Azzet reports on three ASX with notable trading updates today.
Perenti rises on another $1bn-plus contract
Shares in Perenti Global (ASX: PRN) were up around 5% at the open after the mining services company announced a $1.1 billion contract that commences on 1 June 2025.
Under the contract, Perenti will deliver underground mining services to gold mines in Burkina Faso (formerly the Republic of Upper Volta) operated by a subsidiary of London and Toronto-listed Endeavour Mining (TSE: EDV).
The contract relates to an agreement between African Underground Mining Services Burkina Faso SARL (UMS) — a joint venture between Perenti subsidiary Barminco Holdings and Dynamic Mining Supply — and Endeavour subsidiary SEMAFO Burkina Faso.
Contracted for five years from 1 June 2025, UMS is expected to complete underground development, production, and other associated mining services. The company is targeting the Siou and Wana prospects of the Mana complex, which contains “high-grade” gold within the Houndé Greenstone Belt of Burkina Faso.
UMS has been delivering underground mining and related support services at Mana since 2018.
Commenting on today’s update, Perenti CEO Mark Norwell told the market that the contract is consistent with guidance for FY25 and will strongly contribute to FY26 and beyond.
“Our team continually delivers exceptional value for our clients, and this is clearly demonstrated by this long-term contract for expanded operations at the Mana complex,” he said.
Today’s announcement follows several milestone announcements earlier this year.
Last week Perenti won a $1 billion contract with AngloGold Ashanti (NYSE:AU) for underground mining services in Ghana.
In May, Perenti won a $500 million gold mining contract with Gold Fields Ltd (JO:GFIJ).
In April the company decided to exit a six-year copper contract at the Khoemacau copper mine in Botswana which was no longer adding up financially.
Perenti Global has a market cap of $1.5 billion; the share price is up 62% in one year and up 17% year to date.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Strong Buy.
The current price is $1.64.
Brickworks soars on takeover plans
Shares in Brickworks (ASX: BKW) were up 20% at the open following revelations that the building products manufacturer is being ‘merged’ with diversified investment house Washington H. Soul Pattinson and Company (ASX: SOL).
Under the agreement – which has been in the works for over a decade - Brickworks shareholders will receive 0.82 shares in the new entity called TopCo for every Brickworks share they hold.
This values Brickworks shares at $30.28 each, which represents only a 10.1% premium to their last close and a 21.9% premium to their three-month VWAP.
Soul Patts shareholders will receive one new share for every existing share they own.
Once the merger is complete, Soul Patts shareholders will own around 72% of the new company, while Brickworks shareholders will hold around 19% and new TopCo shareholders will own the remainder.
Ending 56 years of cross shareholding between the two entities, the merger will trigger $250 million in costs - $200 million alone related to stamp duty charges.
Given that Brickworks shareholders are being offered a 10% premium to Friday's closing pricing, Stephen Mayne shareholder activist and founder of Crikey views today’s announcement as more of a takeover than a merger.
Mayne also notes that only one 1 of the 4 independent Brickworks directors is being offered a seat on the new company board.
Today’s corporate activity puts paid to what Mayne described as "undemocratic control exercised over both companies by billionaire chair Robert Millner.”
As a result, the company’s future can now be determined by the wider investment community.
“The structure did prevent either company being taken over in an era of increasing foreign ownership and privatisation of long-standing ASX listed names such as CSR, Blackmores, Crown, Adbri, Invocare and Newcrest,” Mayne noted.
Brickworks has a market cap of $5 billion; the share price is up 27% over one year and up 22% in the last week.
The stock is currently trading at $33.50.
Soul Pattinson has a market cap of $15 billion; the share price is up 33% in one year, up 21% year to date and up 12% today.
The stock is trading at $41.61.
Bluescope soars on Trump tariff salvo
Bluescope Steel (ASX: BSL) was among the handful of stocks pushing the ASX higher today with the steelmaker receiving an updraft in the wake of U.S. President Donald Trump’s latest tariff manoeuvres.
The stock was nudging double-digit gains at the open after Trump announced plans to double the U.S. tariff on steel to 50% on 4 June, which would provide a welcome boost to the company’s U.S.-based steel operations.
Accounting for around half of the company’s annual profits, BlueScope’s U.S. operations include the North Star steel mill in Ohio, which produces around 3 million tonnes of steel annually.
To put the significance of the U.S. operation in context, it is around 10 times the amount of steel BlueScope exports to the U.S. from its Australian operations at Port Kembla.
Trump’s latest tariff call on steel is expected to put North Star in a prime position to win more business.
According to John Ayoub portfolio manager with Wilson Asset Management, North Star is well-positioned to capitalise on Trump’s latest call on tariffs.
“These structural tailwinds will ultimately be a winner for BlueScope, against the short-term headwinds created by the noise,” he said.
Jarden analyst Rohan Gallagher also expects BlueScope to benefit from the Trump administration’s trade policies because of its U.S. footprint.
Ten years ago BlueScope paid US$720 million to move to 100% ownership of the North Star mill, buying out the remaining 50% stake from US firm Cargill.
Based on the OECD’s latest report, subsidies were distorting a global market where extra capacity of up to 7% was due to come on line by 2027.
Much of the new supply is expected to come from China where subsidies are running at 10 times the level of OECD countries.
“Excess capacity is also undermining investment in steel decarbonisation. While many firms are pursuing decarbonisation technologies, progress is uneven due to limited access to renewable energy and high-grade ore,” the OECD said.
Bluescope has a market cap of $10.6 billion; the stock is up 14% over one year and up around 30% year-to-date.
The stock appears to be in a long-term uptrend, as confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
