Diversified mining group Perenti Global [ASX:PRN] has been performing well in recent months. Today, the diverse mining corporation sought to lay out its most recent revenue and operations update, with a briefing on its current strategies.
PRN was trading for $1.23 at the time of writing, having risen 5.5% in morning trade.
Over the last 52 weeks, the mining stock has accrued in value by more than 77%, and its higher than the market average by 72%:
Source: TradingView
Perenti Global ups revenue expectations and briefs on strategy
Perenti announced a positive business outlook with higher expectations for revenue and earnings. It described some of its current and future strategies in a business update for investors.
The diverse minerals and metals miner had previously forecast its revenue to be in the range of $2.8 billion–$2.9 billion, but now it is looking more towards the higher end of those expectations. PRN had officially upgraded its revenue guidance to $2.9 billion in the current fiscal year.
Earnings before interest and tax (EBIT) were also upgraded to a higher range — now sitting within the expectation of between $260 million–$265 million — with some leveraging of 1.0 times expenditure expected around $330 million.
Perenti aims to deliver FY24 guidance with the release of its full FY23 financial ad operational results, which won’t be until August. However, it did share some of its qualitative FY24 targets, which included:
- FY24 revenue will be in-line with FY23
- FY24 EBIT(A) growth on FY23 EBIT(A)
- FY24 capital expenditure slightly higher than FY23
- FY24 free cash flows will be stronger than FY23
- FY24 leverage will be <1.0 times
Perenti says it is making progress against its 2025 strategy and has updated its 2025 targets and capital management policy.
As a result, Perenti has updated its FY25 revenue target from $2.5 billion to $3.0 billion while all other FY25 targets remain unchanged.
CEO of Perenti, Mark Norwell said:
‘With the end of FY23 only weeks away, we expect the positive momentum built up in FY23 to continue and are targeting for FY24 will be a third consecutive year of earnings growth, margin expansion and a strengthening balance sheet.
‘In addition, an important component of our 2025 Strategy update last year was the introduction of our focus to embedding sustainability in everything we do.
‘Today, we are taking this commitment a step further by outlining our sustainability imperatives and priorities.
‘We view these as strategic enablers and a key differentiator for our business that will guide the work we do, underpin the future value that we expect to generate and shape the company we become.’
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