with the goal of
the Paris Agreement to limit global temperature rise to 1.5°C.
Six-monthly reviews occur to assess progress towards the
target and, if necessary, revise the target to accommodate
changes to business activities such as acquisitions.
Valuing the Environment and
Enabling the Energy Transition
Scope 1 and 2 net zero pathway
1 Baseline excludes MinAnalytical and Well Control Solutions which
were sold in FY22.
2 A portion of our scope 2 emissions will be eliminated by purchasing
Renewable Energy Certificates from our electricity providers, and
transparently reported using the market-based method.
3 High quality carbon credits may be purchased to offset any residual
hard to abate emissions.
0
1000
2000
3000
tCO2-e
4000
5000
FY22
Baseline1
FY24-25
FY25-29
2030
Solar Photo
Voltaic
Renewable
Energy
Certificates2
Offsets3
Hybrid/Electric
Vehicles and
Equipment
Case study
Case study
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Perenti Sustainability Report 2024
In FY24, we continued to apply RECs, which are
sourced from a single utility provider where we
consume the most electricity (Western Australia).
Solar panel installations have been completed at two
workshops, one through capital expenditure and one
through a power purchase agreement under a solar
access licence. We have also commenced replacing
suitable diesel fleet vehicles with electric vehicles.
In FY24, emission reduction requirements were
incorporated into the short-term incentive
plan (STIP) for leaders to reduce operational
control emissions across the business.
Swick Gen3 E-Rig
Swick Mining Services’ (Swick) Gen3 E-Rig embodies
a significant leap in underground diamond drilling
technology, emphasising safety, productivity and
environmental sustainability. Swick is currently
constructing the first production version of the Gen3
E-Rig, with availability anticipated in the first half of FY25.
Following comprehensive field tests in FY23 and
continued design enhancements in FY24, the Gen3
E-Rig has demonstrated reduction in power usage
per meter drilled by approximately 30-50%, aligning
with industry’s drive towards decarbonisation.
This efficiency not only lowers operational costs
but also minimises environmental impact.
The Gen3 E-Rig’s robust design showcases Swick’s
unwavering commitment to innovation. It features a
fully integrated battery cooling system and a patented
DC-driven rotation motor, which significantly enhances
safety by eliminating battery fire risks. Additionally, the
rig’s electric tramming capability replaces diesel engines,
further reducing emissions and operational costs.
The Gen3 E-Rig also incorporates the next
generation of Swick Automation. This advancement
reduces operator risk and improves productivity,
making the rig a safer and more efficient solution
for underground drilling operations.
2,003 t CO2-e
1,689 t CO2-e
2,914 t CO2-e
scope 1 emissions
scope 2 (market based) emissions
scope 2 (location based) emissions
t CO2-e
scope 3 emissions Category 13
NET
ZERO
BY END OF FY30
scope 1 and 2
greenhouse gas
emissions, from a
FY22 baseline
of scope 1 and 2
emissions by the
end of FY26, from
a FY22 baseline
40%
ABSOLUTE
REDUCTION
613,500
GREENHOUSE GAS EMISSIONS
Enable tomorrow
Never wasteful
0
0
Projects in world
heritage areas
Serious impact
environmental incidents
Case study
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Perenti Sustainability Report 2024
Environmental stewardship
Perenti is committed to managing the environmental impact
of our activities to deliver sustainable outcomes for people
and the planet. We work in partnership with our clients,
suppliers and other stakeholders to protect and preserve
the environments in which we work by complying with our
clients’ environmental approvals and permits; and adopting
robust environmental management systems.
To support our clients with this, we have developed a
site level Sustainability Management Plan (SMP). Our SMP
is available for adoption at all our locations to facilitate
integration of our clients’ specific requirements with known
industry best practices.
Environmental incidents
Environmental incidents are rated on a scale from one to
five, with category four and five events causing serious
environmental harm and triggering regulatory measures.
Throughout the reporting period, our commitment to
environmental excellence remained steadfast, evidenced by
the absence of any incidents categorised as having serious
environmental consequences.
Waste
Responsible waste management promotes environmental
sustainability by diverting waste from landfill, reducing
pollution, and promoting a circular economy. We adhere
to waste management requirements on our client sites and
additionally work to implement recycling initiatives where we
have control and influence over our waste.
Rebuilding for the future
BTP’s rebuild program for parts and machinery extends
the lifespan of mining equipment, providing substantial
sustainability benefits and promoting resource efficiency.
BTP provides an extensive rebuild service for surface-
mining machines with our teams refurbishing the
individual parts and components used for large-scale
equipment, such as transmissions, engines and torque
converters. This provides a cost-effective alternative
to purchasing new parts, while enhancing operational
reliability and safety. It also increases the life of the
components and diverts material from landfill.
Over the last year, BTP has carried out full rebuilds or
major repairs for 26 machines, including D11T dozers, 793F
haul trucks and 785C water carts. For the full rebuilds, the
machines have been dismantled down to the frame, then
completely rebuilt to give the equipment many additional
hours of low-maintenance operation. Whenever possible,
BTP uses refurbished components as part of the machine
rebuild process.
An example of this rebuild process in action is the water
cart rebuild program BTP is currently undertaking for a
blue-chip client. The works conducted as part of rebuild
program will improve the performance and reliability
of the water carts, which extends the lifecycle of the
equipment and minimises premature component and
hose failure.
Choosing to rebuild parts and equipment rather than
replace with new provides our clients with a significant
cost saving and is an investment in sustainable resource
management.
Water
We recognise that water is essential for sustaining life and
ecosystems and responsible management is imperative
to our operations. We are committed to supporting our
clients with their site-based water strategies and ensure
efficient resource use wherever possible.
Recognising the critical role of water, we developed and
rolled out awareness campaigns at high water-stressed
sites where we operate. These campaigns were delivered
to projects in Australia, Botswana, Tanzania, Senegal and
Burkina Faso.
Biodiversity and protected areas
Recognising the increasing threat of biodiversity decline
to both environmental stability and economic prosperity,
Perenti, acknowledges the mining industry’s susceptibility
to significant physical and transitional risks linked to
nature.
We acknowledge that our clients address and mitigate
biodiversity impacts early in project development,
along with monitoring and restoration responsibilities.
Our site level SMP enables us to support our client with
implementing and meeting specific biodiversity outcomes.
In addition to the new climate-related AASB disclosure, we
are also tracking other emerging trends and regulations,
which will likely include nature-based disclosures,
like those guided by the Taskforce for Nature-related
Disclosure (TNFD) and proposed by the ISSB. We will also
continue to work with our clients on their operational sites
to determine the best possible biodiversity and nature-
based outcomes.
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Never wasteful
785C water cart before rebuild.
785C water cart after BTP rebuild.
49
Perenti Sustainability Report 2024
Board structure
The Perenti Board is composed of Directors with the relevant
skills, diversity and experience to ensure ethical and responsible
delivery of value to shareholders. The composition of the Board
is reviewed annually by the Nominations Committee. As at
30 June 2024, the Board comprised seven directors,
six of whom are non-executive directors. Details of
each Board member, including their skills, experience
and term of office are set out in Perenti’s FY24 Annual
Report and are also available on Perenti’s website.
The Board Charter requires a majority of directors to be
independent. An assessment of the independence of
each non-executive director was completed for FY24 in
accordance with ASX Corporate Governance Principles
and Recommendations. The Board currently has four
committees to assist in carrying out the role of guiding the
Company’s strategic direction – the Audit and Risk Committee,
People and Remuneration Committee, the Safety and
Sustainability Committee and the Nominations Committee.
The charters for these committees are available on
Perenti’s website. The members of the committees are
all independent directors. The Safety and Sustainability
Committee meets quarterly. In FY24, the Safety and
Sustainability Committee met in September 2023,
December 2023, March 2024 and June 2024.
Topics discussed by the Safety and Sustainability Committee
included safety, engineering and technology controls for
critical risks, safety improvement plans, sustainability strategy,
sustainability targets, disclosure and reporting, climate
change and decarbonisation, environmental management,
community and indigenous engagement, human rights and
modern slavery, security, investor expectations and emerging
sustainability trends and standards. Safety and sustainability
related issues are also discussed collectively by the Board.
Code of Conduct
Our Code of Conduct sets out the standards of
behaviour expected of our directors, employees,
consultants, contractors and suppliers.
During the past year, Perenti continued to monitor compliance
with the mandatory learning module for the Code of
Conduct, with all employees required to complete refresher
training at least every two years. Perenti also completed
a review and update of our Code of Conduct booklet.
Supporting a culture of speaking up
Perenti is committed to achieving and demonstrating the
highest standards of ethics and corporate governance.
Policies and standards are in place to provide
guidance to directors, executives and employees in
the management and running of our operations.
Perenti has a Speak Up Program in place across the business,
which is available in relevant local languages. The Speak Up
Program gives employees, and other stakeholders, a range
of options to report misconduct while providing anonymity
and protection to the person reporting the misconduct. The
program is supported by a Speak Up Policy and standards
specific to the countries in which Perenti operates.
In FY24, there were six disclosures made through the Speak
Up Program that were classified as potential breaches of the
Code of Conduct, all of which were investigated and actioned
by Perenti in accordance with the findings of the investigation.
In addition to the Speak Up Program, the Perenti Governance
Framework includes Group-wide processes to manage the
raising, reporting and resolution of concerns and complaints
about harmful behaviours occurring in the workplace and
community grievances, including but not limited to alleged
breaches of the Code of Conduct. The Board has oversight of
these processes through its Safety and Sustainability Committee
and People and Remuneration Committee.
Anti-bribery and Corruption
Our Anti-bribery and Anti-corruption (ABAC) Policy sets
out Perenti’s zero tolerance for any bribery or corruption
in our global business dealings and operations.
The supporting Compliance Group Standard sets
out the specific ABAC requirements of Perenti’s
employees and suppliers related to the policy.
Consistent with this standard, no political donations
or facilitation payments were made during FY24.
All material breaches of the ABAC Policy are reported to the
Board and Audit and Risk Committee. One allegation of a
non-material breach of the ABAC Policy was reported in FY24
and was found to be unsubstantiated following investigation.
In FY24, Perenti monitored compliance with the online Code
of Conduct training modules for all Perenti employees. Perenti
also monitored compliance with our tailored ABAC module for
employees working in high-risk roles including all supervisor
positions and above, as well as those involved in commercial
interactions such as procurement. A review of Perenti’s online
compliance training modules was completed in FY24 to ensure
alignment with the requirements of our governance framework.
In accordance with Perenti’s ABAC Policy, all Perenti
divisions are required to have gift and hospitality registers
in place, maintained by nominated employees.
Human rights and modern slavery
We recognise the importance of respecting and upholding
human rights as part of the fundamental responsibility
of all businesses. Our commitment to human rights is
governed by our Human Rights Policy and Code of Conduct
and is operationalised through training our people and
conducting social performance audits and reviews.
In FY24, we continued to roll out our modern
slavery training to high-risk roles across Perenti.
This included training workshops for our Contract
Mining and Mining Services procurement teams.
Periodic social audits are conducted as part of Perenti’s
human rights due diligence approach to provide an ‘on-
the-ground’ perspective to identify issues which may
be impossible to find by other means. In FY24, Perenti
completed two social audits of high-risk suppliers within
our supply chain. Findings and recommendations were
shared with suppliers and Perenti’s desktop risk assessments
were updated to reflect real-world conditions.
Acting ethically &
responsibly
50
Perenti Sustainability Report 2024
In Q2 FY24, we conducted a review of a security contractor in
Ghana against the performance requirements of the Voluntary
Principles on Security and Human Rights (VPSHR). The review
found no evidence to suggest that the contractor has been
involved in any human rights abuses against their staff or the
general community. Opportunities for improvement were
noted and include assisting the contractor to streamline their
approach to the VPSHR protocol and to visit more remote
locations for impromptu or ad hoc audits to engage direct
feedback from junior staff. In FY25, we will undertake another
VPSHR review, scheduled for Q1 FY25 in Burkina Faso and
deliver VPSHR training to our internal security team.
In FY24, we continued to publish our Modern Slavery
Statement in line with the Australian Modern Slavery Act
2018 (Cth). With the emergence of the Canadian Supply
Chains Act 2023, we updated our report to integrate the new
requirements. Moving forward, we intend to disclose one
report which integrates the requirements of both legislations.
Our engagement with these organisations is
consistent with the Perenti Code of Conduct.
Acting ethically &
responsibly
Our approach to managing risks associated with security,
emergencies and crises is reinforced by a set of standards,
plans, and guidelines. This structure undergoes frequent
evaluation and refinement to align with emerging security,
emergency and crisis-related insights and patterns.
A significant priority for FY24, was the integration of DDH1 into
the newly developed Drilling Services division. This required an
update to our Group Security, Emergency and Crisis Standard
and Group Crisis Management Plan, as well as the creation of a
specific Drilling Services Emergency Management Plan.
During FY24, we also conducted an assurance audit of
the Group Security, Emergency and Crisis Standard with
a satisfactory result. In addition, we also facilitated several
divisional and site-based emergency management exercises
in Africa and Australia, inclusive of a crisis management
training activity.
A program of updating site-based incident response plans
for both Australia and Africa operations is being executed
along with associated training which will continue into FY25.
Industry Association Memberships
Perenti, or its operating businesses, are members of
industry associations or organisations including:
Our Modern Slavery
Statement can be
accessed here.
Security
We are dedicated to preventing, responding, and rebounding
from any security or other events that might impact our people,
the environment, our resources, business activities,
or reputation. Consequently, we consistently uphold a state of
readiness for security, emergency and crisis preparedness.
51
Perenti Sustainability Report 2024
PwC Assurance
Certificates
To the Board of Directors of Perenti Limited
Independent Limited Assurance Report on identified Subject Matter
Information in Perenti Limited’s Sustainability Report 2024
The Board of Directors of Perenti Limited engaged us to perform an independent limited assurance
engagement in respect of the identified Subject Matter Information listed below in Perenti Limited
(Perenti or the Company) and its controlled entities’ (together the Group) Sustainability Report 2024
for the year ended 30 June 2024 (the ‘Subject Matter Information’).
Subject Matter Information and Criteria
We assessed the Subject Matter Information against the Criteria used by Perenti to prepare it (the
Criteria). The Subject Matter Information needs to be read and understood together with the Criteria.
The Subject Matter Information is set out in the Table 1 below.
Table 1 – Subject Matter Information
Perenti Sustainability Imperative
Subject Matter Information for the year ended 30 June 2024
Caring for Our People and
Communities
Total Recordable Injury Frequency Rate
(TRIFR) (per million hours worked)
5.3
Serious Potential Incident Frequency
Rate (SPIFR) (per million hours worked)
2.6
Valuing the Environment and
Enabling the Energy Transition
Greenhouse gas emissions – scope 1
2,003 tonnes CO2-e
Greenhouse gas emissions – scope 2
(market-based)
1,689 tonnes CO2-e
Greenhouse gas emissions – scope 2
(location-based)
2,914 tonnes CO2-e
The criteria used by Perenti to prepare the Subject Matter Information is set out in the Scope 1 and 2
Greenhouse Gas Emissions Basis of Preparation and Basis of Preparation – Health and Safety,
located on the Sustainability Reporting section of the Perenti website
(https://www.perenti.com/sustainability/) as at 19 August 2024.
The maintenance and integrity of the Group’s website is the responsibility of the Group’s Management;
the work carried out by us does not involve consideration of these matters and, accordingly, we accept
no responsibility for any changes that may have occurred to the reported Subject Matter Information or
Criteria when presented on the Group’s website.
Our assurance conclusion is with respect to the year ended 30 June 2024 and does not extend to
information in respect of earlier periods or to any other information included in, or linked from, the
Perenti Sustainability Report 2024 including any images, audio files or videos.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331 MELBOURNE VIC 3001
T: +61 3 8603 1000, F: +61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
52
Perenti Sustainability Report 2024
Responsibilities of Management
The Group’s Management is responsible for the preparation of the Subject Matter Information in
accordance with the Criteria. This responsibility includes:
•
determining appropriate reporting topics and selecting or establishing suitable Criteria for
measuring, evaluating and preparing the underlying Subject Matter Information;
•
ensuring that those Criteria are relevant and appropriate to Perenti Limited and the intended
users; and
•
designing, implementing and maintaining systems, processes and internal controls relevant to the
preparation of the Subject Matter Information, which is free from material misstatement, whether
due to fraud or error.
Our independence and quality control
We have complied with the ethical requirements of the Accounting Professional and Ethical Standard
Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards)
relevant to assurance engagements, which are founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
Our firm applies Australian Standard on Quality Management ASQM 1, Quality Management for Firms
that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other
Assurance or Related Services Engagements, which requires the firm to design, implement and
operate a system of quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibilities
Our responsibility is to express a limited assurance conclusion based on the procedures we have
performed and the evidence we have obtained.
Our engagement has been conducted in accordance with the Australian Standard on Assurance
Engagements (ASAE) 3000 Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information and ASAE 3410 Assurance Engagements on Greenhouse Gas Statements.
Those standards require that we plan and perform this engagement to obtain limited assurance about
whether anything has come to our attention to indicate that the Subject Matter Information has not
been prepared, in all material respects, in accordance with the Criteria, for the year ended 30 June
2024.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance engagement and consequently the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement been performed. Accordingly, we do not
express a reasonable assurance opinion.
PwC Assurance
Certificates
53
Perenti Sustainability Report 2024
In carrying out our limited assurance engagement we:
•
made inquiries of the persons responsible for the Subject Matter Information;
•
obtained an understanding of the process for collecting and reporting the Subject Matter
Information;
•
performed analytical review procedures over the Subject Matter Information;
•
performed limited substantive testing on a selective basis of the Subject Matter Information to
assess that data had been appropriately measured, recorded, collated and reported; and
•
considered the disclosure and presentation of the Subject Matter Information.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Inherent limitations
Inherent limitations exist in all assurance engagements due to the selective testing of the information
being examined. It is therefore possible that fraud, error or non-compliance may occur and not be
detected. A limited assurance engagement is not designed to detect all instances of non-compliance
of the Subject Matter Information with the Criteria, as it is limited primarily to making enquiries of the
Group’s Management and applying analytical procedures.
Additionally, non-financial data may be subject to more inherent limitations than financial data, given
both its nature and the methods used for determining, calculating and estimating such data. The
precision of different measurement techniques may also vary. The absence of a significant body of
established practice on which to draw to evaluate and measure non-financial information allows for
different, but acceptable, evaluation and measurement techniques that can affect comparability
between entities and over time. In addition, GHG quantification is subject to inherent uncertainty
because evolving knowledge and information used to determine emissions factors and the values
needed to combine emissions of different gases.
The limited assurance conclusion expressed in this report has been formed on the above basis.
Our limited assurance conclusion
Based on the procedures we have performed, as described under ‘Our responsibilities’ and the
evidence we have obtained, nothing has come to our attention that causes us to believe that the
Subject Matter Information has not been prepared, in all material respects, in accordance with the
Criteria for the year ended 30 June 2024.
Use and distribution of our report
We were engaged by the Board of Directors of Perenti Limited on behalf of Perenti Limited to prepare
this independent assurance report having regard to the Criteria specified by Perenti Limited and set
out in this report. This report was prepared solely for Perenti Limited to assist the Directors in
responding to their governance responsibilities by obtaining an independent assurance reporting in
connection with the Subject Matter Information.
PwC Assurance
Certificates
54
Perenti Sustainability Report 2024
We accept no duty, responsibility or liability to anyone other than Perenti Limited in connection with
this report or to Perenti Limited for the consequences of using or relying on it for a purpose other than
that referred to above. We make no representation concerning the appropriateness of this report for
anyone other than Perenti Limited and if anyone other than Perenti Limited chooses to use or rely on it
they do so at their own risk.
This disclaimer applies to the maximum extent permitted by law and, without limitation, to liability
arising in negligence or under statute and even if we consent to anyone other than Perenti Limited
receiving or using this report.
PricewaterhouseCoopers
John O’Donoghue
Melbourne
Partner
19 August 2024
PwC Assurance
Certificates
55
Perenti Sustainability Report 2024
ABN 95 009 211 474
CORPORATE AND HEAD OFFICE
Level 4, William Square, 45 Francis Street, Northbridge, WA 6003 Australia
+ 61 8 9421 6500
Sustainability
Report
perenti.com
ABN 95 009 211 474
CREATING
ENDURING VALUE
AND CERTAINTY
Financial
Report
58
Perenti Annual Report 2024
Contents
Directors' Report
59
Information on Directors
60
Remuneration Report
65
Auditor's Independence Declaration
87
Corporate Governance Statement
88
Financial statements
Consolidated statement of profit or loss
89
Consolidated statement of comprehensive income
90
Consolidated statement of financial position
91
Consolidated statement of changes in equity
92
Consolidated statement of cash flows
93
Notes to the consolidated financial statements
94
Consolidated entity disclosure statement
131
Directors' declaration
133
Independent auditor's report to the members
134
Shareholder information
139
Glossary of terms
140
Corporate directory
Directors
Diane Smith-Gander - Chair (appointed 16 October
2023, Chair from 12 March 2024)
Mark Norwell – Managing Director & Chief Executive
Officer
Alexandra Atkins – Non-executive Director
Andrea Hall – Non-executive Director
Timothy Longstaff – Non-executive Director
Craig Laslett – Non-executive Director
Andrea Sutton – Non-executive Director
(appointed 16 October 2023)
Robert Cole – Chair (resigned 12 March 2024)
Mark Hine – Non-executive Director
(resigned 13 October 2023)
Secretaries
Rajiv Ratneser
Justine Passaportis
Chief Financial Officer
Peter Bryant
Principal Registered Office In Australia
Level 4, 45 Francis Street Northbridge, Western
Australia 6003
Share register
Link Market Services Limited
Level 12, QV1 Building, 250 St Georges Terrace Perth
Western Australia 6000
Auditor
PwC
Level 15, 125 St Georges Terrace Perth Western
Australia 6000
Solicitors
Johnson Winter & Slattery
Level 4, 167 St Georges Terrace
Perth Western Australia 6000
Stock exchange listings
Perenti Limited shares are listed on the Australian
Stock Exchange. ASX CODE: PRN
Perenti Limited’s subsidiary USD notes are listed on
the Singapore Exchange (SGX).
Website
perentigroup.com
About this report
These financial statements are consolidated financial
statements for the Group consisting of Perenti Limited
and its subsidiaries.
A list of major subsidiaries is included in note 21. The
presentation currency for Perenti Limited is Australian Dollars.
•
The financial statements were authorised for issue by
the directors on 19 August 2024. The directors have the
power to amend and reissue the financial statements.
•
All press releases, financial reports and other information
are available on our website: perentigroup.com
59
Perenti Annual Report 2024
Financial Report 2024
Directors' report
Your directors present their report on the consolidated entity
(the "Group") consisting of Perenti Limited (the "Company")
and the entities it controlled at the end of, or during, the year
ended 30 June 2024.
Directors and Company Secretary
The following persons were directors of the Company during
the financial year and up to the date of this report (unless
indicated otherwise):
•
Diane Smith-Gander - Chair (appointed 16 October 2023,
Chair from 12 March 2024)
•
Mark Norwell (Managing Director and Chief Executive
Officer)
•
Alexandra Atkins
•
Andrea Hall
•
Timothy Longstaff
•
Craig Laslett
•
Andrea Sutton (appointed 16 October 2023)
•
Robert Cole (resigned 12 March 2024)
•
Mark Hine (resigned 13 October 2023)
Rajiv Ratneser and Justine Passaportis are the Joint Company
Secretaries.
Mr Ratneser BCom, LLB, is the Chief Legal & Risk Officer and
Joint Company Secretary. Mr Ratneser is a senior executive
and qualified lawyer with more than 20 years’ national
and international experience across legal, commercial,
governance and risk. Mr Ratneser has served in senior
leadership and executive roles for a variety of businesses and
his experience spans Australia, Africa, Asia, UK and North
America.
Ms Passaportis BCom, LLB is Senior Legal Counsel and
Joint Company Secretary. Prior to joining the Company,
Ms Passaportis was a Senior Associate at the global law firm,
Clifford Chance, and prior to that at Clayton Utz.
Ms Passaportis has held other various positions as an in-house
legal counsel. Ms Passaportis is a graduate of the AICD.
Dividends - Perenti Limited
The following table outlines dividends paid/payable to
members during the financial year. On 19 August 2024, the
directors determined a final partially franked dividend of 4.0c
per share for the year ended 30 June 2024 (2023: nil).
24
23
$'000
$'000
No final dividends were
determined for the year ended
30 June 2023 (2023: No
dividends were determined for
the year ended 30 June 2022)
—
—
Fully franked interim dividends
of 2.0 cents per fully paid
share for the year ended 30
June 2024 (2023: No interim
dividends were determined for
the year ended 30 June 2023)
19,112
—
Total dividends provided for
or paid
19,112
—
The Company's Dividend Reinvestment Plan (DRP) was
suspended with effect from 16 March 2021 until further
notice.
Principal activities and review of operations
The principal activities for the Group during the year were
the provision of underground hard-rock and surface mining
services, drilling services and other services to the mining
industry, including equipment rental and parts manufacturing,
logistics and supply chain solutions and technology and
consulting solutions. Additional information on the principal
activities, operations and financial position of the Group and
its business strategies and prospects is set out in the operating
and financial review on pages 2 to 25 of this annual report.
Significant changes in the state of affairs
On 6 October 2023, the DDH1 Limited (DDH1) scheme
of arrangement was implemented, where Perenti acquired
100% of DDH1 issued capital. The transaction resulted in
Perenti issuing 279,704,558 ordinary shares and paying
$50 million in cash to DDH1 shareholders. The four DDH1
brands of DDH1 Drilling, Ranger Drilling, Strike Drilling and
Swick Mining Services and Perenti’s existing drilling services
business Ausdrill, were subsequently combined to form the
Drilling Services division.
As a result of the transaction, Perenti recorded a gain on
acquisition of $25.4 million. The gain on acquisition was
realised due to the fair value of net assets acquired exceeding
the total fair value of the consideration paid. An independent
valuation of DDH1’s plant and equipment was completed in
the period, resulting in a $44.7 million uplift to their pre-
acquisition net book values.
There were no other significant changes in the state of affairs
of the consolidated entity during the financial year ended
30 June 2024.
Events since the end of the financial year
There are no matters or circumstances that have arisen
since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the
results of those operations, or the state of affairs of the
Group in subsequent financial years.
Likely developments and expected results of operations
Additional comments on expected results of certain
operations of the Group are included in this annual report
in the operating and financial review on pages 2 to 25.
Environmental regulations
The Group is subject to environmental regulations and
complies to these regulations at its owned and operated
facilities (for example our workshops). Our clients have
obligations under environmental regulations and the Group
complies with its contractual obligations in this regard.
The Group is committed to reducing the impact of its
operations on the environment and meeting its
environmental regulations and contractual obligations.
60
Perenti Annual Report 2024
60
Perenti Annual Report 2024
Information on Directors
Diane Smith-Gander AO
BEc, MBA, FAICD, FGIA, Hon.Dec, FAIM
Non-executive Director and Chair
Experience and expertise
Diane Smith-Gander was appointed as a non-executive
director on 16 October 2023 following the implementation
of the DDH1 scheme of arrangement on 6 October 2023.
She was appointed as Chair on 12 March 2024.
Prior to becoming a full-time company director in 2009,
Ms Smith-Gander enjoyed a successful executive career with
Westpac Banking Corporation (ASX:WBC), primarily in banking
operations, technology solutions and change management
roles. She was also a Partner of McKinsey & Company.
Ms Smith-Gander has extensive Australian and international
experience in banking and finance, technology, and strategic
and management consulting. Ms Smith-Gander is also
the Chair of Zip Co Limited (ASX:ZIP), HBF Health Limited,
the Committee for Economic Development of Australia
(CEDA) and the World Anti-Doping Agency’s Independent
Nominations Committee.
Ms Smith-Gander chaired previously listed contractor
Broadspectrum and served on the Wesfarmers board for more
than a decade. She is also a past director of cooperative CBH
and privately held North Queensland Airports.
Ms Smith-Gander was awarded an Officer of the Order
of Australia (AO) for her distinguished service to business,
women’s engagement in executive roles, gender equality and
the community in 2019. She is a Fellow of both the Australian
Institute of Company Directors and the Governance Institute
of Australia and is a past President of Chief Executive Women.
Other current directorships of listed companies
Non-executive director of Zip Co Limited since February 2021
Former directorships of listed entities in last three years
Non-executive director and Chair of DDH1 Limited from
8 October 2019 to 6 October 2023
Non-executive director of Wesfarmers Limited from
27 August 2009 to 12 November 2020
Special responsibilities
Chair of the People and Remuneration Committee
from 16 October 2023 to 12 March 2024
Member of the Audit and Risk Committee from
6 December 2023 to 12 March 2024
Member of the Nomination Committee from
6 December 2023
Chair of the Board from 12 March 2024
Chair of the Nomination Committee from 12 March 2024
Interests in shares and options
119,657 ordinary shares
Mark Norwell
BE(Hons), MBA, MAICD
Managing Director & Chief Executive Officer
Experience and expertise
Mark Norwell was appointed as Managing Director &
Chief Executive Officer on 17 September 2018.
Mr Norwell is a highly regarded mining services executive with
over 25 years of experience. Prior to joining Perenti, he was
the Executive General Manager, Strategy & Growth at Thiess
Pty Ltd, and a member of Thiess’ executive leadership team.
In addition to his executive career with Thiess, he has held
senior roles with Leighton Contractors, HWE Mining and
Macmahon Holdings.
Mr Norwell holds a Bachelor of Civil Engineering (Hons)
degree from the University of Western Australia and an
Executive MBA from the University of New South Wales.
He is also a member of the Australian Institute of
Company Directors.
Other current directorships of listed companies
None
Former directorships of listed entities in last three years
None
Special responsibilities
Managing Director & Chief Executive Officer
Interests in shares and options
2,002,638 ordinary shares
5,188,275 LTI rights over ordinary shares issued
284,463 STI rights over ordinary shares issued
Up to a maximum of 227,258 STI rights over ordinary shares
granted, not yet issued at 30 June 2024
The following information is current as at the date of this report.
61
Perenti Annual Report 2024
Directors’ Report 2024
61
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Directors’ Report 2024
Alexandra Atkins
BE (Mineral Exploration & Mining Geology), 2A Hon
BE(Mining), MBA (Finance), FIEAust, CPEng, EngExec, NER,
APEC Engineer IntPE(Aus), FAusIMM(CP), GAICD
Non-executive Director
Experience and expertise
Alex Atkins was appointed as a non-executive director on
14 July 2018.
Ms Atkins is also a non-executive director of Aquirian
Limited and a former director of Strandline Resources
Limited, the Australasian Institute of Mining and Metallurgy
and International Women in Mining (London). She is also a
member of 30% Club’s National Steering Committee.
Ms Atkins has over 30 years’ multi-disciplinary, multi-
commodity experience through the full mining value chain
across Australia and PNG in roles that find, design, run and
regulate mines.
Ms Atkins’ mine operations roles include: Geologist for
Australian Consolidated Minerals; Mining Engineer for Mt
Isa Mines Ltd; Underground Miner/Airleg Miner for Plutonic
Resources; Underground Miner, Mining Engineer/Deputy
Mine Manager and Geotechnical Engineer for Placer Dome
Asia Pacific; and Mining Engineer for Murchison United. Her
career then pivoted to professional services and regulation,
including: Senior Mining Engineer for AMC Consultants;
District Inspector of Mines for the WA Department of Mines &
Petroleum; Principal Mining Consultant for Optiro & Alternate
Futures; Chief Advisor at Sustainability; Risk Manager at
Deloitte; COO at PETRA Data Science; and MD & Principal at
Alex Atkins & Associates.
Ms Atkins holds two Bachelor of Engineering degrees, from
the University of Queensland and WA School of Mines,
qualifying her as a Mining Engineer, Geotechnical Engineer
and Geologist. She holds First Class Mine Manager’s
Certificates for Western Australia and Queensland and has an
MBA (Finance) from the Australian Institute of Business. She
is a Graduate Member of the AICD, Chartered Professional
Fellow of AusIMM and Engineers Australia. She was one of
2018’s 100 Global Inspirational Women in Mining and was
inducted into the WA Women’s Hall of Fame in 2019.
Other current directorships of listed companies
Non-executive director of Aquirian Limited since April 2021
Former directorships of listed entities in last three years
Strandline Resources Ltd
Special responsibilities
Member of the People and Remuneration Committee
Member of the Safety and Sustainability Committee
Member of the Nomination Committee
Interests in shares and options
118,261 ordinary shares
Andrea Hall
FCA, GAICD, MAppFin, BCom
Non-executive Director
Experience and expertise
Andrea Hall was appointed as a non-executive director on
15 December 2019.
Ms Hall is an experienced director, board member and Chair of
Audit and/or Risk Committees. She currently sits on the boards
of Evolution Mining Ltd, the Commonwealth Superannuation
Corporation (CSC) (from 1 July 2023), ARIA Co Pty Ltd
(a wholly owned subsidiary of CSC) (from 19 September 2023)
and Western Power (from 1 November 2023). She is a member
of Chief Executive Women (CEW).
Ms Hall formally worked for KPMG as a Risk Consulting
Partner, on the Senate of Murdoch University and was the
chair of the WA Council for Chartered Accountants Australia
New Zealand. She has worked with or served on the various
other boards or committees across mining, government,
insurance and financial services sectors. She has over 30 years’
experience in: corporate, operational and board governance;
risk and financial management and audit.
Ms Hall holds a Bachelor of Commerce degree (Accounting/
Finance), a Masters in Applied Finance, is a Fellow of Chartered
Accountants Australia & New Zealand and a graduate member
of the Australian Institute of Company Directors.
Other current directorships of listed companies
Non-executive director of Evolution Mining Limited since
October 2017
Former directorships of listed entities in last three years
Non-executive director of Core Lithium Ltd from May 2023
to March 2024
Non-executive director of Pioneer Credit Limited from
November 2016 to February 2023
Special responsibilities
Chair of the Audit and Risk Committee
Member of the People and Remuneration Committee
Member of the Nomination Committee
Interests in ordinary shares
162,500 ordinary shares
Information on Directors (continued)
62
Perenti Annual Report 2024
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Perenti Annual Report 2024
Timothy Longstaff
BEc, FCA, GAICD, SF FIN.
Non-executive Director
Experience and expertise
Timothy Longstaff was appointed as a non-executive director
on 16 August 2021.
Through his career in Australia and overseas, Mr Longstaff
brings a depth of experience in finance, strategy formulation,
acquisitions and divestments, debt and equity capital markets
and investor engagement amongst asset-intensive industrial
companies.
Mr Longstaff holds a Bachelor of Economics degree, is a
Fellow of the Institute of Chartered Accountants in Australia
and New Zealand, a Graduate of the Australian Institute of
Company Directors, and a Senior Fellow of the Financial
Services Institute of Australia.
Mr Longstaff started his career in the audit division of Price
Waterhouse (now PricewaterhouseCoopers). He then had
a 25-year career in investment banking, with many years in
Managing Director and senior executive roles at top-tier global
firms. He has been a strategic partner and advised the Boards
and CEOs of leading Australian and international companies
on transformational M&A and capital markets transactions.
More recently, Mr Longstaff served as Senior Advisor to the
Federal Minister for Finance and Leader of the Government
in the Senate, and the Federal Minister for Trade, Tourism and
Investment. Through this experience he brings valuable global
geo-political perspectives and insights into the workings of
Government.
Mr Longstaff is also a non-executive director of ASX-Listed
Ingham’s Group Limited, ASX-Listed Aurizon Holdings Limited,
Aurizon Network Pty Ltd, Snowy Hydro Limited and of the
George Institute for Global Health. He is also a member of the
Australian Government’s Takeovers Panel and a member of
Chifley Associates.
Other current directorships of listed companies
Non-executive director of Ingham’s Group Limited since
January 2022
Non-executive director of Aurizon Holdings Limited since
June 2023
Former directorships of listed entities in last three years
None
Special responsibilities
Member of the Audit and Risk Committee
Chair of the Safety and Sustainability Committee until
12 March 2024
Chair of the People and Remuneration Committee from
12 March 2024
Member of the Nomination Committee
Interests in ordinary shares
143,500 ordinary shares
Information on Directors (continued)
Craig Laslett
BEng (Civil), FIE(Aust) CP Eng, EngExc, FAICD.
Non-executive Director
Experience and expertise
Craig Laslett was appointed as a non-executive director on
28 February 2022.
Mr Laslett is a Civil Engineer with more than 40 years of
engineering, project management and executive experience
across some of Australia’s largest publicly listed mining
services and infrastructure companies, including a role as the
Managing Director of Leighton Contractors, a subsidiary of the
Leighton Holdings Group (now CIMIC Group). This experience
included accountability for HWE Mining and Leighton
Mining, providing open cut mining, underground mining, and
materials processing services across operations in Australia
and overseas.
Mr Laslett is currently the Managing Director and Co-Owner
of Leed Engineering & Construction Pty Ltd, a privately owned
civil infrastructure contractor.
Mr Laslett holds a Bachelor of Civil Engineering degree from
the University of South Australia, formerly the South Australian
Institute of Technology.
Other current directorships of listed companies
None
Former directorships of listed entities in last three years
None
Special responsibilities
Member of the Safety and Sustainability Committee
Member of the Audit and Risk Committee from 12 March 2024
Member of the Nomination Committee
Interests in ordinary shares
175,000 ordinary shares
63
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Directors’ Report 2024
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Perenti Annual Report 2024
Directors’ Report 2024
Robert Cole (resigned 12 March 2024)
BSc, LLB (Hons)
Non-executive Director and Chair
Experience and expertise
Robert Cole was appointed as a non-executive director on
14 July 2018 and was appointed as Chair on 8 May 2021.
Mr Cole resigned from his position as Chair and non-executive
director of the Company on 12 March 2024.
Mr Cole has over 35 years’ experience in the energy and
resources industry. He is a former executive director on the
board of Woodside Petroleum Limited and a former managing
director of Beach Energy Limited. He is also a former Chair
of Synergy, Southern Ports, Landgate and Australian Energy
Producers. Prior to joining the oil and gas industry, Rob was a
partner in the law firm now known as King & Wood Mallesons.
Mr Cole is currently Chair of Iluka Resources Limited, Chair of
Perth Airport Pty Ltd, a non-executive director of Cleanaway
Waste Management and Pro-Chancellor of Curtin University.
Mr Cole holds Bachelor of Science and Bachelor of Laws
degrees from the Australian National University in Canberra.
He has also completed the Harvard Business School Advanced
Management Program.
Other current directorships of listed companies
Non-executive director of Iluka Resources Ltd since March
2018 and Chair since April 2022
Non-executive director of Cleanaway Waste Management
since March 2024
Former directorships of listed entities in last three years
None
Special responsibilities
Chair of the Board until 12 March 2024
Member of the People and Remuneration Committee until
6 December 2023
Member of the Audit and Risk Committee until
6 December 2023
Chair of the Nomination Committee until 12 March 2024
Interests in shares and options
249,831 ordinary shares
Information on Directors (continued)
Andrea Sutton
BEng Chemical (Hons), GradDipEcon, GAICD
Non-executive Director
Experience and expertise
Andrea Sutton was appointed as a non-executive director on
16 October 2023 following the implementation of the DDH1
scheme of arrangement on 6 October 2023.
Ms Sutton brings over 20 years of operational, technical and
corporate experience within the mining industry.
Ms Sutton’s prior roles include non-executive director of
Energy Resources of Australia Limited (ERA) and Managing
Director and Chief Executive of ERA. Within Rio Tinto, Andrea
had been the Head of Health, Safety, Environment and
Security, Managing Director with the Support Strategy Review
team, General Manager – Operations at the Bengalla Mine,
and General Manager – Infrastructure within Rio Tinto’s Iron
Ore business.
Ms Sutton is a member of the Australasian Institute of Mining
and Metallurgy, Engineers Australia, the Australian Institute of
Company Directors and Chief Executive Women.
Ms Sutton is a board member of the Australian Nuclear
Science and Technology Organisation (ANSTO), and a non-
executive director of Red 5 Limited (ASX:RED), Iluka Resources
Limited (ASX:ILU), and Commonwealth company Australian
Naval Infrastructure Pty Ltd (ANI). She is also Chair of the
Water Corporation.
Other current directorships of listed companies
Non-executive director of Red 5 Limited since
November 2020
Non-executive director of Iluka Limited since March 2021
Former directorships of listed entities in last three years
Non-executive director of DDH1 Limited from 8 October 2019
to 6 October 2023
Special responsibilities
Member of the Safety and Sustainability Committee
from 6 December 2023
Chair of the Safety and Sustainability Committee
from 12 March 2024
Member of the People and Remuneration Committee
from 6 December 2023
Member of the Nomination Committee from
6 December 2023
Interests in ordinary shares
77,369 ordinary shares
64
Perenti Annual Report 2024
Mark Hine (resigned 13 October 2023)
MAICD, MAusIMM.
Non-executive director
Experience and expertise
Mark Hine was appointed as a non-executive director on
24 February 2015. Mr Hine retired from his position as a non-
executive director of the Company on 13 October 2023.
Mr Hine is a mining engineer. He graduated from the Western
Australia School of Mines and is a member of the Australian
Institute of Company Directors and the Australian Institute of
Mining and Metallurgy. He has extensive mining experience
with over 25 years of senior management roles in both surface
and underground mining operations.
Mr Hine previously held senior positions in the mining
industry as Chief Operating Officer at Griffin Mining Ltd, Chief
Operating Officer at Focus Minerals Ltd, Chief Operating
Officer at Golden West Resources Ltd, Executive General
Manager Mining at Macmahon Contractors Pty Ltd, Chief
Executive Officer at Queensland Industrial Minerals Ltd,
General Manager at Consolidated Rutile Ltd and General
Manager Pasminco, Broken Hill / Elura Mines.
Other current directorships of listed companies
Non-executive director of St Barbara Limited from
7 September 2023
Non-executive director of Dynamic Group Holdings
from 29 November 2023
Former directorships of listed entities in last 3 years
None
Special responsibilities
Chair of the People and Remuneration Committee
Member of the Safety and Sustainability Committee
Member of the Nomination Committee
Interests in shares and options
55,000 ordinary shares
Meetings of directors
The numbers of meetings of the Company’s Board of directors and of each Board committee held during the year ended
30 June 2024 and the numbers of meetings attended by each director were:
Full meetings
of directors
Meetings of committees
Audit & Risk
People &
Remuneration
Safety and
Sustainability
Nomination
A
B
A
B
A
B
A
B
A
B
Diane Smith-Gander - Chair
3
3
2
2
1
1
*
*
1
1
Mark Norwell
7
7
*
*
*
*
*
*
*
*
Alexandra Atkins
7
7
*
*
4
4
4
4
2
2
Andrea Hall
7
7
4
4
4
4
*
*
2
2
Timothy Longstaff
7
7
4
4
2
2
3
3
2
2
Craig Laslett
7
7
1
1
*
*
4
4
2
2
Andrea Sutton
3
3
*
*
3
3
2
2
1
1
Robert Cole
6
6
2
2
2
2
*
*
2
2
Mark Hine
4
4
*
*
1
1
1
1
1
1
A = Number of meetings attended
B = Number of meetings held during the time the director held office or was a member of the committee during the year
* = Not a member of the relevant committee
# = Director unable to attend unscheduled Board meeting.
Information on Directors (continued)
Dear Fellow Shareholders,
On behalf of the Board, I am pleased to present Perenti’s
Remuneration Report for the financial year ending 30 June
2024. The report details our remuneration framework
and outcomes for FY24. We also outline changes made
to our frameworks to address concerns expressed by our
shareholders.
A year in review
We acknowledge the tragic loss of our colleague, Siswantoro,
at the Mana Mine in Burkina Faso in February 2024. The Board
recognise this loss, and Perenti’s poor historical record of
fatalities, and continues to ensure management take decisive
action to achieve our goal of ‘no adverse life changing events’.
The Board has taken action to reflect accountability for the
incident in our remuneration outcomes in FY24 and commits
to remuneration structure change in FY25.
In addition to our continued efforts on safety initiatives,
Perenti has delivered excellent financial performance,
underpinned by strong cashflow from operations achieving
record underlying revenue, EBIT(A) and free cash flow
together with reduced gearing. Throughout the year,
management have continued to deliver on our 2025 Strategy
by focusing on business performance, capital management
and organisational health as detailed in Group performance
overview (pages 4-17).
2023 Strike and our response
The ‘first strike’ against the Remuneration Report at our 2023
Annual General Meeting has been taken seriously by the
Board. During the year the Board engaged with shareholders
and proxy advisors to understand stakeholder views better.
This feedback was an input to the changes made for FY24 and
FY25. Thank you to those that shared their thoughts with us.
Key areas of feedback were:
1.
Board oversight, accountability, decision making and
disclosure: The Board did not apply sufficient discretion
in FY23 to deliver material remuneration consequences
given the ongoing safety challenges faced by the
business, with the action taken not considered
adequate to drive improvements in safety performance.
Further, the disclosure of remuneration outcomes and
adjustments needed improvement.
2.
The Short-Term Incentive (STI) calculation: The
structure of the STI, in particular the application of an
individual performance modifier, resulted in an increase
to overall FY23 STI outcomes despite the application of
downward discretion in light of the fatalities.
3.
Executive KMP fixed remuneration: The Managing
Director and Chief Executive Officer’s (MD & CEO’s)
fixed remuneration appears high compared to some
peer groupings when assessed on a market capitalisation
basis.
Remuneration Report
In response to the feedback received, and working with an
independent advisor, the Board has made changes for FY24
and FY25 by:
1.
Enhancing Board discretion in the framework along with
increased disclosure of STI outcomes and associated
performance. In the context of another fatality in FY24
and Perenti’s historical safety track record, action to
reduce materially overall STI outcomes for FY24 for all
Executive KMP has been taken.
2.
Adjusting the STI structure, including removing the
individual modifier and moving to a balanced scorecard
approach from FY25, which enhances the role of Board
discretion and safety performance.
3.
Committing to explaining the benchmarking applied
to Executive KMP fixed remuneration. This gives
consideration to other dimensions of complexity beyond
market capitalisation including revenue, industry and
geographic reach.
A number of these changes have been implemented in the
FY24 outcomes for the MD & CEO and former President
Contract Mining, while others have resulted in structural
change to remuneration frameworks for all Executive KMP for
FY25 and beyond.
Further detail can be found in Section 4, Board response to
the ‘first strike’ at the 2023 AGM on pages 69 to 70.
FY24 performance and remuneration outcomes in
summary
STI
The Board took decisive action to replace the less effective
‘safety gateway’ on the STI scorecard with Board safety
discretion to reduce overall incentive outcomes post
scorecard assessment taking safety performance into
account. Demonstrating appropriate accountability for FY24
safety performance, the MD & CEO and the Board agreed
that a 27.5% reduction should apply to his STI outcome,
with a 25% STI reduction for the former President Contract
Mining, who was assessed as having line responsibility for the
safety systems in place for the Mana Mine fatality, and a 20%
STI reduction to the Chief Financial Officer (CFO), President
Contract Mining and other Group Executive Committee (GEC)
members.
Additionally, in FY24, for the MD & CEO and former President
Contract Mining the Board has agreed the individual modifier
will not be applied, such that their individual modifier is
capped at 100%, foreshadowing the removal of the individual
modifier for all Executive KMP and GEC members from FY25.
Board discretion will be applied to the overall scorecard
outcome for all Executive KMP and GEC members, and others
where appropriate, to reflect fatalities or broader safety
performance. Where discretion is applied, and as it has in
FY24, the Board will consider all relevant facts pertaining to
the performance of the organisation with regards to safety
management, critical risk management and safety culture.
The business scorecard outcome was assessed at 124.6%,
reflecting a strong year operationally and financially.
However, the Board concluded that the adjustments
outlined above, which have resulted in material downward
remuneration adjustments, were required to reflect Perenti’s
safety performance.
65
Perenti Annual Report 2024
Directors’ Report 2024
A summary of outcomes for Executive KMP is:
Executive
Business
scorecard
Individual
modifier [1]
STI pre-Board
discretion
Board
discretion
STI after
discretion
vs FY23 STI [2]
MD & CEO
124.6%
100%
(capped)
$926,650
83.5% of max
(27.5%)
($254,829)
$671,821
60.5% of max
(35.8%)
CFO
124.6%
125%
$472,500
100% of max
(capped)
(20.0%)
($94,500)
$378,000
80.0% of max
(15.3%)
President Contract
Mining [3]
124.6%
110%
$506,261
91.8% of max
(20.0%)
($101,252)
$405,009
73.5% of max
n/a
Former President
Contract Mining
124.6%
100%
(capped)
$803,765
83.5% of max
(25.0%)
($200,941)
$602,824
62.6% of max
(30.8%)
[1]
MD & CEO and former President Contract Mining individual modifiers capped at 100% for FY24.
[2]
FY23 is regarded as a comparable year operationally and financially.
[3]
President Contract Mining outcomes are pro rata based on tenure.
Remuneration Report (continued)
Long term incentive (LTI)
The Perenti LTI award granted in FY21 for the FY21-23 years
was tested in FY24. Outcomes were:
1.
Relative total shareholder return (rTSR): 3 year
TSR achievement of 3.57% met threshold vesting
requirements (positioned at the 50th percentile of the
comparator group resulting in vesting of 50% of this
component); and
2.
Return on average capital employed (ROACE): exceeded
threshold performance (16.95% was achieved, resulting
in vesting of 68.11% of this component).
The combined performance resulted in a 59.06% vesting
outcome. Further detail can be found in Section 5, Outcomes
in FY24 on page 74.
The Board believe that the current structure of the LTI, with
rTSR measured through share price performance and return
on equity (ROE) as its foundational elements, is fit for purpose
and supported by shareholders. The structure for the FY25-27
plan, to be granted this year, will reflect these key elements
with changes to performance metric weightings. Key changes
include an increased weighting to ROE from 30% to 40%, and
removal of leverage as it is deemed to be at an appropriate
level.
MD & CEO Total Fixed Remuneration (TFR)
Given safety and ‘strike’ considerations, the TFR for the MD &
CEO did not increase during FY24.
Board remuneration outcomes
The Board Chair and Non-executive Director (NED)
committee fees did not increase during FY24.
FY24 KMP changes
We welcomed Diane Smith-Gander and Andrea Sutton to the
Board of Directors and Gabrielle Iwanow to our GEC. We also
farewelled Rob Cole and Mark Hine from the Board, and Peter
Bryant will finish as CFO in FY25; we thank them for their
contribution to Perenti’s growth.
At Perenti, our people are integral to our success and the
above achievements would not be possible without our
highly valued and dedicated employees. We would like to take
this opportunity to thank our 10,500 strong global workforce
across 12 countries for their significant and continued
contribution to Perenti and our clients, as we continue to
collectively create enduring value and certainty for our
stakeholders. We continue to focus on delivering further
improvements across all areas of our business and, as always,
welcome your feedback.
We thank you for your support and we look forward to
welcoming you to our 2024 AGM.
Timothy Longstaff
Chair, People and Remuneration Committee
66
Perenti Annual Report 2024
Remuneration Report (continued)
2 KMP for FY24
The tables below confirm all the non-executive directors and Executive KMP covered by the FY24 Remuneration Report.
All terms are full year terms, except where noted.
Non-executive Directors (NEDs)
Term
Diane Smith-Gander AO [1]
Non-executive Chair (from 13 March 2024)
Part year (from 16 October 2023)
Alexandra Atkins
Non-executive Director
Full year
Andrea Hall
Non-executive Director
Full year
Timothy Longstaff
Non-executive Director
Full year
Craig Laslett
Non-executive Director
Full year
Andrea Sutton [1]
Non-executive Director
Part year (from 16 October 2023)
Robert Cole [2]
Former Non-executive Director and Chair
Part year (until 13 March 2024)
Mark Hine [3]
Former Non-executive Director
Part year (until 13 October 2023)
[1]
Ms Smith-Gander and Ms Sutton appointed to the Perenti Board 16 October 2023, and Ms Smith-Gander as Chair on the 13 March 2024.
[2] Mr Cole retired from the Perenti Board 13 March 2024.
[3] Mr Hine retired from the Perenti Board 13 October 2023.
Executive Key Management Personnel (KMP)
Term
Mark Norwell
Managing Director & Chief Executive Officer
(MD & CEO)
Full year
Peter Bryant [1]
Chief Financial Officer (CFO)
Full year
Resigned 17 May 2024
Gabrielle Iwanow [2]
President Contract Mining
Part year (from 4 December 2023)
Paul Muller [3]
Former President Contract Mining
Part year (until 31 December 2023)
[1]
Mr Bryant remains an employee as at the date of this report and is expected to leave on completion of his notice period around 17 November 2024.
[2]
Ms Iwanow became an employee on 4 December 2023 and became a KMP on assuming the role of President Contract Mining. She undertook a handover
with Mr Muller, former President Contract Mining for the first few weeks of her employment.
[3]
Mr Muller conducted a handover with Ms Iwanow until 31 December 2023 when he ceased to become a KMP on 31 December 2023.
Mr Muller is not expected to be classified as a KMP in FY25.
1 Introduction
The Directors present the Perenti FY24 Remuneration Report,
outlining our response to the first strike at the 2023 AGM,
key aspects of our remuneration principles, framework, and
remuneration awarded this year.
The Remuneration Report is structured as follows:
1.
Introduction
2.
KMP for FY24
3.
Remuneration strategy and principles
4.
Board response to the ‘first strike’ at the 2023 AGM
5.
Outcomes in FY24
6.
FY24 Executive KMP remuneration framework
7.
Remuneration governance
8.
Executive statutory and contractual information
9.
Non-executive Director remuneration
10. Additional statutory information
67
Perenti Annual Report 2024
Directors’ Report 2024
3 Remuneration strategy and principles
Outlined below is Perenti’s FY24 remuneration approach.
REMUNERATION PRINCIPLES
ATTRACT AND
RETAIN
STAKEHOLDER
ALIGNMENT
PAY-FOR-
PERFORMANCE
MARKET
COMPETITIVE
SIMPLE AND
TRANSPARENT
Enable Perenti to
attract, motivate and
retain talented and high
performing employees
that can execute and
deliver its business
objectives.
Align remuneration
with the shareholder
experience and long-
term value generation.
Linking remuneration
to the performance of
the Company and the
individual.
Provide remuneration,
which is competitive,
relative to the market it
is operating within.
Can be easily
explained and
understood by
internal and external
stakeholders.
REMUNERATION FRAMEWORK
Element
Total Fixed
Remuneration
(TFR)*
Short-Term Incentive
(STI), Discretionary or
Operational Bonus
Long-Term Incentive
(LTI)
How is it delivered
Cash and Superannuation
Cash and equity for
selected employees
Equity for selected
employees
How it works
Provided as cash and
statutory superannuation
contributions.
Non-Executive Directors,
Group Executives and Vice
Presidents base salary is
reduced to offset statutory
superannuation increases.
All other roles receive the full
statutory super increase.
Award outcome is calculated
as business outcomes x
individual STI modifier.
For Group Executive, any STI
Award payment is provided
as two thirds in cash and one
third as STI Rights deferred
for 12 months.
STI Rights are subject to
malus and clawback.
Provided as Performance
Rights subject to a three-year
performance period.
Measured against strategically
focused performance
metrics.
Subject to malus and
clawback.
How is it positioned
Positioned at an appropriate
percentile of comparative
benchmarking data with
reference to the skills
and experience of the
incumbents.
Target Total Reward including TFR, STI and LTI at target
outcomes is also positioned at an appropriate percentile of
comparative benchmarking data with reference to the skills
and experience of the incumbents.
What it achieves
Allows us to attract and
retain key talent to deliver on
business objectives
Incentivises strong
performance to deliver on
the key business priorities
through variable, at-risk
payments
Align reward with the
shareholder experience and
long-term value generation
REMUNERATION STRATEGY
Perenti’s remuneration strategy aims to enable the achievement of the Company’s business objectives, and reward employees
where its company strategy is achieved.
To achieve the Company’s business objectives, the framework is guided by the following principles in the table below.
68
Perenti Annual Report 2024
Remuneration Report (continued)
*Additional non-monetary benefits may be provided as applicable to the employee’s role.
69
Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
4 Board response to the ‘first strike’ at the 2023 AGM
At the 2023 AGM, Perenti received a ‘first strike’, with 33.29%
of votes cast against the adoption of the 2023 Remuneration
Report. The new Board Chair and new Chair of the People &
Remuneration Committee have engaged with shareholders
and proxy advisors to understand their concerns. It was
clear that the remuneration decisions disclosed in our 2023
Remuneration Report did not meet the expectations of
some of our external stakeholders. The Board has taken a
connected approach to addressing this feedback and made
remuneration changes alongside enhancing our safety
governance and systems (see pages 38-39). No fatalities are
ever acceptable in our workplace. The Board is focused on,
and committed to, continuous improvement.
The key feedback received from shareholders related to:
• Board oversight, accountability, decision making and
disclosure: The Board did not apply sufficient discretion
in FY23 to deliver material remuneration consequences
given the ongoing safety challenges faced by the business,
with the action taken not considered adequate to drive
improvements in safety performance. Further, the
disclosure of remuneration outcomes and adjustments
needed improvement.
• The Short Term Incentive (STI) calculation: The structure
of the STI, in particular the application of an individual
performance modifier, resulted in an increase to overall
FY23 STI outcomes despite the application of downward
discretion in light of the fatalities.
• Executive KMP fixed remuneration: The MD & CEO’s
fixed remuneration appears high compared to some peer
groupings when assessed on a market capitalisation basis.
The Board has listened to the feedback, making decisive
changes applicable in FY24, with further changes to
apply from FY25. These will make a material difference to
remuneration frameworks and outcomes at Perenti.
The tables below outline the key remuneration concerns
identified by shareholders and proxy advisors, as well as
the changes approved by the Board. Changes have been
implemented in FY24, with further changes to come in FY25.
Concern
Change for FY24
Change for FY25
Board oversight, accountability, decision making and disclosure
Insufficient Board discretion applied
to incentive outcomes in the context
of year-on-year fatalities.
Downward Board discretion has
been applied to all Executive KMP
and GEC members which has
resulted in reduction of between
20% and 27.5% for Executive KMP.
Board discretion will be applied to the overall
scorecard outcome for all executive KMP and
GEC members, and others where appropriate, to
reflect fatalities or broader safety performance.
Where discretion is applied, and as it has in
FY24, the Board will consider all relevant
facts pertaining to the performance of the
organisation with regards to safety management,
critical risk management and safety culture.
The disclosures regarding
remuneration outcomes and
adjustments need improvement.
Disclosures on the Board’s approach
to determining STI outcomes
have been enhanced in the FY24
Remuneration Report.
The Board will continue to seek areas to increase
transparency in the Remuneration Report.
STI calculation methodology
The safety gateway only applies to
the safety measures in the scorecard
at whatever level the safety
measures are achieved (which may
be lower than the 20% maximum).
The safety gateway within the FY24
business scorecard was removed,
with reductions applying to final
STI outcomes post scorecard
assessment. The MD & CEO and the
Board agreed to a 27.5% reduction.
Other reductions are: 25% for
the former President of Contract
Mining, and 20% for other Executive
KMP.
Board discretion will be applied to the overall
scorecard outcome for all executive KMP and
GEC members, and others where appropriate, to
reflect fatalities or broader safety performance.
Where discretion is applied, and as it has in
FY24, the Board will consider all relevant
facts pertaining to the performance of the
organisation with regards to safety management,
critical risk management and safety culture.
The individual modifier permits
increases to STI outcomes, despite
the application of downward
discretion.
In the context of the forthcoming
FY25 changes, the MD & CEO and
former President Contract Mining
individual modifier was not applied,
i.e. their outcome was capped at
100%.
The individual modifier will be removed in FY25.
A revised balanced scorecard (maximum STI
opportunity remains at 150% of target) will be
used in FY25 that will include a weighting for
individual objectives.
For Executive KMP and GEC members this will
comprise:
• Financial: 60%
• Safety: 20% (unchanged)
• Individual performance: 20%
70
Perenti Annual Report 2024
Remuneration Report (continued)
Concern
Change for FY24
Change for FY25
Executive KMP fixed remuneration
The MD & CEO’s fixed remuneration
is considered above market when
viewed solely from a market
capitalisation perspective.
No increase awarded, given the safety
performance.
Review to verify appropriate market-related
TFR. The Board considers that Perenti’s scale
and complexity (measured by revenue, industry,
geographic reach) are relevant metrics in addition
to market capitalisation.
Additional changes made by the Board
LTI – ROE targets.
The Board has progressively
increased the ROE targets year on
year. For the MD & CEOs FY24 grant
approved by shareholders at the 2023
AGM, the ROE target was between
6.6% at threshold and 7.4% at stretch.
The ROE targets under the FY25 LTI grant will be
set at higher levels: 9.6% at threshold to 10.3% at
stretch. The MD & CEO’s LTI grant will be put to
shareholders for approval at the 2024 AGM.
LTI – change to performance metrics.
Nil.
We have removed leverage (10%) as a strategic
initiative as it is deemed to be at an appropriate
level. In its place, we have increased the weighting
of the ROE metric by 10% to 40%.
This change emphasises the Board commitment
to driving efficient use of equity and maximising
shareholder returns. For FY25, LTI performance
metrics will comprise:
• rTSR: 50%
• ROE: 40%
• Strategic initiative: 10%
We remain committed to continuing our engagement with both shareholders and proxy advisors on remuneration issues.
5. Outcomes in FY24
This section outlines performance achieved in FY24 and the remuneration outcomes resulting from that performance.
a. Company performance
The Company intends for there to be a clear link between Company performance and remuneration outcomes. The table
below sets out a summary of information which provides details of performance measures used for the Executive KMP with
some of the measures used in the STI or LTI plans.
Table 1: Company Performance FY20 – FY24 (includes DDH1 results)
24
23
22
21
20
$000
$000
$000
$000
$000
Sales revenue
3,342,020
2,880,136
2,437,656
2,087,542
2,046,058
Underlying EBIT (A) ^
314,176
264,104
176,293
170,787
211,708
Operating profit before income tax *
168,842
170,936
93,484
22,369
107,146
Profit/(Loss) after tax attributable to
equity holders
95,476
95,739
40,658
(55,140)
23,837
Net profit/(loss) after tax
107,165
102,586
42,486
(52,303)
27,555
Net Leverage
0.7x
0.9x
1.3x
1.3x
1.3x
Share price at start of year ($ per share)
1.03
0.66
0.67
1.16
1.83
Share price at end of year ($ per share)**
1.00
1.03
0.66
0.67
1.16
Dividends paid / payable
19,112
—
14,108
49,272
48,043
Basic earnings/(loss) (cents per share)
from continuing operations
10.9
13.9
5.8
(7.8)
3.5
Diluted earnings/(loss) (cents per share)
from continuing operations
10.5
13.4
5.7
(7.8)
3.5
Total recordable Injury Frequency Rate
(TRIFR)
5.3
5.4
6.9
5.1
4.9
^
Non IFRS Measure.
*
Does not include impairment expense.
**
2023: Prior to the DDH1 drilling acquisition announcement, the 10 day VWAP up to and including 23 June 2023 was $1.2255. This 10 day VWAP more accurately
reflected the Company’s share price performance over the financial year.
On balance, Company performance was mixed with record sales revenue, EBIT(A) and NPAT and reduced leverage, however,
earnings per share outcomes were below FY23 results and share price performance was essentially flat. The Board considered
this context in making the decisions for both STI and LTI outcomes.
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Directors’ Report 2024
b. FY24 STI business outcomes
The STI award incentivises Executive and Senior Leader performance in delivering on the key business priorities to ensure success
in the current financial year and future years. These business outcomes are a balance of financial and non-financial performance
measures within the control of the Executive KMP. Table 2 summarises the performance relative to targets for the FY24 STI
scorecard business outcomes for the Executive KMP, with additional details on the performance measures described below.
Table 2: FY24 STI business outcomes for the Executive KMPs (excluding safety gateway)
FY24 Performance outcome. The outcome % is a function of the target weighting multiplied by the outcome multipliers
determined on a straight-line basis.
[1] The Perenti scorecard was set before the acquisition of DDH1. The Board decided that both Perenti and DDH1 would be assessed on their individual pre-merger
scorecards for FY24 before a common scorecard for FY25. Accordingly, the outcomes measured here will not conform to Perenti reported group results including
DDH1.
In addition to Executive KMP and the GEC, the STI Plan was provided to a further 69 participants across the Group.
Performance measure [1]
Target
weighting
%
Threshold
(50%)
Target
(100%)
Stretch
(150%)
Outcome
%
Outcome detail
Sustainability
Safety Transformation Plan
Implementation of Divisional Safety
Transformation plans: the agreed
number of priority initiatives have
commenced implementation in
accordance with the approved plan.
10.0
10.0
Safety transformation plan
was performing at target
performance (i.e. six initiatives
have commenced).
Implementation of Critical Control
System Verifications
Contract Mining: Achievement of
approved plan for Completion of Critical
Control System Verifications (CCSVs).
Mining Services: Achievement of
approved plan for check-ins.
10.0
5.0
Critical control system
verification (CCSV) was
performing at threshold
performance in its inaugural
year of implementation.
Scope 1 and 2 emission reduction
Quantifiable Scope 1 and 2 emission
reduction against approved target.
5.0
7.5
Achieved 30.4% against a
20% target providing stretch
performance.
Progress on gender balance
Development of gender participation
action plans and commencement of
implementation along with increase in
gender participation.
5.0
5.0
Gender participation action
plans have been developed.
Achieved target performance.
Financial performance
Underlying Group EBIT(A)
(excluding DDH1)
40.0
52.1
Achieved performance
between target and stretch.
Underlying EBIT(A) $279M
based on Perenti’s net interest
in subsidiaries achieved against
a $270M target.
Underlying EBIT(A) as a % of revenue
(excluding DDH1)
10.0
15.0
Achieved 9.5% against a
9.0% target providing stretch
performance.
Financial sustainability
Perenti operating cash generation
(excluding DDH1)
20.0
30.0
Achieved $99M against a
$59M target providing stretch
performance.
124.6
Overall business performance
provided for an outcome
between target and stretch.
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Perenti Annual Report 2024
Remuneration Report (continued)
c. FY24 individual outcome for Executive KMP
In addition to the business outcome of the scorecard, Executive
KMP are assessed by the Board based on:
• Individual performance measures for their area of
responsibility that are set at the start of the year and
reviewed on a regular basis, including the outcomes
discussed in the People and Remuneration Committee
Chair’s letter.
• How they delivered against their performance measures,
which takes into consideration demonstrated leadership
attributes and behaviours as aligned with our Principles
and business strategy.
In FY25, as part of the Board’s response to shareholder
feedback, the individual modifier has been removed and the
STI structure will move to a balanced scorecard.
d. FY24 Board discretion
The Board took decisive action to replace the ‘safety gateway’
on the STI scorecard with Board discretion to reduce overall
incentive outcomes taking safety performance into account.
The Board and MD & CEO agreed that a 27.5% reduction should
apply to his STI outcome, with a 25% STI reduction for the
former President Contract Mining and a 20% STI reduction
to the CFO and President Contract Mining and other GEC
members to demonstrate appropriate accountability for safety
performance.
Additionally, for the MD & CEO and former President Contract
Mining, the Board has agreed the individual modifier will not be
applied, capping their outcome at 100% and, foreshadowing
the removal of the individual modifier for all Executive KMP
from FY25 as Perenti moves to a balanced scorecard.
The downward discretion applied to the overall business
outcome for the FY24 STI recognises Perenti’s absolute focus
on the safety of our people. The table shown below provides a
summary of the outcomes and rationale.
Executive KMP
Individual
outcome
Board safety
discretion
Rationale for outcome
Mark Norwell
(MD & CEO)
100%
(capped)
(27.5%)
Mark’s performance was assessed at greater than 100% based on
performance against his individual KPIs, however as a result of safety
performance and the plan to remove the individual modifier in FY25,
his final outcome was capped at 100%. Along with the agreed 27.5%
reduction on his overall outcome Mark’s STI was 60.5% of his maximum
STI opportunity.
Peter Bryant
(CFO)
125%
(20%)
Peter was instrumental in helping deliver the DDH1 acquisition and has
been a key contributor across all M&A activity. Peter led the high-yield
bond raising which achieved a positive outcome, despite a volatile debt
market.
The Board was mindful that Peter has resigned but considers the
individual modifier at 125% to be appropriate given Peter’s value add in
FY24 and over almost 11 years, his completion of the full year to which
the STI applies, and his constructive approach to working through his
notice period. Such a treatment is wholly consistent with the plan rules.
While not directly accountable for safety outcomes, Peter, as a member
of the GEC, has an overall collective safety accountability. As such the
Board has supported the MD & CEO in applying a 20% reduction in STI
outcome with his individual modifier unaffected.
Gabrielle Iwanow
(President
Contract Mining)
110%
(20%)
Gabrielle has made a positive start since commencement which
included providing strong leadership in responding to the tragic
fatality at the Mana Mine. Gabrielle has also implemented a successful
simplification program and managed several important contract wins
and extensions.
Although Gabrielle was the President of Contract Mining at the time
of the Mana fatality for a matter of weeks, consideration was given to
the collective safety accountability for all GEC members. The Board
supported the MD & CEO in applying a 20% reduction to her STI
outcome with her individual modifier unaffected.
Paul Muller (Former
President Contract
Mining)
100%
(25%)
Paul’s performance was assessed at greater than 100%. Considering his
position as President Contract Mining immediately prior to the fatality
and the plan to remove the individual modifier in FY25, the Board
has supported the MD & CEO capping his individual modifier at 100%
and applying a 25% reduction to his STI outcome. This resulted in an
outcome of 62.6% of his maximum STI opportunity.
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Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
e. Overall FY24 STI outcomes
The overall FY24 STI outcome as determined through the Board’s assessment of the business outcomes, application of the
individual modifier and Board discretion is represented in Table 3 below.
Table 3: Overall FY24 STI award outcomes for the Executive KMP
Executive KMP
Max STI
opportunity
Target STI
opportunity
Business
outcome
Individual
modifier
Overall STI
outcome %
of Target
Board
safety
discretion
Calculated
STI awarded
STI cash
portion
Deferred
STI Rights
portion [1]
% of
maximum
STI awarded
% of
maximum
STI forfeited
$
$
%
%
%
$
$
$
%
%
Mark Norwell
(MD & CEO)
1,110,000
743,700
124.6
100.0
(capped)
124.6
(27.5)
671,821
447,881
223,940
60.5
39.5
Peter Bryant
(CFO)
472,500
317,250
124.6
125.0
150.0
(capped)
(20.0)
378,000
252,000
126,000
80.0
20.0
Gabrielle
Iwanow
(President
Contract Mining) [2]
551,302
369,372
124.6
110.0
137.1
(20.0)
405,009
270,006
135,003
73.5
26.5
Paul Muller
(Former President
Contract Mining) [3]
962,800
645,076
124.6
100.0
(capped)
124.6
(25.0)
602,824
401,882
200,941
62.6
37.4
[1] One third of the STI award is deferred into STI Rights that will be granted around October 2024 and will be eligible to vest into Perenti shares 12 months later subject to
Board approval.
[2] Estimated calculated outcome pro-rated based on commencement date of 4 December 2023.
[3] Mr Muller ceased as President Contract Mining on 31 December 2023 and will not be a KMP in FY25 but is included here on a full-year basis so as to demonstrate the
remuneration impact of the Board’s safety discretion in FY24.
f. FY21 LTI vesting outcome
Our FY21 LTI grant in respect of the FY21-FY23 years was tested for performance following the end of the performance period on
30 June 2023 and amounts vested in FY24.
The rights were subject to a 50% Relative Total Shareholder Return (rTSR) measure and 50% Return on Average Capital Employed
(ROACE) measure. The rTSR, reached the 50th percentile threshold vesting requirements with a 3 year TSR achievement of 3.57%,
which resulted in vesting of 50% of rTSR rights. ROACE over the performance period was calculated at 16.95% which achieved
vesting of 68.11% of the ROACE Rights.
As a result, an overall vesting outcome of 59.06% was achieved against the maximum FY21 LTI opportunity.
Table 4: FY21 – FY23 LTI outcome vesting in FY24
Executive KMP
Number
of Rights
granted
Number of
rights vested
into shares
Value at
grant¹
Value at
vesting²
Value
movement
% of
maximum LTI
awarded
% of maximum
LTI lapsed
$
$
$
%
%
Mark Norwell (MD & CEO)
851,227
502,697
1,110,000
616,055
(493,945)
59.06
40.94
Peter Bryant (CFO)
316,334
186,813
412,499
228,939
(183,559)
59.06
40.94
Paul Muller
(Former President Contract Mining)
465,874
275,125
607,501
337,166
(270,335)
59.06
40.94
[1] Value at grant is the FY21 LTI maximum opportunity which is the number of rights multiplied by the 10 day Volume Weighted Average Price (VWAP) of Perenti shares
over the last 10 trading days of June 2020, which was $1.3040.
[2] Value at vesting is the number of shares that vested, multiplied by the closing by the 10 day VWAP of Perenti shares over the 10 trading days up to 23 June 2023, which
was $1.2255. This period was used rather than the 10-trading day VWAP up to and including 30 June 2023 to ensure that the VWAP reflected undisturbed trading rather
than being influenced by the announcement of the proposed acquisition of DDH1 Limited on 26 June 2023.
g. FY24 Executive KMP LTI grant
For our FY24 LTI plan covering the FY24-FY26 years, Executive KMP were offered Performance Rights in accordance with
Table 5 below (subject to the terms and conditions as outlined in section 6b). Performance Rights for the MD & CEO were
approved by shareholders at the 2023 Annual General Meeting.
Table 5: FY24 LTI grant
Executive KMP
LTI opportunity
(% of TFR)
LTI
opportunity
10-Day VWAP
Offered
Performance
Rights¹
Target LTI
(% of TFR)²
Target LTI
Grant date
%
$
$
$
%
$
Mark Norwell (MD & CEO)
120
1,332,000
1.2255
1,086,903
60.0
666,000
13 October 2023
Peter Bryant (CFO)
75
506,250
1.2255
413,097
37.5
253,125
19 January 2024
Paul Muller
(Former President Contract
Mining)
75
722,100
1.2255
589,229
37.5
361,050
19 January 2024
[1] The number of Rights granted is the maximum LTI opportunity divided by the 10 day Volume Weighted Average Price (VWAP) of Perenti Shares over the 10 trading days
up to 23 June 2023, which was $1.2255. This period was used rather than the 10-trading day VWAP up to and including 30 June 2023 to ensure that the VWAP reflected
undisturbed trading rather than being influenced by the announcement of the proposed acquisition of DDH1 Limited on 26 June 2023.
[2] Target LTI represents 50% of LTI opportunity and represents the difficulty of achieving performance hurdles and share price volatility.
74
Perenti Annual Report 2024
Remuneration Report (continued)
6. FY24 Executive KMP remuneration framework
The remuneration packages of Executive KMP are comprised of fixed remuneration and variable ‘at-risk’ remuneration in the
form of an STI and LTI.
(a) Remuneration mix
Diagram 1: The remuneration mix for Perenti’s Executive KMP at target levels for FY24 is represented below.
MANAGING
DIRECTOR & CEO
FORMER PRESIDENT,
CONTRACT MINING
PRESIDENT,
CONTRACT MINING [1]
CHIEF FINANCIAL
OFFICER
$1,409,700
56% at risk
$1,006,126
51% at risk
$645,076
40% at risk
$
$570,375
46% at risk
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY24 TARGET REMUNERATION
Fixed remuneration
STI (cash)
STI (STI rights)
LTI Target (50% of face value)
(b) Executive KMP remuneration components
Diagram 2: A summary of the remuneration structure over time for Executive KMP is below.
FIXED
Base salary and
superannuation
VARIABLE
STI
(12 months)
MD & CEO, President Contract Mining and
former President Contract Mining target is
67% of TFR and maximum is 100% of TFR.
CFO target is 47% of TFR and maximum is
70% of TFR.
LTI
(36 months)
MD & CEO maximum is 120% of TFR.
CFO, President Contract Mining and former
President Contract Mining maximum is 75%
of TFR.
YEAR 1
YEAR 2
YEAR 3
Cash
Deferred Rights
[1] President Contract Mining’s FY24 target remuneration is pro-rated based on commencement date of 4 December 2023.
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Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
Total Fixed Remuneration (TFR)
Description
A competitive level of TFR is offered to attract and retain high quality and experienced Executive
KMP. TFR comprises of all fixed remuneration including statutory superannuation contributions. If the
statutory superannuation contribution is required to increase, the Executive KMP will have an equal
reduction in base salary to ensure their TFR is unchanged.
Approach
TFR is reviewed annually and upon promotion to ensure that it is market competitive.
The Company targets the median of the relevant market.
To remain market competitive and to attract and retain talent, TFR benchmarking recognises Perenti’s
complexity beyond market capitalisation, including revenue, industry and geographic reach.
FY24 Short-term Incentive (STI)
Description
Executive KMPs are eligible to participate in the annual STI plan, which comprises a portion of their
variable remuneration and is subject to performance measures. The STI performance outcome is
based on a business outcome scorecard, which includes a mix of sustainability, financial and strategic
measures, that is multiplied in FY24 by an individual modifier.
Award operation
The Executive KMP’s business outcome scorecard comprises of a mix of financial and non-financial
measures. All measures have a threshold, target and stretch level of achievement. The weighting of
each business outcome metric is then applied to its performance, with the total equalling the business
outcome.
The business outcome (that can be up to 150% of target at stretch) is then multiplied by an individual
modifier (with a range from zero to 1.5 times but not exceeding maximum STI opportunity) which
reflects what the individual achieved through their Individual KPIs and how the individual achieved these
KPIs in terms of their behaviours as aligned to the Perenti Principles.
For FY24 the individual modifier was not applied for the MD & CEO and former President Contract
Mining and capped at 100%.
Board discretion
The Board retain absolute discretion with respect to the targets and outcomes assessed under the STI
plan. Any discretion is applied after consideration of factors both positive and negative to the outcome.
Board discretion will be applied to the overall scorecard outcome for all Executive KMP and GEC
members, and others where appropriate, to reflect fatalities or broader safety performance. Where
discretion is applied, and as it has in FY24, the Board will consider all relevant facts pertaining to the
performance of the organisation with regards to safety management, critical risk management and
safety culture.
Performance
period
Financial year
Maximum
opportunity
MD & CEO, President Contract Mining and former President Contract Mining: 100% of TFR
CFO: 70% of TFR
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Perenti Annual Report 2024
Remuneration Report (continued)
77
Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
FY24 Short-term Incentive (STI) (continued)
Measure
Weighting
Further detail
Measures
Sustainability
(all FY24 measures
for Executive KMP
are measured on
a pre-acquisition
basis excluding
DDH1. A merged
group scorecard
will be used for
FY25 onwards).
Safety Transformation Plan
10%
This metric supports the strategic focus of
safety transformation, informed by the Safety
Transformation Taskforce, to deliver effective
systems and controls at Perenti.
Implementation of critical control
system verifications
10%
This ‘lead’ metric supports our safety
strategy with particular focus on bowtie risk
management and critical control management.
Scope 1 and 2 emission reduction
5%
This metric supports the Company’s 2025
Strategy through aiming to achieve net zero
scope 1 and 2 greenhouse gas emission
reductions by the end of FY30. It is a leading
sustainability metric to reflect the increased
focus on ESG measures in peer mining services
and owner operating performance hurdles.
Progress on gender participation
5%
The introduction of this metric for FY24
supports our sustainability priorities of creating
safe and respectful workplaces and achieving
greater gender participation.
Financial performance
Underlying Group EBIT(A)
40%
The use of EBIT(A) ensures that the largest
element of the individual’s STI is aligned to the
Company’s financial performance. It aims to
build a pay-for-performance culture and ensure
executive accountability for the Company’s
performance.
Underlying EBIT(A) as a percentage
of revenue
10%
This component measures the Company’s
earnings margin, demonstrating the quality of
earnings and expense control.
Financial stability
Perenti operating cash generation
20%
This component supports Perenti’s focus on
generating surplus operating cash flow that can
be allocated via the Capital Management Policy
between de-leveraging, growth capital, or
returns to shareholders (including dividends
and share buy-backs).
This metric aligns with the Company strategy
to focus on delivering quality cash profits and
support our focus on capital management.
Delivery
For FY24, two thirds of any outcome is delivered in cash and one third is delivered in STI Rights.
The STI Rights vest 12 months after their grant date at nil exercise share price.
Any STI Rights that are provided to the MD & CEO are subject to shareholder approval, as per ASX Listing
Rule 10.14, which for FY24 were approved at the 2023 AGM.
Allocation
methodology
(STI Rights only)
The deferred STI Rights will be allocated on a face value basis. This is calculated as the STI Rights
opportunity ($) divided by the 10-day volume weighted average price (VWAP) of the Company’s shares
up to and including the 30 June 2024.
Cessation of
employment
Typically, if the Executive KMP remains employed for the performance period and as at 1 October 2024
(even if they have resigned and are serving a notice period) they are entitled to the STI. Equally, typically,
if employment ceases before the end of the performance period the Executive KMP foregoes any STI
award for the current performance period which they would have otherwise been entitled.
STI Rights that have been awarded will become unrestricted in the usual course based only on the
passage of time unless the participant is deemed to be a bad leaver as defined by the Plan Rules, and/or
subject to malus and clawback.
Notwithstanding the above, the Board retains absolute discretion to treat STI awards and vesting as it
sees fit on cessation of employment.
Malus/Clawback
In circumstances of fraud, dishonesty or gross misconduct by the participant, or breach of duties or
obligations by the participant, the Board has the ability to:
• lapse all unvested STI awards (malus); and
• require the individual to repay a portion of any STI awards which have vested (clawback).
78
Perenti Annual Report 2024
Remuneration Report (continued)
FY24 - FY26 Long-term Incentive (LTI)
Description
LTI is delivered via a Performance Rights plan with annual grants made to eligible employees (including all
Executive KMP) as part of their variable remuneration. The Performance Rights are subject to performance
measures and a three-year performance period.
Performance
period
Three (3) years, commencing on 1 July 2023 and ending 30 June 2026.
Maximum
opportunity
MD & CEO: 120% of TFR
CFO, President Contract Mining and former President Contract Mining: 75% of TFR
Delivery
The LTI will be wholly delivered in Performance Rights at nil exercise price.
Any Performance Rights that are provided to the MD & CEO are subject to shareholder approval
as per ASX Listing Rule 10.14
Allocation
methodology
The LTI will be granted on a face value basis. This is calculated as the LTI opportunity ($) divided by the
10-day volume weighted average price (VWAP) of the company’s shares prior to the commencement date
of the performance period, which is 1 July 2023.
Performance
measures
The performance measures are aligned to shareholder returns and the business strategy.
Relative Total Shareholder Return (TSR) (50%)
The vesting metrics are as follows:
Level of performance
% of Performance Rights that will vest
Below Median
0%
Median
50%
Median to 75th percentile
Straight-line vesting between 50% and 100%
75th percentile and above
100%
The peer group for the relative TSR measure includes Austin Engineering Limited; Boart Longyear, Group
Limited; DDH1 Limited; Develop Global Limited; Emeco Holdings Limited; GR Engineering Services Limited;
Imdex Limited; Lycopodium Limited; Macmahon Holdings Limited; Mader Group Limited; Monadelphous
Group Limited; NRW Holdings Limited; Perseus Mining Limited; Resolute Mining Limited; SRG Global
Limited and West African Resources Limited. Vesting assessment is inclusive of Perenti’s TSR.
Return on equity (ROE) (30%)
The vesting metrics are as follows with ROE performance calculated as the simple average of the ROE
calculations for each of the three relevant financial years.
Level of performance
% of Performance Rights that will vest
Less than 6.6% ROE over Performance Period.
0%
6.6% ROE over Performance Period.
30%
Between 6.6% and 7.4% ROE over Performance Period.
Straight-line vesting between 30% and 100%
Greater than 7.4% ROE over Performance Period.
100%
Strategic initiative 1: Psychologically safe work environment (10%)
Vesting is based on the Board’s assessment of strategically shifting the culture of the organisation to ensure
a psychologically safe and inclusive work environment. This initiative requires evolving our culture to provide
a strategic advantage in line with increasing societal expectations of a safe and respectful workplace through
the elimination of bullying and sexual harassment.
Assessment will be via completion of inclusion action plans and improvement in related workplace surveys.
Strategic initiative 2: Reducing debt leverage (10%)
Vesting is based on reducing leverage to or less than 0.9 times EBITDA, excluding the effect of any possible
acquisitions, or other Board approved strategic initiatives, as aligned to the Capital Management Policy
introduced in December 2021.
The Board retains absolute discretion with respect to the targets and outcomes assessed under the LTI plan.
Cessation of
employment
Typically, if employment ceases or Executive KMP resigns before the end of any LTI performance periods,
the Executive KMP foregoes any Performance Rights for the performance periods which they would have
otherwise been entitled.
Notwithstanding the above, the Board retains absolute discretion to treat LTI awards and vesting as it sees fit
on cessation of employment.
Malus/clawback
In circumstances of fraud, dishonesty or gross misconduct by the participant, or breach of duties or
obligations by the participant, the Board has the ability to:
• lapse all unvested LTI awards (malus); and
• require the individual to repay a portion of any LTI awards which have vested (clawback). This may occur
via a sale of shares allocated under the LTI plan.
7. Remuneration governance
Board
Approves the overall Executive KMP remuneration framework, Executive KMP
remuneration levels and Non-executive Director remuneration, having regard
to the People and Remuneration Committee’s recommendations.
External stakeholder engagement
Consultation with proxy advisors
and institutional investors to ensure
external feedback is received.
External remuneration consultants
From time to time, the People and
Remuneration Committee may
engage external remuneration
consultants to inform its views.
People and Remuneration Committee
The committee reviews and determines our remuneration framework annually
to ensure it remains aligned to business needs and meets our remuneration
principles.
Management
Provides the People and Remuneration Committee with the required
information to assist with remuneration decisions and recommendations.
Communicates with external remuneration consultants to ensure the People
and Remuneration Committee has all the necessary information.
The purpose of the People and Remuneration Committee is to assist the Board in fulfilling its responsibilities regarding people
and remuneration. This includes overseeing that the Company has policies, frameworks and strategies which enable it to
attract, reward and retain an inclusive and diverse selection of directors, executives and employees that will create an engaged
workplace culture that contributes towards achieving positive outcomes for all stakeholders.
Ernst and Young were engaged during FY24 by the People and Remuneration Committee as external remuneration advisors.
This advice did not include any remuneration recommendations. The People and Remuneration Committee is satisfied that
the information provided was free from undue influence by any executive.
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Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
8. Contractual arrangements with Executive KMP
Statutory disclosure of FY24 Executive KMP remuneration
The table has been prepared in accordance with relevant accounting standards reflecting the remuneration for each Executive KMP that relates to their services in FY24.
Table 6 – Executive KMP remuneration
Fixed Remuneration
Variable remuneration
Name
Year
Cash Salary
Non-
monetary
benefits
Leave
entitlements [1]
Post
employment
benefits (Super)
Other [2]
STI cash
payment
STI Rights [3]
Performance
Rights [4]
Total
EXECUTIVE KMP
M Norwell
2024
1,082,601
42,155
(62,433)
27,399
—
447,881
132,770
1,451,486
3,121,859
2023
1,084,708
42,155
15,461
25,292
—
697,219
531,827
1,587,626
3,984,288
P Bryant
2024
647,601
—
1,925
27,399
—
252,000
77,684
(449,779)
556,830
2023
630,958
—
44,840
25,292
—
297,422
199,918
412,697
1,611,127
P Muller [5]
2024
467,700
—
50,406
13,699
—
200,941
53,314
336,432
1,122,492
2023
937,515
—
58,824
25,292
187,500
580,568
412,775
671,233
2,873,707
G Iwanow
2024
494,935
—
38,056
20,549
—
270,006
135,003
—
958,549
2023
—
—
—
—
—
—
—
—
—
Total executive directors
and other KMPs
2024
2,692,837
42,155
27,954
89,046
—
1,170,828
398,771
1,338,139
5,759,730
2023
2,653,181
42,155
119,125
75,876
187,500
1,575,209
1,144,520
2,671,556
8,469,122
Total non-executive directors
2024
973,191
—
—
105,876
—
—
—
—
1,079,067
2023
878,911
—
—
79,032
—
—
—
—
957,943
Total KMP remuneration expense
2024
3,666,028
42,155
27,954
194,922
—
1,170,828
398,771
1,338,139
6,838,797
2023
3,532,092
42,155
119,125
154,908
187,500
1,575,209
1,144,520
2,671,556
9,427,065
Notes
[1] This includes annual leave and long service leave.
[2] Includes temporary relocation allowance for Mr Muller in 2023.
[3] The 2024 figure includes the FY24 Deferred STI Rights portion and a true-up for grant date valuation for FY23 STI rights.
[4] The 2024 figure includes Performance Rights granted (for accounting purposes) by the Company in FY22, FY23 and FY24. The 2023 figure includes Performance Rights granted (for accounting purposes) by the Company in
FY21, FY22, FY23 (including true-up expense reflecting the changes in the vesting probability). FY22, FY23 and FY24 performance rights for Mr Bryant were forfeited due to cessation of employment. STI rights remain on foot
and subject to plan rules. Net Performance rights expense can be negative where there are forfeitures resulting from cessation of employment.
[5] Mr Muller ceased to be KMP on 31 December 2023 thus his remuneration has been pro-rated to his period as a KMP in the statutory remuneration table.
Remuneration and other terms of employment for Executive KMP are formalised in service agreements. A summary of the terms of employment as of the end of FY24
are presented on page 81.
80
Perenti Annual Report 2024
Remuneration Report (continued)
Table 7 – Employment contracts
Name
TFR
Duration of
service
agreement
Notice period
Severance
payment
entitlement
By executive
By company
Mark Norwell (MD & CEO)
1,110,000
Ongoing
6 months
6 months
No entitlement
Peter Bryant (CFO)
675,000
Ongoing
6 months
6 months
No entitlement
Gabrielle Iwanow (President Contract Mining)
962,800
Ongoing
6 months
6 months
No entitlement
Paul Muller
(Former President Contract Mining)
962,800
Ongoing
6 months
6 months
No entitlement
The terms for the incoming CFO will be disclosed in the FY25 Remuneration Report.
9. Non-executive Director remuneration
b. Statutory disclosure of FY24 Non-executive Director remuneration
Table 8 – FY24 Non-executive Director remuneration
Year
Base fee
Audit and Risk
Committee
People and
Remuneration
Committee
Safety and
Sustainability
Committee
Superannuation
Total
D Smith-Gander [1]
2024
114,464
2,638
8,058
-
13,768
138,928
2023
-
-
-
-
-
-
A Atkins
2024
113,964
-
9,910
9,910
14,716
148,500
2023
109,265
-
4,977
9,955
13,041
137,238
A Hall
2024
113,964
19,820
9,910
-
15,806
159,500
2023
109,265
19,005
9,955
-
14,514
152,739
T Longstaff [2]
2024
113,964
9,910
4,955
14,865
15,806
159,500
2023
109,265
9,955
-
19,005
14,514
152,739
C Laslett [3]
2024
115,009
2,871
-
10,001
12,821
140,702
2023
120,738
-
-
5,500
-
126,238
A Sutton [4]
2024
81,156
-
5,663
8,534
10,560
105,913
2023
-
-
-
-
-
-
R Cole [5]
2024
155,727
-
-
-
17,130
172,857
2023
213,801
-
-
-
22,449
236,250
M Hine [6]
2024
37,988
-
6,607
3,303
5,269
53,167
2023
109,265
-
19,005
9,955
14,514
152,739
Total non-executive directors
2024
846,236
35,239
45,103
46,613
105,876
1,079,067
2023
771,599
28,960
33,937
44,415
79,032
957,943
Notes
All movements in relation to which committees each Board member is included on along with the date of appointment if within the year is included in Section 2 of the
Remuneration Report.
[1] Ms Smith-Gander was appointed to the Board on 16 October 2023, subsequently appointed as Chair of the Board on 12 March 2024. Ms Smith-Gander was also appointed
as a member of the Audit and Risk Committee from 6 December 2023 to 12 March 2024 and Chair of the People and Remuneration Committee from 16 October 2023 to
12 March 2024.
[2] Mr Longstaff was appointed as Chair of the People and Remuneration Committee and ceased to be a Chair of the Safety and Sustainability Committee on 18 March 2024.
[3] Mr Laslett was appointed as a member of the Audit and Risk Committee on 18 March 2024.
[4] Ms Sutton was appointed to the Board on 16 October 2023 and as a member of the People and Remuneration Committee on 6 December 2023. Ms Sutton was also appointed
as a member of the Safety and Sustainability Committee from 6 December 2023 and Chair of the Safety and Sustainability Committee from 18 March 2024.
[5] Mr Cole resigned as a Director effective 13 March 2024, ceased to be a member of the People and Remuneration Committee, Audit and Risk Committee and Safety and
Sustainability Committee on 6 December 2023.
[6] Mr Hine resigned as a Director, ceased to be Chair of the People and Remuneration Committee and a member the Safety and Sustainability Committee on 13 October 2023.
a. Non-executive Director fees
Non-executive directors’ fees are set at a level which enables
the attraction and retention of experienced and skilled Board
members to ensure an effective oversight role over the
Company’s operations. Fee levels aim to reflect the demands
which are made on, and the responsibilities of, the Directors.
Non-executive directors’ fees are reviewed annually by the
Board to ensure fee levels are appropriate and in-line with
the market.
The NED fee pool approved by shareholders at the
FY23 Annual General Meeting is $1.4 million per annum.
The current Perenti Board fees are outlined adjacent.
There was no change to fees from FY23 to FY24.
Fee
Position
FY24 fees [1]
Board fees [2]
Board of Directors
Board Chair
247,500
Board Members
126,500
Committee
fees [3]
Audit and Risk, People and Remuneration,
and Safety and Sustainability
Committee Chair
22,000
Committee Members
11,000
[1] All fees are inclusive of superannuation with any legislated increases in
superannuation leading to a reduction in base salary if required. An individual
Non-executive Director may seek Australian Tax Office approval to be exempt from
Superannuation payment as per relevant legislation.
[2] The Board Chair fee is inclusive of all Board and Committee responsibilities.
[3] The Committee Chair and Members fees include Nomination Committee
responsibilities.
81
Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
Remuneration report (continued)
This section provides details of any additional statutory disclosures that have not been included in the previous sections of the Remuneration Report. There have been no alterations to the
terms and conditions of the prior year rights grants during the financial year.
a. Executive KMP equity awards
Reconciliation of rights held by Executive KMP
The table below shows a reconciliation of rights held by each Executive KMP from the beginning to the end of 30 June 2024.
Table 9 – Executive rights held by KMP
10. Additional statutory information
Executive
Grant Date
Instrument
Holding
at 01 July
2023
Rights
Granted in
FY24
Vested and
exercised
Forfeited
Holding
at 30 June
2024
Anticipated
vesting date
Fair Value
per right at
grant date
Maximum
amount yet
to vest
Number
%
Number
%
$
$
M Norwell
28/5/2021
Performance Right - TSR
425,614
-
212,807
50
212,807
50
-
August 2023
0.21
-
28/5/2021
Performance Right - ROACE
425,613
-
289,888
68
135,725
32
-
August 2023
0.54
-
14/10/2022
Short Term Incentive Rights
515,961
-
515,961
100
-
0
-
October 2023
0.98
-
14/10/2022
Performance Right - TSR
984,916
-
-
0
-
0
984,916
August 2024
0.75
-
14/10/2022
Performance Right - ROE
590,949
-
-
0
-
0
590,949
August 2024
0.96
-
14/10/2022
Performance Right - Strategic Objective 1
196,983
-
-
0
-
0
196,983
August 2024
0.96
-
14/10/2022
Performance Right - Strategic Objective 2
196,983
-
-
0
-
0
196,983
August 2024
0.96
-
14/10/2022
Performance Right - TSR
1,065,771
-
-
0
-
0
1,065,771
August 2025
0.75
266,443
14/10/2022
Performance Right - ROE
639,462
-
-
0
-
0
639,462
August 2025
0.96
204,628
14/10/2022
Performance Right - Strategic Objective 1
213,154
-
-
0
-
0
213,154
August 2025
0.96
68,209
14/10/2022
Performance Right - Strategic Objective 2
213,154
-
-
0
-
0
213,154
August 2025
0.96
68,209
13/10/2023
Short Term Incentive Rights
-
284,463
-
0
-
0
284,463
October 2024
1.01
29,869
13/10/2023
Performance Right - TSR
-
543,452
-
0
-
0
543,452
June 2026
0.61
221,004
13/10/2023
Performance Right - ROE
-
326,071
-
0
-
0
326,071
June 2026
0.95
206,512
13/10/2023
Performance Right - Strategic Objective 1
-
108,690
-
0
-
0
108,690
June 2026
0.95
68,837
13/10/2023
Performance Right - Strategic Objective 2
-
108,690
-
0
-
0
108,690
June 2026
0.95
68,837
82
Perenti Annual Report 2024
Executive
Grant Date
Instrument
Holding
at 01 July
2023
Rights
Granted in
FY24
Vested and
exercised
Forfeited
Holding
at 30 June
2024
Anticipated
vesting date
Fair Value
per right at
grant date
Maximum
amount yet
to vest
Number
%
Number
%
$
$
P Bryant
28/5/2021
Performance Right - TSR
158,167
-
79,084
50
79,084
50
-
August 2023
0.21
-
28/5/2021
Performance Right - ROACE
158,167
-
107,729
68
50,438
32
-
August 2023
0.54
-
13/5/2022
Performance Right - TSR
310,559
-
-
0
310,559
100
-
August 2024
0.45
-
13/5/2022
Performance Right - ROE
186,335
-
-
0
186,335
100
-
August 2024
0.65
-
13/5/2022
Performance Right - Strategic Objective 1
62,112
-
-
0
62,112
100
-
August 2024
0.65
-
13/5/2022
Performance Right - Strategic Objective 2
62,112
-
-
0
62,112
100
-
August 2024
0.65
-
10/10/2022
Short Term Incentive Rights
179,611
-
179,611
100
-
0
-
October 2023
0.91
-
20/3/2023
Performance Right - TSR
360,056
-
-
0
360,056
100
-
August 2025
0.85
-
20/3/2023
Performance Right - ROE
216,035
-
-
0
216,035
100
-
August 2025
1.00
-
20/3/2023
Performance Right - Strategic Objective 1
72,012
-
-
0
72,012
100
-
August 2025
1.00
-
20/3/2023
Performance Right - Strategic Objective 2
72,012
-
-
0
72,012
100
-
August 2025
1.00
-
14/12/2023
Short Term Incentive Rights
-
121,347
-
0
-
0
121,347
December 2024
0.98
18,526
19/1/2024
Performance Right - TSR
-
206,549
-
0
206,549
0
-
June 2026
0.40
-
19/1/2024
Performance Right - ROE
-
123,929
-
0
123,929
0
-
June 2026
0.83
-
19/1/2024
Performance Right - Strategic Objective 1
-
41,310
-
0
41,310
0
-
June 2026
0.83
-
19/1/2024
Performance Right - Strategic Objective 2
-
41,310
-
0
41,310
0
-
June 2026
0.83
-
P Muller
28/5/2021
Performance Right - TSR
232,937
-
116,469
50
116,469
50
-
August 2023
0.21
-
28/5/2021
Performance Right - ROACE
232,937
-
158,655
68
74,282
32
-
August 2023
0.54
-
13/5/2022
Performance Right - TSR
533,940
-
-
0
-
0
533,940
August 2024
0.45
-
13/5/2022
Performance Right - ROE
320,364
-
-
0
-
0
320,364
August 2024
0.65
-
13/5/2022
Performance Right - Strategic Objective 1
106,788
-
-
0
-
0
106,788
August 2024
0.65
-
13/5/2022
Performance Right - Strategic Objective 2
106,788
-
-
0
-
0
106,788
August 2024
0.65
-
10/10/2022
Short Term Incentive Rights
429,637
-
429,637
100
-
0
-
October 2023
0.91
-
20/3/2023
Performance Right - TSR
577,774
-
-
0
-
0
577,774
August 2025
0.85
163,703
20/3/2023
Performance Right - ROE
346,663
-
-
0
-
0
346,663
August 2025
1.00
115,554
20/3/2023
Performance Right - Strategic Objective 1
115,554
-
-
0
-
0
115,554
August 2025
1.00
38,518
20/3/2023
Performance Right - Strategic Objective 2
115,554
-
-
0
-
0
115,554
August 2025
1.00
38,518
14/12/2023
Short Term Incentive Rights
-
236,870
-
0
-
0
236,870
December 2024
0.98
36,162
19/1/2024
Performance Right - TSR
-
294,615
-
0
-
0
294,615
June 2026
0.40
78,564
19/1/2024
Performance Right - ROE
-
176,769
-
0
-
0
176,769
June 2026
0.83
97,812
19/1/2024
Performance Right - Strategic Objective 1
-
58,923
-
0
-
0
58,923
June 2026
0.83
32,604
19/1/2024
Performance Right - Strategic Objective 2
-
58,923
-
0
-
0
58,923
June 2026
0.83
32,604
STI Rights totalling 696,046 that relate to FY24 STI outcomes that are to be granted to current Executive KMP’s post 30 June 2024 have not been included in the above table.
Details of rights over ordinary shares in the Company provided as remuneration to Executive KMP are set out above. On vesting, each right is convertible into one ordinary share of Perenti Limited.
Further information on the rights is set out in note 19 to the financial statements.
83
Perenti Annual Report 2024
Directors’ Report 2024
Remuneration Report (continued)
b. Shareholdings of KMP
The number of ordinary shares in Perenti held directly, indirectly or beneficially by each individual (including shares held in the
name of the spouse, superannuation fund, nominee and/or other controlled entities) as at 30 June 2024 are shown in Table 10
below.
Table 10 – Shareholdings of Executive KMP and Non-Executive Directors
Name
Balance at start
of year
Received on
vesting of rights
Other changes during the year
Balance at end
of year
Purchase of
Shares
Disposed of
Shares
Directors
D Smith-Gander
-
-
119,657
-
119,657
A Atkins
66,166
-
52,095
-
118,261
A Hall
142,500
-
20,000
-
162,500
T Longstaff
143,500
-
-
-
143,500
C Laslett
101,000
-
75,000
(1,000)
175,000
R Cole*
249,831
-
-
-
249,831
M Hine*
145,000
-
-
-
145,000
Executive
M Norwell
933,980
1,018,658
50,000
-
2,002,638
P Bryant
543,515
366,424
-
-
909,939
P Muller*
1,304,991
704,762
-
-
2,009,753
G Iwanow
-
-
-
-
-
* For former NED and KMP, their closing balance is reflected as at the date they ceased as Executive KMP.
None of the shares above are held nominally by the directors or any of the other key management personnel.
c. Prohibition on hedging of Perenti shares and unvested equity awards
The Company’s Securities Trading Policy imposes trading restrictions on all employees of the Company and its
related companies with ‘inside information’ or with respect to derivative products and on trading securities during
trading prohibition periods.
d. Loans to Executive KMP
Loans were extended to key management personnel (KMP) on acquisition of Barminco group. The loans were made on normal
terms and conditions. The outstanding balances were deducted from the final FY23 STI in October 2023, representing the full
and final settlement of all loans and obligations. Interest was payable at rates of 4.52% to 7.77% on outstanding loan balances.
Table 11 – Loans to Executive KMP
24
23
$
$
Loans to key management personnel
Beginning of the period
188,622
186,039
Loan repayments made
(188,622)
-
Interest charged
-
10,062
Interest received
-
(7,479)
End of period
-
188,622
e. Other transactions with entities associated with KMP
There were no other transactions with related parties.
This Remuneration Report was approved by the Board on 19 August 2024 and has been signed in accordance with a resolution
of the Directors made pursuant to section 298(2) of the Corporations Act 2001 (Cth).
Remuneration report (continued)
84
Perenti Annual Report 2024
85
Perenti Annual Report 2024
Directors’ Report 2024
Directors’ report
Share rights
Unissued share rights over ordinary shares of Perenti Limited at the date of this report are:
Date rights granted
Performance period end date
Fair value per right
Number
13 May 2022
30 June 2024
$0.45
4,355,432
13 May 2022
30 June 2024
$0.65
4,355,432
14 October 2022
30 June 2024
$0.75
984,916
14 October 2022
30 June 2024
$0.96
984,916
14 October 2022
30 June 2025
$0.75
1,065,771
14 October 2022
30 June 2025
$0.96
1,065,771
20 March 2023
30 June 2025
$0.85
5,239,795
20 March 2023
30 June 2025
$1.00
5,239,791
13 October 2023
13 October 2024
$1.01
284,463
14 December 2023
14 December 2024
$0.98
759,216
13 October 2023
30 June 2026
$0.61
543,452
13 October 2023
30 June 2026
$0.95
543,452
19 January 2024
30 June 2026
$0.40
3,613,518
19 January 2024
30 June 2026
$0.83
3,613,518
32,649,443
Note 28 to the financial statements has information relating to the valuation techniques used to value the rights.
Shares issued on the exercise of rights
The following ordinary shares of Perenti Limited were issued
during the year ended 30 June 2024 on the exercise of rights
granted under the Employee Rights Plan. No further shares
have been issued since that date. No amounts are unpaid on
any of the shares.
Date shares issued
Fair value
per right
Number
of shares
issued
31 September 2023
1.02
2,912,614
11 January 2024
0.99
4,770,602
7,683,216
Indemnification
Under the Company’s constitution and subject to section
199A of the Corporations Act 2001, the Company
indemnifies each of the directors, the company secretary
and every other person who is an officer of the Company
and its wholly-owned subsidiaries against:
•
any liability incurred as an officer of the Company (as the
case may be) by that person to any person other than the
Company or a related body corporate of the Company,
unless that liability arises out of conduct involving a lack
of good faith or is a liability for a pecuniary penalty order
under certain provisions of the Corporations Act 2001;
and
•
costs and expenses incurred in defending civil or criminal
proceedings subject to certain conditions.
The above indemnity is a continuing indemnity and applies
in respect of all acts done by a person while an officer of the
Company or its wholly-owned subsidiaries even though the
person is not an officer at the time the claim is made.
The Company has entered into a Deed of Indemnity, Access
and Insurance (“Deed”) with each current and former officer
of the Company and its subsidiaries, including each director
and company secretary and persons who previously held
those roles. Under each Deed, to the extent permitted by
law and to the extent and in the amount that the officer is
not indemnified under any other indemnity, including an
indemnity contained in any insurance policy, the Company
indemnifies the relevant officer against all liabilities of any
kind (including liabilities for legal expenses) incurred by the
officer arising out of:
•
the discharge of his or her duties as an officer of the
Company or a subsidiary of the Company, or as an
officer of any corporation in which the Company holds
securities (“Related Corporation”) where the officer is
representing the interests of the Company in relation to
the Related Corporation; and
•
the conduct of the business of the Company or a
subsidiary of the Company, or a Related Corporation
where the officer is representing the interests of the
Company in relation to that Related Corporation.
No amount has been paid under any of these indemnities
during the financial year under review.
Insurance of officers
During the financial year, the Company has paid a premium
in respect of insuring the directors and officers of the
Company and the Group. The insurance contract prohibits
disclosure of the premium or the nature of liabilities insured
against under the policy.
86
Perenti Annual Report 2024
Non-audit services
The Company may decide to employ the auditor on
assignments additional to their statutory audit duties where
the auditor’s expertise and experience with the Company
and/or the Group are important.
Details of the amounts paid or payable to the auditor (PwC)
for audit and non-audit services provided during the year are
set out in note 27 to the financial statements.
The Board have considered the position and, in accordance
with advice received from the Audit and Risk Committee,
is satisfied that the provision of the non-audit services is
compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001. The
directors are satisfied that the provision of non-audit services
by the auditor did not compromise the auditor independence
requirements of the Corporations Act 2001 for the following
reasons:
•
all non-audit services have been reviewed by the Audit
and Risk Committee to ensure they do not impact the
impartiality and objectivity of the auditor; and
•
none of the services undermine the general principles
relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
Auditor’s independence declaration
The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 87.
Rounding of amounts
The Company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the
directors’ report. Amounts in the directors’ report have been rounded off, in accordance with the instrument, to the nearest
thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of directors.
During the year the following non-audit fees were paid for
services provided by the auditor of the parent entity and its
related practices:
24
23
$
$
Non-audit services
Advisory and accounting
consulting services
181,485
456,046
Taxation services
765,915
501,928
Total remuneration for
non-audit services
947,400
957,974
Mark Norwell
Managing Director & Chief Executive Officer
Perth
19 August 2024
Diane Smith-Gander AO
Chair
Perth
19 August 2024
87
Perenti Annual Report 2024
Directors’ Report 2024
Auditor’s Independence Declaration
88
Perenti Annual Report 2024
Corporate Governance Statement
The Company’s 2024 Corporate Governance Statement outlines the Company’s current corporate governance framework,
by reference to the ASX Recommendations.
The Corporate Governance Statement is current as at 19 August 2024 and has been approved by the Board.
The statement can be found in the corporate governance section of the Company’s website at perentigroup.com. The related
ASX Appendix 4G, a checklist cross-referencing the ASX Recommendations to disclosures in the Corporate Governance
Statement and the 2024 Annual Report can be found under the ASX Announcements section of the Company’s website at
perentigroup.com.
Our Governance Framework
Board
Responsible for overseeing the performance and operations of the Company
Diane Smith-Gander
Independent,
Non-executive
Chair
Mark Norwell
Managing Director
& Chief Executive
Officer
Alexandra Atkins
Independent,
Non-executive
Director
Andrea Hall
Independent,
Non-executive
Director
Timothy Longstaff
Independent,
Non-executive
Director
Craig Laslett
Independent,
Non-executive
Director
Andrea Sutton
Independent,
Non-executive
Director
Board Committees
Assist the Board to discharge its responsibilities:
Audit and Risk
People and Remuneration
Safety and Sustainability
Nomination
Below is the list of the Company’s core governance framework documents. These documents are located on the
Company’s website.
Charters
Board
Audit and Risk
People and Remuneration
Safety and Sustainability
Nomination
Corporate Governance Policies
Market Disclosure and
Communication Policy
Anti-Bribery and
Anti-Corruption Policy and
Standard
Securities Trading
Policy
Code of Conduct Policy and
Booklet
Sustainability Policy
Risk Management Policy
Inclusion and Diversity
Policy
Speak-Up Policy and
Speak-Up Standards
Health, Safety and Wellbeing
Policy
Quality Policy
Human Rights
Policy
Eliminating Sexual
Harassment Position
Statement
Capital Management Policy
Climate Change Position
Statement
Indigenous Peoples Position
Statement
Environmental Policy
89
Perenti Annual Report 2024
Financial Statements
FINANCIAL STATEMENTS
Consolidated statement of profit or loss
For the year ended 30 June 2024
30 JUNE
30 JUNE
24
23
Notes
$'000
$'000
Revenue
2
3,342,020
2,880,136
Other income
2
42,254
43,330
Materials expense
(992,923)
(914,643)
Labour costs
(1,374,206)
(1,143,405)
Rental and hire expense
3
(59,548)
(55,629)
Depreciation expense
3
(326,001)
(283,646)
Amortisation expense
3
(52,584)
(33,998)
Finance costs
3
(81,882)
(64,609)
Finance income
3
4,328
3,675
Other expenses from ordinary activities
3
(332,616)
(260,275)
Impairment of assets
3
—
(4,728)
Profit before income tax
168,842
166,208
Income tax expense
4
(61,677)
(63,622)
Profit for the year
107,165
102,586
Profit is attributable to:
Equity holders of Perenti Limited
95,476
95,739
Non-controlling interests
11,689
6,847
Profit for the year
107,165
102,586
Earnings per share for profit attributable to the ordinary equity holders
of the Company:
Cents
Cents
Basic earnings per share
5
10.9
13.9
Diluted earnings per share
5
10.5
13.4
90
Perenti Annual Report 2024
Consolidated statement of comprehensive income
For the year ended 30 June 2024
Notes
24
23
$'000
$'000
Profit for the year
107,165
102,586
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange gains on translation of foreign operations
17
4,078
3,749
Exchange (losses)/gains on translation of foreign operations -
non-controlling interest
(299)
670
Items that will not be reclassified to profit or loss
Gain on revaluation of land and buildings, net of tax
17
12,181
—
Loss on revaluation of FVOCI financial assets, net of tax
17
(279)
—
Other comprehensive income for the year, net of tax
15,681
4,419
Total comprehensive income for the year
122,846
107,005
Total comprehensive income for the year is attributable to:
Equity holders of Perenti Limited
111,456
99,488
Non-controlling interests
11,390
7,517
Total comprehensive income for the year
122,846
107,005
91
Perenti Annual Report 2024
Financial Statements
Consolidated statement of financial position
As at 30 June 2024
30 JUNE
30 JUNE
24
23
Notes
$'000
$'000
ASSETS
Current assets
Cash and cash equivalents
459,136
307,360
Trade and other receivables
7
509,137
435,220
Inventories
8
282,301
227,242
Current tax receivables
18,547
15,590
Assets classified as held for sale
9
9,457
18,663
Total current assets
1,278,578
1,004,075
Non-current assets
Receivables
7
12,823
15,098
Property, plant and equipment
9
1,270,455
968,236
Right-of-use assets
11
42,614
45,616
Intangible assets
10
617,078
626,083
Deferred tax assets
4
133,996
164,266
Financial assets at fair value through other comprehensive income
254
—
Total non-current assets
2,077,220
1,819,299
TOTAL ASSETS
3,355,798
2,823,374
LIABILITIES
Current liabilities
Trade and other payables
12
432,887
421,385
Borrowings
15
3,468
3,201
Lease liabilities
11
13,647
16,538
Current tax liabilities
22,954
25,175
Employee benefit obligations
13
107,371
79,306
Total current liabilities
580,327
545,605
Non-current liabilities
Borrowings
15
877,418
753,878
Lease liabilities
11
34,071
32,745
Deferred tax liabilities
4
63,238
58,554
Employee benefit obligations
13
11,688
6,136
Provisions
673
165
Total non-current liabilities
987,088
851,478
TOTAL LIABILITIES
1,567,415
1,397,083
NET ASSETS
1,788,383
1,426,291
EQUITY
Contributed equity
17
1,374,352
1,118,448
Other reserves
17
(17,713)
(35,721)
Retained earnings
403,080
326,676
Capital and reserves attributable to the owners of Perenti Limited
1,759,719
1,409,403
Non-controlling interests
28,664
16,888
Total equity
1,788,383
1,426,291
92
Perenti Annual Report 2024
Consolidated statement of changes in equity
For the year ended 30 June 2024
Attributable to owners of Perenti Limited
Notes
Contributed
equity
$'000
Other
reserves
$'000
Retained
earnings
$'000
Total
$'000
Non-
controlling
interests
$'000
Total
equity
$'000
Balance at 1 July 2023
1,118,448
(35,721)
326,676
1,409,403
16,888
1,426,291
Profit for the year
—
—
95,476
95,476
11,689
107,165
Other comprehensive income/(loss)
—
15,980
—
15,980
(299)
15,681
Total comprehensive income
for the year
—
15,980
95,476
111,456
11,390
122,846
Asset revaluation reserve gain taken to
retained earnings on sale of asset
—
(40)
40
—
—
—
Deferred tax on employee share trust
—
916
—
916
—
916
Transfer to non-controlling interest
reserve
—
399
—
399
3,855
4,254
Transactions with owners in their
capacity as owners:
Consideration paid for acquisition of
business
279,705
—
—
279,705
—
279,705
Dividends paid
18
—
—
(19,112)
(19,112)
—
(19,112)
Dividends paid to non-controlling
interests
—
—
—
—
(3,469)
(3,469)
Buy-back of ordinary shares, gross of
transaction costs and net of tax
17
(31,480)
—
—
(31,480)
—
(31,480)
Employee share rights - value of
employee services
28
—
8,432
—
8,432
—
8,432
Shares issued on conversion of
employee share rights
17
7,679
(7,679)
—
—
—
—
255,904
2,028
(19,072)
238,860
386
239,246
Balance at 30 June 2024
1,374,352
(17,713)
403,080
1,759,719
28,664
1,788,383
Balance at 1 July 2022
1,137,030
(56,027)
230,937
1,311,940
10,420
1,322,360
Profit for the year
—
—
95,739
95,739
6,847
102,586
Other comprehensive income
—
3,749
—
3,749
670
4,419
Total comprehensive income
for the year
—
3,749
95,739
99,488
7,517
107,005
Transfer to non-controlling interest
reserve
—
6,231
—
6,231
(831)
5,400
Transactions with owners in their
capacity as owners:
Dividends paid to non-controlling
interests
—
—
—
—
(218)
(218)
Buy-back of ordinary shares, gross of
transaction costs and net of tax
17
(20,372)
—
—
(20,372)
—
(20,372)
Deferred tax movement on capital
raising costs
17
(370)
—
—
(370)
—
(370)
Employee share rights - value of
employee services
28
—
12,486
—
12,486
—
12,486
Shares issued on conversion of
employee share rights
2,160
(2,160)
—
—
—
—
(18,582)
16,557
—
(2,025)
(1,049)
(3,074)
Balance at 30 June 2023
1,118,448
(35,721)
326,676
1,409,403
16,888
1,426,291
93
Perenti Annual Report 2024
Financial Statements
Consolidated statement of cash flows
For the year ended 30 June 2024
30 JUNE
30 JUNE
24
23
Notes
$'000
$'000
Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax)
3,617,064
3,009,036
Payments to suppliers and employees (inclusive of goods and services tax)
(2,983,704)
(2,486,359)
633,360
522,677
Interest received
4,235
1,538
Interest and other costs of finance paid
(65,228)
(61,186)
Income taxes paid
(72,927)
(64,909)
Transaction costs relating to acquisition of subsidiary
(11,649)
—
Net cash inflow from operating activities
6
487,791
398,120
Cash flows from investing activities
Payments for property, plant, equipment and intangibles
(335,154)
(373,921)
Proceeds from sale of property, plant and equipment
21,335
76,729
Proceeds from sale of assets held for sale
10,522
16,338
Payments for purchase of subsidiaries, net of cash acquired
20
(36,017)
—
Loan to DDH1 Limited, pre acquisition
(38,000)
—
(Loan to)/repayment of loan by non-controlling interest
(5,412)
168
Net cash outflow from investing activities
(382,726)
(280,686)
Cash flows from financing activities
Proceeds from borrowings
842,255
340,106
Repayment of borrowings
(698,670)
(433,195)
Redemption premium on 2025 High Yield Bonds
(5,695)
—
Payments of lease liabilities
(17,790)
(28,611)
Dividends paid
18
(19,112)
—
Dividends paid to non-controlling interest
(3,407)
(435)
Payments for bonds buy-back, gross of transaction costs
—
(24,887)
Payments for borrowing costs
(14,976)
(4,586)
Payments for share buy-back, gross of transaction costs
(29,756)
(21,526)
Proceeds from disposal of a non-controlling interest
—
5,400
Net cash inflow/(outflow) from financing activities
52,849
(167,734)
Net increase/(decrease) in cash and cash equivalents
157,914
(50,300)
Cash and cash equivalents at the beginning of the financial year
307,360
348,519
Effects of exchange rate changes on cash and cash equivalents
(6,138)
9,141
Cash and cash equivalents at end of year
459,136
307,360
94
Perenti Annual Report 2024
Notes to the consolidated financial statements
About this report
95
1
Segment information
97
Group performance
101
2
Revenue and other income
101
3
Expenses
102
4
Taxes
103
5
Earnings per share
104
6
Cashflow information
105
Group balance sheet
106
7
Receivables
106
8
Inventories
107
9
Property, plant and equipment
107
10 Goodwill and intangibles
110
11 Leases
111
12 Trade and other creditors
112
13 Employee benefit obligations
113
Capital management
114
14 Net debt
114
15 Interest-bearing loans and borrowings
114
16 Assets pledged as security
115
17 Equity and reserves
116
18 Dividends and distributions
118
Risk
119
19 Financial risk management
119
Group information
121
20 Business combinations
121
21 Subsidiaries
123
22 Parent entity information
125
23 Deed of cross guarantee
126
24 Related parties
127
Other
127
25 Commitments and contingencies
127
26 Events after the reporting period
127
27 Auditor's remuneration
128
28 Share based payments
128
29 Other accounting policies
130
95
Perenti Annual Report 2024
Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
About this report
Perenti Limited (referred to as ‘Perenti’) is a for-profit
company limited by shares incorporated and domiciled in
Australia whose shares are publicly traded on the Australian
Securities Exchange (ASX). The nature of the operations and
principal activities of Perenti and its subsidiaries (referred to as
‘the Group’) are described in the segment information.
The consolidated financial report of the Group for the
financial year ended 30 June 2024 (FY24) was authorised
for issue in accordance with a resolution of the directors on
19 August 2024. The Directors have the power to amend and
reissue the financial report.
These general-purpose financial statements have been
prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting
Standards Board, Urgent Issues Group Interpretations and the
Corporations Act 2001.
The Group adopted all new and amended Accounting
Standards and Interpretations issued by the AASB that are
relevant to the Group and effective for reporting periods
beginning on or before 1 July 2023. The Group does not early
adopt Accounting Standards and Interpretations that have
been issued or amended but are not yet effective. Refer to
note 29 for further details.
Rounding of amounts
The Company is of a kind referred to in ASIC Legislative
Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to the ‘rounding off’ of
amounts in this report and the accompanying financial report.
Amounts in this report and the accompanying financial report
have been rounded off to the nearest thousand dollars, or in
certain cases, to the nearest dollar.
Compliance with IFRS
The consolidated financial statements of Perenti Limited
and its subsidiaries also comply with International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared on a historical
cost basis except for the following:
• certain classes of property, plant and equipment measured
at fair value,
• assets held for sale are measured at the lower of carrying
amount and fair value less costs to sell, and
• certain financial assets and liabilities measured at fair value
through other comprehensive income.
Material and other accounting policies
Material and other accounting policies that summarise the
measurement basis used and are relevant to an understanding
of the financial statements are provided throughout the
notes to the financial statements. These policies have been
consistently applied to all the periods presented, unless
otherwise stated.
Significant judgements and estimates
This note provides a list of all significant judgements and
estimates adopted in the preparation of these consolidated
financial statements which haven’t been disclosed elsewhere
in this document. These policies have been consistently
applied to all the periods presented, unless otherwise stated.
The financial statements are for the consolidated entity
consisting of Perenti Limited and its subsidiaries.
• Recognition of revenue (Note 2)
• Impairment of assets (Note 7, 8, 9 & 10)
• Recognition of deferred tax asset & Uncertain tax position
(Note 4)
• Estimation of useful life of property, plant, equipment and
intangibles (Note 9, 10)
• Estimation uncertainties and judgements made in relation
to lease accounting (Note 11)
• Estimation of fair values of land and buildings (Note 9)
• Estimation of fair values of assets and liabilities acquired in
business combination (Note 20)
• Share based payments (Note 28)
Principles of consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities)
over which the Group has control. The Group controls an
entity where the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the
activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for
all business combinations by the Group.
Intercompany transactions, balances and unrealised gains
on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by
the Group.
Non-controlling interests in the results and equity of
subsidiaries are shown separately in the consolidated
statement of profit or loss, consolidated statement of
comprehensive income, consolidated statement of changes
in equity and consolidated statement of financial position
respectively.
Foreign currency
Foreign and presentation currency translations
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The consolidated financial
statements are presented in Australian dollars ($), which is
Perenti Limited’s functional and presentation currency.
96
Perenti Annual Report 2024
Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates of
the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are generally
recognised in profit or loss. They are deferred in equity if
they are attributable to part of the net investment in a foreign
operation.
Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at
the date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.
Significant transactions during the period
Acquisition of DDH1 Limited
On 6 October 2023, the Group completed the acquisition
of DDH1 Limited (“DDH1”) and its subsidiaries by a scheme
of arrangement. The total consideration paid to DDH1
shareholders was $329.7 million for 100% of the shares.
DDH1 brings significant capability across a range of
specialised surface and underground drilling services that
complement Perenti’s existing service offerings. Perenti
will benefit from increased scale, synergies derived from
the amalgamated group and the ability to leverage the
operational and financial strengths of both companies.
Restructure of operating segments
As a result of the acquisition of the DDH1 Group in October
2023, a new Drilling Services Division combining the DDH1
and Ausdrill businesses was formed to reflect divisional
accountability under the operating model. As a result of
Ausdrill transferring to Drilling Services, the Contract Mining
Surface Africa and the Underground businesses were
combined into one Contract Mining Segment, reflective of
the type of services the respective business units provide.
Notes to the financial statements
The notes are organised into the following sections:
• Group performance: provides a breakdown of individual
line items in the income statement that the directors
consider most relevant and performance measures such
as earnings per share and cashflow information;
• Group balance sheet: provides a breakdown of individual
line items in the balance sheet that the directors consider
most relevant;
• Capital Management: provides information about
the capital management practices of the Group and
shareholder returns for the year;
• Risk: discusses the Group’s exposure to various financial
risks, explains how these affect the Group’s financial
position and performance and what the Group does to
manage these risks;
• Group information: explains aspects of the Group
structure and how changes have affected the financial
position and performance of the Group, as well as
disclosing related party transactions and balances; and
• Other: provides information about items that are
not recognised in the financial statements but could
potentially have a significant impact on the Group’s
financial position and performance; and provides
information on items which require disclosure to
comply with Australian Accounting Standards and
other regulatory pronouncements.
97
Perenti Annual Report 2024
Notes to the consolidated financial statements
1 Segment information
Description of segments
Management has determined the operating segments based
on the internal reports reviewed by the Managing Director that
are used to make strategic decisions. The Managing Director
assesses the performance of the operating segments based on
Revenue and EBIT(A).
The Managing Director identifies the operating segments
based on the nature of the services provided, jurisdiction where
services are performed and the nature of risks and returns
associated with each business.
As a result of the acquisition of the DDH1 Group in October
2023, a new Drilling Services division combining the DDH1
and Ausdrill businesses was formed to reflect divisional
accountability under the operating model. As a result of Ausdrill
transferring to Drilling Services, the Contract Mining Surface
Africa and the Underground businesses were combined into
one Contract Mining Segment, reflective of the type of services
the respective business units provide.
The disclosed operating segments for Drilling Services and
Contract Mining have been updated to reflect this change, and
the 30 June 2023 amounts have been restated to be presented
on the same basis.
Reportable segments are:
Contract Mining
The provision of Underground and Surface contract mining
services in Australia, Africa and North America.
Drilling Services
The provision of drilling services across all stages of the mine
life cycle including specialised deep hole multi-intersectional
directional Diamond Core drilling, underground Diamond
Core drilling, drilling and blasting and in-pit grade control in
Australia, Europe and North America.
Mining Services and idoba
Mining support services including equipment hire, equipment
parts and sales, supply of equipment, logistics services and
technology driven products and services.
Corporate
This segment includes corporate activity covering strategy,
treasury, accounting, human resources, information
technology, procurement, legal, risk, Investor relations and
other corporate administration.
Intersegment eliminations
Represents transactions between reporting segments that are
eliminated on consolidation.
Financing arrangements are managed at a group level and
therefore net financing costs are not allocated to segments.
Underlying EBIT(A)
Underlying EBIT(A) is defined as earnings before finance costs,
finance income, income tax expense or benefit, amortisation
of customer related intangibles, idoba product development
costs, gain on acquisition, net foreign exchange gains or losses,
transaction, restructuring costs and other.
About this report
98
Perenti Annual Report 2024
Segment information provided to the Managing Director
Contract
Mining
Drilling
Services
Mining
Services and
idoba
Corporate
Eliminations
Consolidated
Year ended 30 June 2024
$'000
$'000
$'000
$'000
$'000
$'000
Segment revenue
Sales to external customers
2,542,200
598,096
201,724
—
—
3,342,020
Intersegment sales
—
—
37,339
—
(37,339)
—
Total sales revenue
2,542,200
598,096
239,063
—
(37,339)
3,342,020
Underlying segment EBIT(A)
287,285
50,611
25,418
(49,138)
—
314,176
Customer related intangibles
amortisation
(36,642)
(10,791)
—
—
—
(47,433)
Foreign exchange (loss)/gain, net
(14,621)
(455)
(3,744)
(1,767)
—
(20,587)
idoba product development
—
—
(15,023)
—
—
(15,023)
Transaction, restructuring costs
and other
(695)
(632)
(1,814)
(7,035)
—
(10,176)
Gain on acquisition
—
25,439
—
—
—
25,439
Reported segment EBIT
235,327
64,172
4,837
(57,940)
—
246,396
Finance income
4,328
Finance costs
(81,882)
Profit before tax
168,842
Income tax expense
(61,677)
Profit for the year
107,165
Non-controlling interests
(11,689)
Profit for the year attributable
to members
95,476
Segment assets
2,653,818
678,740
251,805
1,786,736
(2,015,301)
3,355,798
Segment liabilities
1,358,026
259,146
166,772
1,235,866
(1,452,395)
1,567,415
Other segment information
Depreciation expense
(237,230)
(59,089)
(26,936)
(2,746)
—
(326,001)
Acquisition of property, plant and
equipment, intangibles and other
non-current assets
(239,669)
(61,268)
(33,348)
(869)
—
(335,154)
Proceeds from sale of property,
plant and equipment and assets
held for sale
18,460
4,144
9,253
—
—
31,857
99
Perenti Annual Report 2024
Notes to the consolidated financial statements
Prior period (restated due to formation of Drilling Services Division)
Contract
Mining
Drilling
Services
Mining
Services and
idoba
Corporate
Eliminations
Consolidated
Year ended 30 June 2023
$'000
$'000
$'000
$'000
$'000
$'000
Segment revenue
Sales to external customers
2,479,274
202,606
198,256
—
—
2,880,136
Intersegment sales
—
—
26,400
—
(26,400)
—
Total sales revenue
2,479,274
202,606
224,656
—
(26,400)
2,880,136
Underlying segment EBIT(A)
304,109
14,739
7,286
(62,030)
—
264,104
Customer related intangibles
amortisation
(29,141)
—
—
—
—
(29,141)
Impairment of assets
(4,728)
—
—
—
—
(4,728)
Transaction, restructuring costs and
other
5,225
—
(2,163)
(5,373)
—
(2,311)
Foreign exchange (loss)/gain, net
(2,286)
(139)
(76)
1,719
—
(782)
Reported segment EBIT
273,179
14,600
5,047
(65,684)
—
227,142
Finance income
3,675
Finance costs
(64,609)
Profit before tax
166,208
Income tax expense
(63,622)
Profit for the year
102,586
Non-controlling interests
(6,847)
Profit for the year attributable to
members
95,739
Segment assets
2,511,001
191,431
228,754
1,790,857
(1,898,669)
2,823,374
Segment liabilities
1,349,732
172,400
145,870
996,028
(1,266,949)
1,397,081
Other segment information
Depreciation expense
(233,255)
(19,643)
(27,447)
(3,301)
—
(283,646)
Acquisition of property, plant and
equipment, intangibles and other
non-current assets
(320,335)
(19,646)
(30,885)
(3,055)
—
(373,921)
Proceeds from sale of property,
plant and equipment and assets
held for sale
87,573
1,689
3,805
—
—
93,067
100
Perenti Annual Report 2024
Geographical information
The table below provides information on the geographical location of revenue from contracts with customers and non-current
assets (other than deferred tax assets). Revenue and non-current assets are recorded in the applicable jurisdiction based on
location of operation.
The revenue from external parties reported to the Managing Director is measured in a manner consistent with that in the
consolidated income statement. Non-current assets are allocated based on the location of the operations and the physical
location of the asset.
30 June 2024
30 June 2023
Revenue from
external customers
Non-current
segment assets
Revenue from
external customers
Non-current
segment assets
$'000
$'000
$'000
$'000
Contract Mining
- Australia
968,431
351,192
1,006,331
366,393
- Ghana
508,796
321,384
480,777
324,440
- Botswana
369,669
225,122
301,625
194,940
- Burkina Faso
306,005
239,813
322,169
267,898
- Tanzania
148,075
95,932
143,372
108,488
- Canada and USA
142,442
42,236
111,429
38,725
- Senegal
98,782
31,210
109,847
42,487
- Other foreign countries
—
5,913
3,725
9,461
Drilling Services
- Australia
553,749
438,674
202,605
128,161
- Canada and USA
34,619
10,347
—
—
- Portugal
6,389
6,262
—
—
- Spain
2,756
123
—
—
- Other foreign countries
584
147
—
—
Mining Services and idoba
- Australia1
173,402
134,509
163,388
136,447
- Africa2
28,321
2,055
34,868
359
Corporate
- Australia
—
38,305
—
37,234
Total
3,342,020
1,943,224
2,880,136
1,655,033
1 Intersegment revenue for the period is $1,024,000 (2023: $1,266,000).
2 Intersegment revenue for the period is $36,315,000 (2023: $25,134,000).
101
Perenti Annual Report 2024
Notes to the consolidated financial statements
Group performance
Contracts for sale of goods and services may include defect
and warranty periods following completion of the sale or
project. These obligations are not deemed to be separate
performance obligations and therefore are estimated and
included in the total costs of the contracts.
Consulting services
The Group provides operational improvement and
technology consulting services to clients primarily in
the mining sector. Delivery of these services represent
performance obligations. Upon completion of each
performance obligation, which is satisfied over time, the
Group is entitled to payment for the services performed.
Significant estimates and judgements
Variable consideration
Where consideration in respect of a contract is variable, the
expected value of revenue is only recognised to the extent
that it is highly probable that it will not result in a significant
reversal. The estimate is based on all available information
including historic performance.
Deferred revenue
Deferred revenue (or a contract liability) arises where
payment is received prior to work being performed and is
allocated to the performance obligations within the contract
and recognised as revenue over the course of the contract.
24
23
Contract liability
$'000
$'000
Opening balance
2,216
3,278
Deferred revenue recognised
1,712
1,566
Revenue recognised
(2,810)
(3,000)
Exchange differences
(8)
372
Closing balance
1,110
2,216
Other income
The Group derives the following types of other income:
24
23
$'000
$'000
Gain on acquisition
25,439
—
Gain on disposal of non-current
assets
6,763
20,539
Apprentice grants
2,704
6,046
Insurance and settlement proceeds
1,738
10,091
Other items
5,610
6,654
42,254
43,330
2 Revenue and other income
The Group derives the following types of revenue:
24
23
$'000
$'000
Contracting services revenue
3,190,566
2,714,185
Equipment rental
66,780
67,199
Sale of mining supplies and goods
71,216
78,720
Consulting services
13,458
20,032
3,342,020
2,880,136
Timing of revenue recognition
24
23
$'000
$'000
At a point in time
71,216
78,720
Over time
3,270,804
2,801,416
3,342,020
2,880,136
Recognition and measurement
Revenue is recognised for the major business activities using
the methods outlined below.
Contracting services revenue
Contracting services revenue include underground
and surface mining, drill and blast, in-pit grade control,
exploration drilling, earthmoving and machinery rebuilds.
The performance obligation is fulfilled over time as the Group
enhances mining assets which the customer controls and for
which the Group has a right to payment for performance to
date and as such revenue is recognised over time.
Revenue is recognised monthly based on units of production
at agreed contract rates that is aligned with the stand-alone
selling prices for each performance obligation. Most of the
Group’s revenue is paid one month in arrears and therefore
gives rise to accrued revenue. The total transaction price for
contract services may include variable consideration.
Costs incurred prior to the commencement of a contract
(mobilisation costs) may arise as these costs are incurred
to fulfil a contract. Where these costs relate directly to a
contract or to an anticipated contract, generate or enhance
resources of the entity that will be used in satisfying (or in
continuing to satisfy) performance obligations in the future,
and are expected to be recovered, the fees received are
capitalised and amortised over the contract consistent with
the transfer of service to the customer.
Equipment rental
Rental income is recognised on either a straight-line or
machine hours basis over the term of the operating lease.
Mining supplies and manufactured goods
Revenue is recorded at a point in time when control has been
transferred to the customer, generally being when the goods
have been dispatched or delivered to a customer pursuant to
the sales order.
102
Perenti Annual Report 2024
3 Expenses
This note provides an analysis of expenses by nature and
a breakdown of the items included in finance income and
finance costs.
24
23
$'000
$'000
Depreciation expense
Plant and equipment depreciation
306,906
257,376
Right-of-use asset depreciation
17,507
24,695
Buildings depreciation
1,588
1,575
Total depreciation expense
326,001
283,646
Amortisation expense
Customer related intangibles
amortisation
47,433
29,141
Software amortisation
4,778
4,857
Other
373
—
Total amortisation expense
52,584
33,998
Rental and hire expenses
Rental expense for equipment
57,412
54,303
Rental expense for properties
2,136
1,326
Total rental and hire expenses
59,548
55,629
24
23
$'000
$'000
Other expenses from ordinary
activities
Travel and accommodation
58,052
39,783
Staffing, safety and training
55,265
44,048
Freight
48,064
35,118
IT and communications
26,761
22,076
Consultants
23,592
29,177
Insurance
19,092
14,792
Duties and taxes
14,336
19,562
Trade receivable provisions and
bad debts
10,156
840
Property related expenses
9,137
8,529
Acquisition related costs
7,587
4,692
Bank charges
5,804
7,434
Foreign exchange loss/(gain), net
20,587
782
All other expenses
34,183
33,442
Total other expenses
332,616
260,275
Impairment of assets
Impairment of property, plant and
equipment
—
4,298
Impairment of inventory
—
430
Total impairment of assets
—
4,728
Finance income and finance costs
24
23
$'000
$'000
Finance income
Interest income
(4,328)
(1,767)
Gain on settlement of debt
—
(1,908)
Total finance income
(4,328)
(3,675)
Finance costs
Interest expense
64,432
56,217
Amortisation of borrowing cost
7,662
5,103
Redemption premium on 2025
High Yield Bonds
5,695
—
Lease contracts interest
3,983
3,279
Other finance costs
110
10
Total finance costs
81,882
64,609
Recognition and measurement
Expenses are recognised as incurred, refer to accounting
policies summarised in notes 9 and 10 for depreciation and
amortisation expense and note 13 for employee benefit
expenses.
Interest income is presented as finance income where
it is earned from financial assets that are held for cash
management purposes. Any other interest income is
included in other income.
103
Perenti Annual Report 2024
Notes to the consolidated financial statements
4 Taxes
Income tax expense
24
23
$'000
$'000
Current tax expense
Current tax on profits for the year
23,824
71,372
Adjustments for prior periods
1,978
74
Deferred tax expense
(Increase)/decrease in deferred
tax assets
(23,925)
8,309
Increase/(decrease) in deferred
tax liabilities
59,800
(16,133)
Income tax expense
61,677
63,622
Tax reconciliation
Profit before tax
168,842
166,208
Income tax at the Australian tax
rate of 30% (2023: 30%)
50,652
49,862
Non-Deductible items:
Share-based payments
(14)
3,726
Withholding tax
6,452
6,105
Other assessable/non-deductible
items
9,745
33,695
Difference in overseas tax rates
(7,448)
(11,560)
Adjustments for prior periods
1,978
74
Tax losses recognised
(1,900)
1,621
Movement in tax base due to effect
of foreign currency translation
1,243
(5,586)
Movement in uncertain tax
positions
969
(14,315)
Income tax expense
61,677
63,622
Amounts directly recognised in equity
Employee share trust
916
—
Net loss on revaluation of financial
assets at FVOCI
120
—
Deferred tax recognised on buy-
back of ordinary shares
52
33
Deferred tax movement on capital
raising costs
—
(370)
Net gain on revaluation on land
and buildings
(4,140)
—
Total tax recognised in equity
(3,052)
(337)
Tax losses for which deferred tax
assets have not been recognised:
Unused tax losses for which
no deferred tax asset has been
recognised
84,135
80,531
Unrecognised deferred tax assets
relating to the above unused tax
losses
24,424
23,707
Temporary differences for which deferred tax liabilities have
not been recognised:
Undistributed earnings
371,170
277,803
Unrecognised deferred tax
liabilities relating to the above
undistributed earnings
34,485
26,385
Deferred tax assets
24
23
$'000
$'000
Deferred income tax relates to
the following:
Employee benefits
36,998
28,259
Employee share trust
4,994
—
Accruals
13,061
17,206
Provision for obsolete stock
1,951
3,202
Doubtful debts
—
46
Depreciation
6,057
12,347
Right-of-use assets
12,985
13,365
Inventory
67
67
Borrowing and business expenses
3,349
1,629
Unrealised foreign exchange
—
5,111
Current/prior year tax losses
recognised
155,215
128,182
Financial assets
57
—
Deferred tax assets
234,734
209,414
Set off deferred tax liabilities
pursuant to set-off provisions
(100,738)
(45,148)
Net deferred tax assets
133,996
164,266
Deferred tax assets expected to be
recovered within 12 months
95,829
88,335
Deferred tax assets expected
to be recovered after more than
12 months
138,905
121,079
234,734
209,414
Deferred tax liabilities
24
23
$'000
$'000
Deferred income tax relates to the
following:
Depreciation
87,809
25,316
Customer related intangibles
36,616
41,666
Revaluation of land and buildings
8,620
6,507
Right-of-use assets
11,694
12,206
Uncertain tax positions
18,828
17,860
Doubtful debts
199
—
Unrealised foreign exchange
109
—
Other
101
147
Deferred tax liabilities
163,976
103,702
Set off with deferred tax assets
pursuant to set-off provisions
(100,738)
(45,148)
Net deferred tax liabilities
63,238
58,554
Deferred tax liabilities expected to
be settled within 12 months
33,736
14,829
Deferred tax liabilities expected to
be settled after more than
12 months
130,240
88,873
163,976
103,702
104
Perenti Annual Report 2024
Recognition and measurement
Current taxes
Current tax expense is the expected tax payable on the
taxable income for the current year and any adjustment
to tax paid in respect of previous years.
Deferred taxes
Deferred tax expense represents movements in the
temporary differences between the carrying amount of an
asset or liability in the consolidated statement of financial
position and its tax base.
Except for those noted above; deferred tax liabilities are
recognised for all taxable temporary differences. Deferred tax
assets are recognised for deductible temporary differences,
unused tax losses and tax credits only if it is probable that
sufficient future taxable income will be available to utilise
those temporary differences and losses.
Offsetting deferred tax balances
Deferred tax assets and liabilities are offset only if there is
a legally enforceable right to offset current tax assets and
liabilities and when they relate to income taxes levied by the
same taxation authority on either the same taxable entity or
different taxable entities that the Group intends to settle its
current tax assets and liabilities on a net basis.
Significant judgements and estimates
Deferred tax asset
The Group reviews the carrying amount of its deferred tax
assets at each balance date. Deferred tax is not recognised
if the temporary difference arises from goodwill or from the
initial recognition (other than in a business combination)
of assets and liabilities in a transaction that affects neither
accounting profit nor the taxable profit.
At 30 June 2024 the Group has unrecognised benefits
relating to carried forward tax losses, which can only be
offset against eligible future tax profits. The Group has
determined that there is sufficient future taxable profit in
Australia to support the losses recognised but at this stage
it is not sufficient to support the above unrecognised losses
relating predominantly to the African operations.
Uncertain tax positions
The Group has tax matters, litigation and other claims,
for which the timing of resolution and potential economic
outflows are uncertain. Where the Group assesses an
outcome for any tax matter, litigation or other claim as more
likely than not to be accepted by the relevant tax authority,
the position is adopted in the reported tax balances.
Because of the complexity of some of these positions the
ultimate outcome may differ from the current estimate of
the position. These differences will be reflected as increases
or decreases to tax expense in the period in which new
information is available.
5 Earnings per share
24
23
$'000
$'000
Profit attributable to equity
holders of the parent
95,476
95,739
Number
Number
Weighted average number
of shares on issue for basic
earnings per share
879,798,156
689,850,285
Effect of share rights on issue
27,901,163
25,740,143
Weighted average number of
shares on issue adjusted for
the effect of dilution
907,699,319
715,590,428
Cents
Cents
Basic earnings per share
10.9
13.9
Diluted earnings per share
10.5
13.4
The number of potential ordinary shares not considered
dilutive at 30 June 2024 is nil (2023: nil).
Recognition and measurement
Basic earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in
ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into
account:
• the after income tax effect of interest and other financing
costs associated with dilutive potential ordinary shares,
and
• the weighted average number of shares assumed to have
been issued for no consideration in relation to dilutive
potential ordinary shares.
Other
Information on the classification of securities
Rights
Rights granted to employees are considered to be potential
ordinary shares and have been included in the determination
of diluted earnings per share to the extent to which they
are dilutive. The rights have not been included in the
determination of basic earnings per share. Details relating
to the rights are set out in note 28.
105
Perenti Annual Report 2024
Notes to the consolidated financial statements
6 Cashflow information
Reconciliation of profit/(loss) after income tax to net cash
inflow from operating activities.
24
23
$'000
$'000
Profit for the year
107,165
102,586
Depreciation expense
326,001
283,646
Amortisation expense
52,584
33,998
Impairment of non-current assets
—
4,728
Net gain on settlement of debt
—
(1,908)
Redemption premium on 2025
High Yield Bonds
5,695
—
Net (gain)/loss on revaluation of
land & buildings
(256)
—
Net exchange differences
1,627
(296)
Trade receivable provisions and
bad debts
10,156
1,306
Non-cash employee benefits
expense - share-based payments
8,432
12,531
Amortisation of borrowing costs
and other non-cash finance costs
7,752
5,103
Gain on sale of non-current assets
(6,763)
(20,539)
Gain on acquisition
(25,439)
—
Change in operating assets and
liabilities:
(Increase)/decrease in trade
debtors
20,550
(28,668)
(Increase)/decrease in inventories
3,065
(4,025)
(Increase)/decrease in deferred
tax assets
1,691
(2,165)
(Increase)/decrease in other
operating assets
19,281
(9,265)
(Decrease)/increase in trade
creditors
(39,746)
19,819
(Decrease)/increase in provision
for income taxes payable
(9,050)
17,144
(Decrease)/increase in deferred
tax liabilities
(2,870)
(13,131)
(Decrease)/increase in other
provisions
7,916
(2,744)
Net cash inflow from operating
activities
487,791
398,120
106
Perenti Annual Report 2024
Group balance sheet
7 Receivables
Significant judgments and estimates
Key estimate: Recoverability of trade and other receivables
The aging of trade receivables greater than 90 days past due
and excluding provisions for doubtful debts and expected
credit losses are:
24
23
$'000
$'000
3 to 6 months
1,988
34,608
Over 6 months
27,297
11,419
29,285
46,027
The Group applies the AASB 9 simplified approach to
measuring ECL which uses a lifetime ECL allowance for trade
receivables and accrued revenue. Accrued revenue relates to
unbilled completed services and has substantially the same
characteristics as the trade receivables for the same type of
contracts.
ECL are based on a review of payment profiles over
12 months, historical credit loss experience in this period
and financial information affecting the ability of the
customers to settle the receivable.
Historical loss rates are adjusted to reflect balances receivable
(or otherwise provided for) and to reflect current and
forward-looking information on macroeconomic factors
affecting the ability of the customers to settle the receivables.
The Group has identified that the external credit ratings and
default rates are the most relevant factors in understanding
whether a client will be able to settle the receivable and these
have been considered to arrive at an ECL.
24
23
$'000
$'000
Movements in the provision for
impairment and ECL allowance
were as follows:
Balance at 1 July
12,350
10,980
Provision recognised during
the year
9,861
541
Utilisation of provision
(4,755)
(85)
Acquisition of controlled entities
1,838
—
ECL allowance movement
430
914
Balance at 30 June
19,724
12,350
The Group’s foreign currency risk and interest rate risk can be
found in note 19.
24
23
$'000
$'000
Current trade and other
receivables
Trade receivables
214,917
145,730
Accrued revenue
216,765
205,648
Provision for impairment and
expected credit loss (ECL)
allowance
(19,724)
(12,350)
Net GST / VAT receivables
25,526
33,371
Other receivables
18,875
8,845
Prepayments
52,778
53,976
509,137
435,220
Non-current receivables
Other receivables
12,636
14,750
Prepayments
187
348
12,823
15,098
Recognition and measurement
Trade and other receivables are recognised initially at fair
value and subsequently measured at amortised cost, less
provision for impairment and ECL allowance.
If collection of the amounts is expected in one year or less,
they are classified as current assets. If not, they are presented
as non-current assets.
Trade receivables
Trade receivables are amounts due from customers for goods
sold or services performed in the ordinary course of business.
Trade receivables are generally due for settlement not more
than 90 days from the date of recognition.
Accrued revenue
Accrued revenue represents receivables for unbilled
completed services where the Group’s right to consideration
is unconditional subject to only the passage of time.
Other receivables
This amount includes prepayments, GST / VAT receivables,
and other receivables such as operating expense rebates and
tax receivables.
107
Perenti Annual Report 2024
Notes to the consolidated financial statements
8 Inventories
24
23
$'000
$'000
Work in progress
20,564
16,083
Finished goods
20,366
20,738
Consumables
241,371
190,421
282,301
227,242
Recognition and measurement
Inventory is stated at the lower of cost or net realisable value.
Consumables
Costs assigned to individual items of inventory are calculated
on a weighted average cost basis.
Work in progress and finished goods
These are largely related to Mining Services, the activities
including manufacture and refurbishment of parts and
equipment.
The cost comprises direct materials, direct labour and
an appropriate proportion of variable and fixed overhead
expenditure, the latter being allocated based on normal
operating capacity.
Significant judgments and estimates
Key estimate: Net realisable value
The key assumptions which require the use of management
judgement, are the variables (obsolete or slow moving
inventories) affecting the expected selling price in the
ordinary course of business.
For the year ended 30 June 2024, write-downs of inventories
to their net realisable value totalled $2,129,000 (2023:
$423,000) and inventory provision reversal of $5,806,000
(2023 inventory provision recognised: $7,206,000) were
recorded against the consolidated statement of profit or loss.
The inventory provision balance at 30 June 2024 amounted
to $11,043,000 (2023: $17,995,000). In the prior period,
$430,000 impairment in Power Solutions Africa SARL was
recorded against inventory balances for the year ended
30 June 2023.
9 Property, plant and
equipment
Land and
buildings
Plant and
equipment
Total
$'000
$'000
$'000
Year ended 30 June 2024
Opening net book
amount
23,548
944,688
968,236
Exchange differences
(21)
(4,758)
(4,779)
Acquisition of
subsidiary
907
290,241
291,148
Additions
79
326,750
326,829
Revaluation of land
and buildings
16,576
—
16,576
Disposals
—
(13,230)
(13,230)
Depreciation charge
(1,588)
(306,906)
(308,494)
Transfer between
classes
(763)
763
—
Other transfers
—
(5,831)
(5,831)
Closing net book
amount
38,738
1,231,717
1,270,455
At 30 June 2024
Cost or fair value
43,046
2,524,885
2,567,931
Accumulated
depreciation
(4,308)
(1,293,168)
(1,297,476)
Net book amount
38,738
1,231,717
1,270,455
Year ended 30 June 2023
Opening net book
amount
24,535
901,785
926,320
Exchange differences
474
19,577
20,051
Additions
114
368,336
368,450
Disposals
—
(67,258)
(67,258)
Depreciation charge
(1,575)
(257,376)
(258,951)
Impairment loss
—
(4,298)
(4,298)
Transfer from right-of-
use
—
9,369
9,369
Transfer to inventory
—
(6,784)
(6,784)
Assets classified as held
for sale
—
(18,663)
(18,663)
Closing net book
amount
23,548
944,688
968,236
At 30 June 2023
Cost or fair value
28,512
2,102,825
2,131,337
Accumulated
depreciation
(4,964)
(1,158,137) (1,163,101)
Net book amount
23,548
944,688
968,236
Recognition and measurement
Land and buildings are recognised at fair value. Plant and
equipment are stated at historical cost less depreciation
and impairment. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can
be measured reliably. All other repairs and maintenance are
charged to profit or loss during the reporting period in which
they are incurred.
108
Perenti Annual Report 2024
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains or losses
are included in profit or loss. When revalued assets are sold,
it is Group policy to transfer any amounts included in other
reserves in respect of those assets to retained earnings.
Maintenance, repair costs and minor renewals are charged as
expenses as incurred. Significant costs incurred in overhauling
plant and equipment are capitalised and depreciated over the
remaining useful life of the asset or the component.
Depreciation on major plant and equipment and components
is calculated on machine hours worked over their estimated
useful life. Depreciation on other assets is calculated using
the straight-line method to allocate their cost or revalued
amounts, net of their residual values, over their estimated
useful lives, as follows:
• Buildings: 5-25 years
• Plant and equipment: 2-15 years
Assets held for sale
At 30 June 2024, the Group recorded $9,457,000 (2023:
$18,663,000) of its idle fleet in its 100% owned subsidiary,
African Mining Services Ghana Ltd (AMS Ghana) as held for
sale. There are several parties interested in the property,
plant and equipment held for sale at 30 June 2024 and the
sale is expected to be completed in the financial year ending
30 June 2025.
Significant judgements and estimates
Key estimate: Property, plant and equipment
The estimates of useful lives, residual value and depreciation
methods require management judgement and are reviewed
annually. If they need to be modified, the change is
accounted for prospectively from the date of reassessment
until the end of the revised useful life (for both current and
future years). Such revisions are generally required when
there are changes in economic circumstances impacting
specific assets or groups of assets, such as changes to
contract length or when an asset changes from idle to non-
idle. These changes are limited to specific assets and as such,
any reasonably possible change in the estimate is unlikely
to have a material impact on the estimations of useful lives,
residual value or amortisation methods.
Key estimate: Fair values of land and buildings
Fair Value Hierarchy
This note explains the judgements and estimates made in
determining the fair values of the land and buildings that
are recognised and measured at fair value in the financial
statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Group
has classified its non-financial assets into three levels as
prescribed under the accounting standards. Land and
Buildings are all classified as level 3 fair value measurements
and there were no transfers between any levels for recurring
fair value measurements during the current or prior period.
Valuation techniques used to determine level 3 fair values
The Group obtains independent valuations for its freehold
land and buildings at least every three years.
At the end of each reporting period, the directors update
their assessment of the fair value of each property, taking
into account the most recent independent valuations. The
directors determine a property’s value within a range of
reasonable fair value estimates.
The best evidence of fair value is current prices in an active
market for similar properties. Where such information is not
available, the directors consider information from a variety of
sources including:
• capitalised income projections based on a property’s
estimated net market income, and a capitalisation rate
derived from an analysis of market evidence.
• current prices in an active market for properties of a
different nature or recent prices of similar properties in less
active markets, adjusted to reflect those differences.
Valuation processes
The Group engages external, independent and qualified
valuers to determine the fair value of the Group’s land and
buildings every three years. The fair values of the industrial
sites properties have been determined by members of the
Australian Property Institute and the Ghana Institute of
Surveyors for the year ended 30 June 2024.
The main level 3 inputs used by the Group are derived and
evaluated as follows:
• Industrial sites - discount rates, terminal yields, expected
vacancy rates and values per square metre are estimated
by members of the Australian Property Institute, and
the Ghana Institute of Surveyors based on comparable
transactions and industry data;
• Historical cost for recently completed buildings.
Fair value measurements using significant
unobservable inputs (level 3)
The following table presents the changes in level 3 items
for the periods ended 30 June 2024 and 30 June 2023 for
recurring fair value measurements:
Land and
buildings
$'000
Year ended 30 June 2024
Balance at 1 July 2023
23,548
Acquisitions
986
Revaluation
16,576
Depreciation
(1,588)
Transfer between classes
(763)
Gain/(loss) recognised in other
comprehensive income
(21)
Closing balance at
30 June 2024
38,738
Year ended 30 June 2023
Balance at 1 July 2022
24,535
Acquisitions
114
Depreciation
(1,575)
Gain/(loss) recognised in other
comprehensive income
474
Closing balance at
30 June 2023
23,548
109
Perenti Annual Report 2024
Notes to the consolidated financial statements
Valuation inputs and relationships to fair value
The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value
measurements.
Description
Fair value at
Valuation
Technique
Unobservable
inputs*
Range of inputs
(probability-weighted
average)
Relationship of
unobservable inputs to
fair value
30 June
2024
$'000
30 June
2023
$'000
2024
2023
Industrial Sites
-Australia
14,103
12,062
Direct
comparison
Selection of
industrial sites
with similar
approximate utility
$15-$731
per m2
($297)
$5-$632
per m2
($340)
The higher the rate per
square metre, the higher
the fair value
Industrial Sites
-Ghana
9,820
8,050
Direct
comparison
Selection of
industrial sites
with similar
approximate utility
$314-$925
per m2
($524)
$213-$653
per m2
($395)
The higher the rate per
square metre, the higher
the fair value
Office
Buildings
-Ghana
14,815
3,437
Direct
comparison
Selection of
industrial sites
with similar
approximate utility
$3,562
per m2
$857
per m2
($857)
The higher the rate per
square metre, the higher
the fair value
*There were no significant inter-relationships between unobservable inputs that materially affect fair values.
Carrying amounts that would have been recognised
if land and buildings were stated at cost
If land and buildings were stated on the historical costs basis,
the amounts would be as follows:
24
23
$'000
$'000
Land and buildings
Cost
42,970
42,034
Accumulated Depreciation
(23,011)
(21,826)
Net book amount
19,959
20,208
Increases in the carrying amounts arising on revaluation
of land and buildings are credited, net of tax, in other
comprehensive income and accumulated in reserves in
shareholders’ equity. To the extent that the increase reverses
a decrease previously recognised in profit or loss, the increase
is first recognised in profit or loss. Decreases that reverse
previous increases of the same asset are first recognised in
other comprehensive income to the extent of the remaining
surplus attributable to the asset; all other decreases are
charged to profit or loss.
The difference between the asset’s original cost and the
revalued carrying amount net of tax is reclassified from the
property, plant and equipment revaluation surplus to retained
earnings when the asset is derecognised.
Key Estimate: Impairment of Property, Plant and Equipment
For the year ended 30 June 2024, the Group assessed
whether there were any indicators of impairment. The
Company's market capitalisation at 30 June 2024 was
below its net assets and management considered this factor
amongst other impairment indicators at 30 June 2024.
Indicators of impairment can exist at an individual asset level
due to factors such as technical obsolescence, declining
market value, physical condition or saleability within a
reasonable time frame. Other indicators of impairment can
exist where there is a deterioration of financial performance
of Cash Generating Units (CGUs) against their respective
budgets and forecasts or as a result of changes to
macroeconomic conditions. Where indicators of impairment
exist, the recoverable amount was determined by calculating
the higher of Fair Value less Cost of Disposal (FVLCD) and
Value in Use (VIU).
Summary of impairment assessment
The following table summarises the outcomes from
impairment testing conducted across the Company’s
material CGUs.
Group of
CGU's
Indicator for
impairment
testing
Valuation
method used
Impairment
expense/
(reversal)
of PPE and
Inventory
30 Jun
24
30 Jun
23
30 Jun
24
30 Jun
23
30 Jun
24
30 Jun
23
Contract
Mining -
Surface
(Africa)
Y
Y
FVLCD FVLCD
-
4,728
Contract
Mining -
Underground
(Australasia
/ Africa
and North
America)
Y
Y
VIU
VIU
-
-
Drilling
Services -
Ausdrill*
Y
Y
FVLCD FVLCD
-
-
Drilling
Services -
DDH1 Group**
Y
-
FVLCD
-
-
-
BTP Group
Y
Y
FVLCD FVLCD
-
-
* Previously referred to as Contract Mining - Surface
(Australia) CGU.
** The DDH1 Group consists of DDH1, Swick, Strike and
Ranger brands which are now integrated into Perenti Group.
Each of these brands are a separate CGU and is tested for
impairment separately. As part of the work performed to
recognise DDH1 at fair value on the date of acquisition,
management obtained external valuations. Given the
transaction was completed within 12 months from 30 June
2024, the valuations are considered current and used to
support DDH1’s carrying values. Refer to Note 20 for further
details.
110
Perenti Annual Report 2024
Fair value less costs of disposal
At 30 June 2024, the Group obtained independent valuation
of the non-current assets within the Contract Mining -
Surface (Africa), Drilling Services - Ausdrill and BTP Group
CGUs to assess whether impairments or reversal of previous
impairments were required.
Assets acquired during the year as part of the DDH1 business
combination were recognised at fair value. Refer to note 20
for further detail. As the individual FVLCD are higher than
their carrying amounts, no further impairment test was
performed at the CGU levels.
During the year ended 30 June 2023, the Group decided to
sell the property, plant, equipment and inventory in its 100%
owned subsidiary Power Solutions Africa Sarl (PSA) for total
consideration of $6.2 million (USD$4.5million). The difference
between the consideration and asset carrying values resulted
in an impairment to property, plant and equipment and
inventory of $4.7 million.
10 Goodwill and intangibles
Goodwill
Software
Customer
related
intangibles
Development
assets
Total
$'000
$'000
$'000
$’000
$'000
Year ended 30 June 2024
Opening net book amount
457,300
29,887
138,896
—
626,083
Acquisition of subsidiary
—
—
30,647
6,494
37,141
Additions
—
5,415
—
1,018
6,433
Exchange differences
—
5
—
—
5
Amortisation expense
—
(4,778)
(47,433)
(373)
(52,583)
Closing net book amount
457,300
30,529
122,110
7,139
617,078
At 30 June 2024
Cost
457,300
52,029
352,105
7,512
868,946
Accumulated amortisation and impairment
—
(21,500)
(229,995)
(373)
(251,867)
Net book amount
457,300
30,529
122,110
7,139
617,078
Year ended 30 June 2023
Opening net book amount
457,300
26,870
168,037
—
652,207
Additions
—
7,946
—
—
7,946
Disposals
—
(145)
—
—
(145)
Exchange differences
—
73
—
—
73
Amortisation expense
—
(4,857)
(29,141)
—
(33,998)
Closing net book amount
457,300
29,887
138,896
—
626,083
At 30 June 2023
Cost
457,300
46,805
321,458
—
825,563
Accumulated amortisation and impairment
—
(16,918)
(182,562)
—
(199,480)
Net book amount
457,300
29,887
138,896
—
626,083
Value in use
In determining the Contract Mining - Underground CGU’s
recoverable amount using VIU, estimates are made regarding
the present value of future cash flows. These estimates are
calculated using management judgement, contain elements
of risk and uncertainty, can be impacted by changes in
economic conditions, and changes to the discount rates used
to calculate the present value of future cash flows.
For the year ended 30 June 2024, no impairment or reversal
was recorded against Contract Mining - Underground.
Refer to note 10 for key assumptions used.
111
Perenti Annual Report 2024
Notes to the consolidated financial statements
• EBITDA margins were based upon historical averages
adjusted for prevailing economic or commercial
conditions. These have not been disclosed as they are
considered to be commercially sensitive.
• The weighted average cost of capital pre-tax discount
rates were in the range of 11.8% and 19.7% (2023: 12.6%
and 23.7%) and varied depending on the country risk
assigned to the region in which a project was domiciled.
The present value of cash flows is sensitive to the growth
and discount rates used noting a higher discount rate will
result in a lower recoverable value.
• A foreign exchange rate of $0.6682 US$:AUD spot rate was
used to translate the US Dollar denominated CGU’s into
Australian Dollars.
Management have considered various reasonably possible
VIU sensitivities for the Underground Mining CGU at 30 June
2024, when testing goodwill for impairment. The table below
shows the impairment impact of adjusting these sensitivity
assumptions.
Assumption
%
Change
Contract Mining
- Underground
Impairment (A$)
Growth rate in terminal year
+1.0%
No impact
(decrease reduces value)
-1.0%
No impact
Discount rate
-1.0%
No impact
(decrease increases value)
+1.0%
No impact
Foreign exchange rate
-5cents
No impact
(decrease increases value)
+5cents
No impact
Average EBITDA margin
+1.0%
No impact
(decrease reduces value)
-1.0%
No impact
The above sensitivities have been performed holding all other
assumptions in the model constant.
11 Leases
The Group leases various offices, warehouses, equipment and
vehicles across various countries. Rental contracts are made
for fixed periods of up to 15 years, but may have extension
options as described below.
24
23
$'000
$'000
Right-of-use assets
Properties
39,046
34,908
Equipment
2,954
10,104
Motor vehicles
614
604
42,614
45,616
Lease liabilities
Current
13,647
16,538
Non-current
34,071
32,745
47,718
49,283
The total cash outflow for leases (including interest) in 2024
was $20,214,000 (2023: $30,933,000).
Recognition and measurement
Goodwill
Goodwill acquired in a business combination is initially
recognised at cost and subsequently measured at cost
less accumulated impairment losses. Goodwill is tested for
impairment annually, or more frequently if events or changes
in circumstances indicate that it might be impaired.
Customer related intangibles
Customer related intangibles acquired in a business
combination are recognised at fair value at the acquisition
date. They have a finite useful life and are subsequently
carried at cost less accumulated amortisation and impairment
losses.
Key Estimate: Estimate of useful lives
The Group amortises intangible assets with a limited useful
life using the straight-line method over the following periods:
• Software: 5-8 years
• Customer related intangibles: 2-12 years
• Development assets: 10 years
Key Estimate: Impairment
An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value
less costs to sell and value-in-use. For the purposes of
assessing for impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows
which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units).
Goodwill is allocated to cash-generating units for the
purpose of impairment testing. The allocation is made to
those cash-generating units or groups of cash-generating
units that are expected to benefit from the business
combination in which the goodwill arose, identified according
to operating segments. Intangibles (other than goodwill) that
suffered an impairment, are reviewed for possible reversal of
the impairment at each reporting period.
The Group tested goodwill for impairment at 30 June 2024
and no impairment was recorded. Goodwill of $449.8 million
was recognised for the Contract Mining - Underground
group of CGUs following the Barminco acquisition in 2019
and $7.5 million on the idoba group of companies that were
progressively acquired during the financial years ended
30 June 2021 and 30 June 2022.
At 30 June 2024, the recoverable amount of the idoba assets
have been determined based upon fair value less cost of
disposal, with reference to the purchase price of the acquired
interest by Sumitomo. There are no indicators to suggest
that the fair value of the acquired companies has significantly
changed.
Value-in-use calculations were performed to test for goodwill
impairment. In determining the CGU recoverable amounts,
estimates are made regarding the present value of future cash
flows.
The basis of the estimates and key assumptions used to
determine recoverable amounts and test for goodwill
impairment in relation to the Underground CGU at 30 June
2024 are set out below:
• Cash flow projections were based upon individual
committed and uncommitted project forecasts for the
prospective five year period.
• Cash flow projections beyond the five-year period were
extrapolated using a growth rate of 2.5% (2023: 2.5%).
112
Perenti Annual Report 2024
Non cash investing and financing
Additions to the right-of-use assets (excluding DDH1) during
the 2024 financial year were $2,734,000 (2023: $21,626,000).
During the period, additions due to acquisition of DDH1 were
$12,246,000.
Amounts recognised in the consolidated statement of profit
or loss relating to leases
24
23
$'000
$'000
Depreciation
17,507
24,695
Interest expense
3,983
3,279
Short-term/low-value lease
expense
34,667
26,790
Variable lease payments expense
24,880
28,839
Recognition and measurement
The Group assesses at contract inception whether a contract
is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period of
time in exchange for consideration.
Right-of-use assets
Right-of use assets are measured at cost, less any
accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The
initial cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, any
restoration costs and lease payments made at or before the
commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful
lives of the assets. The estimated useful lives of the right-
of-use land and building assets are between one and 15
years and right-of-use equipment and vehicles are between
one and 5 years. The right-of‑use assets are also subject
to impairment, assessed in accordance with the Group’s
impairment policy.
Lease liabilities
Lease liabilities are measured at the present value of lease
payments to be made over the lease term. The lease
payments include fixed payments (including in-substance
fixed payments) less any lease incentives receivable, variable
lease payments that depend on an index or rate, and amounts
expected to be paid under residual value guarantees. The
lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group.
In calculating the present value of lease payments, the
Group uses its incremental borrowing rate (IBR) at the lease
commencement date where the interest rate implicit in the
lease is not readily determinable.
Payments associated with short-term leases of equipment
and vehicles and all leases of low-value assets are recognised
on a straight-line basis as an expense in profit or loss. Short-
term leases are leases with a lease term of 12 months or less.
Low-value leases are leases with total lease payments less
than $7,500 (US$5,000).
Variable lease payments
Some equipment leases contain variable payment terms that
are linked to units of use of the particular asset. Often these
will include a minimum usage charge each month which is
considered the fixed element, and then items over and above
the minimum are considered the variable element. Variable
lease payments that depend on units of use are recognised in
profit or loss in the period in which the condition that triggers
those payments occurs.
Extension and termination options are included in a number
of property and equipment leases across the Group. These
are used to maximise operational flexibility in terms of
managing the assets used in the Group’s operations. The
majority of extension and termination options held are
exercisable only by the Group and not by the respective
lessor.
Significant judgements and estimates
Critical judgements in determining lease term
In determining the lease term, management considers all
facts and circumstances that create an economic incentive
to exercise an extension option, or not exercise a termination
option. Extension options (or periods after termination
options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated).
For leases of warehouses, offices and equipment, the
following factors are normally the most relevant:
As at 30 June 2024, potential future cash outflows of
$10,051,214 (undiscounted) (2023: $11,238,000) have not
been included in the lease liability because it is not reasonably
certain that the leases will be extended (or not be terminated).
The lease term is reassessed if an option is actually exercised
(or not exercised) or the Group becomes obliged to exercise
(or not exercise) it. The assessment of reasonable certainty
is only revised if a significant event or a significant change
in circumstances occurs, which affects this assessment, and
that is within the control of the lessee. During the current
financial year, the financial effect of revising lease terms to
reflect exercising extension and termination options was an
increase to recognised lease liabilities and right-of-use assets
of $1,489,000 (2023: decrease of $13,931,000).
12 Trade and other creditors
24
23
$'000
$'000
Trade payables
238,274
216,033
Accrued expenses
92,635
133,346
Payroll accruals
70,671
51,640
Net GST / VAT payables
15,163
5,575
Contract liabilities
1,110
2,216
Accrued bond interest
11,587
9,826
Other creditors and accruals
3,447
2,749
432,887
421,385
Recognition and measurement
These amounts represent liabilities for goods and services
provided to the Group prior to the end of financial year
which are unpaid, except contract liabilities. The amounts
are unsecured and are usually paid within 45 to 60 days of
recognition.
Trade and other payables are presented as current liabilities
unless payment is not due within 12 months from the
reporting date. They are recognised initially at their fair value
and subsequently measured at amortised cost using the
effective interest method. The carrying amounts of trade and
other payables are considered to be the same as their fair
values, due to their short-term nature.
113
Perenti Annual Report 2024
Notes to the consolidated financial statements
13 Employee benefit
obligations
Current
Non-current
Total
$'000
$'000
$'000
24
107,371
11,688
119,059
23
79,306
6,136
85,442
The current leave obligations include all of the accrued
annual leave, the unconditional entitlements to long service
leave where employees have completed the required period
of service and employee entitlements to pro-rata payments
where applicable. The total amount of the current provision
of $107,371,000 (2023: $79,306,000) is presented as current,
since the Group does not have an unconditional right to defer
settlement for any of these obligations. However, based on
past experience, the Group does not expect all employees
to take the full amount of accrued leave or require payment
within the next 12 months.
The following amounts reflect leave that is not expected to be
taken or paid within the next 12 months.
24
23
$'000
$'000
Current leave obligations expected
to be settled after 12 months
44,844
28,638
Recognition and measurement
Short-term obligations
Liabilities for wages and salaries, including non-monetary
benefits and accumulating sick leave that are expected to
be settled wholly within 12 months after the end of the
period in which the employees render the related service
are recognised in respect of employees’ services up to
the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current employee benefit
obligations in the balance sheet.
Other long-term employee benefit obligations
The liabilities for long service leave and annual leave are not
expected to be settled wholly within 12 months after the
end of the period in which the employees render the related
service. They are therefore measured as the present value of
expected future payments to be made in respect of services
provided by employees up to the end of the reporting period
using the projected unit credit method. Consideration is
given to expected future wage and salary levels, experience
of employee departures and period of service. Expected
future payments are discounted using market yields at the
end of the reporting period of high quality corporate bonds
with terms and currencies that match, as closely as possible,
the estimated future cash outflows. Remeasurements as a
result of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the
reporting date, regardless of when the actual settlement is
expected to occur.
Share-based payments
Equity settled share-based compensation benefits are
provided to employees via the Perenti Limited Incentive
Rights Plan. Information relating to this scheme is set out
in note 28.
114
Perenti Annual Report 2024
Capital management
14 Net debt
This section sets out an analysis of net debt and the
movements in net debt.
24
23
$’000
$’000
Cash and cash equivalents
459,136
307,360
Borrowings/lease liabilities -
repayable within one year
(17,115)
(19,739)
Borrowings/lease liabilities -
repayable after one year
(911,489)
(786,623)
Net debt
(469,468)
(499,002)
Cash and cash equivalents
459,136
307,360
Gross debt
(928,604)
(806,362)
Net debt
(469,468)
(499,002)
Gross debt is comprised of current and non-current
borrowings and lease liabilities.
Cash
$'000
Lease
Liabilities
$'000
Borrowings
$'000
Total
$'000
Net debt as
at 1 July
2023
307,360
(49,283)
(757,079)
(499,002)
Cash flows
157,914
20,214
(128,466)
49,662
Foreign
exchange
adjustments
(6,138)
12
10,463
4,337
Other
non cash
movements
—
(18,661)
(5,804)
(24,465)
Net debt
at 30 June
2024
459,136
(47,718)
(880,886)
(469,468)
Credit ratings
The Group currently has a credit rating of Ba2 (Outlook
Positive) from Moody’s, a credit rating of BB (Outlook Positive)
from Standard & Poor’s and a credit rating of BB+ (Outlook
Stable) from Fitch. Where a credit rating is reduced or placed
on negative watch, customers and suppliers may be less
willing to contract with the Group. Banks and other lending
institutions may demand more stringent terms (including
increased pricing) on debt facilities to reflect the higher credit
risk profile.
15 Interest-bearing loans and
borrowings
30 June 2024
Current
Non-
current
Total
24
$'000
$'000
$'000
Secured
Bank loans
—
70,000
70,000
Other loans
2,271
—
2,271
Capitalised borrowing
costs
—
(2,818)
(2,818)
Total secured
borrowings
2,271
67,182
69,453
Unsecured
USD notes
—
827,316
827,316
Loan from non-
controlling interest
1,197
—
1,197
Capitalised borrowing
costs
—
(17,080)
(17,080)
Total unsecured
borrowings
1,197
810,236
811,433
Total borrowings
3,468
877,418
880,886
30 June 2023
Current
Non-
current
Total
23
$'000
$'000
$'000
Secured
Bank loans
—
113,000
113,000
Other loans
2,000
2,092
4,092
Capitalised borrowing
costs
—
(3,410)
(3,410)
Total secured
borrowings
2,000
111,682
113,682
Unsecured
USD notes
—
649,718
649,718
Loan from non-
controlling interest
1,201
—
1,201
Capitalised borrowing
costs
—
(7,522)
(7,522)
Total unsecured
borrowings
1,201
642,196
643,397
Total borrowings
3,201
753,878
757,079
Fair value
24
23
$’000
$’000
USD notes
838,485
633,410
Overview
Risk management
The Group’s capital management objectives are to ensure
there is adequate funding to meet operation requirements,
strategic objectives and to provide returns to shareholders
through cost effective and efficient capital structuring.
The Group manages its capital needs through a combination
of equity and debt funding arrangements. The Group uses
a number of different measures to monitor capital including
net gearing ratio, net leverage ratio and net debt. Capital is
defined as the combination of shareholders’ equity, reserves
and net debt (inclusive of lease liabilities).
115
Perenti Annual Report 2024
Notes to the consolidated financial statements
Recognition and measurement
Cash
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities in the statement
of financial position.
Borrowings
All borrowings are initially recognised at fair value less
transaction costs. Borrowings are subsequently carried
at amortised cost. Any difference between the proceeds
received and the redemption amount is recognised in the
income statement over the period of the borrowings using
the effective interest method. Borrowings are classified as
current liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months after
the reporting period.
Bank loans
In February 2024, Perenti increased its syndicated debt
facility from $420 million to $445 million. The facility which
comprised of a number of tranches were also extended to
July 2026 and July 2027. As at 30 June 2024, 18% of the
A$445 million facility was drawn down inclusive of bank
guarantees.
Other loans
Other loans include asset financing arrangements with
various financiers which are secured by the specific
assets financed.
USD notes
On 7 October 2020 Perenti issued a 6.50% US144A/RegS
Guaranteed Senior Notes due for repayment 7 October 2025
with a US$450 million principal amount. The interest on the
notes is payable semi-annually on 7 April and 7 October.
In October 2022 and May 2024 Perenti repurchased
US$17.1 million and redeemed US$230.0 million of the notes,
respectively. As at 30 June 2024, the balance of the notes
is US$202.9 million.
On 26 April 2024 Perenti issued a 7.50% US144A/RegS
Guaranteed Senior Notes due for repayment 26 April 2029
with a US$350 million principal amount. The interest on the
notes is payable semi-annually on 26 April and 26 October.
Both notes were issued by Perenti Finance Pty Ltd and are
unsecured and have been guaranteed by Perenti Limited and
its subsidiaries. The notes are quoted on the Singapore Stock
Exchange.
Loan from non-controlling interest
The loan is from the joint venture partner to AMAX Limited, a
joint venture where Perenti has a 60% participating interest.
Covenants on financing facilities
The Group’s financing facilities contain undertakings
including an obligation to comply with certain financial
covenants. All banking covenants have been complied with
at reporting date and the Group has significant headroom
available under all covenants.
Refinancing requirements
Where existing facilities approach maturity, the Group
will seek to renegotiate with existing and new financiers
to replace or extend the maturity date of those facilities.
The Group’s earnings profile, credit rating, state of the
economy, conditions in financial markets and other factors
may influence the outcome of those negotiations.
Fair value
For the majority of the borrowings, the fair values were not
materially different to their carrying amounts, since the
interest payable on those borrowings is either close to current
market rates or the borrowings are of a short-term nature.
Material differences are identified only for the USD notes
where the fair values are based on market price (Level 1) at
the balance sheet date.
16 Assets pledged as security
The carrying amounts of assets pledged as security for
current and non-current borrowings are:
24
23
$'000
$'000
Current
Floating charge
Cash and cash equivalents
330,341
219,358
Receivables
445,373
395,037
Inventories
218,525
170,823
Assets held for sale
9,457
18,663
Total current assets pledged
as security
1,003,696
803,881
Non-current
Floating charge
Plant and equipment
1,001,485
754,814
Land and buildings
38,599
23,403
Receivables
207,931
158,036
Investments
436,111
95,192
Total non-current assets
pledged as security
1,684,126
1,031,445
Total assets pledged
2,687,822
1,835,326
116
Perenti Annual Report 2024
17 Equity and reserves
Contributed equity
30 JUNE
30 JUNE
30 JUNE
30 JUNE
24
23
24
23
Shares
Shares
$'000
$'000
Fully paid
ordinary
shares
932,759,745
682,172,308
1,374,352
1,118,448
Movements in ordinary share capital:
Number
Total
Details
of shares
$'000
Opening balance 1 July 2023
682,172,308
1,118,448
Share issue on conversion of
employee share rights
7,683,242
7,679
Buy-back of ordinary shares,
gross of transaction costs and
net of tax
(31,624,999)
(31,480)
Consideration paid for
acquisition of business
279,704,558
279,705
Balance at 30 June 2024
937,935,109
1,374,352
Less treasury shares
Opening balance 1 July 2023
—
—
Consideration paid for
acquisition of business
(6,966,462)
—
Conversion to Ordinary Shares
1,791,098
—
Closing balance at
30 June 2024
(5,175,364)
—
Balance at 30 June 2024
932,759,745
1,374,352
Recognition and measurement
Ordinary shares
Ordinary shares are classified as equity and entitle the holder
to participate in dividends and the proceeds on winding up of
the Company in proportion to the number of and amounts
paid on the shares held.
On a show of hands every holder of ordinary shares present
at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not
have a limited amount of authorised capital.
Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from
the proceeds. Incremental costs directly attributable to the
issue of new shares for the acquisition of a business are not
included in the cost of the acquisition as part of the purchase
consideration.
Treasury shares
As part of the DDH1 acquisition, DDH1 treasury shares were
converted to Perenti treasury shares in line with the Scheme
Implementation Agreement. Treasury shares participate in
dividends and the proceeds on winding up of the Group in
proportion to the total number of shares held. There are no
externally imposed capital requirements. At any meeting of
shareholders, each treasury share is entitled to one vote.
Dividend reinvestment plan
The Company’s Dividend Reinvestment Plan is currently
suspended until further notice.
Rights
Information relating to the Company Incentive Rights Plan is
included in note 28.
Share buy-back
For the year ended 30 June 2024, the Company completed
an on-market buy-back of 31.6 million shares for
consideration of $31.5 million gross of transaction costs. At
30 June 2024, $29.8 million had been paid in cash and the
remaining amount payable is recorded in trade and other
creditors. All shares bought back were cancelled.
Other reserves
Nature and purpose of other reserves
Revaluation surplus - property, plant and equipment
The property, plant and equipment revaluation surplus is used
to record increments and decrements from the revaluation
of non-current assets. In the event of a sale of an asset, any
balance in the reserve related to the asset is transferred to
retained earnings.
Financial assets at FVOCI
The Group has elected to recognise changes to the fair value
of certain equity security investments in OCI. These changes
are accumulated within the FVOCI reserve. The group
transfers amounts from this reserve to retained earnings
when the relevant equity securities are derecognised.
Transactions with non-controlling interests (NCI)
This reserve is used to record the differences described in
note 21 which may arise as a result of transactions with non-
controlling interests that do not result in a loss of control.
Share-based payments reserve
The share-based payments reserve is used to recognise the
fair value of options and rights issued to employees that are
expensed in the statement of comprehensive income each
year on conversion of options/rights.
Foreign currency translation
Exchange differences arising on translation of the foreign
controlled entities are recognised in other comprehensive
income and accumulated in a separate reserve within equity.
The cumulative amount is reclassified to profit or loss when
the net investment is disposed of.
The Group’s share of exchange differences arising on
translation of foreign joint ventures are recognised in other
comprehensive income and are accumulated in this reserve.
117
Perenti Annual Report 2024
Notes to the consolidated financial statements
Movements in Reserves:
Notes
Revaluation
surplus
$'000
Financial
assets at
FVOCI
$'000
Share-
based
payments
$'000
Transactions
with NCI
$'000
Foreign
currency
translation
$'000
Total
$'000
Balance at 01 July 2023
12,507
—
24,196
3,567
(75,991)
(35,721)
Revaluation - gross
16,321
(399)
—
—
—
15,922
Asset revaluation reserve
gain taken to retained
earnings on sale of asset
(40)
—
—
—
—
(40)
Deferred tax
(4,140)
120
916
—
—
(3,104)
Transfer to non-controlling
interest reserve
—
—
—
399
—
399
Currency translation
differences
—
—
—
—
4,078
4,078
Other comprehensive
income
12,141
(279)
916
399
4,078
17,255
Transactions with owners in
their capacity as owners
—
—
—
—
—
—
Share-based payments
expense
28
—
—
8,432
—
—
8,432
Shares issued on conversion
of employee share rights
—
—
(7,679)
—
—
(7,679)
At 30 June 2024
24,648
(279)
25,865
3,966
(71,913)
(17,713)
Notes
Revaluation
surplus
$'000
Financial
assets at
FVOCI
$'000
Share-
based
payments
$'000
Transactions
with NCI
$'000
Foreign
currency
translation
$'000
Total
$'000
Balance at 01 July 2022
12,507
—
13,870
(2,664)
(79,740)
(56,027)
Transfer to non-controlling
interest reserve
—
—
—
6,231
—
6,231
Currency translation
differences
—
—
—
—
3,749
3,749
Other comprehensive
income
—
—
—
6,231
3,749
9,980
Transactions with owners in
their capacity as owners
—
—
—
—
—
—
Share-based payments
expense
28
—
—
12,486
—
—
12,486
Shares issued on conversion
of employee share rights
—
—
(2,160)
—
—
(2,160)
At 30 June 2023
12,507
—
24,196
3,567
(75,991)
(35,721)
118
Perenti Annual Report 2024
18 Dividends and distributions
Dividends
Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but
not distributed at the end of the reporting period.
24
23
$'000
$'000
No final dividends were
determined for the year ended
30 June 2023 (2023: No final
dividends were determined for the
year ended 30 June 2022)
—
—
Fully franked interim dividends
of 2.0 cents per fully paid share
for the year ended 30 June 2024
(2023: No interim dividends were
determined for the year ended
30 June 2023)
19,112
—
Total dividends provided for
or paid
19,112
—
Dividends not recognised at the end of the reporting period
In addition to the above dividends,
since year end the directors
determined a final partially franked
dividend of 4.0 cents per fully
paid ordinary share (2023: No final
dividends were determined for the
year ended 30 June 2023)
37,517
—
Conduit Foreign Income
Conduit Foreign Income (CFI)
amounts for subsequent reporting
periods
612,233
569,594
These balances are taken from the CFI register and are
available to pay dividends. The CFI register is adjusted for
foreign income received, withholding tax incurred and
dividends paid. Unlike franked dividends no tax credit
accompanies a dividend paid out of a CFI balance.
119
Notes to the consolidated financial statements
Financial Report 2024
19 Financial risk management
This note explains the Group’s exposure to financial risks
and how these risks could affect the Group’s future financial
performance. Current year profit and loss information has
been included where relevant to add further context.
The Group’s management report to the Audit and Risk
Committee and Board regularly on the progress and
objectives of the risks and the associated corporate
governance policy objectives.
The Group’s financial risk management is carried out in
accordance with the Audit and Risk Committee endorsed
Group Treasury Standard. The Group Treasury function
identifies, evaluates and hedges financial risks in close co-
operation with the Group’s operating divisions. The Treasury
Standard covers specific financial risk areas including foreign
exchange risk, interest rate risk, credit risk, liquidity risk, use
of derivative financial instruments and investment of excess
liquidity amongst other things.
Market risk
In respect of other monetary assets and liabilities held in
currencies other than AUD, the Group ensures that the net
exposure is kept to an acceptable level by matching foreign
denominated financial assets with matching financial liabilities
and vice versa.
Foreign exchange risk
The Group’s exposure to material foreign currency risk at the
end of the reporting period, expressed in Australian dollars,
was as follows:
30 June 2024
USD
GHS
GBP
EUR
INR
TZS
BWP
XOF
CAD
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Cash
37,533
8,405
55
5,751
—
2,171
2,299
—
—
Trade and other
receivables
29,201
—
—
5,688
—
—
—
12,868
—
Other non-current
receivables
431
9,160
4,955
—
—
—
—
—
19,699
Trade and other
payables
(32,450)
(11,208)
(439)
(6,135)
—
(82)
(2,209)
(6,603)
(7)
Borrowings
(6,409)
—
—
—
—
—
—
—
—
30 June 2023
USD
GHS
GBP
EUR
INR
TZS
BWP
XOF
CAD
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Cash
9,383
1,203
—
197
297
2,017
215
—
4
Trade and other
receivables
24,236
—
20
5,395
—
—
—
10,612
—
Other non-current
receivables
4,728
18,718
3,461
—
—
1,916
—
—
15,862
Trade and other
payables
(29,200)
(9,021)
(936)
(9,647)
—
(394)
(2,835)
(2,516)
—
Borrowings
(1,640)
—
—
—
—
—
—
—
—
Risk
120
Perenti Annual Report 2024
Sensitivity analysis
The sensitivity analysis below shows the impact that a
reasonably possible change in foreign exchange rates over
a financial year would have on profit after tax, based solely
on the Group’s foreign exchange risk exposures existing at
the balance sheet date. A 10 percent strengthening of the
Australian dollar against the following currencies at 30 June
would have impacted pre-tax profit or loss by the amounts
shown below. This analysis assumes that all other variables,
in particular interest rates, remain constant. The analysis is
performed on the same basis for 2023.
The impact on profit is estimated by applying the hypothetical
changes in the foreign currency rates to the balance of the
financial instruments at the reporting date.
Profit or (loss)
24
23
$'000
$'000
USD
(2,573)
(682)
CAD
(1,790)
(1,442)
GHS
(578)
(991)
XOF
(570)
(736)
EUR
(482)
369
GBP
(416)
(231)
TZS
(190)
(322)
BWP
(8)
238
EGP
1
(3)
ZAR
25
8
INR
—
(27)
(6,581)
(3,819)
A 10 percent weakening of the Australian dollar against the
above currencies at 30 June would have approximately equal
but opposite effect on the above currencies to the amounts
shown above, on the basis that all other variables remain
constant. The Group’s exposure to other foreign exchange
movements is not material.
Interest rate risk
The Group’s main interest rate risk arises from borrowings
with variable rates, which expose the group to cash flow
interest rate risk. Group policy is to review on a continuous
basis. During 2024 and 2023, the Group’s borrowings at
variable rates were mainly denominated in Australian and
US dollars.
Credit risk
Risk management
Credit risk is managed on a divisional and group basis. Credit
risk is the risk of financial loss to the Group if a customer or
counterparty to a financial asset fails to meet its contractual
obligations, and arises principally from the Group’s receivables
from customers and investment securities. Credit risk also
arises from cash and cash equivalents. The Group limits its
exposure to credit risk from cash and cash equivalents by
only investing in counterparties that have an acceptable
credit rating. Refer note 7 for credit risk assessment on trade
receivables.
Liquidity risk
Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities, the availability of
funding through an adequate amount of committed credit
facilities and the ability to close out market positions. The
Group manages liquidity risk by continuously monitoring
forecasts and actual cash flows, matching maturity profiles of
financial assets and liabilities and credit lines through a variety
of counterparties.
Maturities of financial liabilities
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on the remaining period
at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted
cash flows.
Contractual maturities of financial
liabilities
Less than 1
year
Between 1
and 2 years
Between 2
and 5 years
Over 5
years
Total
contractual
cash flows
Carrying
amount
liabilities
Group - at 30 June 2024
$'000
$'000
$'000
$'000
$'000
$'000
Trade payables
432,887
—
—
—
432,887
432,887
Lease liabilities
17,096
12,491
23,288
4,029
56,904
47,718
Borrowings
73,093
363,445
722,340
—
1,158,878
880,886
Total
523,076
375,936
745,628
4,029
1,648,669
1,361,491
Group - at 30 June 2023
Trade payables
421,383
—
—
—
421,383
421,383
Lease liabilities
19,816
13,368
22,262
3,521
58,967
49,283
Borrowings
61,794
60,593
816,240
—
938,627
757,079
Total
502,993
73,961
838,502
3,521
1,418,977
1,227,745
The amounts disclosed in the table are the maximum amounts allocated to the earliest period in which the guarantee could be
called. The parent entity does not expect these payments to eventuate.
121
Notes to the consolidated financial statements
Financial Report 2024
Group information
20
Business combinations
(a) Summary of acquisition
On 6 October 2023, the Group completed the acquisition
of DDH1 Limited (“DDH1”) and its subsidiaries by a scheme
of arrangement. The total consideration paid to DDH1
shareholders was $329.7 million for 100% of the shares.
DDH1 brings significant capability across a range of
specialised surface and underground drilling services that
complement Perenti’s existing service offerings. Perenti
will benefit from increased scale, synergies derived from
the amalgamated group and the ability to leverage the
operational and financial strengths of both companies.
Details of the purchase consideration and the net assets
acquired and liabilities assumed are as follows:
$'000
Purchase consideration
Ordinary shares issued (279,704,558
Perenti shares at $1.00 each)
279,705
Cash paid
50,011
Total purchase consideration
329,716
The amounts recognised in respect of the identifiable assets
acquired and liabilities assumed are as follows:
Fair value
$'000
Cash and cash equivalents
13,994
Trade and other receivables
101,793
Inventories
59,077
Other current assets
9,911
Financial assets
653
Property plant and equipment
291,148
Right-of-use assets
12,246
Intangible assets - customer contracts
13,211
Intangible assets - customer
relationships
17,436
Intangible assets - development assets
6,494
Trade and other payables
(53,357)
Provisions
(25,916)
Lease liabilities
(13,872)
Current tax liabilities
(923)
Deferred tax liabilities
(38,740)
Total net identifiable assets acquired
393,155
Perenti pre-existing contractual
arrangement (refer to note 20(d))
(38,000)
Gain on acquisition
(25,439)
Total consideration
329,716
The acquisition of DDH1 business resulted in a gain on
acquisition of $25.4 million as the fair value of assets
acquired, and liabilities assumed exceeded the total of the fair
value of consideration paid. The acquisition resulted in a gain
as the value of the ordinary shares issued as consideration for
the acquisition decreased from the date the acquisition was
announced on 26 June 2023 to the date the acquisition was
completed on 6 October 2023.
As part of the acquisition, an independent assessment by
external valuation experts determined the carrying value
of the property, plant and equipment and the intangible
assets relating to customer contracts, customer relationships
and development assets. Customer related intangibles and
development assets are being amortised in line with the
valuation assessment.
The gain on acquisition amount has been recognised under
“Other income” in the consolidated statement of profit or loss
for the year ended 30 June 2024.
(b) Status of acquisition accounting
The accounting for the acquisition of DDH1 has been finalised
as at the end of the reporting period with a final gain on
acquisition of $25.4 million, this is a $3.9 million decrease
from the provisional gain on acquisition and fair value of
acquired assets disclosed at 31 December 2023.
(c) Fair value measurement of purchase consideration
The ordinary shares issued as purchase consideration are
measured at fair value, being the closing price of Perenti
shares as at the acquisition date of 6 October 2023.
(d) Loan to DDH1 Limited - pre acquisition
On 5 October 2023, Perenti advanced $38.0 million to
DDH1 to allow DDH1 to repay its external debt and provide
working capital via an ongoing inter-company loan. As this
loan was advanced prior to the acquisition date of 6 October
2023, it was settled by the acquisition and the liability was
not included in the liabilities assumed, but considered in the
calculation of the gain on acquisition.
(e) Acquired receivables
The fair value of trade and other receivables was
$101.8 million and comprised of trade receivables of
$99.9 million and other receivables of $1.9 million.
The gross contractual amount for trade receivables
due was $101.7 million, of which $1.8 million is expected
to be uncollectible (and thus provided for).
(f) Acquisition related costs
Acquisition-related costs (recorded against Other expenses)
relating to the acquisition of DDH1 of $6.1 million were
expensed at 30 June 2024. Additionally, acquisition-related
costs of $5.9 million were incurred by DDH1 Limited pre-
acquisition but paid post-acquisition.
(g) Revenue and profit contribution
DDH1 contributed $402.4 million revenue and $23.2 million
to the Group’s profit before tax for the period between the
date of acquisition and the reporting date. If the acquisition of
DDH1 had been completed on 1 July 2023, Group revenues
for the year would have been $3,508.4 million and Group
profit before tax would have been $168.7 million. These
amounts were calculated using the subsidiaries’ results.
122
Perenti Annual Report 2024
(h) Net cash flow from acquisition
The net cash paid is as follows:
$'000
Cash consideration paid
(50,011)
Cash acquired
13,994
Net cash outflow - investing activities
(36,017)
The acquisition method of accounting is used to account
for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of the acquired
business
• equity interests issued by the Group
• fair value of any asset or liability resulting from a
contingent consideration arrangement, and
• fair value of any pre-existing equity interest in the
subsidiary.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the
acquisition date. The Group recognises any non-controlling
interest in the acquired entity on an acquisition-by-acquisition
basis either at fair value or at the non-controlling interest’s
proportionate share of the acquired entity’s net identifiable
assets.
Acquisition-related costs are expensed as incurred. The
excess of the: consideration transferred, amount of any non-
controlling interest in the acquired entity, and acquisition date
fair value of any previous equity interest in the acquired entity.
Over the fair value of the net identifiable assets acquired is
recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the subsidiary acquired,
the difference is recognised directly in profit or loss as a gain
on acquisition.
Where settlement of any part of cash consideration is
deferred, the amounts payable in the future are discounted to
their present value as at the date of exchange. The discount
rate used is the entity’s incremental borrowing rate, being
the rate at which a similar borrowing could be obtained
from an independent financier under comparable terms and
conditions.
Contingent consideration is classified either as equity or a
financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair
value recognised in profit or loss.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer’s previously
held equity interest in the acquiree is remeasured to fair value
at the acquisition date. Any gains or losses arising from such
remeasurements are recognised in profit or loss.
Under the acquisition method, the Group has up to
12 months post the acquisition date to finalise the fair values
of identifiable assets and liabilities.
123
Notes to the consolidated financial statements
Financial Report 2024
Name of entity
Country of
incorporation
and principal
place of business
Equity holding
2024
2023
%
%
Golden Plains Pty
Ltd *
Australia
100
100
Barminco Mining
Services Botswana
Proprietary Ltd
Botswana
100
100
MinAnalytical
Holdings Pty Ltd *
Australia
100
100
Logistics Direct Ltd
Ghana
100
100
Perenti UK Limited
UK
100
100
Power Solutions
Africa SARL
Senegal
100
100
Mining Technology
and Supplies Ltd
Ghana
100
100
Barminco Mining
Services Canada
Limited
Canada
100
100
Supply Direct Pty
Ltd (United Kingdom
Branch)*
United Kingdom
100
100
Barminco Finance Pty
Ltd *
Australia
100
100
Barminco Holdings
Pty Ltd *
Australia
100
100
Supply Direct South
Africa Pty Ltd *
Australia
100
100
Barminco Limited *
Australia
100
100
Supply Direct Pty
Ltd *
Australia
100
100
Synegex Holdings Pty
Ltd *
Australia
100
100
Barholdco (EIS) Pty
Ltd
Australia
100
100
Barminco Egypt LLC
Egypt
100
100
West African Mining
Services Ltd
Ghana
100
100
Barminco Egypt
Underground
Mining Services
SAE Investment
Commercial
Egypt
100
100
SLR Australia Pty Ltd
Australia
100
100
Barminco India
Holdings Pty Ltd
Australia
100
100
21
Subsidiaries
Name of entity
Country of
incorporation
and principal
place of business
Equity holding
2024
2023
%
%
African Mining
Services Burkina Faso
Sarl
Burkina Faso
100
100
African Mining
Services (Ghana) Pty
Ltd *
Australia
100
100
African Mining
Services Guinee SARL
Guinea
100
100
African Mining
Services Mali SUARL
Mali
100
100
African Mining
Services Senegal SARL
Senegal
100
100
Ausdrill (Ghana) Pty
Ltd *
Australia
100
100
ACN 103534087 Pty
Ltd *
Australia
100
100
African Mining
Services Cote D’Ivoire
SUARL
Cote d'Ivoire
100
100
African Mining
Services Ghana Ltd
Ghana
100
100
Perenti Group
Services Pty Ltd *
Australia
100
100
Perenti International
Pty Ltd *
Australia
100
100
Ausdrill Pty Ltd *
Australia
100
100
Perenti Properties Pty
Ltd *
Australia
100
100
Perenti Finance Pty
Ltd *
Australia
100
100
AMCG Ltd
Ghana
100
100
Perenti Holdings Pty
Ltd
Australia
100
100
Ausdrill Tanzania
Limited
Tanzania
100
100
Perenti Utilities Pty
Ltd *
Australia
100
100
BTP Equipment Pty
Ltd *
Australia
100
100
BTP Parts Pty Ltd *
Australia
100
100
Connector Drilling Pty
Ltd *
Australia
100
100
Ausdrill Mining
Surface Botswana
Proprietary Ltd
Botswana
100
100
Drill Rigs Australia Pty
Ltd *
Australia
100
100
124
Perenti Annual Report 2024
Name of entity
Country of
incorporation
and principal
place of business
Equity holding
2024
2023
%
%
Barminco India
Investments Pty Ltd
Australia
100
100
Barminco AUMS
Holding Pty Ltd *
Australia
100
100
Barminco Indian
Underground Mining
Services LLP
India
100
100
African Underground
Mining Services Ltd
Ghana
100
100
African Underground
Mining Services Ltd
Mali Sarl
Mali
100
100
African Underground
Mining Services
Burkina Faso Sarl
Burkina Faso
100
100
Barminco Mining
Services USA LLC
USA
100
100
Perenti USA Inc
USA
100
100
DDH1 Limited*
Australia
100
—
DDH1 Group Holdings
Pty Ltd*
Australia
100
—
DDH1 Holdings Pty
Ltd*
Australia
100
—
DDH1 Midco Pty Ltd*
Australia
100
—
DDH1 FinCo Pty Ltd*
Australia
100
—
DDH1 Drilling Pty Ltd*
Australia
100
—
Ranger Exploration
Drilling Pty Ltd*
Australia
100
—
Izett Holdings Pty Ltd
Australia
100
—
Swick Mining Services
Pty Ltd*
Australia
100
—
Strike Drilling Pty Ltd*
Australia
100
—
Swick Engineering
Pty Ltd
Australia
100
—
SMS Asset Holdings
Pty Ltd
Australia
100
—
SMS Operations Pty
Ltd*
Australia
100
—
Swick Mining Services
(Indonesia) Pty Ltd
Australia
100
—
Swick Mining Services
(Canada)
Canada
100
—
Swick Mining Services
(USA)
USA
100
—
Swick Drilling Europe
Ltd
UK
100
—
Swick Drilling
Portugal LDA
Portugal
100
—
Swick BH d.o.o
Bosnia
100
—
Swick Drilling
Portugal Unipessoal
LDA
Spain
100
—
Name of entity
Country of
incorporation
and principal
place of business
Equity holding
2024
2023
%
%
Orelogy Consulting
Pty Ltd
Australia
100
86
AUMS Geofields
Tanzania Limited
(formerly AUMS (T)
Limited)
Tanzania
88
96
Improvement
Resources Pty Ltd
Australia
86
86
idoba Pty Ltd
Australia
86
86
Sandpit Innovation
Pty Ltd
Australia
86
86
Spidler Technologies
Pty Ltd
Australia
86
86
Optika Solutions Pty
Ltd
Australia
86
86
Spidler Group Pty Ltd
Australia
86
86
Atomorphis Pty Ltd
Australia
86
86
BG Umoja Services
Limited
Tanzania
80
80
Underground Mining
Alliance Ltd
Ghana
70
70
AMAX Ltd
Ghana
60
60
Underground Mining
Alliance - Akyem Ltd
Ghana
60
—
* These subsidiaries have been granted relief from the necessity to
prepare financial reports in accordance with ASIC Corporations (wholly-
owned Companies) Instrument 2016/785. For further information refer
to note 23.
Underground Mining Alliance (UMA) is a 70/30 operation
between African Underground Mining Services Limited and
Rocksure International, a Ghanaian Mining contractor and has
been included in subsidiaries above.
Underground Mining Alliance - Akyem Ltd (UMA - Akyem)
is a 60/40 operation between African Underground Mining
Services Limited and Rocksure International, a Ghanaian
Mining contractor and has been included in subsidiaries
above.
BG Umoja Services Limited is a 80/20 operation between
Perenti International Pty Ltd, Barminco AUMS Holding Pty
Ltd and Geofields Tanzania Limited, a Tanzanian Mining
Contractor, and has been included in subsidiaries above.
AMAX Ltd is a 60/40 operation between African Mining
Services (Ghana) Pty Ltd and MAXMASS Ltd, a Ghanaian
Mining Contractor, and has been included in subsidiaries
above.
125
Notes to the consolidated financial statements
Financial Report 2024
22 Parent entity information
Summary financial information
The individual financial statements for the parent entity,
Perenti Limited, show the following aggregate amounts:
24
23
$’000
$’000
Balance sheet
Current assets
20,527
12,144
Non-current assets
1,156,609
931,331
Total assets
1,177,136
943,475
Current liabilities
105
—
Non-current liabilities
7,682
7,390
Total liabilities
7,787
7,390
Shareholders’ equity
Contributed equity
1,374,352
1,118,449
Reserves
Asset revaluation reserve
3,895
3,213
Non-controlling interest reserve
5,400
5,400
Share-based payments reserve
24,954
24,197
Accumulated losses - 2015 reserve
(183,177)
(183,177)
Accumulated losses - pre-2021
reserve
(78,556)
(78,556)
Retained earnings
22,479
46,559
Total equity
1,169,347
936,085
Loss for the period
(4,968)
(9,286)
Total comprehensive loss
(4,968)
(9,286)
Guarantees entered into by the parent entity
The parent entity has not entered into any guarantees during
the year (2023: nil).
However, there are cross guarantees given by Perenti Limited
as described in note 23. Net asset deficiencies exist in some of
the subsidiaries covered by the deed of cross guarantee.
Accumulated losses – reserves
Each reserve of the parent entity has the same nature and
purpose as described for the consolidated Group (in note 17).
In addition, the parent entity on 30 June 2020 and 30 June
2015 established separate reserves for the purpose of paying
future dividends. The reserves are referred to as “Accumulated
losses - 2020” and the “Accumulated losses - 2015 reserve”.
On the date of establishment, the “Accumulated losses -
2020” had an amount of ($78,556,000) transferred to it from
retained earnings and the “Accumulated losses - 2015 reserve”
had an amount of ($183,177,000) transferred to it from
retained earnings.
Recognition and measurement
Parent entity financial information
The financial information for the parent entity, Perenti Limited,
has been prepared on the same basis as the consolidated
financial statements, except as set out below:
•
Investments in subsidiaries, associates and joint venture
entities are accounted for at cost in the financial
statements of Perenti Limited.
•
Dividends received from associates are recognised in the
parent entity's profit or loss when its right to receive the
dividend is established.
Joint arrangements
Under AASB 11 Joint Arrangements, investments in joint
arrangements are classified as either joint operations or
joint ventures. The classification depends on the contractual
rights and obligations of each investor, rather than the legal
structure of the joint arrangement. Perenti Limited has only
joint ventures.
Joint ventures
Interests in joint ventures are accounted for using the
equity method, after initially being recognised at cost in the
consolidated statement of financial position.
Changes in ownership interests
The Group treats transactions with non-controlling interests
that do not result in a loss of control as transactions with
equity owners of the Group. A change in ownership interest
results in an adjustment between the carrying amounts of
the controlling and non-controlling interests to reflect their
relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and
any consideration paid or received is recognised in a separate
reserve within equity attributable to owners of Perenti Limited.
When the Group ceases to have control, joint control or
significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying
amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently
accounting for the retained interest as a joint venture or
financial asset. In addition, any amounts previously recognised
in other comprehensive income in respect of that entity
are accounted for as if the Group has directly disposed of
the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are
reclassified to profit or loss.
If the ownership interest in a joint venture is reduced, but
joint control or significant influence is retained, only a
proportionate share of the amounts previously recognised in
other comprehensive income are reclassified to profit or loss
where appropriate.
126
Perenti Annual Report 2024
23 Deed of cross guarantee
Perenti Limited and the entities identified with a ‘*’ in note 21
are parties to a deed of cross guarantee under which each
company has guaranteed the debts of the others. By entering
into the deed, the wholly-owned entities have been relieved
from the requirement to prepare a financial report and a
directors’ report under ASIC Corporations (wholly-owned
Companies) Instrument 2016/785.
24
23
$’000
$’000
Consolidated statement of profit
or loss
Revenue from continuing
operations
1,762,920
1,387,839
Other income
22,968
72,393
Materials expense
(481,637)
(433,983)
Labour costs
(851,658)
(682,487)
Rental and hire expense
(27,282)
(23,150)
Depreciation expense
(177,049)
(132,357)
Amortisation expense
(35,338)
(22,985)
Finance costs
(80,917)
(63,493)
Finance income
28,112
27,556
Other expenses from ordinary
activities
(180,405)
(138,631)
Loss before income tax
(20,286)
(9,298)
Income tax benefit
5,178
4,604
Loss for the year
(15,108)
(4,694)
Consolidated statement of
comprehensive income
Other comprehensive income
Loss for the year
(15,108)
(4,694)
Items that may be reclassified to
profit or loss
Exchange differences on
translation of foreign operations
(73,220)
(10,406)
Items that will not be reclassified
to profit or loss
Loss on revaluation of financial
assets FVOCI, net of tax
(279)
—
Other comprehensive loss for
the year, net of tax
(73,499)
(10,406)
Total comprehensive loss for
the year
(88,607)
(15,100)
Summary of movements in
consolidated retained earnings
Retained earnings at the beginning
of the financial year
295,573
300,267
Loss for the year
(15,108)
(4,694)
Dividends paid
(19,112)
—
Retained earnings at the end of
the financial year
261,353
295,573
The retained earnings transfer relates to movements in entities
entering or exiting the deed of cross guarantee.
On 10 May 2024, the following entities were added by
an assumption deed contemplated by the deed of cross
guarantee:
• DDH1 Limited
• DDH1 Group Holdings Pty Ltd
• DDH1 Holdings Pty Ltd
• DDH1 Midco Pty Ltd
• DDH1 FinCo Pty Ltd
• DDH1 Drilling Pty Ltd
• Ranger Exploration Drilling Pty Ltd
• Swick Mining Services Pty Ltd
• Strike Drilling Pty Ltd
• SMS Operations Pty Ltd
Consolidated statement of financial position
24
23
$’000
$’000
Current assets
Cash and cash equivalents
182,734
111,339
Trade and other receivables
379,026
284,842
Inventories
152,339
85,283
Current tax receivables
17,021
14,950
Total current assets
731,120
496,414
Non-current assets
Investments in other Perenti Group
companies
217,552
441,098
Receivables
366,244
305,320
Property, plant and equipment
766,964
474,945
Deferred tax assets
134,219
163,114
Right of use assets
29,344
35,481
Intangible assets
615,539
612,394
Total non-current assets
2,129,862
2,032,352
Total assets
2,860,982
2,528,766
Current liabilities
Trade and other payables
246,798
218,227
Borrowings
7,040
6,769
Lease liabilities
11,051
16,538
Current tax liabilities
16,215
15,089
Employee benefit obligations
83,573
59,128
Total current liabilities
364,677
315,751
Non-current liabilities
Borrowings
882,265
758,725
Lease liabilities
30,260
21,977
Deferred tax liabilities
34,266
39,002
Employee benefit obligations
10,742
5,229
Total non-current liabilities
957,533
824,933
Total liabilities
1,322,210
1,140,684
Net assets
1,538,772
1,388,082
Equity
Contributed equity
1,374,352
1,118,449
Reserves
(96,933)
(25,939)
Retained earnings
261,353
295,573
Total equity
1,538,772
1,388,082
127
Notes to the consolidated financial statements
Financial Report 2024
24 Related parties
Parent entity
The ultimate parent entity of the Group is Perenti Limited.
Key management personnel compensation
24
23
$
$
Short-term employee benefits
4,879,011
5,336,956
Post-employment benefits
194,922
154,908
Leave entitlements
27,954
119,125
Share-based payments
1,736,910
3,816,076
Total
6,838,797
9,427,065
Detailed remuneration disclosures are provided in the remuneration
report on pages 65 to 84.
Loans to related parties
24
23
$
$
Loans to key management
personnel
Balance at 1 July
188,622
186,039
Loan repayments made
(188,622)
—
Interest charged
—
10,062
Interest received
—
(7,479)
As at 30 June
—
188,622
Terms and conditions
Loans were extended to key management personnel (KMP)
on acquisition of Barminco group. The loans were made
on normal terms and conditions. The outstanding balances
were deducted from the final FY23 STI in October 2023,
representing the full and final settlement of all loans and
obligations. Interest was payable at rates of 4.52% to 7.77%
on outstanding loan balances.
25 Commitments and
contingencies
Capital commitments
Capital expenditure that was contracted at the end of the
reporting period but not recognised as liabilities:
24
23
$’000
$’000
Property, plant and equipment
Payable:
Within one year
81,266
160,950
Between one and two years
3,255
—
The capital commitments are to be funded from cash and available
finance facilities.
Contingent liabilities
In the course of business, liabilities may arise from different
events including contractual disputes, litigations and other
claims. The outcomes from these events cannot be predicted
or in the opinion of directors are without merit and therefore
no amounts have been disclosed.
For information about guarantees given by entities within the
Group, including the parent entity, please refer to note 23.
26 Events after the reporting
period
There are no matters or circumstances that have arisen since
the end of the financial year which significantly affected or
may significantly affect the operations of the Group, the
results of those operations, or the state of affairs of the Group
in subsequent financial years.
Other
128
Perenti Annual Report 2024
27 Auditor's remuneration
28 Share based payments
During the year the following fees were paid for services
provided by the auditor of the parent entity, its related
network firms and non-related audit firms:
PricewaterhouseCoopers Australia
24
23
$
$
(i) Audit and other assurance
services
Audit and review of financial
statements and other assurance
services
1,783,285
716,732
(ii) Taxation services
Tax compliance services
407,383
220,890
(iii) Other services
Advisory and accounting
consulting services
136,680
443,700
Total remuneration of
PricewaterhouseCoopers Australia
2,327,348
1,381,322
Network firms of PricewaterhouseCoopers Australia
(i) Audit and other assurance
services
Audit and review of financial
statements
780,722
621,331
(ii) Taxation services
Tax compliance services
358,532
281,038
(iii) Other services
Advisory and accounting
consulting services
44,805
12,346
Total remuneration of network
firms of PricewaterhouseCoopers
Australia
1,184,059
914,715
Total remuneration of
PricewaterhouseCoopers firms
3,511,407
2,296,037
Non PricewaterhouseCoopers audit firms
(i) Audit and other assurance
services
Audit and review of financial
statements
210,362
108,442
(ii) Taxation services
Tax compliance services
161,073
87,662
(iii) Other services
Advisory and accounting
consulting services
771,630
231,808
Total remuneration of non
PricewaterhouseCoopers Australia
1,143,065
427,912
It is the Group’s policy to employ PricewaterhouseCoopers
(PwC) on assignments additional to their statutory audit duties
where PwC's expertise and experience with the Group are
important. These assignments are principally tax advice and
due diligence reporting on acquisitions, or where PwC is
awarded work on a competitive basis.
Rights Plan
The Board had established an Incentive Rights Plan for eligible
employees holding senior executive and senior management
roles with a focus on delivering outcomes that create value
for shareholders. The plan allows for three different types
of incentive rights; retention rights, performance rights
and short-term incentive rights. Performance rights were
granted during the year and are accounted for as share
based payments. Participation under the plan is at the
Board’s discretion and no individual has a contractual right
to participate in the plan or receive any guaranteed benefits.
Rights granted for nil consideration under the plan carry no
dividend or voting rights.
Retention rights
Each retention right issued under the plan converts into
one ordinary share of Perenti Limited on exercise. During the
year ended 30 June 2024, no retention rights were granted
(30 June 2023: nil retention rights were granted). Retention
rights granted in 2022 were subject to performance hurdles
and vested on 31 December 2023.
Short-term incentive rights
Each short-term incentive right issued under the plan
converts into one ordinary share of Perenti Limited on
exercise. Certain Executives are invited to participate in
the plan.
Short-term incentive rights are based upon business
outcomes which comprise of both financial and non-financial
measures. The Board retains absolute discretion with respect
to the targets and outcomes assessed under the plan. The
short-term incentives vest 12 months after their grant date.
Performance rights
Each performance right issued under the plan converts
into one ordinary share of Perenti Limited on exercise.
Performance rights vest and become exercisable when the
applicable performance, service or other vesting conditions
specified at the time of grant are satisfied within
a predetermined performance period.
The performance period for the rights granted during
the year end 30 June 2024 will run from 1 July 2023 until
30 June 2026, (2023: 1 July 2022 until 30 June 2025). The
performance criteria for rights granted in FY24 are detailed
below:
• 50% of the performance rights will vest if the total
shareholder return (TSR) vesting condition is met which
is on a sliding scale based upon the TSR benchmark as
disclosed in the remuneration report;
• 30% of the performance rights will vest if the return on
equity (ROE) vesting condition is met which is calculated
on a sliding scale of ROE outcomes between 6.6% and
7.4% as disclosed in the remuneration report;
• 10% of the performance rights will vest if the strategic
initiative regarding a psychological safe work environment
is met; and
• 10% of the performance rights will vest if the strategic
initiative regarding reducing debt leverage to or less than
0.9 times EBITDA, excluding possible acquisitions, as
aligned to the Capital Management Policy introduced in
December 2021 is met.
129
Notes to the consolidated financial statements
Financial Report 2024
24
23
Set out below is a summary of
rights granted under the above
plans.
Number of
rights
Number of
rights
As at 1 July
36,029,106
23,678,643
Granted during the year
11,854,043
18,304,773
Forfeited during the year
(7,550,490)
(4,252,032)
Vested during the year
(7,683,216)
(1,702,278)
As at 30 June
32,649,443
36,029,106
There were 10,810,364 performance rights and 1,043,679
Short Term Incentive Rights granted during the year ended
30 June 2024 (30 June 2023: 16,663,302 performance rights
and 1,641,471 Short Term Incentive Rights).
The weighted average remaining contractual life of rights
outstanding at the end of the year was 0.91 years (30 June
2023: 1.18 years). The weighted fair value of rights granted
during the year is $0.68 (30 June 2023: $0.91).
An independent third party valuer provided a valuation report
with the following inputs used to determine the fair value of
rights at the grant date:
Right
Grant date
Performance
period end date
Share price
grant date
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fair value
grant date
Performance - ROACE
9 Apr 2021
30 June 2023
1.13
64.00
6.19
0.12
0.99
Performance - TSR
9 Apr 2021
30 June 2023
1.13
64.00
6.19
0.12
0.62
Performance - ROACE
28 May 2021
30 June 2023
0.67
67.00
10.53
0.08
0.54
Performance - TSR
28 May 2021
30 June 2023
0.67
67.00
10.53
0.08
0.21
Retention
13 May 2022
31 Dec 2023
0.74
—
2.70
—
0.71
Performance - TSR
13 May 2022
30 June 2024
0.69
65.23
2.90
2.64
0.45
Performance - ROE
13 May 2022
30 June 2024
0.69
65.23
2.90
2.64
0.65
Performance - Others
13 May 2022
30 June 2024
0.69
65.23
2.90
2.64
0.65
Short Term Incentive Plan
10 Oct 2022
10 Oct 2023
0.94
—
2.93
—
0.91
Short Term Incentive Plan
14 Oct 2022
14 Oct 2023
1.01
—
2.74
—
0.98
Performance - TSR
14 Oct 2022
30 June 2024
1.01
65.81
2.74
3.32
0.75
Performance - ROE
14 Oct 2022
30 June 2024
1.01
65.81
2.74
3.32
0.96
Performance - Others
14 Oct 2022
30 June 2024
1.01
65.81
2.74
3.32
0.96
Performance - TSR
14 Oct 2022
30 June 2025
1.01
65.81
2.74
3.32
0.75
Performance - ROE
14 Oct 2022
30 June 2025
1.01
65.81
2.74
3.32
0.85
Performance - Others
14 Oct 2022
30 June 2025
1.01
65.81
2.74
3.32
0.85
Performance - TSR
20 Mar 2023
30 June 2025
1.08
57.69
3.29
2.84
0.85
Performance - ROE
20 Mar 2023
30 June 2025
1.08
57.69
3.29
2.84
1.00
Performance - Others
20 Mar 2023
30 June 2025
1.08
57.69
3.29
2.84
1.00
Short Term Incentive Plan
13 Oct 2023
13 Oct 2024
1.05
—
3.73
—
1.01
Short Term Incentive Plan
14 Dec 2023
14 Dec 2024
1.02
—
3.73
—
0.98
Performance - TSR
13 Oct 2023
30 June 2026
1.05
50.41
3.73
3.96
0.61
Performance - ROE
13 Oct 2023
30 June 2026
1.05
50.41
3.73
3.96
0.95
Performance - Others
13 Oct 2023
30 June 2026
1.05
50.41
3.73
3.96
0.95
Performance - TSR
19 Jan 2024
30 June 2026
0.91
49.76
3.73
3.91
0.40
Performance - ROE
19 Jan 2024
30 June 2026
0.91
49.76
3.73
3.91
0.83
Performance - Others
19 Jan 2024
30 June 2026
0.91
49.76
3.73
3.91
0.83
130
Perenti Annual Report 2024
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions
recognised during the period as a part of employee benefit
expense were:
24
23
$’000
$’000
Rights issued under employee
rights plan
8,432
12,531
The total amount to be expensed for share-based payments is
determined by reference to the fair value at grant date, which
includes any market performance conditions and the impact
of any non-vesting conditions but excludes the impact of
any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions
about the number of options or rights that are expected to
vest. The total expense is recognised over the vesting period.
At the end of each reporting period, the Group revises its
estimate of the number of equity instruments expected to
vest based on non- market vesting conditions. The impact of
the revision of the original estimates, if any, is recognised in
profit or loss such that the cumulative expense reflects the
revised estimates, with a corresponding adjustment to the
share-based payments reserve.
Key estimate: Share based payments
Significant judgement is required in determining the
achievement of non-market conditions.
The fair value at grant date is independently determined
using a Monte Carlo simulation or an amended Black Scholes
Merton methodology valuation model. The fair value at the
grant date of the equity settled share-based payments is
expensed on a straight-line basis over the vesting period,
based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity.
At the end of each reporting period, the Group revises its
estimate of the number of equity instruments expected to
vest based on non-market vesting conditions. The impact of
the revision of the original estimates, if any, is recognised in
profit or loss such that the cumulative expense reflects the
revised estimates, with a corresponding adjustment to the
share-based payments reserve.
29 Other accounting policies
New or amended Accounting Standards and
Interpretations adopted by the Group
The Group has adopted all of the new, revised or amending
Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) that are
mandatory for the current reporting period:
• AASB 17 Insurance Contracts,
• AASB 2021-2 Amendments to Australian Accounting
Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates,
• AASB 2021-5: Amendments to Australian Accounting
Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction, and
• AASB 2023-2 Amendments to Australian Accounting
Standards - International Tax Reform - Pillar Two Model
Rules. The Group has yet to account for any deferred
taxes arising from the OECD’s Pillar Two Model Rules
and has thus applied the mandatory exception effective
immediately. Pillar Two legislation has been enacted or
substantively enacted in certain jurisdictions in which the
Group operates. The legislation will be effective for the
Group’s financial year beginning 1 July 2024. The Group
has performed an assessment of the Group’s potential
exposure to Pillar Two income taxes. This assessment is
based on the most recent information available regarding
the financial performance of the constituent entities in the
Group. Based on the assessment performed, no material
exposure to Pillar Two Top-Up taxes is expected to arise in
any of the jurisdictions in which the group operates, and
management is not currently aware of any circumstances
under which this might change.
The amendments listed above did not have any impact on the
amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
Impact of standards issued but not yet adopted by
the Group
Certain new accounting standards and interpretations have
been published that are not mandatory for the 30 June 2024
reporting period and have not been early adopted by the
Group. The Group is assessing impact of the new standards,
however does not expect to have a material impact on the
Group in the current or future reporting periods and on
foreseeable future transactions. The adoption of IFRS 18
will require the Group to make changes to its Consolidated
Statement of Profit and Loss in the financial year beginning
1 July 2027.
Climate change
The International Sustainability Standards Board (“ISSB”)
issued the first IFRS Sustainability Disclosure standards -
IFRS S1 General Requirements for Disclosure of Sustainability-
related Financial Information and IFRS S2 Climate-related
Disclosures on 26 June 2023. The standards are effective
from 1 July 2024 and it is expected that the Australian
Accounting Standards Board (“AASB”) will develop broader
sustainability-related reporting standards, in which
requirements and standards would most likely align with
the ISSB Standards.
The Group strategy focuses on reducing operational
greenhouse gas (GHG) emissions, investing in low emissions
technologies, supporting emissions reductions in our supply
chain, managing climate-related risk and opportunity,
and working in partnership to reduce emissions. Refer to
Sustainability section for further details.
The Group has assessed the impact of climate risk on its
financial reporting. The impact assessment principally focuses
on key judgement areas, being the valuation and useful lives
of intangible and tangible assets and the identification and
valuation of provisions and contingent liabilities. No material
accounting impacts or changes to judgements or other
required disclosures have resulted from the assessment. While
the assessment did not have a material impact for the year
ended 30 June 2024, this may change in future periods as the
Group regularly updates its assessment of the impact of the
lower carbon economy.
131
Consolidated entity disclosure statement
Financial Report 2024
As at 30 June 2024
Name of entity
Type of entity
Trustee,
partner or
participant
in JV
% of
share
capital
Place of
business/
country of
incorporation
Australian
resident
or
foreign
resident
Foreign
jurisdiction(s)
of foreign
residents
Perenti Limited
Body corporate
-
n/a
Australia
Australia
n/a
African Mining Services Burkina
Faso Sarl
Body corporate
-
100
Burkina Faso
Foreign
Burkina Faso
African Mining Services (Ghana)
Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
African Mining Services Guinee
Sarl
Body corporate
-
100
Guinea
Foreign
Guinea
African Mining Services Mali
SUARL
Body corporate
-
100
Mali
Foreign
Mali
African Mining Services Senegal
SARL
Body corporate
-
100
Senegal
Foreign
Senegal
Ausdrill (Ghana) Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
ACN 103534087 Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
African Mining Services Cote
D'Ivoire SUARL
Body corporate
-
100
Cote d'Ivoire
Foreign
Cote d'Ivoire
African Mining Services Ghana
Ltd
Body corporate
JV
participant
100
Ghana
Foreign
Ghana
Perenti Group Services Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Perenti International Pty Ltd
Body corporate
JV
participant
100
Australia
Australian
n/a
Ausdrill Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Perenti Properties Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Perenti Finance Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
AMCG Ltd
Body corporate
-
100
Ghana
Foreign
Ghana
Perenti Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Ausdrill Tanzania Limited
Body corporate
-
100
Tanzania
Foreign
Tanzania
Perenti Utilities Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
BTP Equipment Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
BTP Parts Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Connector Drilling Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Ausdrill Mining Surface Botswana
Proprietary Ltd
Body corporate
-
100
Botswana
Foreign
Botswana
Drill Rigs Australia Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Golden Plains Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Barminco Mining Services
Botswana Proprietary Ltd
Body corporate
-
100
Botswana
Foreign
Botswana
MinAnalytical Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Logistics Direct Ltd
Body corporate
-
100
Ghana
Foreign
Ghana
Perenti UK Limited
Body corporate
-
100
UK
Foreign
UK
Power Solutions Africa SARL
Body corporate
-
100
Senegal
Foreign
Senegal
Mining Technology and Supplies
Ltd
Body corporate
-
100
Ghana
Foreign
Ghana
Barminco Mining Services
Canada Limited
Body corporate
-
100
Canada
Foreign
Canada
Barminco Finance Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Barminco Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Supply Direct South Africa Pty
Ltd
Body corporate
-
100
Australia
Australian
n/a
Barminco Limited
Body corporate
-
100
Australia
Australian
n/a
Supply Direct Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Synegex Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Barholdco (EIS) Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Barminco South Africa Pty Ltd
Body corporate
-
100
South Africa
Foreign
South Africa
Barminco Egypt LLC
Body corporate
-
100
Egypt
Foreign
Egypt
West African Mining Services Ltd
Body corporate
-
100
Ghana
Foreign
Ghana
Barminco Egypt Underground
Mining Services SAE Investment
Commercial
Body corporate
-
100
Egypt
Foreign
Egypt
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
132
Perenti Annual Report 2024
As at 30 June 2024
Name of entity
Type of entity
Trustee,
partner or
participant
in JV
% of
share
capital
Place of
business/
country of
incorporation
Australian
resident
or
foreign
resident
Foreign
jurisdiction(s)
of foreign
residents
SLR Australia Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Barminco India Holdings Pty Ltd
Body corporate
Partner
100
Australia
Australian
n/a
Barminco India Investments Pty
Ltd
Body corporate
Partner
100
Australia
Australian
n/a
Barminco AUMS Holding Pty Ltd
Body corporate
JV
participant
100
Australia
Australian
n/a
Barminco Indian Underground
Mining Services LLP
Partnership
-
100
India
Foreign
India
African Underground Mining
Services Ltd
Body corporate
JV
participant
100
Ghana
Foreign
Ghana
African Underground Mining
Services Ltd Mali Sarl
Body corporate
-
100
Mali
Foreign
Mali
African Underground Mining
Services Burkina Faso Sarl
Body corporate
-
100
Burkina Faso
Foreign
Burkina Faso
Barminco Mining Services USA
LLC
Body corporate
-
100
USA
Foreign
USA
Perenti USA Inc
Body corporate
-
100
USA
Foreign
USA
DDH1 Limited
Body corporate
-
100
Australia
Australian
n/a
DDH1 Group Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
DDH1 Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
DDH1 Midco Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
DDH1 FinCo Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
DDH1 Drilling Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Ranger Exploration Drilling Pty
Ltd
Body corporate
-
100
Australia
Australian
n/a
Izett Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Swick Mining Services Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Strike Drilling Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Swick Engineering Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
SMS Asset Holdings Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
SMS Operations Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Swick Mining Services (Indonesia)
Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
Swick Mining Services (Canada)
Inc.
Body corporate
-
100
Canada
Foreign
Canada
Swick Mining Services (USA) Inc.
Body corporate
-
100
USA
Foreign
USA
Swick Drilling Europe Ltd
Body corporate
-
100
UK
Foreign
UK
Swick Drilling Portugal LDA
Body corporate
-
100
Portugal
Foreign
Portugal
Swick BH d.o.o
Body corporate
-
100
Bosnia
Foreign
Bosnia
Orelogy Consulting Pty Ltd
Body corporate
-
100
Australia
Australian
n/a
AUMS Geofields Tanzania Limited
(formerly AUMS (T) Limited)
Body corporate
-
88
Tanzania
Foreign
Tanzania
Improvement Resources Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
idoba Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
Sandpit Innovation Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
Spidler Technologies Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
Optika Solutions Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
Spidler Group Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
Atomorphis Pty Ltd
Body corporate
-
86
Australia
Australian
n/a
BG Umoja Services Limited
Body corporate
-
80
Tanzania
Foreign
Tanzania
Underground Mining Alliance Ltd
Body corporate
-
70
Ghana
Foreign
Ghana
AMAX Ltd
Body corporate
-
60
Ghana
Foreign
Ghana
Underground Mining Alliance -
Akyem Ltd
Body corporate
-
60
Ghana
Foreign
Ghana
Basis of preparation
The consolidated entity disclosure statement (CEDS) has been prepared in accordance with subsection 295(3A)(a) of the
Corporations Act 2001. The entities listed in the statement are Perenti Limited and all the entities it controls in accordance with
AASB 10 Consolidated Financial Statements.
133
Financial Report 2024
Directors’ declaration
In the directors’ opinion:
(a) the financial statements and notes set out on pages 89 to 130 are in accordance with the Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its performance for
the financial year ended on that date, and
(b) the consolidated entity disclosure statement on pages 131 and 132 is true and correct, and
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable, and
(d) at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed Group
identified in note 23 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of
the deed of cross guarantee described in note 23.
Page 95 confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Mark Norwell
Managing Director and Chief Executive Officer
Director
Perth
19 August 2024
134
Perenti Annual Report 2024
Independent Auditor’s Report to the members
135
Independent Auditor’s Report to the members
Financial Report 2024
136
Perenti Annual Report 2024
137
Independent Auditor’s Report to the members
Financial Report 2024
138
Perenti Annual Report 2024
Shareholder information
a.
Distribution of equity securities
Analysis of numbers of equity security holders by size of holding as at 5 August 2024:
Ordinary shares
Holding
Number of
Holders
Shares
% of shares
on issue
1 - 1,000
3,369
1,560,807
0.2
1,001 - 5,000
3,603
9,407,545
1.0
5,001 - 10,000
1,461
11,151,025
1.2
10,001 - 100,000
2,391
70,682,936
7.6
100,001 and over
292
839,957,432
90.1
11,116
932,759,745
100.0
There were 1,682 holders of less than a marketable parcel of 282,666 ordinary shares as at 5 August 2024.
b.
Equity security holders
The names of the twenty largest holders of quoted equity securities as at 5 August 2024 are listed below:
Ordinary shares
Name
Number held
Percentage of
issued shares (%)
1. HSBC Custody Nominees (Australia) Limited
255,886,610
27.43
2. J P Morgan Nominees Australia Pty Limited
130,409,022
13.98
3. Citicorp Nominees Pty Limited
112,641,376
12.08
4. DDH1 Holdings Singapore Pte Ltd
55,913,236
5.99
5. Bremerton Pty Ltd
26,005,640
2.79
6. Nebraska Pty Ltd
26,005,640
2.79
7. Western Alloys Pty Ltd
22,833,472
2.45
8. BNP Paribas Noms Pty Ltd
15,944,524
1.71
9. National Nominees Limited
13,930,452
1.49
10. HSBC Custody Nominees (Australia) Limited-GSI EDA
9,624,708
1.03
11. Citicorp Nominees Pty Limited
7,988,157
0.86
12. Purple Dragon Holdings Pty Ltd
6,932,213
0.74
13. Pacific Custodians Pty Limited
6,554,641
0.70
14. NBP Paribas Nominees Pty Ltd
6,413,548
0.69
15. HSBC Custody Nominees (Australia) Limited
5,472,204
0.59
16. Morgan Stanley Australia Securities (Nominee) Pty Limited
5,325,801
0.57
17. Mr BG Wright + Mrs WJ Wright
5,051,035
0.54
18. HSBC Custody Nominees (Australia) Limited - A/C 2
5,013,593
0.54
19. CTS Funds Pty Ltd
5,009,748
0.54
20. Moore Life Investments Pty Ltd
4,620,713
0.50
Total held by the twenty largest shareholders
727,576,333
78.01
Unquoted equity securities
Number on issue
Number of holders
Rights issued under the Employee Incentive Rights Plan
32,649,443
72
c.
Substantial holders
Substantial holders in the Company are set out below as at 24 July 2024:
Ordinary Shares
Number held
Percentage (%)
1. DDH1 Holdings Singapore
55,913,236
6.00
2. Dimensional Fund Advisors
48,351,081
5.20
d.
Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a)
Ordinary shares: every member present at a meeting of the Company in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
(b)
Options: no voting rights.
(c)
Rights: no voting rights.
139
Perenti Annual Report 2024
Shareholder information
Glossary of terms
TERM/ACRONYM
DEFINITION/MEANING
AASB
Australian Accounting Standards Board
ABAC
Anti-bribery and anti-corruption
AIFR
All injury frequency rate calculated as the number of incidents resulting in a work-related
injury with a minimum of first aid treatment per million hours worked
Climate scenario analysis
Evaluation of various potential future scenarios using climate model projections to assess the
potential impacts of climate change on businesses to aid in risk management and strategic
planning.
CO2 equivalent (CO2-e)
The universal unit of measurement to indicate the global warming potential (GWP) of each
GHG, expressed in terms of the GWP of one unit of carbon dioxide (CO2). It is used to
evaluate releasing (or avoiding releasing) different GHGs against a common basis
Direct emissions
Emissions from sources that are owned or controlled by a reporting company
Downstream emissions
Indirect greenhouse gas emissions generated during the use, disposal, and distribution of
products or services.
ESG
Environment, social and governance
GBV
Gender-based violence
GEC
Group Executive Committee
GHG (greenhouse gas)
emissions
For Perenti reporting purposes, these are the aggregate anthropogenic carbon dioxide
equivalent (CO2-e) emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O).
Hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and
Nitrogen trifluoride (NF3) GHG emissions are currently not relevant for Perenti reporting
purposes
Grid
A system of power transmission and distribution lines under the control of a coordinating
entity or ‘grid operator’, which transfers electrical energy generated by power plants to
energy users also called a ‘power grid’.
HESTA 40:40 Vision
An initiative led by HESTA Super Fund supported by industry partners, to pursue diversity in
executive leadership in ASX300 companies.
HSE
Health, Safety and Environment
HSE Central
Perenti’s centralised HSE information system
ICMM
International Council on Mining and Metals
IFRS
International Financial Reporting Standards
Injury
Temporary or permanent damage to tissue, muscle or bone typically caused by an
identifiable incident.
Indirect emissions
Emissions that arise from Perenti’s activities, but occur at sources owned or controlled by
another company
IPCC
Intergovernmental Panel on Climate Change
ISSB
International Sustainability Standards Board
Local employment
Employment of country Nationals (locals) from within the country the worksite is located.
Does not include third country Nationals.
Local expenditure
Refers to the purchasing of goods or services from a supplier registered or based within the
same country as the operation.
LPG
Liquified petroleum gas
LTIFR
Lost time injury frequency rate calculated as the number of work-related injuries resulting in
one or more days away from work per million hours worked
MOU
Memorandum of understanding
Net zero
Reducing GHG emissions to zero or a residual level consistent with reaching a scenario that
limits global warming to 1.5°C, and then neutralizing any residual emissions at the net zero
target date.
Operational boundaries
The boundaries that determine the direct and indirect emissions associated with operations
owned or controlled by the reporting company
Operational control approach
A consolidation approach whereby a company accounts for 100 per cent of the GHG
emissions over which it has operational control.
OTR
Offroad tyre recovery
PGF
Perenti Governance Framework
140
Perenti Annual Report 2024
TERM/ACRONYM
DEFINITION/MEANING
Physical risks
Adverse effects to natural and built environments resulting from the changing climate,
including events like extreme weather, sea-level rise, and temperature fluctuations.
Renewable energy certificates
(REC)
Contractual instrument used to purchase energy that represents the environmental attributes
of a specific amount of renewable energy generated within the grid.
SBTi
Science-based target initiative
Scope 1 emissions
Scope 1 emissions are direct GHG emissions from operations that are owned or controlled
by a reporting company.
Scope 2 emissions
Scope 2 emissions are indirect GHG emissions from the generation of purchased or acquired
electricity, steam, heat or cooling that is consumed by operations that are owned or
controlled by a reporting company.
Scope 2 (location-based)
GHG calculation methodology where scope 2 emissions are based on the average emissions
factor for the grid from which the organisation purchases electricity.
Scope 2 (market-based)
GHG calculation methodology which goes beyond the location-based approach by taking
into consideration any specific renewable energy certificates (RECs) or carbon offsets that
are purchased in the reporting year.
Scope 3 emissions
Scope 3 emissions are all other indirect GHG emissions (not included in Scope 2) that occur
in a reporting company’s value chain.
Scope 3 category
One of the 15 types of Scope 3 emissions defined by the Scope 3 Standard
SDG
United Nations Sustainable Development Goal
Senior Leader
Vice Presidents, General Managers and Department Heads
Steering Group
A Perenti Group Executive Committee sponsored group comprising key internal stakeholders
for providing guidance, oversight and strategic direction for Perenti’s sustainability priorities
SPIFR
Serious potential injury frequency rate calculated as the number of incidents with a risk
consequence of either major or critical per million hours worked
SMP
Sustainability Management Plan
STIP
Short-term incentive plan
TCFD
Taskforce on Climate-related Financial Disclosure
TCS
Tjiwarl Contracting Services
TNDC
Tahltan Nation Development Corporation
TNFD
Taskforce on Nature-related Financial Disclosure
Transition risks
Risks which can arise from the process of adjusting to a lower carbon economy, usually
categorised under policy, legal, market and reputation risks.
TRIFR
Total recordable injury frequency rate calculated as the number of work-related recordable
injuries per million hours worked. Recordable injuries include medical treatment, restricted
work, lost time and fatality classifications.
TSA
Tyre Stewardship Australia
Upstream emissions
Indirect GHG emissions from purchased or acquired goods and services.
141
Perenti Annual Report 2024
Glossary
perenti.com
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CREATING
ENDURING VALUE
AND CERTAINTY