Macmahon Locks in $98M Two-Year Extension at Daisy Milano Gold Mine
Key Takeaways
- Macmahon's wholly owned subsidiary has been awarded a two-year contract extension at the Daisy Milano Gold Mine worth approximately $98 million in revenue.
- The extension runs through to the end of October 2028, with Vault Minerals Limited (ASX: VAU) as the counterparty.
- Scope covers mine development, charging, and load and haul services — the same core work already underway since 2024, meaning no new mobilisation costs.
- Macmahon confirmed FY27 financial guidance and capital expenditure budgets remain unchanged, signalling disciplined capacity management.
- Extensions at existing sites carry lower execution risk than new contract wins, making this a high-quality addition to the secured order book.
Macmahon locks in two-year, $98m extension at Daisy Milano
Macmahon Holdings (ASX: MAH) has announced that its wholly owned subsidiary, Macmahon Underground Pty Ltd, has been awarded a two-year contract extension at the Daisy Milano Gold Mine in the Kalgoorlie region of Western Australia, with the extension expected to generate approximately $98 million in revenue. The counterparty is Vault Minerals Limited (ASX: VAU), and the contract now runs through to the end of October 2028. Macmahon confirmed that its FY27 guidance and capital expenditure budget remain unchanged.
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What the extension covers
Macmahon has been delivering underground mining services at Daisy Milano since 2024, making this a continuation of an established client relationship rather than a new mobilisation. The extension covers the same core scope already in place.
- Scope: Mine development, charging, and load and haul services
- Contract duration: Two years
- Revenue contribution: Approximately $98 million
- Contract end date: End of October 2028
- Client: Vault Minerals Limited (ASX: VAU)
- Location: Kalgoorlie region, Western Australia
| Detail | Value |
|---|---|
| Contract value | ~$98 million |
| Extension term | Two years |
| Contract end date | October 2028 |
| Scope | Mine development, charging, load and haul |
| Client | Vault Minerals Limited (ASX: VAU) |
Why underground mining contracts matter to investors
For a mining services company, the secured order book is the closest thing to guaranteed future revenue. When a client extends an existing contract rather than retendering, it signals satisfaction with operational performance and reduces the risk of a revenue gap appearing in the forward schedule.
Extensions at existing sites also carry lower mobilisation costs than new contract wins, since the equipment, workforce, and site knowledge are already in place. That makes them high-quality additions to the backlog. Macmahon operates across surface mining, underground mining, and civil infrastructure throughout Australia, New Zealand, and Southeast Asia, giving the business exposure to resources, public infrastructure, and renewables projects.
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Daisy Milano strengthens Macmahon’s order book
The extension adds to Macmahon’s secured order book without requiring any revision to FY27 financial guidance or the capital expenditure budget, pointing to disciplined capacity management. Managing Director and Chief Executive Officer Michael Finnegan commented on the result:
Michael Finnegan, Managing Director and Chief Executive Officer
“This outcome reflects the professionalism, capability and commitment of our people on site, who have consistently delivered safe and reliable operational performance while supporting the ongoing success of the operation. Daisy Milano is an important project within our underground portfolio. We look forward to continuing to work closely with the Vault team over the next two years.”
Macmahon describes itself as a contractor of choice across resources, non-resources, public infrastructure, and renewables projects, with the Daisy Milano extension adding further weight to that positioning in the underground mining segment.
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