Mitchell get Anglo American contract extension

Mitchell Services has announced that it has entered into a material variation in relation to its underground in-seam (UIS) drilling contract with Anglo American.
Mitchell get Anglo American contract extension Mitchell get Anglo American contract extension Mitchell get Anglo American contract extension Mitchell get Anglo American contract extension Mitchell get Anglo American contract extension

Mitchell Services has had its contract with Anglo American extended

Duncan Moore

Editor

Duncan Moore

Under the varied terms, the Mithell will provide up to six UIS rigs and will provide specialist underground coal drilling and gas drainage services at Anglo American sites, Grosvenor and Moranbah North. The variation has also resulted in the extension of the contract expiry date, with the revised expiry date under the variation now 31 December 2021 with a further two-year extension option available.

While Mitchell anticipates significant long-term revenue and EBITDA benefits as a result of this extension and scope increase, it notes that, given the timing of the variation, the expected start date of the additional rigs and the anticipated level of associated ramp up, the variation is not likely to have a material impact on the recently provided FY19 revenue and EBITDA guidance numbers of $110m-$120m and $21m -$23m respectively.

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