Lycopodium Ltd Wins Preferred EPC Role With A$6M Katanning Early Works Deal

Lycopodium secures preferred EPC role and A$6.0M early works deal on Katanning Gold Project

Lycopodium Limited (ASX: LYL) has been named the preferred Engineering, Procurement and Construction (EPC) contractor for Ausgold Limited’s Katanning Gold Project in Western Australia. The Perth-headquartered engineering group has also been awarded an Early Works Agreement valued at approximately A$6.0 million to commence detailed engineering activities.

The mandate positions the firm to help deliver a major greenfield gold development in its home state. Key project anchors include a planned Final Investment Decision (FID) targeted by the end of 2026 and first gold production anticipated in mid-2028.

What the early works agreement covers

The A$6.0 million early works package covers the preparatory engineering and planning work required to support an efficient transition into full project delivery. In plain terms, it front-loads the technical groundwork before the client commits to building the mine.

The agreement includes:

• Progression of detailed engineering

• Optimisation of project execution planning

• Refinement of construction methodologies

• Purchase of vendor data for procurement packages

Early works of this kind help de-risk the move into full delivery ahead of a Final Investment Decision. It typically serves as a foothold that precedes a larger EPC contract award, giving the contractor an established position on the project.

It is important to note that the full EPC contract value has not been disclosed in the announcement. The A$6.0 million figure relates only to the early works agreement, not to any subsequent full-scope contract.

Inside the Katanning Gold Project

The Katanning Gold Project is located 275 kilometres south-east of Perth and 40 kilometres north-east of the wheatbelt town of Katanning. The scope encompasses engineering, design, procurement, construction and commissioning of a conventional processing plant and associated infrastructure.

The associated non-process infrastructure includes:

• 11kV power reticulation

• Water supply

• Tailings pipeline and decant return

According to Managing Director and CEO Peter De Leo, the development represents “one of Western Australia’s largest undeveloped gold resources.” The ore is expected to be mined through a series of open pits over an initial 10-year mine life.

Educational: What being the “preferred EPC contractor” means

An EPC contractor handles the engineering, procurement and construction of a project under a single point of responsibility. For a mining project, this means designing the plant, sourcing the equipment and materials, and building the facility through to commissioning.

Being named the “preferred contractor” signals the client’s intent to work with that firm. It precedes a binding full contract, which typically follows a positive Final Investment Decision, when the project owner formally commits capital to construction.

An Early Works Agreement allows preparatory engineering and planning to begin before that final commitment. Miners use these agreements to advance a project’s readiness ahead of FID without waiting for the full contract to be signed.

For investors, this positions Lycopodium as the front-runner for a much larger contract award should Ausgold reach a positive FID. Such an outcome could offer meaningful revenue visibility, though no full contract value has been disclosed at this stage.

Why this matters for Lycopodium investors

The mandate reinforces Lycopodium’s core Resources-sector EPC franchise on home soil in Western Australia. Delivering a greenfield gold project from its Perth base aligns closely with the company’s established engineering capabilities.

The early works fees provide near-term engineering revenue while the project advances towards FID. The preferred contractor status also creates a pipeline path towards a potential full EPC contract, subject to Ausgold reaching a positive Final Investment Decision.

The conversion from early-stage involvement to full execution mandate is a pattern Lycopodium has demonstrated elsewhere in its portfolio: the Tulu Kapi Gold Project in Ethiopia saw the company progress from delivering the original feasibility study through to securing a A$118 million ESLH contract, with first gold also targeted for mid-2028.

CEO Commentary

“The Katanning Gold Project represents one of Western Australia’s largest undeveloped gold resources, and as a Perth-headquartered company, we are extremely pleased to have been given the opportunity to deliver this significant greenfield gold project right here in WA.”

Peter De Leo, Managing Director & CEO, Lycopodium Limited

Timeline and next steps

The forward roadmap sets out a clear sequence of milestones for investors to monitor:

1. Commence detailed engineering under the A$6.0 million early works agreement (now)

2. Ausgold’s planned Final Investment Decision, targeted by the end of 2026

3. Transition into full project delivery following FID

4. First gold production anticipated in mid-2028

The FID by the end of 2026 stands as the key catalyst investors should watch. A positive decision would convert the preferred status into full-scale delivery work, though the outcome and any associated contract values remain subject to Ausgold’s decision.

About Lycopodium

Lycopodium is a global provider of integrated engineering, project, construction and asset management solutions, operating across the Resources, Rail Infrastructure and Industrial Processes sectors. The company maintains offices in Australia, Canada, USA, Argentina, Brazil, Peru, South Africa, Namibia, Tanzania, Ghana and the Philippines.

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