The Medallion Metals Ltd (ASX: MM8) share price is in focus after the company secured Macmahon Underground as the preferred tenderer for its Ravensthorpe Gold Project's underground mining contract. The contract is valued at approximately $240 million over three years, delivering around $20 million in savings compared to feasibility study estimates.
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What did Medallion Metals report?
- Macmahon selected as preferred tenderer for Ravensthorpe underground mining contract
- Estimated contract value of $240 million over 36 months, commencing Q4 2026
- Feasibility Study cost reduced by $20 million compared to previous contractor pricing
- Box-cut excavation at Ravensthorpe to commence in August, with mine development now fully permitted
What else do investors need to know?
Development at the Kundip Mining Centre is underway, with key contracts for power supply, earthworks, and surface infrastructure close to being awarded. Medallion is refurbishing the accommodation camp in Ravensthorpe, utilising surplus rooms from the Cosmic Boy camp.
Upgrades at Forrestania, including process plant refurbishment and the arrival of secondary ball mill equipment, are advancing ahead of planned toll treatment for third-party gold material. Relocation of mine infrastructure from Spotted Quoll and Forrestania aims to enhance schedule certainty and reduce costs for the Ravensthorpe project.
What did Medallion Metals management say?
Managing Director Paul Bennett said:
The selection of Macmahon as preferred tenderer represents another important milestone as the Company advances the Ravensthorpe development. The tender process was highly competitive and attracted strong interest from experienced underground mining contractors. Macmahon brings significant underground mining capability and experience, and we believe they are best placed to safely and efficiently deliver the mine plan at Ravensthorpe which is key to the success of the business. Macmahon's competitive pricing, flexibility and recognition of the unique attributes of the Ravensthorpe development were the determining factors for our preferred tenderer selection. Importantly, Feasibility assumptions are proving robust. We look forward to finalisation of contract documents and mobilisation to site for the commencement of underground mining at Ravensthorpe. This is an excellent outcome for the project and, together with development activities now underway, provides further confidence in our development plan as we progress towards production.
What's next for Medallion Metals?
Looking ahead, Medallion intends to finalise contract documents with Macmahon and commence underground mining at Ravensthorpe in Q4 2026. The company is progressing with the installation of key infrastructure and contract awards, keeping the project on track with development timelines and cost targets.
Ongoing infrastructure relocation and plant upgrades across project sites are expected to generate further savings and support efficient ramp-up toward gold production. Investors will likely keep an eye on future contract finalisations and operational milestones.
Medallion Metals share price snapshot
Over the past 12 months, Medallion Metals shares have risen 91%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 3% over the same period.
