Perenti narrows earnings expectations after two deaths at Botswana’s Khoemacau copper mine

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Cheyanne EncisoThe West Australian
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Perenti now expects a FY22 revenue of $2.4 billion.
Camera IconPerenti now expects a FY22 revenue of $2.4 billion. Credit: Unknown/Barminco

WA-based mining services company Perenti has trimmed its earnings expectations following the death of two workers at the Khoemacau Zone 5 copper mine in Botswana.

Barminco, a wholly-owned subsidiary of Perenti, is the lead underground mining contractor for Khoemacau at the mine in Ghanzi, a district in the western part of the country. A further two employees were injured in the incident on Saturday and remain in hospital under observation.

Having recently completed a review of its forecast results in light of continued labour and supply constraints, and taking into account the potential impact of the Zone 5 incident, Perenti said it now expects 2021-22 revenue to come in at the upper end of previous guidance at $2.4 billion.

But it trimmed its forecast for earnings before interest, tax and amortisation to between $170 million and $175m compared to previous expectations of $165m to $185m

Perenti said it has also deferred a strategy update, which was due to be held this month.

Shares in the company were down 0.7 per cent at 70¢ as at 9.30am.

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