Perenti Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks One of Australia's largest underground mining service operators, with a modestly diversified service offering. Potential loss of business during commodity downcycles. Prudent financial policies. Capital-intensive operations, reflecting the nature of mining services. Sizable contract book with counterparty diversity. Material exposure to high-risk jurisdictions, including West Africa. This reflects our view that the company will maintain its margins across its mining service contracts, resulting in earnings growth, and fund its capital expenditure (capex) with operating cash flow. We project a ratio of adjusted gross debt to EBITDA of below 1.0x for fiscal 2026-2027 (year-end June 30). Perenti has been benefiting from favorable gold prices since 2021-2022. While the

...Perenti Ltd.'s credit metrics will strengthen over the next 12-18 months. This reflects our view that the company will maintain its margins across its mining service contracts, resulting in earnings growth, and fund its capital expenditure (capex) with operating cash flow. We project a ratio of adjusted gross debt to EBITDA of below 1.0x for fiscal 2026-2027 (year-end June 30). Perenti has been benefiting from favorable gold prices since 2021-2022. While the company is not directly exposed to commodity prices, its gold-focused clients are more likely to increase production when gold prices are high. We believe this boosted the company's revenue and earnings in the past few years, since gold represents Perenti's highest commodity exposure....

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